EFG International AG (EFGN) AI Stock Analysis

Company Guidance

Guidance from the call emphasized a confident start to the 2026–2028 plan backed by strong H1 results: Assets under Management have crossed CHF 200bn after the Quilvest closing, net new assets were CHF 5.7bn (annualized NNA growth 6.2%, 15th consecutive semester of positive NNA), operating income topped CHF 850m, IFRS net profit was CHF 185m (best semester), return on tangible equity 22.4% (vs 20% ROTE target for 2028), and management reiterated a 15% CAGR target for IFRS net profit to 2028; revenue margin was ~91bp in H1 (90bp excluding life insurance) with interest-related ~28bp and commission margin ~46bp (mandate penetration 67%, net commission income +20% YoY), net other income ~16bp, and life‑insurance revenue expected to phase out; cost‑to‑income was 71.5% (end‑2025 base 73%, target 68% by 2028 with ~1.5–2pp annual reduction; Simplicity 2.0 targets CHF70–80m of savings by 2028 with CHF15–20m expected in 2026 and ~CHF7–8m recognized in H1); headline costs +8% YoY driven by acquisitions but flat ex‑acquisitions, two acquisitions contributing and full IT integration/synergies expected by H1 2027, AuM per CRO CHF 360m (39 hires in H1 + 33 offers =72, annual hiring guidance 50–70), strong organic capital generation of 2.3ppt (230bp) lifting CET1 to ~15% and total capital to 18.3%, LCR 267%, liquid assets ~CHF20bn, share buyback of 2m shares to fund incentives, and a progressive 60% dividend payout policy.