“EFG International delivered a record net profit of CHF 325.2 million in 2025, marking a modest 1% increase from the previous year, even as a significant litigation provision related to a long-standing legacy case weighed on results. Strong net new assets of CHF 11.3 billion—the highest since the global financial crisis—drove assets under management to a peak of CHF 185 billion, while operating profit surged 26% and the cost/income ratio improved, underscoring resilient client inflows and disciplined cost management amid challenging provisions.”
EFG International Delivers Resilient Performance in Challenging Environment
EFG International, the Zurich-based private banking and asset management group, reported solid full-year results for 2025 that highlighted its ability to navigate headwinds while achieving record levels in several key metrics. The bank’s IFRS net profit reached CHF 325.2 million, reflecting a 1% rise compared to CHF 321.6 million in 2024. This incremental growth came despite a notable drag from exceptional items, particularly a litigation provision booked in December.
The primary headwind stemmed from a legacy legal matter involving allegations related to a Kuwait public pension fund case ongoing in a UK court. EFG recorded a provision of approximately CHF 59.5 million (with total provisions around CHF 86.5 million for the year, including related items). This charge was partially mitigated by a one-off insurance recovery of CHF 45.4 million recognized earlier in the year. Excluding these exceptional items, the bank’s underlying net profit stood stronger at CHF 339.3 million, up 6% year-over-year, demonstrating the core operational momentum.
Profit before tax climbed 3.5% to CHF 394.7 million, supported by robust revenue generation and tighter expense control. Operating income advanced significantly, reaching record levels driven by higher net banking fee and commission income alongside other revenue streams. The revenue margin remained resilient at around 98 basis points, reflecting stable pricing power in a competitive private banking landscape.
Operating expenses increased by 6% to approximately CHF 1.17 billion, with a portion of the rise attributable to the integration of strategic acquisitions such as Cité Gestion and the Investment Services Group, which contributed about 2.4 percentage points to the growth. Despite this, the cost/income ratio improved markedly to 69.8% from 72.9% in the prior year, signaling enhanced operational efficiency and successful execution of cost-saving initiatives, including run-rate savings that exceeded targets.
On the balance sheet front, assets under management (AuM) expanded 12% to a record CHF 185 billion by year-end, up from CHF 165 billion at the close of 2024. This growth was fueled by strong net new assets (NNA) totaling CHF 11.3 billion, equivalent to a 6.8% organic growth rate—surpassing the bank’s targeted range of 4-6% and marking the strongest inflow performance since the global financial crisis. The inflows reflected continued client confidence, particularly in private banking services across key markets, bolstered by the group’s focus on tailored wealth solutions and structured products.
| Key Financial Metrics (CHF million unless stated) | 2025 | 2024 | % Change |
|---|---|---|---|
| Net Profit (IFRS) | 325.2 | 321.6 | +1% |
| Profit Before Tax | 394.7 | 381.4 | +3.5% |
| Operating Profit | 493.1 | ~391 | +26% |
| Operating Income | ~1,700 | ~1,530 | +11% |
| Operating Expenses | ~1,170 | ~1,100 | +6% |
| Cost/Income Ratio | 69.8% | 72.9% | Improved |
| Assets Under Management (AuM) | 185,000 | 165,000 | +12% |
| Net New Assets (NNA) | 11,300 | – | 6.8% growth |
| Revenue Margin (bps) | 98 | – | Stable |
The bank’s capital position remained solid, though the CET1 ratio declined to 14.0% due to factors including the share buyback program, acquisition impacts, currency effects on AT1 instruments, and the litigation provision. Liquidity metrics stayed robust, providing a strong foundation for ongoing growth initiatives.
Looking ahead, EFG enters the new 2026-2028 strategic cycle from a position of strength, with ambitions for 15% net profit growth and sustained 4-6% annual NNA expansion. Recent acquisitions are expected to add meaningfully to AuM, enhancing scale in targeted regions.
The board proposed a record dividend of CHF 0.65 per share, up 8% from the prior year, marking the fifth consecutive increase and underscoring confidence in the group’s cash generation and long-term prospects.
Disclaimer: This is a news report based on publicly available financial information and does not constitute investment advice, recommendation, or solicitation to buy or sell securities.