EFG International (EFGN.S): Thoughts Post 1H26 - Incrementally More Constructive; Reiterate Buy

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EFG International (EFGN.S): Thoughts Post 1H26 - Incrementally More Constructive; Reiterate Buy

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22 Jul 2026 13:30:56 ET │ 15 pages

EFG International (EFGN.S)

Thoughts Post 1H26 - Incrementally More Constructive; Reiterate Buy

CITI'S TAKE

Buy EFG shares fell by 6% following 1H26 results, which in our view is harsh.

We thought the tone of the call was very positive and came away Price (22 Jul 26 17:30) SFr17.06

reassured on EFG’s growth trajectory and incrementally more constructive Target price SFr18.90↑

on the earnings outlook, given the stabilising revenue margin outlook. from SFr18.80

Indeed, we estimate that consensus should at the very least maintain Expected share price return 10.8%

estimates, if not increase. Following the de-rating, EFG now trades on 11x Expected dividend yield 4.7%

FY28E P/E, which in our view is not demanding for a solid mid-single

Expected total return 15.5% organic growth and 15%+ earnings CAGR. We see this as an attractive

Market Cap SFr5,254M opportunity to buy into an equity story offering growth, a solid track

record of delivery, operating leverage, and bolt-on M&A optionality. See US$6,465M

inside for details.

Margin Miss Should Have Been Partly Expected — EFG’s revenue margin fell by Nicholas HermanAC

1.5bps vs 2H25 to 91bps, which was 1bp below consensus expectations. The margin +44-20-7986-4203

had also fallen by c6bps between Jan-Apr and May-Jun. The miss vs consensus was nicholas.herman@citi.com

driven by life insurance, which had a negative contribution in May-June (vs 2bps in

the first 4 months) but also by net interest income margin, for which consensus had

optimistically assumed would be stable at c16bps, even though 1) NIM had fallen

heavily in 2H25 (i.e., lower exit rate), and 2) EFG had guided for lower NIM in its