By Elena Vardon
EFG International reported an increase in profit for the first half of 2025 on heightened client activity and a one-off benefit from a legacy settlement though the strength of the Swiss franc against the weakened U.S. dollar weighed on its assets under management.
The Swiss private bank on Wednesday said its net profit for the half year jumped to 221.2 million francs ($279.2 million) from 162.8 million francs a year prior. This included a 45 million-franc contribution from the recovery of a settlement from legal proceedings with a Taiwanese insurance company, as previously announced. Excluding this one-off effect, net profit still rose 8%, it noted.
Increased client activity from market volatility linked to uncertainty around geopolitics and U.S. tariffs supported its operating income--its top-line figure--which rose 15% to 854 million francs, it said.
Assets under management stood at 162.3 billion francs at the end of the period, down from 165.5 billion francs six months prior as 11.7 billion francs of negative foreign-exchange impacts due to the devaluation of the dollar against the franc wiped strong inflows and a positive market performance. Just under half of EFG's assets are denominated in dollars.
Including its recent acquisitions of Cite Gestion in Switzerland and Investment Services Group in New Zealand, which are yet to close, pro forma assets reached 173 billion francs at the end of the period.
Net new assets accelerated toward the end of the period to come in at 5.4 billion francs for the half year. This represents an annualized growth rate of 6.5% and is above the top end of the bank's 4% to 6% target range.
"In view of the ongoing complex market conditions, we are mindful of the challenges that lie ahead...We have a more cautious stance vis-a-vis the midterm market outlook," Chief Executive Giorgio Pradelli said in a call with journalists. Despite this, the bank is focusing on what it can control and is confident that it will exceed its targets for 2025, he added.
At the end of the period, its common equity Tier 1 ratio--a key measure of capital strength--stood at 17.1%, down from 17.7% six months prior.
Shares traded 5% higher at just under 17 francs shortly after market open, taking its gains since the start of the year to 29%. "These are solid results that highlight the strong momentum at EFG, namely resilient revenue margin and strong [net new assets]," Citi analysts said in a note to clients.
Write to Elena Vardon at elena.vardon@wsj.com
(END) Dow Jones Newswires
July 23, 2025 03:30 ET (07:30 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Comments