EFG International, a Swiss bank, has reported a net profit of SFr325.2m ($420.5m) for the year 2025, marking a 1% increase compared to the previous year. However, this performance was somewhat dampened by a litigation provision involving Kuwait’s public pension fund, for which the bank booked a legal charge of SFr59.5m in December.
In terms of financials, the firm posted revenues of SFr1.67bn, maintaining a steady revenue margin of 98 basis points throughout the year. Operating profit saw a significant increase, climbing to SFr493.1m, up by 26% from the previous year’s figure of SFr391m. Operating expenses also rose by 6% to SFr1.17bn, with the acquisitions of Cité Gestion and Investment Services Group (ISG) contributing 2.4 percentage points to this increase.
EFG International saw its assets under management (AuM) grow to SFr185bn by the end of 2025, representing a 12% increase from the previous year. This growth was driven by net new assets of SFr11.3bn and the positive impact of acquisitions made during the year. The net new asset growth rate of 6.8% surpassed the company’s target range of 4% to 6%.
Regionally, the Asia Pacific region led in net new assets with SFr3.2bn, attributed to expansions in the client relationship officer (CRO) team. The Americas contributed SFr3.3bn in inflows, while Switzerland & Italy reported SFr1.9bn. Continental Europe and the Middle East brought in SFr1.6bn, and the UK added SFr1bn. Additionally, other business segments, including EFG Asset Management funds, recorded SFr0.3 billion in net inflows.
In terms of recruitment, EFG International welcomed or secured agreements with 79 new CROs in 2025, exceeding its annual target for CRO recruitment excluding acquisitions. The company also engaged in several acquisition activities, including the acquisition of ISG through Shaw and Partners, Cité Gestion, and Quilvest Switzerland, a Zurich-based private bank. ISG and Cité Gestion were consolidated in the second half of the year, contributing a combined SFr11.7bn to assets under management, with profit contributions expected from 2026 onwards. The Quilvest transaction is set to be completed in the third quarter of 2026, pending regulatory approval.
Looking ahead, the Board has authorised a buyback of up to nine million EFG shares by July 2027 to support deferred share-based compensation for employees. The group also plans to invest further in digital tools to enhance support for CROs and improve client service as part of ongoing business transformation efforts. All announced acquisitions align with EFG’s merger and acquisition strategy and are projected to deliver at least a ten percent return on investment within three years of integration.
In conclusion, despite facing litigation headwinds, EFG International’s profit edged up in 2025, showcasing resilience and growth in its financial performance. This article was originally published by Private Banker International, a GlobalData owned brand.
