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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 bolstered by strategic appointments and innovative approaches to wealth management. The appointment of Soha Nashaat as executive chair of the Dubai subsidiary underscores the company's commitment to expanding its presence in the Middle East. Additionally, EFG's reevaluation of the wealth transfer playbook for ultra-high net worth families highlights its forward-thinking approach to navigating complex cross-border wealth management issues. Furthermore, the company's focus on streamlining wealth transfer processes across multiple jurisdictions positions it for long-term growth and success.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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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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EFG International (SWX:EFGN): Is the Market Undervaluing This Wealth Manager After Strong Multi-Year Returns?

Sep -09

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Currency spikes and Trump tariffs take bite out of European results

Aug -25

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EFG’s Shaw and Partners to pick 75% stake in New Zealand’s ISG

Jun -27

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Cross-border wealth: EFG International rewrites playbook for wealth transfer

Apr -29

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EFG appoints Soha Nashaat as executive chair of Dubai subsidiary

Apr -24

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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: 6.8

Growth: 6.6

Quality: 7.2

Yield: 8.1

Momentum: 10.0

Volatility: 8.7

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BAWAG

A-Score: 7.3/10

Value: 4.5

Growth: 7.2

Quality: 7.2

Yield: 8.8

Momentum: 9.5

Volatility: 6.3

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VIG

A-Score: 7.2/10

Value: 6.4

Growth: 4.2

Quality: 6.2

Yield: 7.5

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ABN AMRO Bank

A-Score: 7.2/10

Value: 6.6

Growth: 5.3

Quality: 5.1

Yield: 9.4

Momentum: 9.5

Volatility: 7.0

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Banco de Sabadell

A-Score: 6.7/10

Value: 6.6

Growth: 6.0

Quality: 5.5

Yield: 7.5

Momentum: 9.5

Volatility: 5.0

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EFG

A-Score: 6.5/10

Value: 5.3

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

18.48$

Current Price

18.48$

Potential

-0.00%

Expected Cash-Flows