Swiss Bank EFG Warns of Weakening Dollar as Net Profit Jumps 36%
Revenue-generating assets shrank 2% from a year earlier to 162.3 billion francs, with net new assets and favorable market performance helping cushion the foreign-exchange impact, the Zurich-based firm said in a statement on Wednesday.
'We are mindful of the challenges ahead, in particular the structural weakness of the US dollar and the expected interest-rate cuts,' Chief Executive Officer Giorgio Pradelli said. 'The only way to mitigate is to become more productive, to improve the net commission income and to reduce the cost income ratio. I'm afraid there is no silver bullet.'
With a 45% stake, Greece's Latsis family is the main shareholder of EFG, which competes with Swiss wealth managers including Julius Baer Group Ltd. and Vontobel. Earlier this year, the bank said it was buying smaller rival Cité Gestion in a deal that will add approximately 7.5 billion francs to assets under management. In May, Pradelli told Bloomberg TV that the bank has been scouting for acquisitions but sees a dearth of targets.
Net income jumped to 221 million francs in the first half of 2025, bolstered by a recovery in insurance. It added net new assets of 5.4 billion francs. Shares of the bank gained as much as 5.2% on Wednesday.
EFG also said it would repurchase 9 million shares by the end of July 2026, valued at around 140 million francs. The move would neutralize the dilution of new shares issued as part of variable compensation for staff and management.
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