EFG International profit increase dampened by litigation provision

EFG International profit increase dampened by litigation provision

EFG International's Financial Performance

Feb 18 (Reuters) - Swiss bank EFG International on Wednesday reported a slight increase in net profits, which was dampened by a litigation provision related to a Kuwait pension corruption lawsuit.

Impact of Litigation Provision

The Zurich-based private bank reported a 1% increase in full year net profits to 325.2 million Swiss francs ($421.95 million) but the result was impacted by a litigation provision of 60 million Swiss francs recorded in December 2025.

Growth in Assets Under Management

On a call with reporters, chief executive Giorgio Pradelli said that the fee resulted from a UK court case in which EFG and other asset managers were accused of laundering bribes to Kuwait's public pension fund.

Recent Acquisitions and Future Outlook

The trial started in March 2025. The loss from the legal provision was partially offset by a previously disclosed one-off gain from an insurance recovery amounting to 45.4 million Swiss francs.

Analysts at Vontobel bank said the fee was unexpected and shares of EFG International were seen down 1.37 percent in Swiss pre-market indications.

EFG's net new assets amounted to 11.3 billion francs in 2025, corresponding to a growth rate of 6.8% and reaching their highest level since the global financial crisis.

Assets under mangement reached an all-time high of 185 billion Swiss francs. The increase in assets under management was driven by acquisitions.

In February 2025 EFG acquired the Geneva-based private bank Cité Gestion and in January 2026 it announced the acquisition of Quilvest Switzerland, another Swiss private bank. EFG said that in 2026 it would continue to look for M&A opportunities.

($1 = 0.7707 Swiss francs)

(Reporting by Simon Ferdinand Eibach in Gdansk, editing by Matt Scuffham)