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1. Company Snapshot

1.a. Company Description

EFG International AG, together with its subsidiaries, provides private banking, wealth management, and asset management services.It offers investment solutions, including discretionary mandates, structured products, trading services, and Islamic solutions; wealth and trust services; credit and financing services, such as property and investment finance; and eBanking services, including mobile banking and security services.The company also provides other banking services consisting of custody, foreign exchange and treasury, and trading services, as well as accounts and cards; and supports independent asset managers to set up private label funds.


It operates in Europe, Asia Pacific, the Americas, and the Middle East.EFG International AG was founded in 1995 and is headquartered in Zurich, Switzerland.

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1.b. Last Insights on EFGN

EFG International AG's recent performance was driven by a landmark year with record assets under management (AuM) and net profit. The firm's AuM reached SFr185bn, up 12% compared to the end of 2024. A strategic partnership with Capital Group expanded investment solutions, offering clients a broader selection of options. Additionally, the acquisition of Quilvest Switzerland, with SFr 5.3bn in client assets, contributed to growth. Despite litigation headwinds, the company's profit edged up in 2025, showcasing resilience.

1.c. Company Highlights

2. EFG International's Strong 2025 Results Driven by Organic Growth and Strategic Acquisitions

EFG International reported a robust financial performance for full-year 2025, with operating income increasing by 26% year-on-year to CHF 493 million, driven by strong organic growth and strategic acquisitions. The company's net profit reached a record CHF 325 million, with earnings per share (EPS) of CHF 0.5, in line with analyst estimates. The revenue margin expanded to 93 basis points in the second half of 2025, up from 92 basis points in November, driven by mandate penetration and client activity. As Dimitris Politis, CFO, highlighted, "We've seen a significant increase in client activity in currencies and metals, linked to increased volatility, which has contributed to net other income."

Publication Date: Feb -19

📋 Highlights
  • Record AUM Growth:: Assets under management (AUM) surged 12% to CHF 185 billion in 2025, driven by CHF 11.3 billion in net new assets and two acquisitions totaling CHF 12 billion.
  • Strong Profitability:: Operating income rose 26% to CHF 493 million, with IFRS net profit hitting a record CHF 325 million despite interest rate declines and a weaker dollar.
  • Cost Efficiency Improvements:: The cost-to-income ratio fell to 69.8%, while Simplicity project savings exceeded targets by 65% (CHF 66 million achieved vs. CHF 40 million goal).
  • High Return Metrics:: Return on tangible equity exceeded 18%, supported by 19% average annual profit growth over the cycle and a 31% revenue increase in three years.
  • Strategic Brand Strengthening:: Brand value jumped 50% to CHF 629 million, gaining over 50 positions in brand finance rankings, aligning with a goal to be Switzerland’s top three private banks by 2028.

Revenue Growth and Margin Expansion

The company's revenue growth was driven by a 17% increase in commission income, with a commission margin of 46 basis points for the full year 2025. The revenue mix is becoming increasingly high-quality, with a focus on commission income and advisory activity. The company's net interest margin is expected to face some pressure due to declining interest rates, but the impact is estimated to be limited to around 1 basis point.

Assets Under Management and Net New Assets

EFG International's assets under management (AUM) reached a record CHF 185 billion, with net new assets (NNA) growing by 6.8% to CHF 11.3 billion. The company's geographical split showed growth across all regions, with Asia Pacific and the Americas growing above 6%. The AUM per client relationship officer (CRO) increased to CHF 363 million, driven by effective performance management and a focus on high-quality revenue.

Valuation and Dividend Yield

With a Price-to-Tangible Book Value (P/TBV) ratio of 2.57, the stock appears to be reasonably valued compared to its peers. The dividend yield of 3.21% is attractive, reflecting the company's commitment to returning capital to shareholders. The company's return on tangible equity (ROTE) of 11.45% is also respectable, indicating a decent return on equity.

Outlook and Growth Prospects

Looking ahead to 2026, EFG International is well-positioned for continued growth, driven by its strategic framework and focus on client engagement. The company's priorities remain the same, with a focus on maintaining growth momentum, pursuing mergers and acquisitions, and defending its margin. Analysts estimate revenue growth of 6.0% for the next year, which appears achievable given the company's track record and industry trends.

3. NewsRoom

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EFG profit edges up in 2025 despite litigation headwinds

Feb -19

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EFG International AG (EFGIF) (Full Year 2025) Earnings Call Highlights: Record Profits and ...

Feb -18

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EFG teams up with Capital Group to expand investment solutions

Feb -17

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Basic Materials Roundup: Market Talk

Feb -05

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EFG enters all-cash deal to buy Quilvest Switzerland

Jan -27

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CEO of $5.6 billion Swiss bank says country is still the ‘No. 1 location’ for wealth after voters reject a tax on the ultrarich

Dec -02

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Financial Services Roundup: Market Talk

Nov -25

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3 European Dividend Stocks Offering Yields Up To 4.2%

Nov -14

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.56%)

6. Segments

Private Banking and Wealth Management

Expected Growth: 3.5%

EFG International AG's Private Banking and Wealth Management segment growth of 3.5% is driven by increasing demand for wealth management services, expansion into new markets, strategic partnerships, and a strong reputation for investment expertise. Additionally, the segment benefits from a growing high net worth individual (HNWI) population, seeking diversified investment portfolios and tailored wealth management solutions.

Investment & Wealth Solutions

Expected Growth: 3.8%

EFG International AG's 3.8% growth in Investment & Wealth Solutions is driven by increasing demand for discretionary mandate services, expansion into new markets, and strategic partnerships. Additionally, the company's focus on digitalization, cost savings initiatives, and a strong brand reputation contribute to its growth momentum.

Global Markets & Treasury

Expected Growth: 4.2%

The 4.2% growth in Global Markets & Treasury at EFG International AG is driven by increasing client activity, expansion into new markets, and a favorable interest rate environment. Additionally, the segment has benefited from effective cost management, improved trading conditions, and a strong pipeline of new business opportunities.

Corporate

Expected Growth: 3.2%

EFG International AG's corporate segment growth of 3.2% is driven by increasing demand for wealth management services, strategic expansion into emerging markets, and a strong pipeline of mergers and acquisitions. Additionally, the company's focus on digital transformation and cost savings initiatives have improved operational efficiency, contributing to the segment's growth.

7. Detailed Products

Private Banking

EFG International AG provides private banking services to high net worth individuals, offering tailored financial solutions and investment advice.

Wealth Management

EFG International AG offers wealth management services, including portfolio management, investment advice, and estate planning.

Asset Management

EFG International AG provides asset management services, including investment funds, discretionary mandates, and institutional mandates.

Custody and Depositary Services

EFG International AG offers custody and depositary services, including safekeeping, settlement, and reporting.

Investment Funds

EFG International AG offers a range of investment funds, including equity, fixed income, and alternative investments.

Discretionary Portfolio Management

EFG International AG provides discretionary portfolio management services, tailoring investment strategies to individual client needs.

8. EFG International AG's Porter Forces

Forces Ranking

Threat Of Substitutes

EFG International AG operates in a highly competitive industry, and there are many substitutes available to clients. However, the company's strong brand reputation and wide range of services help to mitigate the threat of substitutes.

Bargaining Power Of Customers

EFG International AG's clients have significant bargaining power due to the highly competitive nature of the industry. Clients can easily switch to competitors, which puts pressure on the company to maintain high-quality services and competitive pricing.

Bargaining Power Of Suppliers

EFG International AG has a diversified supplier base, which reduces the bargaining power of individual suppliers. The company's strong financial position also gives it negotiating power when dealing with suppliers.

Threat Of New Entrants

The threat of new entrants is moderate due to the significant capital requirements and regulatory hurdles in the private banking industry. However, new fintech companies and digital platforms may pose a threat to traditional private banks like EFG International AG.

Intensity Of Rivalry

The private banking industry is highly competitive, with many established players competing for market share. EFG International AG faces intense competition from larger rivals, which puts pressure on the company to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 35.46%
Debt Cost 6.13%
Equity Weight 64.54%
Equity Cost 6.13%
WACC 6.13%
Leverage 54.95%

11. Quality Control: EFG International AG passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Mapfre

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Value: 5.2

Growth: 6.4

Quality: 5.8

Yield: 7.5

Momentum: 10.0

Volatility: 8.7

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A-Score: 7.0/10

Value: 6.4

Growth: 6.0

Quality: 6.6

Yield: 7.5

Momentum: 10.0

Volatility: 5.3

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ABN AMRO Bank

A-Score: 6.7/10

Value: 5.0

Growth: 5.3

Quality: 4.6

Yield: 8.8

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BAWAG

A-Score: 6.7/10

Value: 3.2

Growth: 7.2

Quality: 5.8

Yield: 8.8

Momentum: 9.0

Volatility: 6.3

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VIG

A-Score: 6.4/10

Value: 5.2

Growth: 4.2

Quality: 5.0

Yield: 6.9

Momentum: 10.0

Volatility: 7.3

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EFG

A-Score: 6.3/10

Value: 4.4

Growth: 3.3

Quality: 5.1

Yield: 7.5

Momentum: 9.5

Volatility: 8.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

18.62$

Current Price

18.62$

Potential

-0.00%

Expected Cash-Flows