EFG International posts record 10 month net profit, sets 2028 targets (updated)

EFG International AG

25/11/2025 06:21

EFG posts record 10-month net profit

Aims for 70-80 million Swiss francs in cost savings by 2028

About 400 million Swiss francs available for acquisitions - CFO

Updates share move in paragraph 4

By Oliver Hirt and Marleen Kaesebier

Nov 25 (Reuters) - Swiss wealth manager EFG International EFGN.S targeted higher profits but stuck to its growth ambition as it published new mid-term plans on Tuesday upon posting a record 10-month net profit of about 320 million Swiss francs ($395.55 million).

    Zurich-based EFG said it was now targeting return on tangible equity of 20% by 2028, up from 15-18% in the three years through 2025. At the same time, the bank maintained a projected net new asset growth rate of 4-6%.

EFG's shares jumped as much as 4.3% when the market opened after the announcements, before paring gains.

EFG also said it is aiming for cost savings of 70-80 million francs by the end of 2028 compared to 2025.

    Giorgio Pradelli, Chief Executive of EFG, said the bank would stay focused on generating operating leverage and delivering bottom line growth for shareholders.

"At the same time, we continue to look for new opportunities to further build scale through targeted M&A in markets where we already operate," he said in a statement.

The firm has about 400 million francs available for acquisitions, chief financial officer Dimitris Politis told journalists in a call.

EFG said its 10-month profit figure was lifted by a 45 million Swiss franc contribution from insurance recovery.

The bank's net new assets in the January-October period were 9.3 billion francs, equating to an annualised growth rate of 6.8%, beating its target range of 4-6%.

EFG said it aims to achieve annual average growth in net profit of 15% during the 2026-2028 period.

While lower interest rates and a weak dollar could be possible headwinds in 2026, CEO Pradelli said in the call that he is extremely optimistic about EFG's longer-term business.

($1 = 0.8090 Swiss francs)

 (Reporting by Marleen Kaesebier, Oliver Hirt and Simon Ferdinand Eibach, editing by Dave Graham and Thomas Derpinghaus)

 ((Marleen.kaesebier@thomsonreuters.com))