By Elena Vardon

EFG International said heightened client activity from recent market volatility lifted its profit, though the strength of the Swiss franc against the dollar weighed on its assets under management.

The Swiss private bank on Wednesday said its net profit for the four-month period ended April 30 rose to around 130 million francs ($157 million) from 110 million francs a year prior on higher income from increased trading.

Assets under management stood at 159.2 billion francs at the end of the period, lower than the 165.5 billion francs it reported for the end of 2024 due to foreign exchange impacts and a slightly negative market performance.

Net new assets of 3.0 billion francs were driven by inflows from the U.K., Latin America and the Asia-Pacific region, it said. This represents an annualized growth rate of 5.5%, within the bank's 4% to 6% target range.

"As our current strategic cycle draws to a close, we remain confident about our ability to exceed our 2025 ambition," Chief Executive Giorgio Pradelli said. EFG will unveil fresh midterm targets on Nov. 25.

The figures for the start of 2025 confirm the positive trends, Vontobel analyst Andreas Venditti said.

At the end of the period, its common equity Tier 1 ratio--a key measure of capital strength--stood at 17.1%, down from 17.7% four months prior.

The bank added that its first-half net profit will benefit from a 45 million-franc contribution as it will recover a settlement from legal proceedings with a Taiwanese insurance company. The sale of around a fifth of its life-insurance portfolio will also have a marginal positive impact on its earnings, it said. The resolution of legacy issues is encouraging, Citi said in a note to clients.

Shares traded 1.5% lower at 13.58 francs in midday exchanges and have gained 3% since the start of the year.

Write to Elena Vardon at elena.vardon@wsj.com

(END) Dow Jones Newswires

May 21, 2025 06:38 ET (10:38 GMT)

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