Restructuring charges and provisions of CHF46m, net goodwill and intangibles impairment of CHF223.8m ($247m) and a negative currency impact relating to a subsidiary of CHF10m ($11m), were reported by EFG.
Swiss private banking group’s underlying net profit before the exceptional charges was CHF83.5m ($92.5m), compared to a baseline of CHF110m ($121.8m) as forecasted in October last year.
EFG International CEO John Williamson said the bank’s underlying performance during 2011 highlighted the detailed business review embarking on various steps to reset the business, including reducing the number of locations from 50 to 32.
"We have also moved quickly, so as to ensure that our focus in 2012 is on driving the business forward. The devotion of time and resources impacted growth during the second half, but good progress has been made in sharpening focus and reducing costs", said Williamson.
According to the financial result, its revenue-generating assets under management were CHF78.4bn ($86.8bn) at the end of December 2011, down from CHF84.8bn ($93.9bn) previous year.
For the year ended 31 December 2011, its operating income was CHF763.2m ($845m) down 6%, while its operating expenses were CHF713.7m ($790.6m) down 1% compared to last year.
The bank has made strong progress in resetting the business, which will deliver a net financial benefit of CHF35m ($38.7m), to be realized in part in 2012 and in full from 2013.
