Insurance settlement profits boost EFG's first-half earnings
EFG International Reports Strong H1 2025 Performance
EFG International, a leading Swiss private bank, has announced its financial results for the first half of 2025, showcasing a significant improvement across various key indicators.
The bank's net profit soared by 36% year-on-year, reaching Sfr 221.2 million ($279 million). This growth was primarily driven by an increase in net banking fees and commission income, which boosted the operating income to Sfr 853.9 million.
Despite a 4% rise in operating expenses to Sfr 573.6 million, due to the bank's investment in expanding its talent pool and client coverage, the cost/income ratio improved, settling at 66.7%, or 71.2% when excluding the insurance recovery.
EFG's CEO, Giorgio Pradelli, expressed confidence about the bank's ability to exceed its 2025 ambition. He noted that the bank's net new assets surpassed its target range of 4-6%, amounting to Sfr 5.4 billion, with an annualized growth rate of 6.5%.
However, the bank's assets under management decreased by 2% to Sfr162.3 billion at the end of June 2025. This decline was primarily due to negative foreign exchange impacts amounting to Sfr11.7 billion.
In a move to fund variable deferred share-based compensation for employees, the board of directors of EFG International has approved a share buyback programme, targeting the repurchase of up to 9 million EFG shares by 31 July 2026. The share buyback programme will be conducted through market-sensitive open market purchases by a third party.
EFG has also revised its cost savings expectations, aiming to deliver annual savings of Sfr 66 million from 2023 to 2025. As of the end of June, EFG has already realised CHF 63 million of these savings.
The bank's Capital Adequacy Ratio (CAR) as of 30 June stood at 17.1%, while the Liquidity Coverage Ratio (LCR) remained robust at 255%. EFG International also registered a Sfr45.4 million net gain from an insurance recovery in H1 2025.
It's important to note that there are no available search results providing information on EFG International’s cost savings plans or achievements for 2023-2025. For specific details, you may need to consult EFG International’s official public disclosures such as annual reports, press releases, or investor presentations directly from their website or financial news sources.
EFG International's assets under management decreased by 2% to Sfr162.3 billion, with the decline primarily due to negative foreign exchange impacts. The bank is aiming to deliver annual savings of Sfr 66 million from 2023 to 2025 through cost savings plans, with CHF 63 million already realized as of the end of June. In addition to conventional finance and investing, EFG also plans to fund variable deferred share-based compensation for employees using AI techniques in its share buyback programme.
