EFG International (EFGN) H1 2025 earnings summary

Executive summary

• Achieved record net profit of CHF 221.2 million for H1 2025, up 36% year-over-year, including a CHF 45.4 million insurance recovery; adjusted net profit up 8% to CHF 175.8 million, with strong organic growth and strategic acquisitions despite volatile markets.

• Net new assets reached CHF 5.4 billion, representing a 6.5% annualized growth rate, exceeding the 4-6% target range and marking the 13th consecutive semester of positive NNA.

• Announced acquisitions of Cité Gestion (CHF 7.5 billion AuM) and ISG (CHF 3.4 billion AuM), with pro-forma AuM expected to reach approximately CHF 173 billion, further strengthening market position.

• Continued de-risking and resolution of legacy issues, with strong capital generation and attractive shareholder returns.

• Assets under management at CHF 162.3 billion, down 2% from end-2024, mainly due to US dollar depreciation.

Financial highlights

• Operating income rose 15% year-over-year to CHF 853.9 million, mainly driven by higher average revenue-generating AuM and increased client trading activity; operating profit increased 44.2% to CHF 280.3 million.

• Operating expenses increased 4% to CHF 573.6 million, reflecting investments in talent and client coverage; cost/income ratio improved to 66.7% (71.2% adjusted), down from 72.6% in H1 2024.

• Return on tangible equity reached 24.4% (reported), or 19.4% excluding insurance recovery, both above target range.

• Basic EPS at CHF 0.71, up from CHF 0.51 in H1 2024; dividend per share paid at CHF 0.60.

• CET1 capital ratio at 17.1%, total capital ratio at 20.6%, and liquidity coverage ratio at 255%.

Outlook and guidance

• Confident in exceeding 2025 net profit CAGR and return on tangible equity targets, currently running at 21% CAGR versus 15% target, with continued focus on organic growth, margin defense, and strict cost discipline.

• Cost-to-income ratio target of 69% remains challenging but management is committed to achieving it.

• Expect releveraging to support revenue as interest rates decline, especially in USD; pro forma AuM expected to reach CHF 173 billion after acquisitions.

• Management remains cautious on the mid-term market outlook due to ongoing geopolitical and market uncertainties; strategic update and new financial targets to be presented at Investor Day in November 2025.