**” In a challenging year marked by significant legal provisions, EFG International achieved a modest 1% increase in net profit to a record CHF 325.2 million, supported by robust asset growth, strong client inflows, and improved operational efficiency. Assets under management hit an all-time high of CHF 185 billion, while net new assets reached CHF 11.3 billion—the strongest since the global financial crisis—demonstrating resilience amid headwinds. “**
EFG International Delivers Record Results Amid Litigation Challenges
EFG International, the Zurich-based private banking group, posted a net profit of CHF 325.2 million under IFRS for the full year 2025, marking a 1% rise from the previous year and establishing a new record high. This performance came despite notable pressures from litigation-related provisions that weighed on the bottom line.
Profit before tax stood at CHF 394.7 million, reflecting a 3.5% increase year-over-year. The results were impacted by a net exceptional charge of CHF 14.1 million, primarily driven by a legal provision of CHF 59.5 million (CHF 72.3 million pre-tax) booked in December for a legacy matter involving civil proceedings in the UK. This provision related to claims by Kuwait’s Public Institution for Social Security against multiple parties. The charge was partially offset by a one-off insurance recovery gain of CHF 45.4 million.
Excluding these exceptional items, the underlying net profit would have reached CHF 339.3 million, representing a stronger 6% growth trajectory. This highlights the core operational momentum that powered the group’s performance even as external legal factors tempered the headline figures.
Operating income climbed 11% to a record CHF 1.7 billion, fueled by higher net banking fee and commission income alongside other revenue streams. The revenue margin remained resilient, benefiting from a favorable mix of client activity and market conditions. Operating expenses rose 6% to CHF 1.2 billion, reflecting investments in growth initiatives, but disciplined cost management drove meaningful efficiency gains. The cost/income ratio improved to 69.8% from 72.9% in the prior year, underscoring tighter controls and operational leverage.
Operating profit, excluding exceptional items and legacy life insurance contributions, advanced to CHF 425.1 million, delivering an 18% growth rate—the strongest in the 2023-2025 strategic cycle.
On the balance sheet front, assets under management (AuM) surged 12% to an all-time peak of CHF 185 billion by year-end, up from CHF 165 billion previously. This expansion incorporated CHF 11.7 billion added through strategic acquisitions during the year, complemented by organic momentum. Net new assets (NNA) totaled CHF 11.3 billion, equating to a 6.8% growth rate that exceeded the group’s targeted 4-6% range and represented the highest inflows since the global financial crisis.
The strong NNA performance reflected accelerated client onboarding in the second half, bolstered by market tailwinds and the group’s expanded footprint. Revenue-generating AuM aligned closely with total AuM trends, supporting sustained income generation.
Capital strength remained a key pillar, with robust ratios enabling the board to propose a record dividend of CHF 0.65 per share—an 8% increase that signals confidence in ongoing cash flow generation and shareholder returns.
Looking across regional and business lines, the group benefited from diversified operations spanning Europe, Asia, the Americas, and the Middle East. Client relationship managers continued to drive organic growth, while recent acquisitions integrated smoothly and contributed immediately to AuM and revenue expansion.
The litigation provision, while material, stemmed from a long-standing matter where the group maintains vigorous defenses and believes it holds strong positions. The booking reflects increased visibility from ongoing proceedings rather than a fundamental shift in risk outlook.
Overall, 2025 marked a successful conclusion to the prior strategic cycle, with record achievements across profit, AuM, and NNA despite isolated headwinds. The results affirm the effectiveness of EFG’s client-centric model, acquisition strategy, and focus on risk discipline in navigating a complex environment for private banking.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, investment recommendation, or solicitation. Market conditions can change rapidly, and past performance is not indicative of future results. Readers should conduct their own research or consult qualified professionals before making decisions.
