EFG profit edges up in 2025 despite litigation headwinds

Core Insights - EFG International reported a net profit of SFr325.2m ($420.5m) for 2025, reflecting a 1% year-over-year increase, impacted by a litigation provision related to Kuwait's public pension fund [1] - The firm achieved revenues of SFr1.67bn with a consistent revenue margin of 98 basis points, while operating profit rose by 26% to SFr493.1m from SFr391m in 2024 [1] Financial Performance - Operating expenses increased by 6% to SFr1.17bn, with acquisitions of Cité Gestion and Investment Services Group (ISG) contributing 2.4 percentage points to this rise [2] - Assets under management (AuM) reached SFr185bn at the end of 2025, marking a 12% increase compared to the end of 2024, driven by net new assets of SFr11.3bn and positive acquisition impacts [2] - The net new asset growth rate was 6.8%, exceeding the company's target range of 4% to 6% [2] Regional Contributions - The Asia Pacific region saw net new assets of SFr3.2bn, primarily due to additions to the client relationship officer (CRO) team [3] - The Americas contributed SFr3.3bn in inflows, while Switzerland & Italy reported SFr1.9bn, Continental Europe and the Middle East brought in SFr1.6bn, and the UK added SFr1bn [3] - Other business segments, including EFG Asset Management funds, recorded SFr0.3bn in net inflows [3] Growth and Acquisitions - In 2025, EFG International secured agreements with 79 new CROs, surpassing its annual recruitment target excluding acquisitions [4] - Recent acquisitions included ISG through Shaw and Partners, Cité Gestion, and Quilvest Switzerland, with ISG and Cité Gestion contributing a combined SFr11.7bn to AuM [5] - The Quilvest transaction is expected to complete in Q3 2026, pending regulatory approval [5] Strategic Initiatives - The group plans to invest in digital tools to enhance CRO support and client service as part of its business transformation efforts [6] - All announced acquisitions align with EFG's merger and acquisition strategy, projected to deliver at least a 10% return on investment within three years of integration [6]