Efg International Ag · SIX:EFGN

Efg International — FY2024 Earnings Presentation

44 slides from Efg International's earnings presentation, Feb 19, 2025

  1. Slide 1: Full-year 2024 results presentation

    Full-year 2024 results presentation 19 February 2025 Zurich

  2. Slide 2: Important Legal Disclaimer

    Important Legal Disclaimer This document has been prepared by EFG International AG (“EFG”) solely for use by In view of these uncertainties, readers are cautioned not to place undue reliance on you for general information only and does not contain and is not to be taken as these forward-looking stat

  3. Slide 3: Highlights

    01 Highlights Giorgio Pradelli Chief Executive Officer

  4. Slide 4: Consistent delivery of sustainable and profitable growth

    Consistent delivery of sustainable and profitable growth 7.1% 10.1 NNA growth rate NNA, in CHF billion  Well ahead in delivery of 2023-2025 strategic plan with +6% consistent execution in a volatile and uncertain environment  Investments made in recent years are bearing fruit and delivering growth

  5. Slide 5: Financial performance

    02 Financial performance Dimitris Politis Chief Financial Officer & Deputy CEO

  6. Slide 6: Record profitability of CHF 321.6 mn in FY 2024, up 6%

    Record profitability of CHF 321.6 mn in FY 2024, up 6% Consistent delivery towards financial targets Key highlights Evolution of IFRS net profit in CHF mn +6%  Revenues up 5% year on year  Revenue margin at 96 bps, reflecting lower 321.6 net interest income margin, higher 303.2 commission income a

  7. Slide 7: Accelerated growth momentum and resilient topline

    Accelerated growth momentum and resilient topline Business development Profitability Capital & Liquidity NNA Gross capital +7.1% growth +5% Revenue growth vs. +510 bps generation 2023 Revenue Cost-income ratio, CET1 capital 96 bps 72.9% down -0.4 pp vs. 17.7% ratio margin FY 2023 Net profit in CHF,

  8. Slide 8: Financials summary

    Financials summary 2024 2023 Variation vs. 2023 Revenue-generating AuM (bn) 165.5 142.2 +16.4% Net new assets (bn) 10.1 6.2 +62.9% Net new assets growth rate (%) 7.1% 4.4% +2.7 pp Revenue margin (bps) 96 99 -3 bps Operating income (in CHF mn) 1,498.9 1,430.7 +4.8% Operating expenses (in CHF mn) 1,10

  9. Slide 9: Financials summary

    Financials summary 2H24 1H24 2H23 1H23 Revenue-generating AuM (bn) 165.5 159.3 142.2 146.5 Net new assets (bn) 4.9 5.2 3.2 3.0 Net new assets growth rate (%) 6.2% 7.3% 4.4% 4.2% Revenue margin (bps) 95 97 98 100 Operating income (in CHF mn) 755.1 743.8 705.9 724.8 Operating expenses (in CHF mn) 558.

  10. Slide 10: Consistent delivery in 2023-2025 business cycle

    Consistent delivery in 2023-2025 business cycle Net new asset growth Cost/income ratio NNA growth in % Evolution CIR in % 4-6% per 69% annum 7.1 76.0 73.3 72.9 4.4 2.4 2022 2023 2024 2022 2023 2024 Revenue margin Return on tangible equity Evolution RoAuM in bps Evolution RoTE in % 85 bps 15-18% 18.2

  11. Slide 11: NNA growth of 7.1% in FY 2024 - New hires with continued strong contribution

    NNA growth of 7.1% in FY 2024 - New hires with continued strong contribution AuM evolution NNA growth levers Revenue-generating AuM evolution in CHF bn Existing CROs in CHF bn 6.3 7.0 10.1 165.5 1.3 1.2 142.2 1.1 2022 2023 2024 New CROs1 in CHF bn Dec 23 NNA Market FX Dec 24 8.9  NNA growth at 7.1%

  12. Slide 12: Strong performance across all regions

    Strong performance across all regions Regional business development AuM breakdown NNA Growth Revenue-generating AuM RoAuM* CHF 10.1 bn (in %) CHF 165.5 bn (in bps) Switzerland &  Switzerland & Italy region Switzerland & 2.3 5.9% returned to strong growth in 44.0 123 Italy Italy 2024 supported by ne

  13. Slide 13: Normalised CRO hiring momentum, Record AuM per CRO

    Normalised CRO hiring momentum Record AuM per CRO CRO evolution CRO additions AuM per CRO # of CROs # of new CROs AuM per CRO (excl. Shaw and Partners) CROs in CHF mn +10 +26 +16 Signed & approved 115 693 703 348 654 21 Shaw and 316 313 321 218 223 238 73 Partners 94 15 470 465 Shaw and 436 58 Partn

  14. Slide 14: Stronger operating income, driven by higher AuM and client activity

    Stronger operating income, driven by higher AuM and client activity - revenue margin at 96 bps Increasing operating income Key highlights Operating income in CHF mn  Commission margin increased by 2 bps vs. 99 2023. Net commission income up 14% year 96 bps on year, on the back of significant bps in

  15. Slide 15: Revenue margin drivers – Focus on interest components

    Revenue margin drivers – Focus on interest components Revenue margin evolution What drives Net Interest Income in bps – excl. life insurance portfolio Sight deposits, in CHF bn Interest rate sensitivity 1 for a 100 bps decrease in interest rates in CHF mn -56 USD 97 24.6 24.4 GBP 95 93 93 17.2 CHF 1

  16. Slide 16: Commissions driving the sustainable improvement in revenues

    Commissions driving the sustainable improvement in revenues Commission margin Key highlights and developments (in bps) 45 43  Increased net commission income (+14% year 40 41 on year) benefitting from higher management 44 12 9 8 10 41 fees on the back of higher AuM and increased 33 32 33 33 Non-rec

  17. Slide 17: Increase in operating expenses reflects growth investments

    Increase in operating expenses reflects growth investments Cost-to-income ratio improves to 72.9%* Increase in personnel expenses reflects growth investment Key highlights Operating expenses in CHF mn  Cost-to-income ratio improves vs. FY 2023 to 72.9%* FTEs 3,025 3,114  Strategic investments from

  18. Slide 18: Active cost management

    Active cost management Operating expense evolution year on year Key highlights in CHF mn  Ongoing rigorous cost management efforts CIR 73.3% -0.4 pp 72.9%  Simplicity program on track to deliver the announced expanded cost savings of CHF 60 mn by 2025 57 12 16  Currently level of execution at CHF

  19. Slide 19: Strong balance sheet

    Strong balance sheet Balance Sheet highlights Key metrics in CHF bn 31 Dec 2024 31 Dec 2023 40.6 40.6 CET1 capital ratio (%) 17.7% 17.0% Assets bn bn Liabilities & Equity Total capital ratio (%) 21.5% 21.0% 1.1 Due to banks RWAs (CHF bn) 9.3 bn 8.6 bn Cash & banks 8.6 Leverage ratio (FINMA) (%) 4.8%

  20. Slide 20: Strong profitability drives substantial capital generation

    Strong profitability drives substantial capital generation Marginal impact from the application of Basel 3 Final Evolution CET1 capital ratio Gross capital generation 5.1% Net capital generation 2.2% Total Capital 21.0 5.1 21.5 21.1 Total Capital Ratio Ratio (0.5) 3.8 4.0 3.8 (2.4) (1.2) 17.7 CET1 C

  21. Slide 21: Acquisition of Cité Gestion

    03 Acquisition of Cité Gestion Dimitris Politis Chief Financial Officer & Deputy CEO

  22. Slide 22: Cité Gestion at a glance

    Cité Gestion at a glance Company description Strategic growth trajectory 16% AuM, in CHF bn CAGR  Pure-play Swiss wealth manager with primary focus on 2016-24 client service excellence, management-owned with banking 7.5 license since 2022  AuM of CHF 7.5 bn as of Dec-24 with sole focus on value- 5

  23. Slide 23: Transaction profile

    Transaction profile  Acquisition consideration consists of a fixed element plus an earnout based on future performance Transaction Terms  Key partners incentivised to remain and perform for 3 years post-closing  Subject to FINMA approval Closing  Expected in 2H 2025  Independent wealth manager

  24. Slide 24: Consistent with the M&A strategy laid out in our 2022 Investor Day

    Consistent with the M&A strategy laid out in our 2022 Investor Day Key EFG assessment parameters1 What Cité Gestion delivers 1  • Significant scaling of our operations in Switzerland Acquire market share and/or capabilities in strategic markets where we are already present and realise synergies • U

  25. Slide 25: Confident on delivery in 2025

    Confident on delivery in 2025 2025 Financial targets Entering last year of 2023-2025 strategic cycle, with record financial results NNA growth 4-6% p.a. Revenue margin  Business development 85 bps Priorities for 2025  Revenue margin protection  Strict cost and efficiency management Cost/income ra

  26. Slide 26: Priorities and outlook

    04 Priorities and outlook Giorgio Pradelli Chief Executive Officer

  27. Slide 27: EFG is well ahead of plan

    EFG is well ahead of plan 2023 - 2025 2023 - 2024 Sustaining profitable Consistent execution 2019 - 2022 growth, achieving scale and delivery Strong track record of profitable growth 13.4% 18.6% 18.2% 15-18% ~26% p.a. 6.8% 13.4% 15-18% 322 Initial ambition RoTE 303 ~15% 202 p.a. 206 202 115 94 Net p

  28. Slide 28: Consistent execution of strategy delivers sustainable growth and increased profitability

    Consistent execution of strategy delivers sustainable growth and increased profitability Drivers of sustainable Growth accelerators Consistent financial profitable growth and differentiators performance Clients Content innovation Client centric approach Enhancing quality and enriching leveraging uni

  29. Slide 29: EFG is well placed to successfully navigate complex environment

    EFG is well placed to successfully navigate complex environment Environment  Benign macro and financial environment with some tail risks and unusual complexity  Elevated uncertainty around global trade policies which implies higher potential inflation and interest rates  Continued and persistent

  30. Slide 30: Continued confidence to exceed 2025 ambition

    Continued confidence to exceed 2025 ambition Outlook  Well-diversified business model and strong management team to continue to generate consistent financial results and to create value for clients, shareholders and other stakeholders  Strategic investments and acquisition expected to continue to

  31. Slide 31: Entering final year of strategic plan with confidence

    Entering final year of strategic plan with confidence and looking ahead to the next strategic cycle Record profit with accelerated Focus on executing Confidence to exceed 2025 and well diversified growth final leg of 2023-2025 ambitions strategic plan EFG will hold an Investor Day in the fourth quar

  32. Slide 32: Thank you for your attention.

    Thank you for your attention. 19 February 2025 Page 32

  33. Slide 33: EFG International I Full-year 2024 results 19 February 2025 Page 33

    EFG International I Full-year 2024 results 19 February 2025 Page 33

  34. Slide 34: Appendix

    05 Appendix

  35. Slide 35: Income statement (IFRS)

    Income statement (IFRS) In CHF mn 2024 2023 Net interest income 383.2 512.0 Net banking fee & commission income 667.0 587.2 Net other income 448.6 331.5 Operating income 1,498.9 1,430.7 Personnel expenses (796.5) (764.8) Other operating expenses (222.2) (214.5) Amortisation of tangible fixed assets

  36. Slide 36: Income statement (IFRS)

    Income statement (IFRS) In CHF mn 2H24 1H24 2H23 1H23 Net interest income 200.7 182.5 262.6 249.4 Net banking fee & commission income 341.5 325.5 293.0 294.2 Net other income 212.8 235.8 150.3 181.2 Operating income 755.1 743.8 705.9 724.8 Personnel expenses (402.6) (393.9) (383.2) (381.6) Other ope

  37. Slide 37: Balance sheet highlights

    Balance sheet highlights In CHF mn 31 Dec 2023 31 Dec 2024 Cash & banks 7,345 8,595 Treasury bills 2,341 1,550 Derivatives 1,574 1,550 Financial instruments 9,853 9,475 Loans 16,019 17,925 Goodwill & intangibles 204 192 Other 1,250 1,313 Total assets 38,586 40,600 Due to banks 943 1,052 Due to custo

  38. Slide 38: AuM evolution

    AuM evolution AuM by asset class AuM by asset class in % FY 2023 in % FY 2024 Other Other Hedge funds Hedge funds 6% Cash & Deposits 6% 2% 2% Cash & Deposits Loans 23% Loans 22% 12% 11% Structured Structured products 3% 3% products CHF 142.2 bn CHF 165.5 bn 23% 23% 32% Bonds Bonds 33% Equities Equit

  39. Slide 39: Segmental analysis 2024

    Segmental analysis 2024 Continental Investment Global Performance summary Switzerland Europe & Americas UK Asia Pacific & Wealth Markets & Corporate Elimination Total (in CHF mn) & Italy Middle East Solutions Treasury Segment revenues 453.7 256.0 128.8 193.6 196.2 125.0 94.8 50.8 - 1,498.9 Segment e

  40. Slide 40: Segmental analysis 2023

    Segmental analysis 2023 Continental Investment Global Performance summary Switzerland Europe & Americas UK Asia Pacific & Wealth Markets & Corporate Elimination Total (in CHF mn) & Italy Middle East Solutions Treasury Segment revenues 451.9 256.7 133.1 178.2 165.5 122.4 83.7 39.2 - 1,430.7 Segment e

  41. Slide 41: Update on Life Insurance Exposures (I)

    Update on Life Insurance Exposures (I) Life insurance related portfolios  Legacy exposures acquired more than 10 years ago Outright portfolio  Outright portfolio carried at fair value (marked-to-model, Level 3) for IFRS accounts – small size Death of portfolio introduces substantial P&L volatility

  42. Slide 42: Update on Life Insurance Exposures (II)

    Update on Life Insurance Exposures (II)  Direct holding of life insurance policies for  Death benefit: CHF 587.0 mn 88 insureds (2023: 125) of an average age Carrying value: CHF 362.4 mn Outright  of 94.9 years portfolio  2024 premium: CHF 86.3 mn  Life expectancy: 3.5 years  Operating income

  43. Slide 43: Financial calendar 2025

    Financial calendar 2025 Event Date Annual General Meeting 2025 21 March 2025 4M business update 2025 21 May 2025 Half-year 2025 financial results 23 July 2025 EFG International I Full-year 2024 results 19 February 2025 Page 43

  44. Slide 44: Contacts

    Contacts INVESTORS MEDIA Investor Relations Corporate Communications Jens Brueckner Daniela Haesler Head of Investor Relations Head of Corporate Communications Phone +41 44 226 1799 Phone +41 44 226 1804 jens.brueckner@efginternational.com daniela.haesler@efginternational.com EFG International AG Bl

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