EFG Posts Record Profit in First Four Months of 2025
Zurich-based EFG International posted a record net profit in the first third of the year, driven by higher income across the board. The Swiss private bank is nearing the end of its current strategic cycle and CEO Giorgio Pradelli is confident in surpassing targets.
EFG’s net profit rose 18 percent to 130 million Swiss francs ($158 million) in the first four months of 2025, according to the bank’s financial results, marking a record high.
Higher operating income was driven by an increase in net banking and commission income as well as other income, reflecting greater client trading activity supported by market volatility. Interest income was also higher compared to the same period last year. Operating expenses grew but at a slower pace than revenue, mainly from personnel costs. Overall, cost-income ratio fell from 72.9 percent in end-2024 to 70 percent at the end of April 2025.
AUM Shrinks Due to FX Impact
Assets under management totaled 159.2 billion francs, down from 165.5 billion francs at the end of 2024. This was primarily due to 8.5 billion francs of FX impact from the strengthening of the Swiss currency.
Net new assets reached 3 billion francs, corresponding to an annualized growth rate of 5.5 percent, with particularly strong inflows from Latin America, Asia Pacific and the UK. New client relationship officers (CRO) who joined the bank from 2023 to 2025 «continued to contribute significantly to total net new assets» while existing CROs accounted for roughly one-third of fresh funds.
Front Office Hiring
Previously, EFG announced its plan to add an average of 50 to 70 CROs per year and in the first four months of the year, it hired or made offers to 29 with the global total reaching 795, compared to 703 at end-2024.
Taiwan Settlement
In Asia, the bank announced an insurance settlement related to legal proceedings with a Taiwanese insurance company with expectations of a 45 million francs net contribution to its net profit for the first half of 2025.
De-Risking Life Insurance
EFG also announced a successful outright sale of around 20 percent of its total life insurance portfolio, effective May 15, as part of de-risking measures. The current carrying value of the bank's life insurance exposure dropped below 275 million francs compared to 363.9 million francs at the end of last year.
Strategic Cycle Nears End
In October 2023, EFG announced a series of financial targets for its 2023-2025 strategic plan which included net new asset growth of 4 to 6 percent per annum, 85 basis points of revenue margin, a 69 percent cost-income ratio, 15 to 18 percent return on equity and around 15 percent of annual net profit growth.
«As our current strategic cycle draws to a close, we remain confident about our ability to exceed our 2025 ambition,» commented EFG International CEO Giorgio Pradelli.
«For the remainder of the year, we will focus on serving our clients through our global network and on executing our strategic priorities. We look forward to updating investors and other stakeholders on our future strategic direction, priorities and financial targets for the next strategic cycle at our Investor Day on 25 November.»
