Q1: Private banks in Asia have faced a number of challenges in 2024, from uncertainty around interest rate cuts in the US to volatile markets and geopolitical tensions. Considering this background, how did you safeguard AUM and revenue streams in 2024, while also attracting net new assets? What will your strategy be in 2025?

We anticipate that the financial markets will remain volatile with uncertainty arising from geopolitical, economic and social shifts. Banks need to be able to navigate the challenging political and economic environments in order to better serve their clients.

Our client relationship officers (CROs) have built long-term, trust-based relationships with clients. This client-centric approach is aligned with our core values and plays a vital role in safeguarding our client’s wealth.

Throughout the year, we successfully executed our strategic plan, resulting in notable business growth. The CROs we hired last year have contributed significantly to our net new assets in Asia Pacific across locations in the first half of 2024. Additionally, our existing CROs also contributed to net asset growth.

In response to interest rate cuts, we offered tailored investment recommendations aligned with our clients’ diverse risk and return profiles. For instance, we advised locking in higher yields through structured products and fixed income instruments while ensuring downside protection. We also encouraged investments in sectors and companies poised to benefit from these rate cuts.

Diversification remains a fundamental investment strategy that we emphasise to mitigate market volatility and geopolitical risks. We advise clients to avoid over-concentration in any single market or sector, maintaining a balanced portfolio. Furthermore, we recommend increasing exposure to alternative investments, which typically exhibit low correlation to broader market trends.

Looking ahead to 2025, we are committed to helping our clients achieve long-term sustainable capital growth while implementing robust risk management strategies to safeguard their wealth against potential downturns.

Q2: How are you advising clients in terms of investment opportunities in 2025? Which markets and asset classes will provide the best opportunities? And how can clients balance leveraging these opportunities while managing risks to their portfolios?

We firmly believe in the importance of diversification as a fundamental investment strategy, particularly in today’s evolving economic landscape.

Globally, equities have experienced a substantial rise, with markets largely overlooking various election risks throughout 2024. The clarity of the US election results has alleviated significant political uncertainty. Consequently, we anticipate continued positive momentum in global equities as we approach 2025, bolstered by seasonal trends and growing optimism surrounding the soft-landing narrative in the US President-elect Trump is well-positioned to fulfil his economic policy commitments, supported by a Republican-controlled Congress, which may yield benefits for US companies in the coming months.

Looking ahead, we expect that key risks from the current year will persist, including uncertainties surrounding interest rate trends and geopolitical tensions.

Q3: In 2024, the private banking industry witnessed organisational restructurings, leadership reshuffles, as well as heavyweight departures. Looking forward, what are the priorities for your private bank in terms of attracting and retaining talent across the front, middle, and back office? What measures do you have in place for managing personnel transitions?

In Asia Pacific we made significant investments last year to expand our talent base and client coverage. We were able to hire a number of experienced CROs, which delivered significant growth in the first half of 2024. As we are committed to client service excellence, we have hired not just CROs but also support staff in various departments across functions. This successful hiring highlights the benefits of our focused business model, high brand recognition and strong standing in local markets.

Our strong presences in Hong Kong and Singapore are key to seizing the opportunities that wealth creation in Asia keeps providing. At the same time, EFG is renowned for its client-centricity and unique CRO model which is attractive to senior bankers.

Q4: The wealth management industry is increasingly subject to oversight and regulation, with this issue once again being brought into the spotlight with high-profile compliance breaches in the last couple of years. How are you addressing regulatory challenges while minimising the impact on clients?

Maintaining a strong compliance culture and adherence to regulatory requirements is a core foundation of EFG’s strategic plan. In fact, a strong risk management and regulatory compliance framework are a prerequisite to generating profitable and sustainable growth. This is achieved through multiple avenues including tone from the top, ongoing training and engagement with staff and CROs. Good culture and enhancements to address new regulatory challenges are ultimately benefitting clients and all other stakeholders.

Q5: The wealth management industry is increasingly subject to oversight and regulation, with this issue once again being brought into the spotlight with high-profile compliance breaches in the last couple of years. How are you addressing regulatory challenges while minimising the impact on clients?

The Middle East, and especially the UAE, has seen an increase in wealthy individuals and multi-family offices that request a wide range of private banking services. As a global private banking group, EFG is able to offer its clients in the Middle East a variety of booking centres.

At EFG, we offer our support to UHNWI, HNWI and IAMs in the Middle East, including through a direct presence with an advisory branch in Dubai. Our clients can get access to a full range of services and products including asset management, wealth planning and sharia-compliant products.

Q6: Much hype has been made about the transformative potential of artificial intelligence. What opportunities does AI present to your financial institution, and how does it fit into a broader strategy of technological upgrade and digitisation?

Artificial Intelligence holds immense potential in the financial services industry, with capabilities to streamline operations, increase productivity, enhance client experience, and drive innovation. Currently, we are exploring this technology and working on its development to fully use its capabilities.

Q7: Trillions of dollars of wealth are expected to be passed down to the next generation of clients in Asia over the coming years, bringing into the spotlight services targeted at next-generation clients. What is your bank doing to ensure it captures the full potential of this opportunity, whether via content, outreach, or solutions like family office and wealth planning?

Indeed, we are seeing the largest inter-generational transmission of wealth in history – a phenomenon known as the ‘Great Wealth Transfer’. According to the World Economic Forum, it is expected there will be almost US$85 trillion in assets set to change hands over the next 20 years. This is a very complex area and, in many cases, involves much more than just the transfer of money; it looks at core family values, legacy planning, and asset protection.

At EFG, all aspects are addressed in our strong wealth planning proposition. Wealth planning is an important cornerstone of EFG’s comprehensive offering and has been central to every EFG relationship for many years. We have built a deep reservoir of expertise in wealth planning covering among other things wealth structuring options, liquidity planning solutions and family office discussions. We regularly prepare publications on relevant topics, speak at seminars and hold client/internal events to keep our clients updated on wealth planning developments and potential solutions.

The wealth planning team at EFG is both local and global, having key members based in Asia, Switzerland, the US and the UK that can handle the challenges of an increasingly global dynamic among wealthy families and their wealth and investments spread across multiple jurisdictions.

EFG also has a trust company within the group called EFG Wealth Solutions, a licensed trust company in Singapore with its headquarters in Jersey, where we can offer bespoke wealth structuring options to our clients – including trusts, foundations and private funds.