EFG International AG

Reported hard numbers: IFRS net profit was CHF 185 million in the first half of 2026, up 5% year over year excluding a one-off gain last year. Return on tangible equity was 22.4%, up 3 percentage points year over year. Operating income rose 7% year over year to over CHF 850 million. Net new assets were CHF 5.7 billion, or 6.2% annualized; revenue margin was 91 basis points, down from 97 basis points previously discussed, and cost-to-income was 71.5%, 1.6 percentage points better than the second half of 2025. CET1 was 15.0%, total capital was 18.3%, liquidity assets were about CHF 20 billion, and LCR was 267%. Forward commentary: management said the 91 basis-point margin, or about 90 excluding life insurance, is the right medium-term level, with limited further headwinds from rates. They reiterated 2028 targets including 68% cost-to-income, 20% ROTE, and 15% annual IFRS net profit CAGR, and said they are on track on NNA, margin, and ROTE while costs are improving.

Giorgio Pradelli framed the half as a strong start to the new 2026–2028 cycle, emphasizing record scale, profitable growth, and the strategic value of the Quilvest acquisition. He repeatedly stressed that EFG’s model is working because it combines organic growth, selective M&A, and disciplined execution, with a focus on quality rather than just size. His tone was confident and upbeat, while acknowledging that interest rates are a major external driver of margin and that the company must keep improving its mix and mandate penetration.

Dimitris Politis focused on the mechanics behind the quarter/half: profits up 5%, ROTE at 22.4%, revenue margin at 91 basis points, and cost-to-income at 71.5%. He said headline costs were up 8% year over year because of acquisitions, but excluding acquisitions costs were flat, and he pointed to strong organic capital generation of 230 basis points, bringing Core Tier 1 to 15.0% and total capital to 18.3%. He also said the Simplicity 2.0 program targets CHF 70 million to CHF 80 million of benefits by 2028, with CHF 15 million to CHF 20 million expected in 2026 and about CHF 7 million to CHF 8 million already reflected in the first half.

Analysts pressed management on the drop from 93 basis points in the first four months to 91 basis points for the half, and management said the difference was mainly the life-insurance contribution, with business otherwise stable. Questions also focused on hiring, leverage, and regional NNA strength; management said competition for bankers has increased, especially in Asia, but EFG’s recruiting pipeline remains healthy and hires are spread across regions such as Asia-Pacific, continental Europe, the Middle East, and Oceania. On margin outlook, management said the current level is broadly where they expected to land and that their main focus remains delivering the 15% annual bottom-line growth target despite any margin variation.