EFG International delivered mixed H2 2025 results, combining strong client inflows and cost savings with profit-and-loss volatility and a material reduction in regulatory capital ratios.
The Swiss private bank recorded a pre-tax profit of CHF125 million for the second half of 2025, a result that came in 45% below consensus estimates. Management attributed the shortfall entirely to elevated valuation adjustments and provisions, most notably a CHF59.5 million legal provision booked in December 2025 related to a previously disclosed legacy matter.
On the operating front, pre-provision operating profit was reported as being in line with consensus. Net interest income was weaker than expected, coming in 23% below consensus. Conversely, trading and other income beat expectations by 10%, and fees and commissions exceeded consensus by 9%.
Overall, total revenues were 2% above consensus while operating expenses ran 3% higher than anticipated. The bank also highlighted run-rate cost savings of CHF66 million, surpassing its CHF60 million target.
EFG’s asset-collection performance was a clear positive. Net new money (NNM) for H2 2025 amounted to CHF5.9 billion, representing an annualized growth rate of 7.3% and exceeding consensus by CHF0.3 billion. Assets under management stood at CHF185 billion, in line with expectations. The period covering November-December 2025 showed particularly strong NNM at an annualized rate of 6.5%.
The underlying gross margin in H2 2025 was 93 basis points, a decline of 4 basis points relative to the first half of the year. EFG added 44 new client relationship officers (CROs) during the second half, although the total CRO count remained broadly flat after accounting for recent acquisitions.
A notable area of concern was the bank’s common equity tier 1 (CET1) capital ratio, which fell to 14.0% at the end of H2 2025. This was significantly below consensus and represented a 310 basis point decline from the first half of 2025. Management identified multiple drivers of the decline: the announced share buyback being deducted from CET1, the capital impact of acquisitions, mark-to-market currency effects on AT1 instruments, and the newly recognized litigation provisions.
EFG reconfirmed its 2028 financial targets, which include annual net new money growth of 4-6%, a gross margin above 85 basis points, a cost-income ratio of 68%, and a 20% return on tangible equity. The bank stated it is confident in delivering on these ambitions in 2026.
Analysis summary: The results reflect a dual dynamic: strong commercial momentum in wealth management and demonstrable cost discipline, alongside episodic P&L hits and a meaningful reduction in CET1 capital driven by planned capital measures and provisions. How management prioritizes capital restoration and earnings stability will be central to meeting the stated 2028 targets.