What is Growth Strategy and Future Prospects of EFG International Company?

The company has strategically expanded its physical presence by opening new offices in Tel Aviv and Panama during 2023. This was followed by further expansion into Gstaad and St. Moritz in 2024, and the opening of an office in Istanbul at the beginning of 2025. These moves are designed to improve client accessibility and capitalize on wealth creation opportunities in these key regions.

EFG International complements its organic growth through targeted acquisitions. A significant development is the agreement to acquire Swiss private bank Cité Gestion, which manages approximately CHF 7.5 billion in assets, with the transaction anticipated to conclude in the latter half of 2025, subject to regulatory approvals. Furthermore, EFG International's Australian subsidiary, Shaw and Partners, is acquiring a 75% stake in New Zealand-based Investment Services Group (ISG), adding CHF 3.4 billion in assets. These acquisitions are projected to boost EFG's pro forma assets under management to around CHF 173 billion by the end of June 2025.

A core element of EFG's organic growth strategy involves expanding its talent pool, particularly Client Relationship Officers (CROs). In 2024, 73 new CROs joined the bank, contributing to asset inflows. For the first half of 2025, EFG has hired or extended offers to 35 new CROs, with an annual hiring target of 50-70 professionals. The company also aims to increase its mandate penetration to a target range of 65-70% by the end of 2025, an increase from 64% in mid-2025 and 62% at the close of 2024.

These combined initiatives underscore EFG International's commitment to its EFG International growth strategy and its EFG International future prospects in wealth management. The company's EFG International business strategy focuses on leveraging both organic growth and strategic acquisitions to expand its market share and enhance its global service offering, positioning it strongly within the competitive landscape, similar to insights found in the Competitors Landscape of EFG International.

For the full year 2024, EFG reported a record IFRS net profit of CHF 321.6 million, a 6% increase from 2023. Net new assets reached CHF 10.1 billion, a 7.1% growth rate, surpassing the 4-6% target. Assets under management grew by 16% to CHF 165.5 billion.

The cost/income ratio improved to 72.9% in 2024, and the return on tangible equity (RoTE) reached an impressive 18.6%, exceeding the 15-18% target. This demonstrates enhanced operational effectiveness as part of the EFG International growth strategy.

The positive momentum continued into the first half of 2025, with net profit reaching CHF 221.2 million, a 36% increase year-on-year. Net new assets were CHF 5.4 billion, an annualized growth rate of 6.5%, again exceeding targets.

EFG International remains confident in surpassing its 2025 ambitions, which include a 4-6% annual net new asset growth and a 69% cost-income ratio. The company proposed an increased dividend of CHF 0.60 per share for 2024, reflecting its strong financial health and Mission, Vision & Core Values of EFG International.

EFG International's strong capital base, with a CET1 Ratio of 17.1%, and high liquidity, indicated by a LCR of 255%, provide a solid foundation against market volatility.

Strategic divestments of insurance portfolios are aimed at reducing risk exposure. This active portfolio management is crucial for adapting to changing market conditions.

Spreading operations and client base across different regions and segments helps to mitigate the impact of localized economic downturns or market-specific risks.

The potential impact of global trade friction, estimated to reduce world economic growth by 0.3% in 2025, requires EFG International to monitor trade policies and adapt its strategies accordingly.