Net new money at EFG International increased by 1.7 percent in the first nine months of 2019. Assets under management amounted to 150.7 billion Swiss francs ($152 billion) at the end of September, according to a statement on Wednesday.

Profitability was under pressure in the third quarter because of the low interest environment and lower-than-average activity by clients. Still, net new money increased by 4.2 percent in the second and third quarter, indicating a recovery following a slow first quarter.

Adding Staff to Cope With Growth

EFG accelerated the hiring of new client relationship officers. A total of 157 such members of staff have either started working for the bank, have signed a contract or have had their position approved in principal in the nine months through September. In average years, the bank adds some 75 to 100 relationship managers.

EFG needs new members of staff to cope with the expansion of its business after adding Dubai as a new market in October and having added Portugal to the portfolio in the summer.

Further Cost Savings Needed

The bank is on course to meet the targets set for 2022, the company said. It needs to improve efficiency by implementing further cost-cutting measures, through an optimization of procedures and by cutting expenses for material.

The measures will help the bank finance its growth strategy and help achieve a cost-income-ratio of 72 to 75 percent. In 2018, the ratio was 82.9 percent, three points below the ratio of 2017.

Reorganization of Divisions

The bank also reported that it will merge global markets with the treasury division, creating what will be called the global markets and treasury division. Kurt Haueter (pictured below), the head of the treasury, will take charge of the new division.

EFG also appointed Haueter as a member of the global business committee and executive board of the bank. Maurizio Moranzoni, head of global markets, will retire at the end of the year.

Haueter will report to Dimitris Politis, the chief financial officer, support the business development initiatives and the global private client business.