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Ad hoc announcement pursuant to Art. 53 LR

19 February 2025

Record* profit of CHF 321.6 million (+6%) and NNA** of CHF 10.1 billion in 2024; proposal to increase dividend to CHF 0.60 per share

  • Net profit grew by 6% year on year to a record* CHF 321.6 million in 2024
  • Net new assets** totalled CHF 10.1 billion, corresponding to a growth rate of 7.1%, exceeding EFG’s target range of 4-6%
  • Highest dividend ever with CHF 0.60 per share proposed for the financial year 2024, up 9% compared to 2023
  • EFG to acquire Swiss private bank Cité Gestion with approximately CHF 7.5 billion of Assets under Management, subject to regulatory approval 
  • Assets under Management totalled CHF 165.5 billion at end-2024, up 16% compared to CHF 142.2 billion at end-2023, reflecting strong net new assets, positive foreign exchange impacts and favourable market performance
  • Profit before tax of CHF 381.4 million for 2024, up +14% compared to 2023
  • Revenue margin was 96 basis points for 2024, compared to 99 basis points for 2023
  • Cost/income ratio improved to 72.9%*** in 2024 compared to 73.3% in 2023 
  • Return on tangible equity of 18.6% in 2024, above EFG’s target range of 15-18% and up from 18.2% in 2023 
  • Strong capital and liquidity position, with a CET1 Ratio of 17.7%, a Total Capital Ratio of 21.5% and a Liquidity Coverage Ratio of 242% at end-2024

Giorgio Pradelli, CEO of EFG International:
“2024 was another year of strong progress and performance for EFG and we remain well ahead of schedule in the delivery of our 2023-2025 strategic plan. Our strong net new asset growth momentum reflects the trust that clients place in us, our Client Relationship Officers and our solutions. It also shows that the strategic investments we made in recent years are bearing fruit.

We have translated this growth into increased profitability and delivered another record profit for the year. Our strong result for 2024 will allow us to propose the highest dividend per share ever. This is a testament to our capital-light business model that generates excess capital. Today, we have announced the acquisition of Cité Gestion, a Swiss private bank, to further strengthen our presence in our home market. 

We have entered the final year of our current strategic cycle with confidence. Throughout 2025 we will accelerate the bank’s transformation to continue to create value for our clients, shareholders and other stakeholders.”

Strong growth momentum with net new assets of CHF 10.1 billion and 7.1% growth rate
EFG attracted net new assets of CHF 10.1 billion in 2024, corresponding to a net new asset growth rate of 7.1%, exceeding EFG’s target range of 4 6%. All of EFG’s business regions recorded strong growth momentum and net inflows during the reporting year. CROs who joined EFG in 2023 and 2024 contributed significantly to total net new assets. 

The Asia Pacific Region generated CHF 4.3 billion of net new assets, with strong performance across all locations, mainly driven by new CROs. The Switzerland & Italy Region recorded inflows of CHF 2.3 billion, followed by the Latin America Region with CHF 1.6 billion, the Continental Europe & Middle East Region with CHF 1.5 billion and the UK Region with CHF 1.2 billion. EFGAM funds experienced outflows of CHF 0.8 billion. 

Revenue-generating Assets under Management increased by 16% year on year and totalled CHF 165.5 billion at end-2024, compared to CHF 142.2 billion at end-2023. This significant increase compared to end-2023 was driven by strong net new assets of CHF 10.1 billion, positive foreign exchange impacts of CHF 6.3 billion and favourable market performance of CHF 7.0 billion.

Record profitability and stronger top line
In 2024, EFG’s operating income rose by 5% year on year to a record CHF 1,498.9 million, as significantly higher net banking fee and commission income and net other income more than compensated for lower net interest income. 

Based on average revenue-generating Assets under Management of CHF 156.0 billion in 2024, the revenue margin was 96 basis points, compared to 99 basis points in 2023. The revenue margin (excluding life insurance) has been stable between the first and the second half of 2024.

Net banking fee and commission income rose by 14% to CHF 667.0 million in 2024. This increase reflected higher average revenue-generating Assets under Management, a significant increase in mandate penetration to 62%, demonstrating substantial progress towards EFG’s target range of 65%-70% (by end-2025), as well as higher client activity compared to 2023.

Net other income rose by 35% to CHF 448.6 million in 2024. This significant increase was driven by a larger volume of foreign exchange transactions by clients and a higher contribution from interest rate swaps, which increased to CHF 144.4 million, compared to CHF 90.3 million in 2023. In contrast, income from EFG’s life insurance portfolio decreased year on year and was very limited in the second half of 2024.

EFG’s net interest income declined by 25% year on year to CHF 383.2 million in 2024. Including income from interest rate swaps, total interest-related income declined by 12% compared to 2023. This development reflects the interest rates cuts by all major Central Banks in 2024, as well as increased cost of deposits due to the competitive market environment, especially in the first part of the year. Despite these developments, net interest income and total interest-related income increased in the second half of the year compared to the first half due to higher loan balances, optimised deposit pricing as well as the benefits of the gradual reinvestment of EFG’s investment portfolio. 

EFG’s operating expenses increased by 5% to CHF 1,107.9 million in 2024 compared to 2023. Personnel expenses rose by 4% year on year to CHF 796.5 million, reflecting significant investments in talent and client coverage in 2023, which are now fully reflected in EFG’s cost base. Other expenses increased by 6% to CHF 311.4 million due to higher depreciation of tangible assets compared to the previous year (including the impact of the reclassification of a tangible asset previously classified as held for sale) and higher legal and litigation expenses mainly relating to a previously disclosed legacy matter****. 

The cost/income ratio improved to 72.9%*** in 2024 from 73.3% in 2023. 

Operating profit increased by 5% to CHF 391.0 million in 2024 compared to the previous year. 

EFG generated a profit before tax of CHF 381.4 million for 2024 (+14% compared to 2023), after provisions (CHF 5.2 million), impairment of intangible assets (CHF 2.3 million) and an impairment charge for credit losses (CHF 2.1 million). 

EFG generated a record* net profit of CHF 321.6 million for 2024 (+6% compared to 2023), after income tax expenses (CHF 59.8 million).

Return on tangible equity was 18.6% compared to 18.2% in 2023 and was above EFG’s target range of 15-18%. 

Normalised hiring momentum with 73 new CROs in 2024
In 2024, 73 new CROs joined EFG and the bank has already agreed or made offers to hire an additional 16 CROs who have not yet joined the Bank by end-2024. This compares with EFG’s expectation to hire an average of 50-70 CROs per year.

At end-2024, EFG’s total number of CROs worldwide was 703, compared to 693 CROs at end-2023.

The average CRO portfolio size increased to CHF 348 million at end-2024, compared to CHF 321 million at end-2023 (excluding Shaw and Partners and CROs hired in the last 12 months of the respective period).

Further strengthened capital and liquidity position
EFG further strengthened its capital and liquidity position. At end-2024, EFG’s Common Equity Tier 1 (CET1) Ratio was 17.7%, compared to 17.0% at end-2023 and its Total Capital Ratio was 21.5%, compared to 21.0% at end-2023. This increase was driven by strong gross capital generation of 510 basis points, partially offset by dividend payments and share buybacks. The adoption of Basel 3 Final in Switzerland, effective 01 January 2025, had an impact of approximately 40 basis points on EFG’s capital ratios.

The Liquidity Coverage Ratio improved to 242%, compared to 230% at end-2023.

Highest dividend ever with CHF 0.60 per share
For the financial year 2024, the payment of an ordinary dividend of CHF 0.60 per share (by way of distribution out of reserves from capital contributions) will be proposed to the Annual General Meeting of 21 March 2025. This corresponds to an increase of 9% compared to the prior year. This is the fourth consecutive increase in the distribution to shareholders and is a testament to EFG’s commitment to a progressive dividend policy. The dividend is the highest ever in EFG’s history and will once again be exempt from Swiss withholding tax.

Acquisition of Cité Gestion, Geneva, to further strengthen EFG’s presence in its Swiss home market
EFG International is today announcing that it will acquire 100% of the Swiss private bank Cité Gestion. The closing of the transaction is expected in the second half of 2025 and is subject to regulatory approval. 

The acquisition is fully in line with EFG’s previously announced M&A strategy and criteria, represents a good cultural fit and will further strengthen EFG’s presence and capabilities in Switzerland. It is expected that the transaction will be EPS accretive by 2026. EFG expects the acquisition to adversely impact its CET1 capital by approximately 100 basis points.

Cité Gestion manages approximately CHF 7.5 billion of Assets under Management as of end-2024 and generated a net profit of around CHF 6 million in 2024.

Cité Gestion has around 130 employees, is headquartered in Geneva, with further offices in Lausanne, Lugano and Zurich. Its multi custody business focuses on serving UHNWIs domiciled in Switzerland, Western Europe, Latin America and the Middle East.

Outlook
As it begins the final year of its strategic cycle, EFG is well ahead of its 2023-2025 strategic plan and remains confident about its ability to exceed its 2025 ambition.

With its resilient and well-diversified business model, EFG is confident that it can continue to generate consistent financial results and to create value for clients, shareholders and other stakeholders. 

The strategic investments that EFG has made in recent years to accelerate its growth momentum are expected to further support revenues and profit in 2025 and beyond. At the same time, EFG will accelerate the transformation of the bank to further improve client experience, operational excellence and scalability. It aims to enhance its operational efficiency through process optimisation, automation and digitalisation. This includes targeted cost measures. EFG is confident that it can deliver the previously announced annual cost savings of CHF 60 million in the period from 2023 to 2025 compared to its 2021 cost base.

As the current strategic cycle draws to a close, EFG will hold an investor day in the fourth quarter of 2025 to update investors and other stakeholders to present and discuss its future strategic direction, priorities and financial targets for the next strategic cycle. Further details will be provided in due course.

Financial calendar
21 March 2025: Annual General Meeting 2025
21 May 2025: 4 months 2025 trading update
23 July 2025: Half-year results 2025

* IFRS net profit for 2016 of CHF 339.3 million was positively impacted by non-operating effects related to the BSI acquisition, specifically the “bargain purchase on business acquisition” of CHF 530.8 million. The bargain purchase on business acquisition reflects the difference between what EFG assessed to be the final purchase price for BSI of CHF 783.9 million, compared to the fair value of the net assets acquired on 31 October 2016 of CHF 1,314.7 million. 
** Alternative performance measures and Reconciliations: This media release and other communications to investors contain certain financial measures of historical and future performance and financial position that are not defined or specified by IFRS, such as "net new assets", "Assets under Management", "operating profit", "cost/income ratio", “liquidity coverage ratio”, “loan/deposit ratio”. These alternative performance measures (APMs) should be regarded as complementary information to, and not as a substitute for the IFRS performance measures. The definitions of APM used in this media release and other communications to investors, together with reconciliations to the most directly reconcilable IFRS line items, are provided in the "Alternative performance measures" section in the Full-year Report 2024 available at www.efginternational.com/annual-report-2024.
***Excludes CHF 5.0 million of depreciation expenses related to tangible assets previously classified as held for sale related to prior years. See alternative performance measures.
****For further details see note 33 in the Notes to the consolidated financial statements of EFG International’s Annual Report 2024.

Important disclaimer

This document has been prepared by EFG International AG (“EFG”) solely for use by you for general information only and does not contain and is not to be taken as containing any securities advice, recommendation, offer or invitation to subscribe for, purchase or redeem any securities regarding EFG. 

This media release includes forward-looking statements that reflect EFG’s intentions, beliefs or current expectations and projections about EFG’s future results of operations, financial condition, liquidity, performance, prospects, strategies, opportunities and the industries in which it operates. Forward-looking statements involve all matters that are not historical facts. EFG has tried to identify those forward-looking statements by using the words ‘may’, ‘will’, ‘would’, ‘should’, ‘expect’, ‘intend’, ‘estimate’, ‘anticipate’, ‘project’, ‘believe’, ‘seek’, ‘plan’, ‘predict’, ‘continue’ and similar expressions. Such statements are made on the basis of assumptions and expectations which, although EFG believes them to be reasonable at this time, may prove to be erroneous.

These forward-looking statements are subject to risks, uncertainties and assumptions and other factors that could cause EFG’s actual results of operations, financial condition, liquidity, performance, prospects or opportunities, as well as those of the markets it serves or intends to serve, to differ materially from those expressed in, or suggested by, these forward-looking statements. Important factors that could cause those differences include, but are not limited to: changing business or other market conditions, legislative, fiscal and regulatory developments, general economic conditions in Switzerland, the European Union and elsewhere, and EFG’s ability to respond to trends in the financial services industry. Additional factors could cause actual results, performance or achievements to differ materially. In view of these uncertainties, readers are cautioned not to place undue reliance on these forward-looking statements. EFG and its subsidiaries, and their directors, officers, employees and advisors expressly disclaim any obligation or undertaking to release any update of or revisions to any forward-looking statements in this media release and any change in EFG’s expectations or any change in events, conditions or circumstances on which these forward-looking statements are based, except as required by applicable law or regulation.