EFG Bank results prove positive for the first half

How do you evaluate EFG’s results in the first six months of this year?

The evaluation on the half-year results is very positive, considering also the particular period in which they are framed, marked by the coronavirus. Our business model has proven to be solid and competitive. We have improved our profitability. There are still shadows deriving from the pressure on operating margins, but overall the performance was very good and, in some respects, superior to our own expectations ».

After the announcement of the data, the EFG stock fell on the Zurich Stock Exchange, closing the session at -5%, with the SMI index essentially stable. For what reasons was this descent, in your opinion?

It is possible that there were also profit taking on the stock exchange, that is, gains made by investors who have seen our stock rise sharply in recent months. It may also be that some investors are afraid of decreases in operating margins, although they do not sufficiently consider all the positive aspects of our results. Beyond the day’s fluctuations on the stock exchange, we are satisfied and we look at the results as a whole and in a medium-long term perspective.

At a group level, what is the situation and what are the prospects?

As regards the workforce, the reduction plan linked to the integration of the BSI has now been implemented. Our relations with the social partners are excellent, the 2017 social plan had ended and we renewed it. The improvement of efficiency and the containment of costs are always our objectives, but it is not said that this necessarily means new reductions in the workforce, it depends on the specific situations. At the same time, we also make assumptions for business development. We are acting on general and administrative expenses, with automation and centralization. We also rationalize our network, we will divest operations in France (Oudart) and Chile, we will transfer Guernsey operations to our other booking centres.

At the base of your activities is the management of private and institutional assets. Are you now focusing exclusively on growth through internal lines, or are you also thinking of other possible acquisitions?

We are in a phase of growth of our activities and we plan to grow mainly internally, both because the acquisitions are never easy to implement, and because in this phase, marked by the coronavirus, the difficulties also on this level are greater. Having said that, in principle we remain open to new purchases, should interesting opportunities arise and in line with our strategic plan. In the meantime, we have increased our share in the Australian Shaw and Partners, purchased last year, from 51% to 61%; we also have an option to get up to 75% of the company in 2021.

How are EFG’s activities going in particularily in Switzerland and Ticino?

We are very satisfied with the progress of our activities in Switzerland, including Ticino. Also in these first six months of 2020 the results on the Swiss market are good, on all the squares where we are present. Ticino, then, remains our largest location globally. We have a significant market share in Ticino and some important functions for our group are in Lugano. Furthermore, we must not forget the relationship between the Ticino square and the Italian market which, despite the complications linked to the lack of free access, still remain important.

In this phase of coronavirus, telematic work, even from home, has taken off. How much of the work organisation of this period in your group will remain in the future?

I think that the changes of recent months in the organization of work, made necessary by the coronavirus and implemented thanks to new technologies, are destined to also mark the future, although it is not possible to say exactly to what extent. Thanks to the investments in technologies made previously, we were ready and we saw that digital solutions and telematic work, with a significant part of collaborators in home working mode, allowed the regular performance of all activities, as well as a good interaction between colleagues and customers. Productivity has not fallen, indeed in some situations it has increased and this greater flexibility experienced will guide our reflections on how to organise work in the future. When the virus is completely eradicated,