EFG private bank to restructure after "missteps"

Zurich private bank EFG International has announced restructuring plans and an expected loss for 2011.

This content was published on October 18, 2011 - 12:01 and agencies

It will be focusing more on its “profitable” private banking and address underperforming areas, the company said in a statement on Tuesday. This year will see a loss due to restructuring charges of around SFr50 million ($55.4 million).

The company said “strengths have been obscured in recent years by various missteps, including investments in non-private banking activities; overly ambitious targets; and sub-optimal cost management”.

Staff will be cut by up to 15 per cent over 18 months according to the plans. Savings will amount to SFr35 million a year.

Offices in Sweden, Canada, Dubai and Abu Dhabi have already been or are in the process of being closed.

CEO John Williamson said: “We have drawn a line under past mistakes and are resetting the business, improving cost effectiveness and positioning it for future growth based on what we do best: private banking.”

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