EFG International (EFGN) H1 2024 earnings summary

Executive summary

• Achieved record net profit of CHF 163 million in H1 2024, up 10% year-over-year, with strong net new asset inflows of CHF 5.2 billion and resilient revenues despite a volatile macroeconomic environment.

• Assets under Management (AUM) reached CHF 159.3 billion, a 12% increase since end-2023, driven by inflows, market performance, and FX movements.

• Return on tangible equity rose to 19.2%, surpassing the 15%-18% target range, and CET1 ratio reached a record 17.5%.

• Strategic investments made in 2023 are reflected in the cost base and are already delivering returns, supporting consistent financial performance.

• Operating expenses increased 4% year-over-year, reflecting strategic investments in talent and client coverage.

Financial highlights

• Revenues increased 2.6% year-over-year to CHF 743.8 million, with operating income up from CHF 724.8 million in H1 2023.

• Revenue-generating AUM grew 8.7% year-over-year to CHF 159.3 billion; net new assets surged 73.3% to CHF 5.2 billion.

• Cost-to-income ratio improved to 72.6% (excluding CHF 5 million one-off depreciation), down from 73.3% in FY23.

• Commission revenues grew 11% year-over-year, with commission margin up to 43 basis points.

• Basic EPS increased 13.3% to CHF 0.51; diluted EPS up 11.4% to CHF 0.49 year-over-year.

Outlook and guidance

• Confident in meeting or exceeding 2025 financial targets, with double-digit bottom-line growth expected for the next 18–24 months.

• Focus remains on maintaining growth momentum, increasing penetration of value-added products, and strict cost management.

• Investments made in 2023 are expected to yield full potential over the next 12–24 months, supporting sustained growth and profitability.

• Well-diversified business model and accelerated business development expected to support sustainable, profitable growth.

• Vigilance and agility emphasized due to ongoing macroeconomic and geopolitical uncertainties.