Underlying1, 2 net profit grew by 48% to
Underlying return on tangible equity of 16.4% for 2022, compared to 10.6% in 2021
Further increased operating leverage with underlying operating income up by 6.4% to
Underlying cost/income ratio improved to 75.4% from 79.9% in 2021
Net new assets1 totalled
Assets under Management declined to
IFRS net profit of
Strong capital positions, with a CET1 ratio of 16.6% and a Total Capital Ratio of 20.5% on
Successful completion of the 2019-2022 strategic plan
Commenting on EFG's strategic priorities and outlook, he said: 'We have entered our new strategic cycle 2023-2025 from a position of strength and are executing our plan with confidence. In this new cycle, we aim to maintain our strong growth trajectory and to further increase profitability and efficiency. We will focus on accelerating digitalisation, content innovation and continuing to invest in our people to help drive our performance. Our ambition is to provide attractive returns for our shareholders by further transforming the bank to constantly meet our clients' needs in a rapidly evolving environment.'
Maintained growth momentum with net new assets of
Net new assets totalled
The Continental Europe &
Revenue-generating Assets under Management decreased to
Based on average revenue-generating Assets under Management of
EFG's unique business model continued to attract senior Client Relationship Officers (CROs) with sizable portfolios. In 2022, EFG hired 58 new CROs, bringing the total number of CROs to 654 (excluding EFG's Australian subsidiary
Strong underlying operating results with underlying net profit up 48% to
In 2022, EFG's underlying operating income increased by 6.4% to
Underlying net interest income increased by 58.0% compared to 2021 to
Underlying net banking fee and commission income decreased by 16.8% year on year to
Underlying net other income rose by 31.4% to
As a result of disciplined cost management, underlying operating expenses of
In 2022, EFG continued to generate significant operating leverage, as underlying operating income grew by 6.4% while underlying operating expenses remained stable. As a result, underlying operating profit for 2022 increased by 30.9% to
After recognising provisions of
The underlying return on tangible equity increased to 16.4% in 2022 from 10.6% in 2021.
EFG resolves longstanding legacy issue and will cease to report underlying results
Under the terms of the settlement, EFG will make payments totalling
Following the successful resolution of this issue, coupled with the continuous de-risking of the life insurance portfolio, EFG will simplify its financial reporting and will cease to report underlying results with effect from
Resilient IFRS net profit of
EFG's IFRS net profit for 2022 decreased by 1.7% year on year to
IFRS net profit for 2022 includes the following non-underlying items:
Gain from EFG's legacy life insurance portfolio of
Legal costs and provisions relating to legacy matters of
Intangible amortisation charge
Significantly strengthened capital position
In 2022, EFG maintained its robust capital position on the back of strong underlying gross organic capital generation of 320 basis points. At end-2022, EFG's Common Equity Ratio (CET1) was 14.7%, compared to 15.8% at end-2021. This decrease was primarily due to the negative revaluation of EFG's fixed income investment portfolio recognised through other comprehensive income. EFG's Total Capital Ratio was 18.6%, compared to 21.5% at end-2021, following the redemption of the remaining outstanding Tier 2 Notes in
Following the reclassification of a portfolio of financial assets from 'financial assets measured at fair value through other comprehensive income' to 'other financial assets measured at amortised cost', which was announced on
Proposed 25% increase in dividend to
Providing attractive returns for its shareholders is a strategic priority for EFG and the bank is committed to a progressive dividend policy which is supported by its capital-light business model and strong organic capital generation.
For the year 2022, the payment of an ordinary dividend of
At the same time, and in light of its strong capital position, and to reduce the dilution of existing shareholders, EFG has decided to repurchase up to 3.0 million EFG shares by
Successful completion of 2019-2022 strategic plan
In 2022, EFG successfully completed its 2019-2022 strategic plan. EFG achieved an annual net new asset growth rate of 4.7% for the period 2019-2022, within its target range of 4-6%. The underlying revenue margin was 91 basis points for the second half of 2022 and the underlying cost/income ratio for full-year 2022 was 75.4%, compared to a revenue margin target of 85 basis points and an underlying cost/income ratio target range of 72-75%. The underlying return on tangible equity in 2022 was 16.4%, compared to a target of >15%.
Since 2018, EFG has almost tripled its IFRS net profit, while fundamentally transforming the bank and substantially de-risking its legacy positions. In aggregate, EFG recorded
EFG has entered its new strategic cycle 2023-2025 from a position of strength and will focus on sustaining profitable growth and achieving scale. To reach this ambition, EFG will accelerate digitalisation to improve the client and user experience, as well as enhancing operational efficiency, and drive its performance through content innovation to constantly meet evolving client needs.
Alongside EFG's unique client approach, the key factor that sets the bank apart is its people. As a financial services provider, EFG's employees are its most important asset and their skills and expertise are a vital part of how EFG creates value for clients and shareholders. EFG will therefore continue to invest in attracting and retaining the best talents and foster a culture in which they can thrive.
As announced at Investor Day in
Average annual net new asset growth rate of 4-6% for the period 2023-2025
Revenue margin of 85 basis points
Cost/income ratio of 69%
Return on tangible equity of 15-18%
As part of EFG's 2023-2025 strategic plan, a new long-term incentive plan (LTIP) for senior management will be proposed to the Annual General Meeting on
Leadership changes in Investment Solutions
Effective
On an ad interim basis and reporting to the CEO
Changes to the
Effective
In addition, EFG is pleased to announce that
Annual Report 2022 and additional material
This media release, the full-year 2022 results presentation, the Annual Report for 2022 and the Sustainability Publication are available at efginternational.com and can be accessed directly and downloaded as a PDF via the following links:
Full-year 2022 financial results presentation
2022 Annual Report
2022 Sustainability Publication
1 Alternative performance measures and Reconciliations: This media release and other communications to investors contain certain financial measures of historical and future performance and financial position that are not defined or specified by IFRS, such as 'net new assets', 'Assets under Management', 'operating profit', 'underlying net profit', 'underlying cost/income ratio', 'cost/income ratio', 'underlying revenue margin', 'revenue margin', 'Liquidity Coverage Ratio' and 'Loan/Deposit Ratio'. These alternative performance measures (APM) should be regarded as complementary information to, and not as a substitute for the IFRS performance measures. The definitions of APM used in this media release and other communications to investors, together with reconciliations to the most directly reconcilable IFRS line items, are provided in the section headed 'Alternative performance measures' of the 2022 Annual Report available at efginternational.com/investors/financial-results.html.
2 Underlying results, such as 'underlying net profit' or 'underlying operating expenses', are not defined or specified by IFRS and should be regarded as complementary information to, and not as a substitute for the IFRS performance measures. For a definition of these non-IFRS performance measures, together with reconciliations to the most directly reconcilable IFRS line items, please refer to the section headed 'Alternative Performance Measures' of the 2022 Annual Report available at efginternational.com/investors/financial-results.html.
3 Excluding FTE's on notice period or in social plan; Including Shaw and Partners.
4 The following section refers to underlying results only. Underlying results are not defined or specified by IFRS and should be regarded as complementary information to, and not as a substitute for the IFRS performance measures. For a definition of these non-IFRS performance measures, together with reconciliations to the most directly reconcilable IFRS line items, please refer to the section headed 'Alternative Performance Measures' of the 2022 Annual Report available at efginternational.com/ch/investors/financial-results.html
5 Underlying - Excluding impact of acquisition-related intangible amortisation, legacy legal costs and provisions and impact of life insurance portfolio.
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