EFG International (EFGN) CMD 2025 summary

Strategic Vision, Business Model, and Growth Ambitions

• Aims to be the private bank of choice for the next generation, focusing on personalized service, impartial advice, and a global footprint with an entrepreneurial culture.

• Maintains a client-centric CRO model as the engine of growth, emphasizing long-term relationships, tailored solutions, and hiring 50-70 top CROs annually, supported by next-gen CRO programs.

• Pursues both organic and inorganic growth, with a strong track record in hiring, developing CROs, and executing value-accretive M&A, leveraging surplus capital.

• Focuses on operational excellence, simplicity, and technology to drive efficiency, client experience, and cost discipline, including the Simplicity programme.

• Strong compliance, risk management, and financial resilience underpin sustainable growth, with centralized risk management and robust capital metrics.

Financial Performance and Targets

• Achieved record net profit of CHF 320 million in the first 10 months and AUM at CHF 184 billion, with NNA growth at the top end of the 4%-6% target range.

• Sets 2026-2028 targets: 4-6% net new asset growth, revenue margin above 85 bps, cost/income ratio at 68%, and 20% return on tangible equity.

• Raises dividend payout ratio to 60% of net profit, with ongoing share buybacks and M&A optionality supported by robust capital position.

• Plans to sustain double-digit profit growth (~15% CAGR) and maintain strong capital ratios, with a management floor of 12% CET1 and additional distributions if CET1 exceeds 15%.

• M&A remains an accelerator, with recent acquisitions adding CHF 11.7-12 billion AUM and further deals anticipated as market consolidation increases.

Growth Drivers, Strategic Initiatives, and Innovation

• Organic growth driven by continuous hiring and productivity improvement of CROs, supported by predictive performance models and structured onboarding.

• Augmented CRO model leverages digital tools (e.g., Aladdin Wealth, CRO Atlas, Pricing & Analytics Tool) and specialist teams to enhance client acquisition, engagement, and share of wallet.

• Four-pillar client offering (wealth solutions, investment solutions, global markets, credit solutions) supports mandate penetration and higher commission margins, targeting 70-75% by 2028.

• Simplicity and technology initiatives aim for CHF 70-80 million in efficiency gains, with automation, AI, and process optimization at the core.

• Increases technology investment to CHF 130 million for 2026-2028, up from CHF 85 million in 2023-2025, to drive automation, data analytics, and digital client experience.