EFG International AG

Annual Report • Feb 20, 2024

Annual Report

2023

EFG International is a global private banking group offering private banking and asset management services, headquartered in Zurich ("EFG Group", "EFG", "we"). EFG International's registered shares (EFGN) are listed on the SIX Swiss Exchange.

As a leading Swiss private bank, EFG has a presence in major financial centres and growth markets. It has strong roots in Switzerland, with Zurich, Geneva and Lugano serving as hubs for clients as well as the governance and operations of the bank. EFG International serves clients in over 40 locations worldwide, with a network spanning Europe, Asia Pacific, the Americas and the Middle East.

An entrepreneurial spirit shapes our bank, enabling us to provide comprehensive advice, develop handson solutions and to build trusted, long-lasting client relationships. We are a financial partner who offers security, financial stability and reliability.

Key figures

in CHF million

202.4

2022 2023

Assets under Management in CHF billion Net new assets in CHF billion IFRS net profit 2023 2022 EFG International Operating income, in CHF million 1,430.7 1,270.0 Operating expense, in CHF million 1,057.9 975.0 IFRS net profit, in CHF million 303.2 202.4 Cost/income ratio, in % 73.3 76.0 Balance sheet Total assets, in CHF billion 38.6 43.5 Shareholders' equity, in CHF billion 1.9 1.7 LCR, in % 230 205 Capital Regulatory capital, in CHF billion 1.8 1.7 CET1 Ratio, in % 17.0 14.7 Total Capital Ratio, in % 21.0 18.6 Assets under Management and Net new assets1 Assets under Management1 , in CHF billion 142.2 143.1 Assets under Administration, in CHF billion 24.5 29.7 Net new assets, in CHF billion 6.2 4.2 Net new assets growth rate, in % 4.4 2.4 Employees (full-time equivalents) Number of employees 3,025 2,828 Number of Client Relationship Officers 693 654 Share information Shares outstanding, in millions 312.3 309.5 Market capitalisation at 31 December, in CHF million 3,259 2,672 Dividend per share, in CHF 0.55 0.45 143.1 142.2 2022 2023 4.2 6.2 2022 2023

Earnings per share, in CHF (basic) 0.94 0.60

Moody's Long term: A3 Fitch Long term: A

Rating

303.2

Assets under Management and Net new assets are alternative performance measures. See definitions at end of Annual Report.

Content

Chair and CEO message	6
About EFG	9
Financial review	27
Corporate governance	31
Compensation report	65
Consolidated financial statements	85
Parent company financial
statements	221
Alternative performance measures	235

Dear shareholders,

2023 saw more benign conditions in financial markets than in the prior year, but it was also a period of renewed challenges and brought many unforeseen developments that caused disruption both in Switzerland and abroad.

The banking crisis in spring 2023 created turmoil in financial centres on both sides of the Atlantic and served as a stark reminder that trust and resilience are the most important factors for long-term success in the banking business. Geopolitical tensions escalated further in the course of the year and we witnessed the tragic events related to the ongoing wars in Ukraine and Gaza.

Looking at the operating environment from a macroeconomic perspective, we were confronted with weakening global growth, an uncertain inflation path and tightening financial conditions. At the same time, we continued to see the emergence of significant new opportunities – but also risks – from megatrends such as generative AI and sustainable development that are transforming our world.

As a globally active private banking group, we know that in this type of volatile, uncertain, complex and ambiguous market environment, it is more important than ever to stay close to our clients, acting as a trusted adviser and partner to them – offering insights and solutions to ultimately create value.

Despite the turmoil facing our entire industry in 2023, this was also a period of strong progress for EFG as we successfully and consistently delivered against our 2023—2025 strategic plan that is aimed at sustaining profitable growth and achieving scale. We delivered record IFRS net profit of CHF 303.2 million for the full

"We delivered successfully and consistently against our new strategic plan that is aimed at sustaining profitable growth and achieving scale."

year 2023 (+50% compared to 2022) and a return on tangible equity (RoTE) of 18.2%. We recorded net assets inflows of CHF 6.2 billion in 2023, corresponding to a growth rate of 4.4% – demonstrating the high level of trust that clients place in EFG. While recurring revenues were impacted by more subdued client activity in 2023, tailwinds from rising interest rates benefited our net interest income.

At the same time, we have maintained our disciplined approach to costs and reported a cost/income ratio of 73.3% for 2023, a significant improvement from 76.0% in 2022.

EFG has maintained strong capital and liquidity positions that are well in excess of the regulatory minimum requirements. At end-2023, our CET1 capital ratio stood at 17.0% and our liquidity coverage ratio was 230%. This solid balance sheet is the result of our rigorous strategic approach to ensure EFG's operational and financial resilience in an uncertain environment. To maintain our current positive momentum, we are building on our client-centric and well-diversified business model and are making strategic investments in our future growth.

Investing in the future

In 2023, we made significant investments to expand our talent base and client coverage. In particular, EFG continued to attract experienced bankers, bringing the total number of new Client Relationship Officers (CROs) hired in 2023 to 141, compared to our ambition of 50—70 per year. Our new CRO colleagues already made a strong contribution to asset inflows in the second half of 2023 and we expect this trend to continue and to significantly accelerate our growth momentum in 2024 and beyond. With talent on the move across many financial centres, we are also recruiting for key roles in our corporate functions.

To further improve the client experience while increasing operational efficiency and scalability, we are also making targeted investments in digitisation. We spent the past few years focusing on enhancing our core systems and processes, and successfully upgraded the core banking platform in all our private banking locations. Now we want to further strengthen connectivity between our CROs and our clients, thus also improving efficiency and productivity. Digital solutions will also help us to reinforce our operational resilience.

The challenges that our industry has faced in recent years have underscored the fundamental importance of responsible business conduct as well as of robust compliance and risk management frameworks. We will continue to remain extremely focused on our operational and financial resilience, as they are the core foundations of our lasting success.

In today's competitive market environment, having a strong brand is an important differentiating factor. In 2023, EFG was named as one of the 500 most valuable and strongest banking brands worldwide for the first time in the annual ranking published by Brand Finance and The Banker. We continue to build one of the leading brands in the private banking industry. Going forward, we will continue to shape and differentiate our brand profile across key markets.

Alexander Classen, Chair (left), Giorgio Pradelli, CEO (right)

Chair and CEO message

The strength of our brand and of EFG as a whole is a testament to our ability to deliver on our purpose "empowering entrepreneurial minds to create value – today and for the future". Our purpose is designed to guide us through the current strategic cycle and beyond. To position ourselves for long-term success, and to meet the evolving needs of our clients, employees and other stakeholder groups, sustainability has become a key consideration for EFG. Over the next few years, our industry will witness the biggest wealth transfer in history, and for the next generation of clients and investors, sustainable value creation will be an essential requirement. Information on EFG's approach to sustainability and the progress we achieved in this area in 2023 is provided in our Sustainability Report 2023.

Private banking and wealth management remain an attractive industry that is growing across geographies and segments. While the operating environment is expected to become somewhat more challenging in 2024, we believe that we are well positioned for further growth, irrespective of short-term challenges, including the effects of the global interest rate cycle. In terms of profitability, 2024 will be a year of consolidation where the full cost of the strategic investments will be recognized, we remain confident to achieve our targets for 2025 and generate longterm value for our stakeholders.

EFG has a progressive dividend policy and we plan to continue making attractive distributions to our shareholders, with a target payout ratio of around 50% of net profit. The payment of an ordinary

dividend of CHF 0.55 per share (exempt from Swiss withholding tax) for the financial year 2023 will be proposed to the Annual General Meeting of 22 March 2024. This corresponds to an increase of 22% compared to the previous year.

We remain committed to delivering the best possible performance each and every day to inspire trust in our clients and achieve the best possible outcomes for all our stakeholders. Our strength and solidity, combined with our entrepreneurial mindset, agility and strong sense of partnership, are more important than ever in times like these.

We wish to take this opportunity to express our gratitude to our 3,000 colleagues around the globe for their hard work and dedication. We also want to thank our clients, you, our shareholders, and our other stakeholders for the trust in EFG and your valued support.

Best regards

Alexander Classen Giorgio Pradelli

Chair of the Board Chief Executive Officer

Chair and CEO message

1 This section contains certain financial measures of historical and future performance and financial position that are not defined or specified by IFRS, such as "net new assets" and "Assets under Management". These alternative performance measures (APM) should be regarded as complementary information to, and not as a substitute for the IFRS performance measures. For definitions of APM, please refer to the section headed "Alternative performance measures" of this Annual Report.

About EFG

Delivering bespoke financial
solutions on a global scale	12
Strategy & value proposition	16
Local experts – globally	20
Sustainability at EFG	22

Value creation model

This model is based on the IFRS Foundation's blueprint and shows how we generate sustained value through our business activities and interaction with our stakeholders, covering both financial and non-financial aspects.

Intellectual capital

• Client-centric model
• Open product architecture
• IT platforms and partnerships
• Policies, directives and controls
• EFG brand value and reputation

Input ¹ Drivers of value

Our Purpose

Empowering entrepreneurial minds to create value – today and for the future

Human capital

• Employees' skills and expertise (3,025 FTEs)
• Global and diverse teams (70 nationalities)
• Learning and development opportunities

Financial capital

• Financial capital from investors (CHF 1.9 billion of shareholders' equity)
• Deposits and savings (CHF 30.1 billion of client deposits)
• Client Assets under Management (CHF 142.2 billion of Assets under Management)

Social and natural capital

• Stable political environment in our home market of Switzerland
• ESG-related products
• Engagement and participation in industry networks
• Climate action and carbon footprint

Output ¹

Clients and prospects

• Long-term client relationships
• Impartial advice
• Strong compliance culture and prudent risk management
• Content innovation and digital acceleration

Our brand proposition

"Bringing entrepreneurial thinking to Swiss private banking"

Employees

• Employer of choice (hired 141 new Client
• Relationship Officers in 2023)
• Diverse, equitable and inclusive environment (41% women in the workforce)
• Empowering and fostering talents (average of 12.6 hours of training conducted per employee, graduate training programme)

Our corporate values

• Accountable
• Hands-on • Passionate
• Solution-driven
• Partnership-oriented

Shareholders and investors

• Total dividend paid to shareholders CHF 136.7 million for the financial year 2022
• CHF 587 million increase in total market capitalisation through share price appreciation in 2023
• CHF 20.4 million of interest paid to AT1 holders in 2023
• CHF 16 billion of loans outstanding

Our 2023–2025 ambition

"Sustaining profitable growth, achieving scale"

Society and the environment

• Tax payments and goods and services procured from local SMEs
• CHF 1.9 billion of AuM in investment products/ services with a dedicated ESG focus ²
• Employee volunteering and donations
• Strategic climate-related measures

Our approach to sustainability

¹ All figures as of end-2023 unless otherwise stated

² This compares with a total of CHF 20.4 billion of Assets under Management invested in our New Capital business line of products as well as our discretionary managed assets.

Delivering bespoke financial solutions on a global scale

As a global private banking group, EFG's strategy builds on its core strengths – effectively combining local know-how in a global network, strong client focus and a comprehensive and impartial product and service offering. A strong risk management and regulatory compliance framework are a prerequisite to generating profitable and sustainable growth for the benefit of our stakeholders.

EFG serves its clients through five business regions, which are supported by two global divisions specialising in investment solutions and capital market products and services. EFG's business regions and global divisions work together closely to provide clients with financial solutions that are tailored to their individual needs and designed to deliver on their financial objectives.

Organisational set-up

Switzerland & Italy

EFG's Switzerland & Italy Region offers comprehensive financial solutions to private clients and independent asset managers, focusing on both offshore and onshore target markets. Through its presences in Zurich, Geneva, Lugano, Gstaad, St. Moritz, Lausanne, Locarno, Chiasso, Vaduz and Tel Aviv, EFG primarily serves high-net-worth and ultra-highnet-worth clients in its Swiss domestic market, clients from Italy, Southern Europe, the Middle East, CEE/CIS, as well as institutional clients and independent asset managers.

Continental Europe & Middle East

Offering comprehensive wealth and investment services to private clients and independent asset managers, EFG leverages its global network of experts and tailored local capabilities and know-how in the region to fully capture opportunity and achieve growth. EFG's private banking network and brand span across Europe and the Middle East with a presence in Luxembourg, Monaco, Greece and Portugal, as well as in Dubai and Bahrain.

Asia Pacific

Primed to capture the opportunity in Asia Pacific, EFG has a presence in Hong Kong and Singapore as well as a representative office in Shanghai. EFG offers tailor-made solutions, including investment finance and wealth planning, to high-net-worth clients and independent asset managers in the region, focusing on both onshore and offshore target markets. In the Australian onshore market, EFG serves clients through Shaw and Partners.

UK

EFG in the UK has a strong presence in London as well as Jersey branch and is strategically well positioned to attract global wealth. Leveraging its expertise in advisory and discretionary portfolio management, real estate financing and wealth planning solutions and the global Investment Solutions division, EFG offers personalised onshore and offshore private banking services to wealthy UK and international clients.

Latin America

EFG's Latin America business represents an extraordinary opportunity to access the dynamic and rapidly growing markets of the region by delivering world-class financial solutions and fostering strong, enduring long-term relationships with clients in this flourishing part of the world. With a presence in Miami, the main wealth management centre for international clients in Latin America, as well as through our booking centres in Switzerland, the Bahamas and on the Cayman Islands, EFG is one of the few global private banks to offer a comprehensive range of private banking, US broker-dealer and custody services to private clients and independent asset managers in the region.

Investment Solutions

EFG's Investment Solutions unit provides globally a broad range of services, including advisory and discretionary mandates – ranging from equity and fixed income portfolios to multi-asset strategies – as well as liquid alternatives, private markets and structured products. These services are complemented by EFG's in-house expertise via its proprietary funds platform, EFG New Capital, which serves both EFG clients and is also distributed externally to institutional and wholesale clients. The products, solutions and services offered by EFG's Investment Solutions team are developed in close collaboration with the private banking business and are complemented by selected third-party products.

Global Markets

The Global Markets division operates our global trading business which spans EFG's main regions. It supplies 24-hour execution services for client relationship officers, certain private clients, institutional clients and independent asset managers, as well as selected direct trading floor access. Products covered are equities, fixed income, foreign exchange, precious metals, securities lending, derivatives, structured products and bespoke solutions.

Global Divisions

Investment Solutions & Global Markets support our Private Banking business units

Our fi ve private banking business regions are supported by two global divisions with a comprehensive products and services offering.

Investment Solutions

• Discretionary Solutions
• Advisory Solutions
• Investment Funds
• Investment Finance and Real Estate Finance Solutions
• Wealth Solutions

Global Markets

• 24-hour execution services for CROs, Independent Asset Managers (IAM) and Direct Access Clients (DAC)
• Equities, fi xed income, foreign exchange, derivatives and structured products

Holistic product offering tailored to client needs

Strategy & value proposition

We are a leading Swiss private bank renowned for its client centricity. Our distinguished Client Relationship Officer (CRO) model enables us to deliver superior and tailored service and advice. It combines personalisation and geographic proximity to our clients with a global perspective, efficiency and scale. As a family-controlled, publicly listed and professionally managed global boutique, we can truly focus on long-term, multi-generational wealth creation and provide impartial advice to our clients.

Our 2023-2025 strategic plan: Focused on growth through scale and efficiency

EFG is a leading Swiss private bank with a strong capital position and a highly liquid balance sheet. With CHF 142.2 billion of Assets under Management as of end of 2023, a distinctive entrepreneurial approach, our pool of talent, a truly global network and deep investment expertise, we are well positioned to benefit from the expected wealth creation across different geographies and client segments.

Based on our unique value proposition and resilient business model, our 2023—2025 strategic plan focuses on sustaining profitable growth and achieving scale. Following the 2019—2022 strategic cycle, where we laid strong foundations for growth, we believe there is significant potential to further grow our business, generate scale and operational leverage.

Based on these ambitions, we have defined the following five strategic priorities that are also reflected in our financial targets for 2025:

• Maintain growth momentum by delivering first-class solutions and advice to clients
• Expand operating leverage to consistently increase profitability
• Strong capital generation, translating into attractive dividend distributions
• Continued transformation and digital acceleration to constantly meet client needs
• Drive performance, based on robust risk and compliance framework

Our strong organic capital generation and our solid capital position enable us to fund our organic growth and further support a transparent and progressive dividend policy. We aim to continue distributing 50% of our underlying net profit to shareholders as dividend payments. Our capital management framework for 2023—2025 includes a management floor of 12% CET1 capital ratio and the possibility of additional capital distributions if the CET1 capital ratio exceeds 15%, subject to market conditions, M&A opportunities, and regulatory development.

While our capital-light operating model allows us to achieve strong organic growth, we will continue to consider accretive and culturally fit acquisition opportunities with the aim to accelerate market share gains and/or acquire capabilities in strategic markets where we are already present.

Growth levers: What drives our strategy

Our 2025 ambition ultimately aims at creating value for our stakeholders, most notably our clients, our shareholders and our employees. To deliver this, we are continuing to focus on two important drivers: firstly, our client-centric approach based on our unique CRO model allowing us to build long-term relationships, something we aim to further preserve and cultivate. Secondly, we continue to promote and implement a simplicity mindset across our organisation with the goal to streamline processes, increase automation and achieve operational excellence.

Furthermore, we have defined three key levers that will help accelerate our growth momentum and differentiate us in the market:

Content innovation: We aim to offer and deliver first-class investment and wealth solutions to meet the ever-evolving needs of our clients, including the next generation, and in extraordinary quality.

Digital acceleration: We will accelerate the deployment of our digital capabilities to improve the experience of our clients, our client relationship officers and enable all our colleagues to provide world-class service in an efficient manner.

People: People are EFG's most important asset and the recent success in onboarding new talent reflects our reputation as an employer of choice and confirms that our CRO model is considered competitive and attractive in the industry. We aim to attract, develop and retain talented individuals with the skills and experience needed to serve our most demanding clients around the globe. We strive to provide an inclusive working environment in which all our employees are valued and can thrive equally.

We believe that responsible business and a strong foundation are essential to achieving long-term success. We continuously invest in our financial and operational resilience, building on our solid balance sheet, and robust compliance and risk management frameworks.

About EFG

Growth initiatives across our five business regions

In line with our 2023—2025 strategy of capturing significant growth opportunities in selected markets, we initiated a number of targeted initiatives across EFG's business regions to further develop our market presence.

We recently opened new offices in Gstaad, St. Moritz, Tel Aviv and Panama. We also hired 141 additional CROs to nurture our growth ambitions across regions, with a particular focus on Asia. To facilitate growth and scalability, we successfully upgraded our core banking platform in all our private banking locations. In 2023, we launched our new Discretionary and enhanced Advisory Solutions to capitalise on our unique and investment-led client approach. With a focus on digital capabilities and simplification of processes, we continued to increase our operational excellence.

Our Switzerland & Italy Region strategy builds on the following drivers:

• 1. Strengthen the support to our CROs to exploit their full potential and attract new talents
• 1. Accelerate the development of our independent asset managers (IAM) platform
• 1. Foster new business opportunities such as our recently opened offices in Gstaad, St. Moritz and Tel Aviv
• 1. Expand our investment solutions and lending offering including mortgages – for clients domiciled in Switzerland and Liechtenstein
• 1. Enhance profitability by further increasing the advisory and discretionary mandate penetration

Our Continental Europe & Middle East Region strategy builds on the following key pillars:

• 1. Expanding our Middle East business with the Gulf Cooperation Council and Levant as key markets
• 1. Accelerate growth into Southern Europe, capitalising on the two key hubs in Luxembourg and Monaco and benefitting from our unique position in Portugal
• 1. Broaden our credit offering, with a particular focus on Sharia and custody services for local Middle East securities.

Within the United Kingdom Region, our ambition is to significantly and substantially grow our AuM and financial footprint by leveraging the following:

• 1. Increase market share by utilising the investments made in enhancing our advisory and credit propositions and the development of our independent asset managers platform
• 1. Focus on optimising the share of wallet of the new CRO hires
• 1. Accelerate Jersey branch growth through its simplified client engagement model.
• 1. Streamline client journeys end-to-end to improve operational leverage as we increase the scale of the business

In the Asia Pacific Region, our strategy will focus on three growth levers:

• 1. Continue to focus on strategic CRO hiring in attractive markets and client segments
• 1. Grow existing business in Hong Kong and Singapore through a refined credit offering, increased penetration of higher margin and income-generating products and a roll-out of digital trade execution platform for clients and IAM
• 1. Fully realise synergies from the Shaw and Partners acquisition and thereby increase the scale of the business through our Singapore hub.

Within the Latin America Region, we focus on a multifaceted approach to capitalize on the region's unique opportunities:

• 1. Continue to hire strong talent and grow our CRO team
• 1. Digitise and enhance our offering platform
• 1. Customized Wealth Management solutions: Tailoring services to meet the specific needs of Latin American clients, with a focus on personalization and local expertise
• 1. Expansion through strategic partnerships and alliances: Collaboration with local financial institutions and businesses to leverage regional knowledge and networks
• 1. Strengthen local presence: Ensuring multijurisdictional service in the US, Switzerland, Bahamas and Cayman as well as local proximity through the offices in Miami and the existing network of 6 offices in key Latin American markets.

In addition to implementing regional initiatives, we have continued to rationalise our international footprint with a view to focusing on strategically relevant, high-yielding, high-growth target markets.

Client Relationship Officer (CRO) model

embedded in EFG's values

Local experts – globally

EFG was founded in Zurich – the Swiss financial centre at the heart of Europe and a city that is home to our headquarters. Switzerland's solid, innovative and entrepreneurial economy continues to inspire our approach to business as we expand around the world.

With a presence in over 40 locations spanning every time zone from Asia Pacific to Europe and from the Middle East to the Americas, we are perfectly placed to partner with our clients and help them thrive. Our entrepreneurial spirit and dynamic collaborative approach, as well as our commitment to delivering outstanding service and advice, form the basis of our relationship with our clients.

Our locations

Booking Centre

EFG locations

Switzerland

Zurich (headquarters)

Chiasso

Geneva

Gstaad

Lausanne

Locarno

Lugano St.Moritz

Europe

Athens Birmingham

Jersey Limassol

Lisbon

London Luxembourg

Monaco

Nicosia Ombersley Porto

Shrewsbury Vaduz

Asia Pacific

Adelaide

Brisbane Canberra

Hong Kong

Melbourne

Perth

Shanghai

Singapore Sydney

Americas

Bogotá

Grand Cayman

Lima Miami

Montevideo

Nassau

Panama City

Portland

Punta del Este

Rio de Janeiro

São Paulo

Middle East

Bahrain Dubai Tel Aviv

Our approach to sustainability

At EFG, we believe that sustainability is all about choosing the right path to balance economic, environmental and social interests. We are also convinced that a responsible approach to business that includes robust governance is vital to achieve long-term success. We strive to apply the highest standards of business and ethical conduct in all aspects of our work in order to build relationships of trust and create sustained value for all our stakeholders.

Our sustainability strategy is designed to integrate sustainability aspects into our business activities and to meet the client demand for sustainable finance. The strategy is based on two main pillars: our responsibility as an asset allocator on behalf of our clients and our responsibility as a firm.

EFG's first priority as a global private bank is to act as a reliable and professional partner to our clients, offering them superior service and advice as well as high-quality investment, wealth and credit solutions. We aim to meet the current and future needs and expectations of our clients – including those of the Next Generation. At the same time, as an asset allocator, we partner with our clients to direct assets towards transformative technologies and companies that support sustainable development and innovation. We do so by providing greater transparency around investment opportunities as well as by integrating ESG criteria and related risk considerations into our investment process and continuously expanding our responsible investment offering. In this way, we are supporting global efforts to realise the UN Sustainable Development Goals (SDGs).

As a firm, we aim to be an employer of choice that attracts, develops and retains talented professionals with a variety of skills and experience. We are committed to providing an inclusive working environment where all our employees are valued equally and can thrive. As an integral part of society, we are committed to serving the interests of the communities in which we live and work. Our approach to sustainability also encompasses our commitment to protecting the environment.

For further information, see our Sustainability Report 2023: www.efginternational.com/sustainability

Sustainability Framework

Our responsibility as an asset allocator

Allocating capital on behalf of our clients with an increasing focus on responsible investing to help drive sustainable development

Our responsibility as a firm

Meeting the expectations of all our stakeholders and strengthening our sustainable business model

Our advisory capabilities

Responsible investing

ESG-related research and expertise

Commitment to our people

Our social commitments Commitment to the environment

Responsible business conduct

Corporate Governance Business Code of Conduct

Corporate Values

Code of Ethics

The EFG Sustainability Framework aims to create long-term value for our clients, employees and society as a whole to ensure the prosperity of future generations.

About EFG

Beyond banking

We aim to make a meaningful contribution to the communities around us. EFG supports a variety of partners in the worlds of art, music and sport as well as charitable and humanitarian projects. In this way, we can help to promote a rich cultural life, foster the development of talent and empower young people to realise their full potential.

The EFG London Jazz Festival is a flagship event featuring live performances by global jazz icons as well as emerging musical talents. EFG has supported the Festival as its title sponsor for around a decade.

Fatoumata Diawara © Tatiana Gorilovsky

We are proud to support Right To Play, an international humanitarian and development organisation that improves the lives of children in some of the world's poorest countries.

© Picture: Right To Play

EFG has been the official partner of Team Malizia and Boris Herrmann since 2016. We support their efforts to foster young talent and to raise awareness about ocean protection and climate change. This includes our support for the Malizia Mangrove Park in the Philippines.

© Picture: Antoine Auriol

EFG is Institutional Patron of the Peggy Guggenheim Collection in Venice since 2001, one of the most prestigious art collections in the world.

© Picture: Matteo De Fina

Sinfonia EFG has been the principal partner of Southbank Sinfonia since 2009, providing a springboard into the orchestral profession for talented young musicians.

© Picture: Southbank Sinfonia

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Financial review

Financial review

In 2023, EFG International delivered a record¹ profit and strong operational performance. These results clearly demonstrate the good progress that EFG is making in consistently executing on its strategy of generating sustainable and profitable growth.

EFG recorded net new assets of CHF 6.2 billion for the year, within its target range, as it continued its growth trajectory. Revenue-generating Assets under Management were CHF 142.2 billion at end-2023, down marginally compared to end-2022 and impaired by foreign exchange movements.

Reflecting the continued generation of operating leverage, EFG's net profit increased by 50% to a record CHF 303.2 million for 2023.

Operating income

EFG delivered a 13% increase in operating income to CHF 1,430.7 million in 2023, as significantly higher net interest income and higher other income more than offset lower net banking fee and commission income.

EFG's net interest income increased by 29% to CHF 512.0 million in 2023 from CHF 395.5 million in 2022, reflecting the positive impact of rising interest rates across all major currencies.

Net banking fee and commission income decreased by 7% year on year to CHF 587.2 million, mainly due to the reduction in average revenue-generating Assets under Management compared to 2022. The lower average revenue generating Assets under Management also reflect the sale of EFG's stake in the Spanish private bank A&G in mid-2022.

Net other income rose by 35% to CHF 331.5 million from CHF 245.0 million in 2022, driven by an increase in foreign exchange transactions by clients, swap income and a positive contribution from EFG's life insurance portfolio.

Based on average revenue-generating Assets under Management of CHF 143.9 billion in 2023, the revenue margin for 2023 increased by 18 basis points to 99 basis points compared to 2022. This compares to 100 basis points for the first half of 2023 and 98 basis points for the second half of 2023.

"EFG delivered record profit and strong operating performance."

Operating expenses

EFG's operating expenses of CHF 1,057.9 million rose by 9% compared to 2022. This increase was driven by higher personnel expenses on the back of significant investment in EFG's talent base and client coverage. The 11% rise in personnel expenses year on year to CHF 764.8 million reflects strong hiring, higher accruals for variable compensation as a result of strong profitability, as well as wage inflation. Other operating expenses increased by 2% to CHF 293.1 million.

The cost/income ratio improved to 73.3% from 76.0% in 2022.

At end-2023, the number of employees increased to 3,025 (full-time equivalents), compared to 2,828 at end-2022.

Operating profit and net profit

Operating profit grew by 26% to CHF 372.8 million, reflecting the generation of further operating leverage. After the deduction of impairments, provisions, loss allowances expenses and income tax expenses, EFG generated a record¹ net profit of CHF 303.2 million for 2023, an increase of 50% compared to 2022.

Return on tangible equity was 18.2%, compared to 13.4% in 2022 above of EFG's target range of 15-18%.

Net new assets and Assets under Management

Net new assets totalled CHF 6.2 billion in 2023, corresponding to a net new asset growth rate of 4.4%, which is within EFG's target range of 4-6%.

The Asia Pacific Region recorded net new assets of CHF 3.7 billion in 2023, with strong performance across all locations and with new CROs already contributing significantly to

1 IFRS net profit for 2016 of CHF 339.3 million positively impacted by non-operating effects related to the BSI acquisition, specifically the "Bargain purchase on business acquisition" of CHF 530.8 million. The Bargain purchase on business acquisition reflects the difference between what EFG assessed to be the final purchase price for BSI of CHF 783.9 million, compared to the fair value of the net assets acquired on 31 October 2016 of CHF 1,314.7 million.

these strong inflows. The Continental Europe & Middle East Region generated CHF 2.9 billion of net new assets, followed by the Latin America Region with CHF 1.7 billion and the UK Region with CHF 0.2 billion. The Switzerland & Italy Region recorded CHF 1.5 billion of outflows, due to de-risking and deleveraging in a volatile market environment. Investment Solutions and Wealth Solutions together experienced outflows of CHF 0.8 billion during the year.

Assets under management declined marginally to CHF 142.2 billion at end-2023 compared to CHF 143.1 billion at end-2022. This marginal decrease stems from negative foreign exchange impacts of CHF 10.2 billion due to the strengthening of the Swiss franc especially in the final quarter of 2023, which more than offset net new assets of CHF 6.2 billion and positive market performance of CHF 4.7 billion.

CRO development and productivity

EFG made significant investments throughout 2023 to expand its talent base and client coverage in order to build scale organically and accelerate its growth momentum. Seizing strategic opportunities in the wealth management market, EFG hired or made offers to hire 141 new CROs across all regions in 2023. This compares with EFG's ambition to hire on average 50-70 CROs per year and reflects its attractiveness as an employer. By end-2023, EFG's total number of CROs worldwide was 693, compared to 654 CROs at end-2022.

The average CRO portfolio size increased to CHF 321 million at end-2023, compared to CHF 313 million at end-2022 (excluding Shaw and Partners and CROs hired in 2023). Advisory and discretionary mandate penetration was 56%.

Balance sheet

At end-2023, total assets were CHF 38.6 billion, compared to CHF 43.5 billion at end-2022. The decrease includes adverse foreign exchange translation effects.

The Liquidity Coverage Ratio was 230%, compared to 205% at end-2022, and the Loan/deposit ratio was 49% at end-2023, compared to 44% at end-2022.

Shareholders' equity totalled CHF 1.9 billion at end-2023, compared to CHF 1.7 billion at end-2022. This increase incorporates the profit generated for the year of CHF 303.2 million less the dividend paid out in the period of CHF 136.7 million.

At end-2023, the Common Equity Tier 1 (CET1) Ratio was 17.0%, compared to 14.7% at end-2022. The Total Capital Ratio rose to 21.0% from 18.6% at end-2022. The increase reflects the reclassification of a portfolio of financial assets from "financial assets measured at fair value through other comprehensive income" to "other financial assets measured at amortised cost" (announced in December 2022 and effective 01 January 2023) and retained earnings net of projected dividends.

Risk-weighted assets totalled CHF 8.6 billion at end-2022 compared to CHF 9.0 billion at end-2022.

Ordinary dividend

For the financial year 2023, the Board of Directors will propose the payment of an ordinary dividend of CHF 0.55 per share (exempt from Swiss withholding tax) to the Annual General Meeting of 22 March 2024. This corresponds to an increase of 22% compared to the previous year. This higher dividend is a testament to EFG's commitment to an attractive and progressive dividend policy.

Ratings

EFG International and EFG Bank are rated by the rating agencies Fitch and Moody's.

The current ratings are as follows:

EFG International

Fitch: Long-term issuer default rating of A and short-term issuer default rating of F1 with stable outlook.

Moody's: Long-term issuer rating of A3 and short-term bank deposit rating of P1 with negative outlook.

EFG Bank

Fitch: Long-term issuer default rating of A and short-term issuer default rating of F1 with stable outlook.

Moody's: Long-term bank deposit rating of A1 and shortterm bank deposit rating of P1 with positive outlook.

Note: This section contains certain financial measures of historical and future performance and financial position that are not defined or specified by IFRS, such as "net new assets", "Assets under Management", "operating profit", "liquidity coverage ratio" and "loan/deposit ratio". These alternative performance measures (APM) should be regarded as complementary information to, and not as a substitute for the IFRS performance measures. For definitions of these APMs, please refer to the section headed "Alternative performance measures" of this Annual Report.

Organisation of EFG International & Group entities	33
Capital structure	33
Shareholders and shareholders' rights	36
Board of Directors	39
Executive Committee	53
Definition of areas of responsibility between the Board and the Executive Committee	60
Other information	61
Changes of control and defence measures	62
Auditors	62
Information policy	63

Robust corporate governance ensures that a company is managed efficiently and effectively in the interests of all stakeholders. It pursues a balanced relationship between leadership, control, and transparency. EFG International aims to achieve good corporate governance based on leading national and international standards whilst always respecting the rights of shareholders to the highest degree. EFG International ensures transparency by properly disclosing company information. This part of the annual report provides key information with regard to EFG International's governing bodies and corporate governance practices within the company.

EFG International operates under clear separation of responsibilities between the Board of Directors and the Executive Committee in full compliance with Swiss banking law. The responsibilities of both bodies are clearly defined in the Articles of Association and the Organisational and Management Regulations of EFG International AG (these documents are available on EFG International's website: www.efginternational.com/articlesofassociation and www.efginternational.com/internalregulations).

EFG International governing bodies

As a publicly listed Swiss company, EFG International AG is subject to and complies with the Corporate Governance Directive and its annex and commentary, issued by SIX Swiss Exchange AG (SIX). The information provided in this section adheres to the Corporate Governance Directive (dated 29 June 2022 and entered into force on 01 January 2023), the SIX guidelines revised on 01 January 2023 and the recommendations of the "Swiss Code of Best Practice for Corporate Governance" of the Swiss Business Federation, economiesuisse, as amended in 2014, 2016, and in 2022 as well as its appendix 1, "Recommendations on compensation for Board of Directors and Executive Board", which address transparency with respect to the compensation of the members of the Board of Directors and the Executive Committee. Furthermore, EFG International AG complies with the statutory Swiss compensation regulation as per the Swiss Code of Obligations (CO), and the FINMA Circular 2017/1 Corporate Governance – Banks entered into force in July 2018 (version as of 01 January 2020). The following information corresponds to the situation as at 31 December 2023, unless indicated otherwise.

If information required by the Corporate Governance Directive is published in the notes to the financial statements or in the compensation report, a reference indicating the corresponding section of the notes or page number is given.

1. Organisation of EFG International & Group entities

1.1 Operational structure of EFG International

EFG International AG ("Company") is a holding company domiciled in Zurich, organised under the laws of Switzerland in accordance with Art. 620 et seq. of the Swiss Code of Obligations. It manages a global private banking group offering private banking and asset management services. EFG International's group of private banking businesses operates in more than 40 locations worldwide.

EFG International is organised in the following business segments: Switzerland & Italy, Continental Europe & Middle East, Asia Pacific, United Kingdom, Americas, Investment & Wealth Solutions, and Global Markets & Treasury. Further information can be found in note 25 'Segmental Reporting' to the consolidated financial statements. The functional organisation of EFG International AG is outlined on page 32.

1.2 Group entities

The main consolidated entities are listed in note 44 on page 183 (Shares in subsidiary undertakings) to the consolidated financial statements. Within the EFG International Group, only EFG International AG is a listed company.

The registered shares of EFG International AG are traded on the main standard of SIX in Zurich (security no. 002226822; ISIN CH0022268228, symbol EFGN). The Company's market capitalisation of total shares listed was CHF 3.37 billion on 31 December 2023.

Details about significant shareholders can be found in section 3.1.

2. Capital structure

2.1 Capital

2.1.1 Share capital

The outstanding share capital amounts to CHF 156,142,978, consisting of 312,285,956 registered shares with a par value of CHF 0.50 each; the shares are fully paid-in (for details about the changes in share capital please refer to the table in section 2.3.2). For details about authorised capital (capital band) and conditional capital see section 2.2.1 and 2.2.2 below.

Further information on the share capital can be found in note 53 to the consolidated financial statements.

2.1.2 Participation capital

EFG International has bought back the remaining outstanding participation capital in May 2022 and the participation capital was cancelled in April 2023.

2.2 Authorised and conditional capital

2.2.1 Authorised capital/Capital band

As at 31 December 2023, the share capital may be changed in a range between CHF 108,319,748.50 and CHF 201,165,246.50 (capital band).

The Board of Directors is authorised, at any time until 21 April 2028, to increase the share capital by no more than CHF 46,422,749.00 by issuing no more than 92,845,498 fully paid-in registered shares (equating 29.7% of the total share capital issued as at 31 December 2023) with a face value of CHF 0.50 each or by way of an equivalent increase of the nominal value of the issued shares. Partial increases are permissible. The Board of Directors is authorised to determine the issue price, the date of the dividend entitlement and the type of contribution (including, without limitation, contribution in kind, offsetting and conversion of reserves) for any shares issued via the capital band.

In the event of a capital increase, the Board of Directors is authorised to exclude subscription rights in favour of third parties (including other group companies) if the shares are to be used:

• (i) For the acquisition of companies or of participations in companies through an exchange of shares
• (ii) For the financing or refinancing of the acquisition of companies or of participations in companies, or
• (iii) For the participation of members of the Board of Directors, members of the Executive Committee, other officers or employees at all levels of EFG International and its group companies

Furthermore, the Board of Directors is authorised, at any time until 21 April 2028, to reduce the share capital by no more than CHF 46,422,749.00 by cancelling no more than 92,845,498 fully paid-in registered shares with a face value of CHF 0.50 each (equating 29.7% of the total share capital issued as at 31 December 2023) or by reducing the nominal value of the issued shares accordingly. Partial reduction is permissible.

In alignment with the revised Art. 653s-653v CO, the Annual General Meeting of 21 April 2023 approved the replacement of the no longer renewable authorised capital (expiring on 29 April 2024 and amounting to CHF 21,700,000 or 14% of the total share capital issued by end of April 2023) by the capital band, authorising the Board of Directors to increase and reduce the share capital without previous resolution by the General Meeting.

2.2.2 Conditional capital

As at 31 December 2023, the share capital may be increased by no more than CHF 2,895,587 (or up to 1.9% of total share capital issued as at 31 December 2023) by issuing no more

than 5,791,174 fully paid-in registered shares with a par value of CHF 0.50 each through the exercise of options (including existing or future restricted stock units) granted to employees at all levels of EFG International and its group companies. The pre-emptive rights and the advance subscription rights of the shareholders are excluded in favour of the holders of the restricted stock units. The conditions for the allocation and the exercise of the option rights and similar rights are determined by the Board of Directors. The shares may be issued at a price below the market price.

The share capital may further be increased by no more than CHF 10,000,000 (or up to 6.4% of total share capital issued as at 31 December 2023) by issuing no more than 20,000,000 fully paid-in registered shares with a face value of CHF 0.50 each through the exercise of conversion and/or option rights granted in connection with the issuance of newly issued convertible debentures, debentures with option rights or other financing instruments by EFG International AG or one of its subsidiaries. The preferential subscription rights of the shareholders are excluded in favour of the holders of conversion and/or option rights.

The Board of Directors may limit or withdraw the right of the shareholders to subscribe in priority to convertible debentures, debentures with option rights or similar financing instruments when they are issued, if any of the following applies:

• An issue by a firm underwriting by a consortium of banks with subsequent offering to the public without preferential subscription rights seems to be the most appropriate form of issue at the time, particularly in terms of the conditions or the time plan of the issue
• The financing instruments with conversion and/or option rights are issued in connection with the financing or refinancing of the acquisition of an enterprise or parts of an enterprise or with participations or new investments of the Company

If advance subscription rights are denied by the Board of Directors, the following applies:

• Conversion rights may be exercised only for up to seven years and option rights only for up to four years from the date of the respective issuance
• The respective financing instruments must be issued at the relevant market conditions

Waived conversion and/or option rights lapse unless the Board of Directors determines otherwise.

2.3 Changes in capital structure

2.3.1 Share capital increase by use of conditional capital

In context of the equity incentive plan for employees (Employee Equity Incentive Plan) of EFG International (see also section 6.2.1 of the compensation report and note 62 to the consolidated financial statements), the Company has started in 2013 issuing its conditional share capital to provide registered shares for exercised options and restricted stock units to employees.

In 2023, EFG International AG issued a total of 2,800,961 registered shares with a par value of CHF 0.50 at a total nominal amount of CHF 1,400,480.50 for restricted stock units exercised by employees of EFG International.

The movements (creation of additional conditional capital and exercise of conditional capital for restricted stock units exercised in 2023) are summarised in the table below:

	Number of shares	CHF
Conditional capital as at 31 December 2022	28,592,135	14,296,067.50
	0	0
Additional conditional capital created in 2023
Less: shares issued during 2023 via conditional capital (RSUs exercise)	(2,800,961)	(1,400,480.50)
Remaining conditional capital as at 31 December 2023	25,791,174	12,895,587.00

In 2022, EFG International AG issued a total of 3,963,976 registered shares with a face value of CHF 0.50 at a total nominal amount of CHF 1,981,988 for restricted stock units exercised by employees of EFG International.

In 2021, EFG International AG issued a total of 2,722,165 registered shares with a face value of CHF 0.50 at a total nominal amount of CHF 1,361,082.50 for restricted stock units exercised by employees of EFG International.

In 2020, EFG International AG issued a total of 1,027,382 registered shares with a par value of CHF 0.50 at a total nominal amount of CHF 513,691.00 for restricted stock units exercised by employees of EFG International.

2.3.2 Ordinary share capital increase and increase by use of authorised capital

In 2023, EFG International AG did not carry out an ordinary capital increase nor a capital increase out of authorised capital respectively by using the capital band.

Details of the movements in share capital (conditional and authorised capital) during 2023 are shown in the table below:

Share capital (registered shares EFG International)	Number of shares	CHF
Shares issued as at 31 December 2022	309,484,995	154,742,497,50
Shares issued via authorised capital/capital band in 2023	0	0
Shares issued during 2023 via conditional capital (restricted stock units exercise)	2,800,961	1,400,480.50
Total shares issued as at 31 December 2023	312,285,956	156,142,978.00

In June 2022, the Company issued 1,600,000 registered shares with a par value of CHF 0.50 at a total nominal amount of CHF 800,000 out of authorised capital for shares granted to EFG International Group's employees (and members of the Board of Directors) and restricted stock units exercised by employees (and members of the Board of

Directors) of EFG International in connection with the equity incentive plan.

On 19 November 2021, EFG International issued 2,972,969 registered shares with a nominal value of CHF 0.50 out of authorised capital to finance the acquisition of the

remaining minority stake of 25% in the shares of the subsidiary Shaw and Partners Ltd.

In 2020, EFG International AG did not issue any registered shares out of authorised capital or via ordinary capital increase.

2.4 Shares and participation certificates

Shares Number of shares

As at 31 December 2023:

Registered shares of CHF 0.50 par value 312,285,956

All registered shares are fully paid-in and entitled to dividends. Each share carries one vote. There are no preferential rights or similar rights attached to the shares.

Participation certificates Number of participation certificates

As at 31 December 2023:

Preference class B Bons de Participation of CHF 15 par value 0

The outstanding participation capital was repurchased by EFG International in May 2022 and the participation capital was cancelled after approval at the ordinary shareholders meeting of 21 April 2023.

2.5 Profit-sharing certificates

There are no profit-sharing certificates outstanding.

2.6 Convertible bonds and warrants/options

Apart from the amounts disclosed in note 62 to the consolidated financial statements, EFG International has not issued options or conversion rights.

3. Shareholders and shareholders' rights

3.1 Significant shareholders

2,112 shareholders were recorded as at 31 December 2023 in EFG International's share register (i.e., shareholders with voting rights), representing 69.6% (previous year: 85.4%) of the total issued share capital. The shares of unrecorded shareholders (dispo) amounted to 30.4% (previous year: 14.6%).

Ownership interests in companies domiciled in Switzerland whose shares are listed at least partly in Switzerland must be notified both to the issuer company and to SIX when the holder's voting rights reach, increase above or fall below certain thresholds. These notification thresholds are 3%, 5%, 10%, 15%, 20%, 25%, 33.33%, 50% and 66.66% of voting rights. The legal basis for the disclosure of shareholdings is, in particular, set out in the Financial Market Infrastructure Act (Art. 120 ff. FMIA) and in its implementing provisions, the Financial Market Infrastructure Ordinance-FINMA (Art. 10 ff. FMIO-FINMA) and the Financial Market Infrastructure Ordinance (FMIO). The Rules of the SIX Disclosure Office include organisational and procedural provisions on proceedings before the SIX Disclosure Office.

All notifications received by EFG International AG in 2023 and published on the SIX Disclosure Office's electronic publication platform can be found under https://www.ser-ag.com/en/resources/notificationsmarket-participants/significant-shareholders.html#/ (Issuer: EFG International).

The shareholding structure of EFG International is shown in the following table:

As at 31 December 2023	Number of registered shares	Percentage of voting rights
EFG Bank European Financial Group SA1, 3, 5	140,421,406	45.0%
BTGP-BSI Limited2, 3	61,228,372	19.6%
Belleview SA 4, 5	10,775,862	3.4%
The Capital Group Companies, Inc 6	10,224,204	3.3%
Other shareholders 7	89,636,112	28.7%
Total	312,285,956	100.0%

• 1 EFG Bank European Financial Group SA is controlled by the Latsis Family Interests through several intermediate holding companies. For details of the shareholder's ownership structure, please refer to the shareholding disclosure notification cited in note 3 below.
• 2 BTGP-BSI Limited is a subsidiary of Banco BTG Pactual SA, Rio de Janeiro, a bank listed on the B3 São Paulo Stock Exchange in Brazil. For details of the shareholder's ownership structure, please refer to the shareholding disclosure notification cited in note 3 below. The total number of shares includes 9.3% of the EFG International registered shares that were transferred to an Escrow Agent based on an escrow agreement between EFG International, BTGP-BSI Limited and Bratschi AG (Escrow Agent) and shares used for lending transactions. For details, please refer to the shareholding disclosure notification cited in note 3 below.
• 3 By virtue of an agreement dated 31 October 2016 among EFG Bank European Financial Group SA, BTGP-BSI Limited and Banco BTG Pactual SA, the Latsis Family Interests and the beneficial owners of the shares of BTGP-BSI Limited form a group of shareholders within the meaning of article 120 et seq. of the Financial Market Infrastructure Act (FMIA). This agreement contains, among others, a right of first offer in case of a private sale of EFG International registered shares held by BTG Pactual, and an undertaking of EFG Bank European Financial Group SA to vote its shares in EFG International in favour of two board candidates nominated by BTG Pactual SA (or one board candidate in case the total shareholding in EFG International controlled by BTG Pactual S.A. represents less than 25% of EFG International's issued share capital at the time). For further details on the agreement, the members of the shareholder group and the reported combined sale and purchase positions pursuant to article 120 FMIA and its implementing ordinances, please refer to the most recent shareholding disclosure notification published on 21 September 2023 at https://www.ser-ag.com/en/resources/notifications-market-participants/significant-shareholders.html#/ (Issuer: EFG International).
• 4 Beneficial owner is Mr Boris Collardi. For details, please refer to the shareholding disclosure notification cited in note 5 below.
• 5 The Latsis Family Interests and Mr Boris Collardi form a group of shareholders within the meaning of article 120 et seq. of the Financial Market Infrastructure Act (FMIA) by virtue of an agreement to, among others, coordinate a potential sale of shares. This shareholder group is separate and independent from the shareholder group referred to under note 3 above. For further details on the members of the shareholder group, the agreement and the reported combined position pursuant to article 120 FMIA and its implementing ordinances, please refer to the most recent shareholding disclosure notification published on 07 May 2022 at https://www.ser-ag.com/en/resources/notifications-marketparticipants/significant-shareholders.html#/ (Issuer: EFG International).
• 6 According to shareholding disclosure notification published on 24 April 2021 at https://www.ser-ag.com/en/resources/notifications-marketparticipants/significant-shareholders.html#/ (Issuer: EFG International).
• 7 Including registered shares held by EFG International. For details on treasury shares, see note 53 to the consolidated financial statements. No other shareholders have notified a shareholding of 3% or more of the voting rights of EFG International pursuant to article 120 FMIA.

3.2 Cross-shareholdings

EFG International has not entered any cross-shareholdings that exceed 5% of the capital shareholdings or voting rights on either side.

3.3 Registration in the share register

There is no statutory rule on the deadline for registering shareholders in connection with the attendance of the General Meeting. However, for organisational reasons, no shareholders will be entered into the share register during the period beginning 15 days prior to a General Meeting and ending immediately after the closing of the General Meeting.

3.4 Limitations on transferability and nominee registrations

EFG International AG's shares are freely transferable, without any limitation, provided that the buyers expressly declare themselves to have acquired the shares concerned in their own name and for their own account, that there is no agreement in place on the redemption or the return of corresponding shares, that they bear the economic risk associated with the shares and comply with the disclosure requirement stipulated by the FMIA. Transfers of intermediated shares, including the granting of security interests, are subject to the Swiss Intermediated Securities Act. The transfer of uncertificated shares is affected by a corresponding entry in the books of a bank or depositary institution following an assignment by the selling shareholder and notification of such assignment to the Company by the bank or depositary institution. The transferee must file a share registration form in order to be registered in the Company's share register as a shareholder with voting rights. Failing such registration, the transferee may not vote at or participate in any General Meeting but may still receive dividends and other rights with financial value.

The uncertificated shares may only be transferred with the assistance of the bank that administers the book entries of such shares for the account of the transferring shareholder. Further, shares may only be pledged to the bank that administers the book entries of such shares for the account of the pledging shareholder; in such case, the Company needs to be notified. According to the Articles Persons not expressly declaring themselves to be holding shares for their own account in their application for entry in the share register (nominees) shall be entered in the share register with voting rights without further inquiry up to a maximum of 2% of the outstanding share capital available at the time (see Art. 6 of the Articles of Association1 ). Above this limit, registered shares held by nominees shall be entered in the share register with voting rights only if the nominee in question discloses the names, addresses and shareholdings of the persons for whose account the nominee is holding 0.5% or more of the outstanding share capital available at the time and provided that the disclosure requirements stipulated by FMIA are respected.

Legal entities or partnerships or other associations or joint ownership arrangements which are linked through capital ownership or voting rights, through common management or in like manner, as well as individuals, legal entities, or partnerships (especially syndicates) which act in concert with the intent to evade the entry restriction are considered as one shareholder or nominee. Amendments to the provisions in the Articles of Association governing the transferability and nominee registration would require an according resolution of the General Meeting with the quorum set forth in Art. 25 of the Articles of Association1 or any higher statutory quorum.

The Board of Directors is authorised to issue regulations to implement the above provisions.

3.5 Voting right restrictions and representation

Persons who acquired registered shares will, upon application, be entered in the share register without limitation as shareholders with voting power, provided they expressly declare themselves to have acquired the shares concerned in their own name and for their own account, that there is no agreement in place on the redemption or the return of corresponding shares, that they bear the economic risk associated with the shares and comply with the disclosure requirement stipulated by FMIA (for details please refer to Art. 6 of the Articles of Association1 and see also section 3.4 above).

of Association1 , a person having acquired shares will be recorded in the Company's share register as a shareholder with voting rights upon request.

See www.efginternational.com/articlesofassociation

According to Art. 23 of the Articles of Association1 , shareholders can exercise their voting rights either by themselves or appoint a third party authorised in writing or the independent proxy to vote on their behalf. Such representatives need not to be shareholders. Amendments to the provisions governing voting rights and representation would require an according resolution of the General Meeting with the quorum set forth in Art. 25 of the Articles of Association1 or any higher statutory quorum. All shareholders receive with the invitation to the General Meeting a proxy appointment form for the appointment of the independent proxy and for the instruction of the independent proxy on how to cast the votes regarding each agenda item and additional ad hoc motions.

EFG International offers to its shareholders the possibility to exercise their voting rights prior to the General Meeting via an online platform by empowering and instructing the independent proxy to vote. The votes will be cast by the independent proxy at the General Meeting. Voting at the General Meeting usually takes place in electronic form via televoting devices. The televoting devices allow a timely and accurate result delivery during the General Meeting.

3.6 Statutory quorums

No statutory quorums other than those defined by Swiss corporate law and the Swiss Federal Merger Act apply.

3.7 Convocation of general meetings

The statutory rules on the convocation of General Meetings correspond with legal provisions. Accordingly, a General Meeting is summoned at least 20 days before the date of the meeting by notice published in the "Swiss Official Gazette of Commerce" and by letter sent to the addresses of the shareholders entered in the share register.

With regards to shareholders' rights to convene a meeting, the statutory rules provide that shareholders who represent together at least 5 % of the share capital or the voting rights may request that a General Meeting be convened.

The Board of Directors announces the agenda for the General Meeting. Based on the current Articles of Associations, shareholders representing shares with a nominal value of at least 0.5 % of the share capital or voting rights will be able to request that items of business and/or motions be included in the convention notice until at the latest 40 days prior to the date of the General Meeting. Such request must be in writing and must state the relevant motions.

4. Board of Directors

4.1 Elections and terms of office

According to Art. 26 of the Articles of Association1 , the Board of Directors shall consist of at least five members, who are individually elected by the General Meeting of shareholders for a one-year term ending with the closure of the following Annual General Meeting. Re-election is possible without restrictions regarding the numbers of terms. Please refer to the table in section 4.2 for each initial date of election. The term of all the current members of the Board of Directors will expire at the closure of the upcoming Annual General Meeting in March 2024.

In compliance with the statutory law, the General Meeting of shareholders also elects the Chair of the Board of Directors and all members of the Remuneration & Nomination Committee individually and on an annual basis (see Art. 17 of the Articles of Association1 ).

4.2 Composition

The Board of Directors currently comprises twelve members, all of whom are non-executive directors. The Board of Directors of EFG Bank AG (EFG Bank) is composed of the same members as the Board of Directors of EFG International AG.

No member of the Board held a management position in EFG International over the last three years.

No member of the Board of Directors (neither as individual nor as representative of a third party) has any significant

^3.8 Agenda

See www.efginternational.com/articlesofassociation

business connection with EFG International or any of its subsidiaries.

An overview of the Board and the Board-delegated Committees' memberships in 2023 is presented in the table below:

Board-delegated Committees

	Board					Remuneration &
	member		Acquisition	Credit	Risk	Nomination	Audit
	since	Independence	Committee	Committee	Committee	Committee	Committee
Alexander Classen (Chair)	2022	Independent	Member	–	–	Member1	–
Emmanuel L. Bussetil	2005		Chair		–	Member	Member
Boris F.J. Collardi	2022		Member	–	–	Member1	–
Roberto Isolani	2016		–	Member	Member	Member1	–
John S. Latsis	2018		–	Member	–	–	–
Maria Leistner2	2023	Independent			Member2		Member2
Philip J. Lofts3	2023	Independent		Member3	Chair3		Member3
Carlo M. Lombardini	2020	Independent	–	Chair	Member	–	–
Périclès Petalas	2005		Member		Member	Member4	–
Stuart M. Robertson	2018	Independent	–		Member	–	Chair
Freiherr Bernd-A. von Maltzan	2013	Independent	Member	Member	Member	Chair	–
Yok Tak A. Yip	2020	Independent	–		–	–	–
Susanne Brandenberger5	2015	Independent			Chair5		Member5
Steven M. Jacobs6	2016		Member6			Member6

• Elected as a member of the Remuneration & Nomination Committee at the Ordinary General Meeting on 21 April 2023.
• Elected as a member of the Board of Directors at the Ordinary General Meeting on 21 April 2023. Member of the Risk and Audit Committees as from the same date.
• Elected as a member of the Board of Directors at the Ordinary General Meeting on 21 April 2023. Chair of the Risk Committee, and member of the Credit and Audit Committees as from the same date.
• Stepped down as member of the Remuneration & Nomination Committee at the Ordinary General Meeting on 21 April 2023.
• 5 Stepped down as a member of the Board of Directors at the Ordinary General Meeting on 21 April 2023. She also stepped down as Chair of the Risk Committee, and as member of the Audit Committee as from the same date.
• Stepped down as a member of the Board of Directors at the Ordinary General Meeting on 21 April 2023. He also stepped down as member of the Acquisition, Remuneration & Nomination Committees as from the same date.

4.3 Independence

According to the Organisational and Management Regulations, one third of the members of the Board of Directors shall be independent.

The Board of Directors has applied the independence criteria as per the definition of the FINMA Circular 17/01 (Corporate Governance – Banks). These criteria have also been incorporated into EFG International's Organisational and Management Regulations that state that a member of the Board of Directors is deemed independent if he/she:

• Does not hold and/or over the last two years has not held any position in the Group other than being a member of the Board or one of its committees
• Is not (or has not been over the last two years) in charge of the external audit of the Group, the Company or any of its direct or indirect subsidiaries
• Does not maintain a business relationship with the Group, the Company or any of its direct or indirect subsidiaries in a way or to an extent – in view of their nature and scope – that may create a conflict of interest
• Is not a qualified participant as defined under Swiss Banking and Stock Exchange Act, i.e., a person directly or indirectly holding 10% or more of the share capital or

– voting rights of the Company, or has similar influence through other means, nor represents such participant.

4.4 Role & responsibilities

The Board of Directors of EFG International is ultimately responsible for the supervision of the management of EFG International. The Board of Directors sets the strategic direction of EFG International and monitors its implementation. Based on recommendations by the Chief Executive Officer, the Board of Directors decides on EFG International's strategy whilst also assuming the responsibility of supervising and monitoring the businesses. The day-to-day management operations are delegated by the Board of Directors to the Executive Committee.

Further details about the powers and responsibilities of the Board of Directors can be found in the Organisational and Management Regulations1 .

4.5 Organisational structure

The internal organisational structure of the Board of Directors is laid down in the Organisational and Management Regulations1 . The Board of Directors meets as often as business requires, but at least four times a year, normally once every quarter. Members of the Executive Committee, managerial staff and external advisers may be called upon to attend Board of Directors' meetings. In order to make a binding decision, at least 50% of the members of the Board of Directors must be present. The Board of Directors takes decisions by a majority of the members present. In the event of a tie, the Chair does not have a casting vote. The composition of the Board of Directors and its committees is disclosed in the table in section 4.2 above.

The Board of Directors met seven times in 2023 (five ordinary meetings and two ad hoc topical meetings). Ordinary meetings typically last six to seven hours. For further details, please refer to the following table:

	Attendance
Members in 2023	Meeting & Call	%
Alexander Classen (Chair)*	7/7	100%
Emmanuel L. Bussetil	7/7	100%
Boris F.J. Collardi	6/7	86%
Roberto Isolani	7/7	100%
John S. Latsis	7/7	100%
Maria Leistner*1	4/4	100%
Philip J. Lofts*1	4/4	100%
Carlo M. Lombardini*	7/7	100%
Périclès Petalas	5/7	71%
Stuart M. Robertson*	6/7	86%
Freiherr Bernd-A. von Maltzan*	6/7	86%
Yok Tak A. Yip*	6/7	86%
Susanne Brandenberger*2	3/3	100%
Steven M. Jacobs2	3/3	100%

• * Independent Director
• Member as of the Annual General Meeting on 21 April 2023
• Member until the Annual General Meeting on 21 April 2023

The Board of Directors has established an Audit Committee, a Risk Committee, a Remuneration & Nomination Committee, a Credit Committee, and an Acquisition Committee in line with the Organisational and Management Regulations1

Audit Committee

The Audit Committee is established as a committee of the Board of Directors. Its primary function is to assist the Board of Directors in fulfilling its oversight responsibilities of EFG International with regard to:

• The financial and business reporting processes, including the selection and application of appropriate accounting policies
• The integrated internal control systems for financial reporting as well as the internal controls of areas beyond financial reporting
• EFG International's tax risks
• The internal and external audit processes

The Audit Committee shall consist of at least three members of the Board of Directors. The Chair and other members of the Audit Committee must all be members of the Board of Directors and are appointed by the latter.

See www.efginternational.com/internalregulations

The Chair and the majority of the Audit Committee members must be independent as defined in paragraph 2.1.c. of the Organisational and Management Regulations1 .

The Audit Committee meets as often as business requires, but at least four times a year, as well as for the review of the financial statements and related reports before these are approved by the Board of Directors and/or made publicly available by EFG International or sent to regulatory/tax authorities.

Ordinary meetings typically last four to five hours and are also attended by members of the executive management responsible for areas supervised by the Audit Committee.

The minutes of the Audit Committee are reviewed by the Board of Directors at its ordinary meetings. In addition, the Chair of the Audit Committee provides a report to the Board of Directors at its ordinary meetings.

In 2023, the Audit Committee met seven times (all ordinary meetings, including for the review of the financial statements). For further details, please refer to the table below:

	Attendance
Members in 2023	Meeting & Call	%
Stuart M. Robertson (Chair)*	7/7	100%
Emmanuel L. Bussetil	7/7	100%
Maria Leistner*1	4/4	100%
Philip J. Lofts*1	4/4	100%
Susanne Brandenberger*2	3/3	100%

• * Independent Director
• 1 Member as of the Annual General Meeting on 21 April 2023
• Member until the Annual General Meeting on 21 April 2023

Risk Committee

The Risk Committee is the primary advisory committee to the Board of Directors on matters relating to risk and compliance. The Risk Committee advises, reviews, and acts as an expert of the Board of Directors on the overall current and future risk appetite and oversees executive management's implementation of the risk management framework. In addition, it monitors the risk profile and reports on the state of risk culture in EFG International and

interacts with and oversees the performance of the Chief Risk Officer and the Head of Legal & Compliance.

The Risk Committee shall consist of at least three members. The Chair and other members of the Risk Committee must all be members of the Board of Directors and are appointed by the latter. The Chair and the majority of the entire Risk Committee must be independent as defined in paragraph 2.1.c. of the Organisational and Management Regulations1

The Risk Committee meets as often as business requires, but at least four times a year. Ordinary meetings typically last six to seven hours and are attended by members of the executive management responsible for risk management.

The minutes of the Risk Committee are reviewed by the Board of Directors at its ordinary meetings. In addition, a report from the Chair of the Risk Committee is given to the Board of Directors at its ordinary meetings.

In 2023, the Risk Committee met eight times (five ordinary meetings and three ad hoc topical meetings). For further details, please refer to the following table:

	Attendance
Members in 2023	Meeting & Call	%
Philip J. Lofts (Chair)1*	5/5	100%
Roberto Isolani	8/8	100%
Maria Leistner*2	5/5	100%
Carlo M. Lombardini*	8 /8	100%
Périclès Petalas	7/8	88%
Stuart M. Robertson*	8/8	100%
Freiherr Bernd-A. von Maltzan*	7/8	88%
Susanne Brandenberger (Chair)*3	3/3	100%

• * Independent Director
• 1 Chair as of the Annual General Meeting on 21 April 2023
• Member as of the Annual General Meeting on 21 April 2023
• Chair until the Annual General Meeting on 21 April 2023

Credit Committee

The Credit Committee is established as a committee of the Board of Directors. Its primary function is to examine and approve or recommend to the Board of Directors, within the risk appetite defined by the Board of Directors, credits or limits granted by subsidiaries to clients, exceeding certain thresholds also defined by the Board of Directors.

See www.efginternational.com/internalregulations

The Credit Committee shall consist of at least three members of the Board of Directors who are appointed by the latter.

The Credit Committee meets as often as business requires. Ordinary meetings typically last one hour and are also attended by members of the executive management responsible for the area.

The minutes of the Credit Committee are reviewed by the Board of Directors at its ordinary meetings. In addition, the Chair of the Credit Committee provides a report to the Board of Directors at its ordinary meetings.

In 2023, the Credit Committee met ten times (four ordinary meetings and six ad hoc topical meetings). For further details, see the table below:

	Attendance
Members in 2023	Meeting & Call	%
Carlo M. Lombardini (Chair)*	10/10	100%
Roberto Isolani	10/10	100%
John S. Latsis	9/10	90%
Philip J. Lofts*1	5/8	63%
Freiherr Bernd-A. von Maltzan*	9/10	90%

^* Independent Director

Remuneration & Nomination Committee

The Remuneration & Nomination Committee is established as a committee of the Board of Directors.

Its primary function is to assist the Board of Directors in fulfilling its governance responsibilities, with regards to remuneration and nomination-related aspects.

For remuneration, this includes:

• Establishing the general remuneration policy and strategy of EFG International
• Reviewing annually the remuneration of members of the Board of Directors and the Executive Committee of EFG International and making a recommendation to the Board of Directors thereupon
• Approving annually the remuneration of principal executives of the Group

– Any other remuneration tasks conferred to it by the Board of Directors from time to time

In addition, the Remuneration & Nomination Committee reviews and assesses the nomination of new members to the Board of Directors and the Executive Committee, as well as the nomination of the heads of the key control functions – Audit, Compliance and Risk – and the Regional Business Heads and makes a recommendation to the Board of Directors thereupon.

For more details about competences and responsibilities of the Remuneration & Nomination Committee, please see the compensation report, Art. 30 of the Articles of Association1 and section 2.10 of the Organisational and Management Regulations2

The shareholders elect the individual members of the Remuneration & Nomination Committee for a one-year term ending with the closure of the following Annual General Meeting with the possibility of being re-elected (see Art. 17 of the Articles of Association1 ).

The Remuneration & Nomination Committee shall consist of at least three members of the Board of Directors. The Chair and other members of the Remuneration & Nomination Committee must all be members of the Board.

The Remuneration & Nomination Committee meets annually in the first quarter to review fixed and variable compensation proposals. Additional meetings can be held when necessary. Meetings typically last two hours and are attended by the Chief Executive Officer and the Global Head of Human Resources.

The minutes of the Remuneration & Nomination Committee are reviewed by the entire Board of Directors. In addition, a report by the Chair of the Remuneration & Nomination Committee is given to the Board of Directors at its ordinary meetings.

Member as of the Annual General Meeting on 21 April 2023

See www.efginternational.com/articlesofassociation

See www.efginternational.com/internalregulations

In 2023, the Remuneration & Nomination Committee met ten times. For further details, please refer to the following table:

	Attendance
Members in 2023	Meeting & Call	%
Freiherr Bernd-A. von Maltzan	10/10	100%
(Chair)1*
Emmanuel L. Bussetil	10/10	100%
Alexander Classen*1	6/7	86%
Boris F.J. Collardi1	7/7	100%
Roberto Isolani1	7/7	100%
Steven M. Jacobs2	3/3	100%
Périclès Petalas2	3/3	100%

• * Independent Director
• Member as of the Annual General Meeting on 21 April 2023
• Member until the Annual General Meeting on 21 April 2023

The minutes of the Acquisition Committee are reviewed by the entire Board of Directors at its meetings. In addition, a report from the Chair of the Acquisition Committee is given to the Board of Directors at its ordinary meetings.

In 2023, the Acquisition Committee met five times. For further details, please see the table below:

	Attendance
Members in 2023	Meeting & Call	%
Emmanuel L. Bussetil (Chair)	5/5	100%
Alexander Classen*	5/5	100%
Boris F.J. Collardi	4/5	80%
Périclès Petalas	3/5	60%
Freiherr Bernd-A. von Maltzan*	5/5	100%
Steven M. Jacobs1	2/2	100%

• * Independent Director
• Member until the Annual General Meeting on 21 April 2023

Acquisition Committee

The Acquisition Committee is established as a committee of the Board of Directors. Its primary function is to examine and approve or recommend to the Board of Directors all acquisitions or disposal of companies or businesses proposed by management in accordance with the acquisition policy approved by the Board of Directors.

The Acquisition Committee has the authority to approve all investments or divestments up to certain thresholds and criteria which are defined in the acquisition policy. Above these thresholds, only the Board of Directors may approve acquisitions or divestments, and the Acquisition Committee will submit a recommendation to the Board of Directors.

The Acquisition Committee shall consist of at least three members of the Board of Directors and are appointed by the latter.

The Acquisition Committee meets on an ad hoc basis throughout the year in order to review specific transactions or to receive an update from the Chief Executive Officer and the Chief Financial Officer regarding the status of negotiations with various acquisition targets or divestments.

Meetings vary in length from one to three hours and can be attended by members of the management or external advisers.

Information on the members of the Board of Directors

4.6 Provisions on the number of permitted external mandates in the Articles of Association

In accordance with Art. 626 para. 2 point 1 CO, the number of permitted external mandates of the members of the Board of Directors is outlined in Art. 37 of the Articles of Association1 . The members of the Board of Directors may each have up to 20 mandates, of which a maximum of five may be in listed companies. Additionally, a member of the Board of Directors may perform up to ten mandates in associations, charitable institutions as well as welfare and pension institutions.

Several mandates in legal entities under common control or under the control of the same beneficial owner are deemed one mandate.

4.7 External mandates and vested interests

Please refer to the information provided in the biographies of each member of the Board of Directors in section 4.8 below, where the activities in governing and supervising bodies of organisations, institutions and foundations are mentioned.

4.8 Biographies

The following biographies provide information on the mandates, memberships, activities, and functions as required by the SIX Swiss Exchange Corporate Governance Directive (situation as at 31 December 2023).

Mandates in other EFG entities mentioned in the following biographies include all mandates in entities directly or indirectly controlled by EFG International.

Alexander Classen

Chair of the Board of Directors Member of the Acquisition Committee Member of the Remuneration & Nomination Committee

Year of birth and nationality

1962 I Swiss

Professional history and education

Alexander Classen is an acknowledged leader in the international wealth management industry with a strong track record in delivering growth and repositioning mandates. He has extensive industry experience and has worked for renowned global organisations in various leadership positions for more than 29 years.

He served as CEO & Country Head Switzerland of HSBC Private Bank (Suisse) SA from 2018 to September 2022. Prior to that, he was Managing Partner at Bedrock, a global investment and advisory firm based in Geneva. From 2011 to 2015, Alexander Classen held the position of CEO of Coutts International. Additionally, he spent four years with Morgan Stanley International as Head of Private Wealth Management EMEA and he ran Goldman Sachs Bank AG Zurich as General Manager from 2000 to 2006. For Pictet, where Alexander Classen started his career as a portfolio manager and private banker in 1985, he acted as local CEO in Singapore from 1995 to 2000.

Alexander Classen holds a degree in Business Administration from the University of Geneva.

Mandates in other EFG entities

Chair of the Board, EFG Bank AG

External mandates

Chair of the Board, GIRLSMUSTHAVE ITALY S.R.L

See www.efginternational.com/articlesofassociation

Emmanuel L. Bussetil

Member of the Board of Directors Chair of the Acquisition Committee Member of the Audit Committee Member of the Remuneration & Nomination Committee

Year of birth and nationality

1951 I British

Professional history and education

Mr Bussetil joined the Latsis Group of companies in 1982 as Chief Internal Auditor and, since then, he has held a number of executive and non-executive positions for other principal commercial holding and operating companies controlled by Latsis Family Interests. Prior to that, he was an Audit Manager at Pricewaterhouse in the United Kingdom, where he was employed from 1976 to 1982.

Mr Bussetil received his GCSE A-Levels in mathematics and physics in 1970. He attended the Thames Polytechnic London, UK, and obtained his Higher National Diploma in mathematics, statistics & computing in 1972. His professional training was undertaken as an Articled Clerk at Dolby Summerskill, Liverpool (1972/1973), and at Morland and Partners, Liverpool (1974/1976). He is a Fellow of the Institute of Chartered Accountants of England and Wales.

Mandates in other EFG entities

Member of the Board, EFG Bank AG

External mandates

Member of the Board, European Financial Group (Luxembourg) SA

Member of the Board, EFG European Financial Group Ltd.

Member of the Board, SETE Holdings Sarl

Member of the Board, Hellenikon Global I SA

Member of the Board, Gestron Asset Management SA

Member of the Board, Paneuropean Oil and Industrial

Holdings SA

Member of the Board, Consolidated Lamda Holdings SA

Member of the Board, Lamda Developments SA

Member of the Board, Ophelia International Investments SA

Member of the Board, Pronia Health SICAR

(former Pronia Holding)

Member of the Board, Consolidated Holdings SA Member of the Board, John S. Latsis Public Benefit Foundation

Boris F.J. Collardi

Member of the Board of Directors Member of the Acquisition Committee Member of the Remuneration & Nomination Committee

Year of birth and nationality

1974 I Swiss and Italian

Professional history and education

Mr Collardi is a recognised leader in the global wealth management industry. In 2009, Mr Collardi was named CEO of Julius Baer, which he led to become the reference in global wealth management, the third-largest wealth management group in Switzerland and among the top 10 in the world. In 2018, Mr Collardi joined the Pictet Group to become one of the seven managing partners where he further developed the bank's international wealth management activities. Mr Collardi started his career at Credit Suisse in Geneva almost three decades ago. In his earlier years, Mr Collardi gained broad international experience covering several executive positions in wealth management mainly in Europe and also in Asia, where he spent five years, gaining a deep understanding of the business and the opportunities for the wealth management industry. Mr Collardi was on the Board Committee of the Swiss Bankers Association for over a decade.

Mandates in other EFG entities

Member of the Board, EFG Bank AG Chair of EFG Regional Asia Advisory Board Member of the Board, EFG Bank (Monaco) SAM

External mandates

Member of the Board, European Financial Group EFG (Luxembourg) SA

Member of the Board, EFG Bank European Financial Group SA

Member of the Advisory Board, Ares Invest SA Member of the Advisory Board, The Longevity Suite

Member of the Advisory Board, Roboze SpA

Member of the Advisory Board, Luxurynsight SAS Chairman of the Advisory Board, Footbao.world AG

Member of the Foundation Board, International Institute for

Management Development (IMD)

Member of the Strategic Advisory Board, Ecole

Polytechnique Fédérale de Lausanne (EPFL) Member of the Board, Paulo Coelho & Christina Oiticica

Philantropic Foundation

Ambassador US Lecce Soccer Team

Roberto Isolani

Member of the Board of Directors Member of the Risk Committee Member of the Credit Committee Member of the Remuneration & Nomination Committee

Year of birth and nationality

1964 I Italian

Professional history and education

Mr Isolani is a Managing Partner of BTG Pactual. Before joining BTG Pactual in 2010, he worked for 17 years at UBS where he last held the position of Joint Head of Global Capital Markets and had joint responsibility for the Client Services Group, the Fixed Income and FX global salesforces at UBS. He jointly headed a marketing team of over 1,000 staff. Mr Isolani was also a member of UBS Investment Bank's Board.

Mr Isolani joined UBS (formerly SBC) in 1992 and spent ten years in Fixed Income, in Derivatives Marketing and DCM before being promoted to Head of European DCM in 2000. He transferred to IBD in 2002, moving to Italy as Co-Head of Italian Investment Banking. He moved back to London in 2007 to become Global Head of DCM, before assuming his latest responsibilities at the beginning of 2009.

During his career, Mr Isolani held a number of executive and Board roles in regulated and unregulated Italian UBS entities. He was notably a member of the Board of Directors of Banca Monte dei Paschi di Siena S.p.A. from 2014 to 2017, and Deputy Chair (from 2015 to 2017).

Mr Isolani graduated from the University of Rome, La Sapienza, cum laude in 1989 and was a lecturer at the university before going on to work at IMI and Cofiri and then joining UBS.

Mandates in other EFG entities

Member of the Board, EFG Bank AG Member of EFG Regional Asia Advisory Board

Maria Leistner

Member of the Board of Directors Member of the Audit Committee Member of the Risk Committee

Year of birth and nationality

1966 I Bulgarian, French, British

Professional history and education

Mrs Leistner is a seasoned professional with vast experience in senior roles in legal and compliance functions in the financial industry. Most recently, she served as Group Chief Legal Officer and a member of the Executive Board of Quintet Private Bank, Luxembourg, where she oversaw the compliance, legal and data protection functions.

Between 2016 and 2019, she held senior positions at UBS in Zurich – including serving as General Counsel Global Wealth Management. Prior to that, Maria Leistner spent over ten years at Credit Suisse in various senior roles, including as General Counsel International Wealth Management in Zurich, and General Counsel EMEA and Co-General Counsel for the Investment Bank, in London. She is a qualified solicitor in England and Wales and an attorney in New York and has practiced in major English and American law firms before entering the banking industry.

Mandates in other EFG entities

Member of the Board, EFG Bank AG Member of the Board, EFG Bank (Luxembourg) SA

Dr John S. Latsis

Member of the Board of Directors Member of the Credit Committee

Year of birth and nationality

1977 I British

Professional history and education

Dr Latsis is the Managing Director of Gestron Services SA and is Chair of Gestron Asset Management. He is also an active member in a number of committees and Boards of Directors.

During his distinguished career, Dr Latsis has developed extensive academic experience; he holds a Bachelor's degree from the University of Oxford, a Master's degree from the London School of Economics, a PhD from the University of Cambridge and is a member of the Higher Education Academy of the United Kingdom. He held academic positions at the Universities of Reading, Oxford, and Harvard during a 13-year academic career.

Dr Latsis has published more than 25 articles, chapters and edited books and remains an active research scholar.

Mandates in other EFG entities

Member of the Board, EFG Bank AG Member of the Board, EFG Capital Holdings Corp Member of EFG Regional Advisory Board for Latin America

External mandates

Managing Director, Gestron Services SA Member of the Board, EFG Bank European Financial Group SA Chair of the Board, Gestron Asset Management SA Member of the Board, La Tour Holding SA Member of the Board, Monas S.A.M Member of the Board, International Latsis Foundation Chair of the Board, Independent Social Research Foundation Member of the Board of Trustees, Friends of Europe

Philip J. Lofts

Member of the Board of Directors Chair of the Risk Committee Member of the Audit Committee Member of the Credit Committee

Year of birth and nationality

1962 I British

Professional history and education

Mr Lofts is a proven risk management expert and a recognised leader in the international banking industry with more than four decades of experience. He spent over 35 years at UBS Group in a variety of executive and management roles including being a member of the Group Executive Board from 2008 to 2015 and lately serving as a Non-Executive Director of UBS Americas Holdings LLC, a position that he stepped down from on 31 March 2023.

Previously, he served as the Group Chief Risk Officer from 2008 to 2010 and 2012 to 2015 and as the CEO of UBS Group Americas in 2011. Prior to joining the Group Executive Board, he held a number of senior risk management roles in the Investment Bank and at Group. He has gained international experience from working and living in Europe, Asia and the US.

Mandates in other EFG entities

Member of the Board, EFG Bank AG

Carlo M. Lombardini

Member of the Board of Directors Chair of the Credit Committee Member of the Risk Committee

Year of birth and nationality

1964 I Swiss and Italian

Professional history and education

Mr Lombardini is a proven specialist in the field of banking law, having worked as a lawyer with Poncet Turrettini in Geneva, where he served as a partner since 1990. In addition, he has extensive experience in the academic sector having held various academic positions, including from 2010 to 2014 as a lecturer in banking law at the University of Lausanne and from 2014 onwards as an associate professor at the law faculty. Throughout his distinguished career, Mr Lombardini also published numerous books and academic articles concerning various banking law topics and discussions regarding the financial services industry.

Mr Lombardini has held several board memberships, where he served as an active member of the audit and risk committees and later as Chair of such committees.

Mandates in other EFG entities

Member of the Board, EFG Bank AG

External mandates

Member of the Board, Crédit Agricole Next Bank (Suisse) SA

Freiherr Bernd-Albrecht von Maltzan

Member of the Board of Directors Chair of the Remuneration & Nomination Committee Member of the Risk Committee Member of the Acquisition Committee Member of the Credit Committee

Year of birth and nationality

1949 I German

Professional history and education

Before joining the Board of EFG International, Mr von Maltzan was with Deutsche Bank, where he held a variety of senior positions, including Global Head Trading & Sales DB Group in Frankfurt (1993–1995), Divisional Board Member and Global Head Private Banking in Frankfurt (1996–2002), followed by Divisional Board Member and Vice-Chair Private Wealth Management in Frankfurt, and from where he retired in 2012.

Mr von Maltzan studied economics at the universities in Munich and Bonn and holds a doctorate in business administration (1978) from the University of Bonn.

Mandates in other EFG entities

Member of the Board, EFG Bank AG Chair of the Board, EFG Bank (Luxembourg) SA

External mandates

Chair of the Board of Trustees, Niagara Foundation, Germany

Dr Périclès Petalas

Member of the Board of Directors Member of the Acquisition Committee Member of the Risk Committee

Year of birth and nationality

1943 I Swiss

Professional history and education

Since 1997, Dr Petalas is the Chief Executive Officer of EFG Bank European Financial Group SA, Geneva. Prior to this position, he was Senior Vice President and General Secretary of Banque de Dépôts, Geneva. Previously, he worked for Union Bank of Switzerland in Zurich (1978–1980) and Petrola International, Athens (1977–1978).

Dr Petalas obtained a diploma (1968) and a doctorate (1971) in theoretical physics at the Swiss Federal Institute of Technology in Zurich. He also received a post-graduate degree in industrial and management engineering from the same institute in 1977.

Mandates in other EFG entities

Member of the Board, EFG Bank AG

External mandates

Chief Executive Officer, EFG Bank European Financial Group SA Member of the Board, European Financial Group EFG (Luxembourg) SA

Stuart M. Robertson

Member of the Board of Directors Chair of the Audit Committee Member of the Risk Committee

Year of birth and nationality

1955 I Swiss and British

Professional history and education

Mr Robertson has over 30 years of experience in the Swiss financial services sector in both audit and consulting and has a profound understanding of the Swiss and international regulatory and accounting landscape. Throughout his career, Mr Robertson has advised and audited many global institutions and managed numerous complex projects in the areas of growth, M&A, strategy and transformation, performance, as well as risk and regulatory topics. Mr Robertson worked at KPMG for over 30 years, where he has held various leadership positions and managed teams of up to 200 people. Laterally, he was a member of the Board of Directors. In addition, he held the role of Global Lead Partner serving a large financial institution.

Mr Robertson is a member of the Institute of Chartered Accountants of Scotland and of ExpertSuisse.

He holds a Master of Arts (Hons) degree from the University of St Andrews and a diploma in accounting from Heriot-Watt University.

Mandates in other EFG entities

Member of the Board, EFG Bank AG

External mandates

Member of the Board of Overseers, Reinet Investments S.C.A., Luxembourg

Member of the Board of Trustees, Guatemala Association Central America

Honorary Auditor, Association of the Anglican Church, Zurich

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Yok Tak Amy Yip

Member of the Board of Directors

Year of birth and nationality

1951 I Chinese

Professional history and education

Ms Yip has a deep understanding of the Asian private banking industry, having worked for more than 40 years in various leadership and managerial roles for global players in the region. Since 2011, she is a founding partner of RAYS Capital Partners, an investment management company specialising in Asian capital markets.

Prior to this, Ms. Yip worked at DBS Bank in Hong Kong, where she served as Chief Executive Officer from 2006 to 2010. Before joining DBS Bank, Ms. Yip held various senior roles within the Hong Kong Monetary Authority (1996-2006). Since starting her career in 1975 at American Express in Hong Kong, Ms Yip has worked for a number of leading global financial institutions such as J.P. Morgan, Citibank, and Rothschild Asset Management.

Ms Yip holds an MBA from Harvard Business School and a Bachelor of Arts in Asian History from Brown University, USA.

Mandates in other EFG entities

Member of the Board, EFG Bank AG Member of EFG Regional Asia Advisory Board

External mandates

Founding Partner, RAYS Capital Partners Member of the Board, Prudential Plc Member of the Board, TP ICAP Group Plc Member of the Board, Fidelity Foundation, Charity Member of the Board, AIG Insurance Hong Kong Limited Changes in the Board of Directors in 2023

Members who did not stand for re-election or stepped down

Susanne Brandenberger

Susanne Brandenberger is a Swiss citizen and was born in 1967.

Mrs Brandenberger was a member of the Board of Directors of EFG International and EFG Bank from 07 October 2015 to 21 April 2023 when she stepped down.

Before joining EFG, Mrs Brandenberger was with Vontobel Group between 1999 and 2015, as Head of Risk since 2004. She began her career at the Swiss Financial Market Supervisory Authority (FINMA), formerly the Swiss Federal Banking Commission, where from 1994 to 1999, she was responsible for building up and heading the Risk Management Unit.

Mrs Brandenberger holds a PhD from the Swiss Institute for Banking and Finance of the University of St Gallen and a Master's degree in banking and finance from the University of St Gallen.

Steven Jacobs

Steven Jacobs is a British citizen and was born in 1969.

Mr Jacobs was a member of the Board of Directors of EFG International AG and EFG Bank AG from 31 October 2016 to 21 April 2023 when he stepped down.

Mr Jacobs is CEO of Scarlet Capital, a fintech investment company. In addition, he is a senior adviser to BTG Pactual, the Brazil-listed financial services group that he joined in January 2010. Prior to that, he was a Managing Director at UBS, where over ten years he held various roles including Head of Group Strategy for UBS Group, based in Zurich, Head of Private Equity & Infrastructure, and member of UBS Global Asset Management Executive Committee, based in London. From 1990 to 1999, Mr Jacobs worked for Ernst & Young in London and Sydney, focusing on providing corporate finance services to financial services clients across the world.

Mr Jacobs holds a Bachelor's degree (Hons) in finance, accounting and law from Brighton University, UK, and an Executive Master's in international strategy and diplomacy from the London School of Economics.

He is a qualified Chartered Accountant and fellow of the Institute of Chartered Accountants of England and Wales.

4.9 Changes to the Board of Directors in 2024

Proposed new member of the Board of Directors for election at the Annual General Meeting in March 2024

Prasanna Gopalakrishnan

Prasanna Gopalakrishnan is a recognized expert in digital and cyber. She is a senior executive with over 25 years of experience and a strong track record in driving innovation and digital transformation. She has served as Group Chief Technology Officer at Sky Group since September 2021. From 2018 to 2021, she was Chief Information Officer in the Consumer Digital Banking Business at Bank of America.

Prior to that, she spent three years as Chief Digital & Information Officer at Boston Private. Prasanna Gopalakrishnan previously also held various senior roles at Harvard University, Fidelity Investments and Thomson Reuters.

She holds a Master of Business Administration (MBA) in General Management and Finance from Northeastern University in Boston Massachusetts, USA, and a Bachelor's degree in Engineering from the Birla Institute of Technology & Science, India.

Member not standing for re-election at the Annual General Meeting in March 2024

Bernd-A. von Maltzan

Bernd-A. von Maltzan has decided not to stand for re-election to the Board of Directors after serving as a member for 11 years.

5. Executive Committee

5.1 Composition, organisation, and functional responsibilities

EFG International's Executive Committee is organised as a single structure reporting to the Chief Executive Officer.

The Executive Committee comprises at least four members. Members of the Executive Committee are appointed by

the Board of Directors upon recommendation by the Chief Executive Officer.

Various support services or control units report either directly to the Chief Executive Officer or to a member of the Executive Committee.

As at 31 December 2023, the Executive Committee comprised the following members:

Members*	Function	Member of the Committee since
Piergiorgio Pradelli	Chief Executive Officer	June 2012
Vassiliki Dimitrakopoulou	Global Head of Legal & Compliance	November 2022
Martin Freiermuth	Chief Operating Officer	August 2020
Enrico Piotto	Chief Risk Officer
Dimitris Politis Chief Financial Officer & Deputy CEO		January 2018

^* Harald Reczek stepped down as Head of Investment Solutions and as member of the Executive Committee effective 01 February 2023.

The titles and brief functional descriptions for members of the Executive Committee are set forth as follows:

Chief Executive Officer

The Chief Executive Officer of EFG International is responsible to the Board of Directors for the overall management and performance of EFG International. He manages the implementation and development of strategic and operational plans as approved by the Board of Directors. He represents EFG International towards third parties, including regulators, and is responsible (together with the Board of Directors and other senior executives) for the prudent management and regulationcompliant operation of the organisation.

Furthermore, the Chief Executive Officer chairs the Executive Committee and the Global Business Committee and directly oversees the Human Resources, Marketing & Communications functions, as well as the Global Private Banking COO, Strategic Planning & Transformation, Corporate Sustainability and since 01 January 2024 Corporate Affairs.

Deputy Chief Executive Officer

The Deputy Chief Executive Officer has a direct reporting line to the Chief Executive Officer of EFG International. He supports the Chief Executive Officer with the day-to-day management of EFG International and he can take over his responsibilities in case of absence.

Global Head of Legal & Compliance

The Global Head of Legal & Compliance is responsible for the oversight, coordination, and supervision of all compliance risks and all legal matters of the Group as well as for Regulatory Affairs. She also supervises the Compliance and Legal activities deployed in all entities of EFG International.

Chief Operating Officer

The Chief Operating Officer assumes business responsibility for the management, coordination, supervision and control of the entire Operations, IT functions, Digital and Information Security as well as for Client Administration & General Services. He is also responsible for the cost management program across the organisation, for further improving EFG's operational efficiency and for driving the bank's digitalisation efforts.

Chief Financial Officer

The Chief Financial Officer is responsible for all financial, tax and prudential regulation matters of EFG International as well as other business or control areas allocated to the position. He ensures transparent and timely financial reporting for internal and regulatory purposes as well as public reporting in line with legal and regulatory requirements and industry best practices.

The Chief Financial Officer has the oversight of liquidity and capital management within the general regulations

and guidelines set by the Board of Directors, EFG International's Board-delegated Audit and Risk Committees, and by FINMA and other regulators in jurisdictions where EFG International operates. The Chief Financial Officer oversees and monitors business performance, strategic acquisitions and EFG International Group's relationship with rating agencies.

He also has primary responsibility for Financial Reporting, Financial Planning & Controlling, Litigations, Investor Relations functions, as well as the Group Corporate Office function (moved in 2024 to Corporate Affairs). In addition, he supervises the activities of Global Markets & Treasury.

Chief Risk Officer

The Chief Risk Officer is accountable for overseeing and enabling EFG International's efficient and effective risk governance. The Chief Risk Officer is accountable to the Executive Committee, the Board of Directors, the Risk Committee, and the Credit Committee for enabling the business to balance risk and reward. In the same regard, he is responsible for coordinating the Risk Management approach and for assessing and causing mitigating actions to significant market, regulatory, and technological threats to EFG International's capital and earnings. The responsibilities also include managing, identifying, evaluating, reporting, and overseeing EFG International's risks externally and internally to ensure a functioning internal control system.

5.2 Information on the members of the Executive Committee

Provisions on the number of permitted external mandates in the Articles of Association

In accordance with the Art. 626 para. 2 point 1 CO, the number of permitted external mandates of the members of the Executive Committee are outlined in the Art. 37 of the Articles of Association1 . The members of the Executive Committee may upon approval by the Board of Directors or the Remuneration & Nomination Committee each have up to three external mandates of which a maximum of one may be in a listed company. Additionally, a member of the Executive Committee may perform up to ten mandates in associations, charitable institutions as well as welfare and pension institutions.

External mandates and vested interests

Please refer to the information provided in the biographies of each member of the Executive Committee below, where the activities in governing, advisory and supervising bodies of organisations, institutions and foundations are mentioned.

Biographies

The following biographies provide information on the mandates, memberships activities and functions of the members of the Executive Committee as required by the SIX Swiss Exchange Corporate Governance Directive (situation as at 31 December 2023).

Several mandates in legal entities under common control or under the control of the same beneficial owner are deemed one mandate.

See www.efginternational.com/articlesofassociation

Piergiorgio Pradelli Chief Executive Officer

Appointed as a member June 2012 Year of birth and nationality 1967 I Swiss and Italian

Professional history and education

Piergiorgio Pradelli was appointed CEO of EFG International and EFG Bank, effective as of 01 January 2018. He is also Chair of EFG International and EFG Bank Executive Committees, as well as of the EFG International Global Business Committee. He further holds several nonexecutive Board positions in other entities directly or indirectly controlled by EFG International.

Prior to his appointment as CEO, Mr Pradelli held the role of Deputy CEO and CFO at EFG International and EFG Bank since January 2014 and June 2012, respectively. Before joining EFG International, he was Head of International Operations at Eurobank Ergasias SA and a member of the Executive Committee, from 2006 until 2012. Prior to this, he served as Deputy Finance Director in London for EFG Bank European Financial Group SA, from 2003 to 2006, participating in major EFG Bank European Financial Group SA restructuring and strategic initiatives, notably the initial public offering of EFG International in 2005.

Mr Pradelli started his career at Deutsche Bank, working in a number of senior management positions including Head of Private & Business Banking in Italy and Head of Business Development for the Private Clients and Asset Management Group in Frankfurt and London from 1991 until 2003.

Mr Pradelli is a member of the Board of Directors of the Swiss Bankers Association (SBA), of the Association of Swiss Asset and Wealth Management Banks (VAV/ABG), and of the Swiss American Chamber of Commerce in Zurich.

He holds a degree in economics and business administration from the University of Turin, Italy.

Vassiliki Dimitrakopoulou Global Head of Legal & Compliance

Appointed as a member November 2022 Year of birth and nationality 1968 I Greek

Professional history and education

Vassiliki Dimitrakopoulou is Global Head of Legal & Compliance of EFG International and EFG Bank and is a member of the respective Executive Committees since 01 November 2022. She is also a member of EFG International Global Business Committee and holds non-executive Board positions in other entities directly or indirectly controlled by EFG International.

Prior to serving as interim Global Head of Legal & Compliance from 01 April to 31 October 2022, she held the positions of Deputy Group General Counsel (Legal International) and Group Head of Regulatory Affairs.

Before joining EFG International in 2016, she served in various senior roles at EFG Group since 1992, including as Head of the International Legal Division and as Deputy Legal Counsel at Eurobank.

She holds a Law degree from the University of Athens and an LL.M in Banking Law from King's College London. She is admitted to the Athens Bar.

Martin Freiermuth Chief Operating Officer

Appointed as a member August 2020 Year of birth and nationality 1970 I Swiss

Professional history and education

Martin Freiermuth is the Chief Operating Officer of EFG International and EFG Bank and is a member of the respective Executive Committees. He is also a member of EFG International Global Business Committee.

In his role, Mr Freiermuth oversees the entire Operations, IT functions, Digital and Information Security as well as Client Administration & General Services and is responsible for further improving EFG's operational efficiency as well as driving the bank's digitalisation efforts.

Prior to joining EFG, Mr Freiermuth was with Banque Internationale à Luxembourg, where he worked since 2014, first as Group Head Products & Solutions and since October 2018 as Group Head Products & Markets and member of the Executive Committee. He also served as member of the Boards of Directors for IWI International Wealth Insurer in Luxembourg between 2015 and 2016 and for the Luxembourg Stock Exchange between 2019 and 2020.

Before this, Martin Freiermuth worked at Bank Vontobel AG in Zurich for more than ten years from 2002 to 2013. He joined Vontobel as Head Credit & Counterparty Risk and later became a member of the Executive Committee Private Banking, first as Head Private Banking Services and later Head PB Wealth Management Services.

He holds a PhD in economics from the University of St Gallen as well as a European Master Diploma of the Community of European Management Schools (CEMS).

Dimitris Politis Chief Financial Officer & Deputy CEO

Appointed as a member January 2018 Year of birth and nationality 1971 I Greek

Professional history and education

Dimitris Politis is the Chief Financial Officer of EFG International and EFG Bank and he is a member of the respective Executive Committees. Effective 01 March 2022 Mr Politis has been appointed Deputy CEO. He is also a member of EFG International Global Business Committee and holds several non-executive positions in other entities directly or indirectly controlled by EFG International.

As Chief Financial Officer, Mr Politis' responsibilities encompass Financial Reporting, Financial Planning & Controlling, Litigations and Investor Relations functions, as well as Group Corporate Office function (the latter until 31 December 2023). In addition, he oversees the activities of Global Markets & Treasury.

Prior to joining EFG, he held the role of Chief Financial Officer at SETE SA (Geneva) and was also responsible for the oversight of strategic investments in the organisation's corporate entities, including EFG International. Mr Politis has been with the EFG Group since 1999, when he first joined EFG Eurobank Ergasias SA, where he was a member of the senior management team and involved in key strategic decisions and initiatives.

Before joining SETE SA in 2013, he last held the role of General Manager, Head of Strategy, and Investor Relations.

Mr Politis started his career in 1995 at the Charles River Associates management consulting firm in Boston, MA (USA).

He holds an MBA degree from INSEAD in France, as well as a Master's degree in Science from the Massachusetts Institute of Technology in Boston (Technology & Policy Program) and a Bachelor's degree in Aeronautical Engineering from Imperial College in London.

Chief Risk Officer Appointed as a member June 2021 Year of birth and nationality

1972 I Swiss and Italian

Enrico Piotto

Professional history and education

Enrico Piotto is Chief Risk Officer of EFG International and EFG Bank and a member of the respective Executive Committees. He is also a member of EFG International Global Business Committee and holds some nonexecutive Board positions in entities directly or indirectly controlled by EFG International.

Before joining EFG, he has served as Head of Lending for Wealth Management Europe at Deutsche Bank since 2018. From 2003 to 2018, Enrico Piotto held various senior roles at UBS AG, including Chief Risk Officer for Wealth Management Europe, Emerging Markets and Global Head of Wealth Management Transaction Decisions.

Mr Piotto is a member of the Board of Directors of the Swiss Risk Association.

He holds a PhD in Nuclear Physics from the University of Milan and an MA in Physics from the University of Padua.

5.3 Changes to the Executive Committee in 2023

Harald Reczek

Harald Reczek was the Head of Investment Solutions of EFG International and EFG Bank and a member of the respective Executive Committees until 01 February 2023, when he stepped down. He was also a member of EFG International Global Business Committee and held some non-executive Board positions in entities directly or indirectly controlled by EFG International.

Before joining EFG, he served as Head of Distribution EMEA and later as Deputy Head Asset Management for Switzerland and the EMEA region at Credit Suisse. Prior to that, he was Co-CEO at Deutsche Asset Management Switzerland from 2013 to 2015 and before served as CEO and Country Head Switzerland, Italy, Austria & CEE at DWS Schweiz since 2006.

He holds a Master of Business Administration in International Economics and Business Studies from the Leopold-Franzens University of Innsbruck.

5.4 Changes to the Executive Committee in 2024

Andre Portelli

Andre Portelli is the Head of Investment Solutions of EFG International and EFG Bank and is a member of the respective Executive Committees, effective 01 February 2024. He is also a member of the Global Business Committee of EFG International as from the same date.

As Head of Investment Solutions, Andre Portelli is responsible for EFG's global investment activities, including all discretionary and advisory mandates, research and the full range of investment funds managed by EFG Asset Management.

Andre Portelli is a senior banking executive with more than 20 years of experience in private banking and investment banking. Prior to joining EFG, he was Global Co-Head Investments and Global Head Strategic Solutions Group and Private Markets at Barclays Private Bank since 2017.

From 2010 to 2017, he held various senior roles at UBS, including Head of Private Solutions, EMEA, UBS Investment Bank. Prior to that, he worked for Nomura and Lehman Brothers in UK, the UAE and Switzerland.

Andre Portelli was born in 1976 and is a Maltese citizen. He holds a Master in International Economics & Management, Money, Banking & Finance from the Bocconi University Business School, Milan.

5.5 Global Business Committee (GBC)

5.5.1 Composition, organisation, and functional responsibilities

In 2018, EFG International's Executive Committee established the Global Business Committee (GBC), with an advisory role in assessing and validating business strategies, key business aspects and priorities as well as in analysing industry trends and issues.

The Global Business Committee consists of the members of EFG International's Executive Committee and of the regional Heads and selected senior managers. As at 31 December 2023, the Global Business Committee comprised the following members in addition to the members of the Executive Committee (see section 6.1):

Members*	Function	Member of the Committee since
Ioanna Archimandriti	Global Head of HR	November 2022
Christian Berchem1	Head of UK Region	December 2023
Albert Chiu	Head of Asia Pacific Region	July 2018
Sir Anthony Cooke-Yarborough	Private Banking Chair	July 2018
Kurt Haueter	Head of Global Markets & Treasury	January 2020
Sanjin Mohorovic	Head of Latin America Region	July 2021
Franco Polloni	Head of Switzerland & Italy Region	July 2018
Patrick Ramsey	Head of Continental Europe & Middle East Region	January 2021

^* The biographies of the members of the Global Business Committee are available on the EFG International website https://www.efginternational.com/about/organization/global-business-committee.html.

The titles and brief functional descriptions for the members of the Global Business Committee are set forth as follows:

Global Head of HR Ioanna Archimandriti Year of birth and nationality 1969 I Greek

The Global Head of HR assumes business responsibility for all HR functions, human capital management and the development and implementation of people and HR strategies for EFG International worldwide.

Head of Asia Pacific Region Albert Chiu Year of birth and nationality 1965 I Hong Kong

The Head of Asia Pacific Region assumes regional business responsibility for the private banking activities of EFG International in the Asia Pacific region.

Appointed as Head of UK Region and as member of the GBC effective 04 December 2023 when Richard A. Thomas MBE stepped down.

Private Banking Chair Sir Anthony Cooke-Yarborough Year of birth and nationality 1956 I British

The Private Banking Chair works with Regional Business global functions of Wealth Planning and Wealth Solutions.

Head of UK Region Christian Berchem Year of birth and nationality 1965 I German, Canadian and British

Heads and their Heads of Private Banking to generate profitable and sustainable growth globally. This includes leading key client initiatives and supporting commercial activities, as well as recruitment and development of Client Relationship Officers. He is also responsible for the

Head of Global Markets & Treasury Kurt Haueter Year of birth and nationality 1972 I Swiss

The Head of the Global Markets & Treasury assumes business responsibility for trading and execution in all asset classes on the financial markets as well as treasury and balance sheet management for EFG International worldwide.

Head of Latin America Region Sanjin Mohorovic Year of birth and nationality 1976 I Swiss and Croatian

The Head of the United Kingdom Region assumes regional business responsibility for the private banking activities of EFG International in the United Kingdom and Jersey, and has governance oversight of the Cyprus subsidiary.

Head of Switzerland & Italy Region Franco Polloni Year of birth and nationality 1965 I Swiss

The Head of Switzerland & Italy Region assumes regional business responsibility for the private banking activities of EFG International in Switzerland, Italy, Liechtenstein and Israel. Furthermore, he is responsible for the Independent Asset Managers activities of EFG Bank in Switzerland and their coordination within the Group.

Head of Continental Europe & Middle East Region

Patrick Ramsey Year of birth and nationality 1969 I Swiss

The Head of Continental Europe & Middle East Region assumes regional business responsibility for the private banking activities of EFG International in Continental Europe as well as in the Middle East and the Eastern Mediterranean target markets.

6. Delineation of areas of responsibility between the Board and the Executive Committee

As indicated in section 4.4 above, the Board of Directors of EFG International is ultimately responsible for supervision of the management of EFG International. The Board of Directors sets the strategic direction of EFG International and monitors its implementation. Details of the powers and responsibilities of the Board of Directors can be found in the Organisational and Management Regulations1 .

The Board of Directors has delegated the operational management of EFG International to the Chief Executive Officer and the Executive Committee. Members of the Executive Committee, under the responsibility of the Chief Executive Officer and the control of the Board of Directors, manage the operations of EFG International, pursuant to applicable internal regulations and report thereon to the Board of Directors on a regular basis.

EFG International Executive Committee

The Executive Committee is responsible for the implementation of EFG International's overall strategy, within the respective parameters established by the Board of Directors, and is accountable for all operational and organisational matters as well as for the operating results. The Executive Committee is responsible for the day-to-day activities of the Group. Consistent with strategy set by the Board of Directors, the Executive Committee is responsible for implementing business strategies, risk management systems, risk culture, processes, and controls for managing the risks – both financial and non-financial – to which EFG International is exposed and concerning which it is responsible for complying with laws, regulations, and internal policies.

Details of the powers and responsibilities of the Executive Committee can be found in the Organisational and Management Regulations1 .

Organisational details of the Executive Committee can be found in section 6.

Information and control instruments vis-à-vis the Executive Committee

The Board of Directors supervises the management of EFG International through various meetings with management, including meetings of the Board of Directors and its committees. The Chief Executive Officer, the Chief Operating Officer, the Chief Financial Officer, and the Head of Investment Solutions (and other members of the Executive Committee depending on the topics under review) attend the Board of Directors meetings during the year and are available to answer questions from the Board of Directors. The Chief Executive Officer provides a written report to the Board of Directors at each ordinary meeting summarising developments in the business. The Chief Executive Officer is also readily available to answer questions from the Board of Directors.

In addition, the Chief Financial Officer reports on the financial results and the Head of Investment Solutions and the Chief Operating Officer on their respective areas to the Board of Directors at each ordinary meeting. Additional reporting to the Board of Directors includes financial and risk reporting, business reporting, business proposals, approvals, staff matters, credit approvals, reports from the various Board-delegated committees, a report on claims and litigations and any other business matters. Members of the management responsible for the finance and accounting functions, including the Chief Financial Officer, attend the Audit Committee meetings and are available to answer questions from the committee relating to the financial statements.

The Global Head of Legal & Compliance attends the Risk Committee meetings and is available to answer questions relating to compliance issues.

The Chief Risk Officer provides oversight of all major areas of risk within EFG International. He also provides an update on the overall key risk aspects of EFG International at each regular meeting of the Risk Committee and provides an annual written risk assessment to the Audit Committee. Please also see the information about risk management in note 5 to the consolidated financial statement.

Internal Audit

Internal audit services are provided to EFG International by the Audit Services Department (ASD) which is governed

See www.efginternational.com/internalregulations

by an internal audit charter duly approved by the Audit Committee. In accordance with the Organisational and Management Regulations1 and the Internal Audit Charter, the mission of the internal audit is to support the Board of Directors in their statutory responsibility for ensuring that the operations of EFG International are conducted according to the highest standards by providing an independent, objective assurance function and by advising on best practice. ASD provides copies of all internal audit reports to the external auditors and maintains a dialogue with the external auditors to share risk issues arising from their respective audits. Through a systematic and disciplined approach, the internal audit supports EFG International in accomplishing its objectives by evaluating the effectiveness of risk management, control and governance processes and making recommendations for improvement. To ensure independence, the internal audit reports directly to the Audit Committee, which reports on its activities to the Board of Directors. The Chief Internal Auditor has, for the purpose of performing his duties, the right of unlimited access to all information, premises, resources, and people necessary for the performance of internal audits.

7. Other information

7.1 Management contracts

EFG International and its subsidiaries have not entered management contracts with third parties.

7.2 Compensation, shareholdings, and loans of the members of the Board of Directors and the Executive Committee

In application of Art. 716a para. 1 point 8 and Art. 734 et seq. CO, the Board of Directors issued a compensation report for the year ended 31 December 2023 (see page 67 and following). The compensation report includes all compensation directly or indirectly paid to current members of the Board of Directors and of the Executive Committee, as well as any direct or indirect remuneration to former members of the Board of Directors and of the Executive Committee in connection with their prior functions. The compensation report also discloses the

loans and credits granted directly or indirectly by the Company to the members of the Board of Directors and the Executive Committee as well as loans, credits, and remuneration to closely related parties thereof, which are not granted at market conditions.

Details about the remuneration framework for members of the Board of Directors and the compensation framework for Executive Committee members can be found in the compensation report in sections 4 and 5 of this Annual Report.

In addition to the aforementioned, further details on the compensation and compensation-related elements granted to the members of the Board of Directors and of the Executive Committee can be found in the following provisions of the Articles of Association2 :

• Art. 17 and Art. 18 of the Articles of Association defining the mechanism for the approval of the compensation of the Board of Directors and the Executive Committee by the General Meeting of shareholders
• Art. 30 of the Articles of Association describing the authorities and the procedure of determining the form and amount of compensation for members of the Board of Directors and the Executive Committee
• Art. 32 and Art. 33 of the Articles of Association determining the basic principles and elements of the compensation for members of the Board of Directors and the Executive Committee
• Art. 34 of the Articles of Association determining the available additional amount for payments to members of the Executive Committee appointed after the vote on pay at the General Meeting of shareholders
• Art. 35 of the Articles of Association on the principles applicable to performance-related variable compensation and to the allocation of equity securities or restricted stock units as part of the Company's shareholding programmes for members of the Executive Committee
• Art. 35a of the Articles of Association on the principles applicable to variable compensation for members of the Board of Directors
• Art. 36 of the Articles of Association containing the rules on pension benefits not based on occupational pension schemes

See www.efginternational.com/internalregulations

See www.efginternational.com/articlesofassociation

– Art. 36a of the Articles of Association describes the principles for granting loans and credits to the members of the Board and the Executive Committee

Details about the compensation paid to the members of the Board of Directors and the Executive Committee in 2023 and 2022 can be found on pages 77 and following of the compensation report.

Details about the shareholdings of the members of the Board of Directors and the Executive Committee, can be found on section 7.5 and section 8.3 of the compensation report or in the financial statements of EFG International, note 21.

7.3 Quiet periods (blackout periods)

All employees and members of the Board of Directors as well as their immediate family members are prohibited from entering into personal investment transactions in EFG International securities as well as exercising restricted stock units or options or, as the case may be, other benefits or instruments from 01 December (with respect to the annual results) and 15 June (with respect to the semi-annual results) each year until 24 hours after the day of the announcement or publication of the annual or semi-annual results of EFG International. This prohibition is extended to the board members of the (direct and indirect) parent companies of EFG International and any other person to the extent that they are identified as likely to receive insider information in relation to the annual or semi-annual results of EFG International.

In addition, the functions in charge of the preparation of the financial information (annual and semi-annual results as well as related management information) and the members of the Executive Committee and Global Business Committee are prohibited from entering into personal investment transactions in EFG International securities as well as exercising restricted stock units or options or, as the case may be, other benefits or instruments from 15 November (with respect to the annual results) and 01 June each year (with respect to the semi-annual results) until 24 hours after the day of the announcement or publication of the annual or semi-annual results of EFG International.

Extraordinary blackout periods may be imposed if EFG International becomes aware of significant developments that have not yet been disclosed to the public.

8. Change of control and defence measures

8.1 Duty to make an offer

EFG International has not taken any defence measures against takeover attempts. Therefore, there are no statutory rules on 'opting up' and 'opting out'. The Articles of Association contain no provision which would rule out the obligation of an acquirer of shares exceeding the threshold of 33.33% of the voting rights to proceed with a public purchase offer (opting-out provision pursuant to Art. 125 FMIA) or which would increase such threshold to 49% of the voting rights (opting-up provision pursuant to Art. 135 para. 1 FMIA).

8.2 Clauses on change of control

Options and restricted stock units granted to employees would become exercisable during the extended offer period granted by the offeror upon a mandatory or a voluntary tender offer that becomes unconditional according to the FMIA. In the event that more than 90% of EFG International registered shares are acquired by a company listed on a recognised stock exchange, options or restricted stock units become exercisable or the outstanding options can be exchanged prior to the start of the exercise period by replacing the options or restricted stock units with options to acquire shares of the successor company (Successor Options) on terms and conditions which will result in such Successor Options being in all other material aspects identical to those that apply to options or restricted stock units.

9. Auditors

9.1 Duration of mandate and term of office of Head Auditor

PricewaterhouseCoopers SA (PwC), Geneva, were appointed as statutory auditors and group auditors of EFG International on 08 September 2005, when EFG International was incorporated. The shareholders must confirm the appointment of the auditors on an annual basis at the General Meeting.

Mr Alex Astolfi became lead audit partner on 29 April 2022.

9.2 Auditing fees

During the 2023 financial year, external auditors received fees totalling CHF 4.587 million for the audits of EFG International and its subsidiaries.

9.3 Additional fees

For additional audit-related services covering topics such as accounting, controls reporting as well as compliance, external auditors received fees totalling CHF 0.994 million during the 2023 financial year from EFG International.

For additional consulting-related services comprising legal, IT, tax, and other project-related counselling, EFG International Group paid external auditors fees totalling CHF 0.213 million during the 2023 financial year.

9.4 Supervisory and control instruments vis-à-vis the auditors

The Audit Committee, on behalf of the Board of Directors, monitors the qualification, performance and remuneration of the statutory external auditors ('Auditors') in order to satisfy itself as to their independence. Among others, the Audit Committee confers with EFG International's Auditors about the effectiveness of the internal control system in view of the risk profile of EFG International.

The Auditors report annually to the Audit Committee the recurring and non-recurring fees they receive for professional services provided throughout the EFG International Group. On a quarterly basis, the Auditors report to the Audit Committee the approved mandates throughout the EFG International Group for conducting permissible non-audit/non-recurring services and how these compare to the approved fees for audit/recurring services. Additionally, the Auditors assure the Audit Committee on an annual basis as to whether they comply with the rules of the EFG International Group's External Auditor Independence Policy and their internal rules regarding auditor independence.

The Auditors report to the Audit Committee on areas where critical accounting estimates/judgements are made by management, on alternative treatments of financial information discussed with management, corrected and

uncorrected misstatements, and other significant written communication between the Auditors and management.

The Audit Committee meets regularly with the lead audit partners, at least four times per year. In addition, the Chair of the Audit Committee discusses with the lead audit partners the audit work performed, their main conclusions and potential important issues that arose during the audit.

The Chair of the Audit Committee briefs the Board of Directors about the Audit Committee's contacts and discussions with the Auditors.

The Auditors have direct access to the Audit Committee at all times.

10. Information policy

EFG International regularly informs its shareholders and the public by means of Annual and Half-Year Reports, compensation reports, Pillar III disclosures as well as media releases and presentations as needed. The documents are available, in electronic form at: www.efginternational.com/financial-reporting www.efginternational.com/investors www.efginternational.com/press-releases

Interested parties can subscribe to the e-mail distribution service to receive free and timely notifications of potentially price-sensitive facts and media releases: www.efginternational.com/newsalert

These releases are also published on the EFG International website at the same time as they are sent to the subscribers, and are available online for several years at: www.efginternational.com/press-releases

Additional corporate information, such as documents related to General Meetings, Articles of Association and Organisational and Management Regulations, can be found at:

www.efginternational.com/agm www.efginternational.com/articlesofassociation www.efginternational.com/internalregulations

Financial calendar dates

Important dates:

22 March 2024: Annual General Meeting, Zurich

26 March 2024: Ex-dividend date 27 March 2024: Record date

28 March 2024: Dividend payment date

24 July 2024: Publication of half-year results 2024

The financial calendar of upcoming events relevant to shareholders, analysts, the media, and other interested parties can be found on our investor relations website at: www.efginternational.com/investors

The Company's notices are published in the Swiss Official Gazette of Commerce (SOGC).

Address and Contact

EFG INTERNATIONAL AG Bleicherweg 8 – PO Box 6012 8022 ZURICH Tel. +41 44 226 1850 www.efginternational.com

Investor Relations

Jens Brueckner, Head of Investor Relations Tel. +41 44 226 1799 investorrelations@efginternational.com

Total remuneration approach	66
2023 AGM approved variable compensation 2022 and fixed
compensation 2023	66
Performance awards	67
Remuneration framework for members of the Board of Directors	69
Compensation framework for Executive Committee members	71
Remuneration framework for employees other than Executive Committee members	73
2023 Board of Directors compensation	75
2023 Total remuneration for the Executive Committee members	79
Compensation paid to former Board of Directors and Executive
Committee members	82
Auditors' report	83

The Company's compensation is governed by the Swiss Code of Obligations, the Articles of Association (AoA) and the Company's Organisational and Management Regulations (O&MR). All internal regulations mentioned in this report are available on our website www.efginternational.com.

1. Total remuneration approach

1.1 Total remuneration principles

EFG International Group uses a total remuneration approach which includes fixed and variable remuneration as well as statutory and non-statutory benefits.

Furthermore, the following principles govern this approach:

• Total remuneration must support the development and implementation of business plans; it must be funded out of business results, and includes a substantial riskadjusted variable component for profit generators.
• EFG International Group is known for its distinctive Client Relationship Officer (CRO) remuneration model and this shall remain a core part of how the bank operates.
• Total remuneration supports meritocracy; remuneration follows function and not hierarchy and is based on factual assessments of individual contributions to the short- and longer-term sustainable success of EFG International Group.
• In calibrating total remuneration levels, market competitiveness within specific functions or business units takes priority over internal comparability across functions or business units.

2. 2023 AGM approved variable compensation 2022 and fixed compensation 2023

At the 2023 AGM, shareholders approved the aggregate maximum fixed compensation of the Board of Directors of CHF 4.550 million for the term of office from the 2023 AGM to the closure of the 2024 AGM. This includes fixed compensation, social charges and pension scheme contributions.

At the 2023 AGM, shareholders approved a maximum aggregate fixed compensation amount of CHF 8.5 million for the members of the Executive Committee for the business year 2023. This includes fixed compensation, social charges and pension scheme contributions.

At the 2023 AGM, the shareholders approved an aggregate maximum variable compensation amount of CHF 8,508,728 for the members of the Executive Committee based on the performance in the business year 2022. In addition, the shareholders approved an aggregate maximum amount of CHF 27,662,400 of variable long-term compensation for the members of the Executive Committee to be allocated in 2023 and to be awarded in 2026 covering a three-year performance period starting in 2023 (subject to achieving performance targets and vesting over a three-year period until 2028).

2023 Annual General Meeting approved compensation	Amount (CHF)
Fixed compensation Board of Directors to be paid and awarded for the term of office from the 2023 Annual General Meeting to the 2024 Annual General Meeting	4,550,000
Fixed compensation Executive Committee to be paid and awarded in the business year 2023	8,500,000
Variable compensation Executive Committee to be paid and awarded in 2023 based on the performance in the business year 2022	8,508,728
Variable long-term compensation Executive Committee to be awarded in 2026 covering a three-year performance period starting in 2023 (actual compensation subject to achieving performance targets and vesting over a 3 year period until 2028).	27,662,400

3. Performance awards

EFG International Group distinguishes between performance awards for non-CROs, CROs and US Financial Advisors.

3.1 Performance award bonus pool for non-CROs

Our performance award bonus pool funding framework for non-CROs is based on EFG International Group and business unit performance, including achievements against a set of performance targets. In addition, we take into consideration the Company's risk profile and culture and the extent to which operational risks and audit issues have been identified and resolved.

The funding of the non-CRO performance award bonus pool is an ongoing process throughout the year. The size of the pool is dependent on the current year financial performance of the EFG International Group, for which purpose profit sustainability and risk adjustments are considered via the concept of economic profit.

The allocation of the performance award bonus pool is linked to relative regional business performance and reflects headcount and employee location. For all non-CROs in the business as well as for global function, support function and control function, quantitative and qualitative assessments covering risk management, conduct adherence to EFG's corporate values are considered.

The performance award bonus pool for non-CROs is reviewed by the CEO and presented to the Remuneration & Nomination Committee, which may apply a positive or negative discretionary adjustment to the performance bonus award pool, including recommending a zero award before its final recommendation to the Board of Directors.

3.1.1 Adjustment for qualitative performance – Business development

Business development adjustments result from relative performance versus peers.

3.1.2 Adjustment for qualitative performance – Risk & Conduct

Assessment with respect to regulatory compliance and risk (such as legal, compliance, reputational and operational risk) as well as alignment with the Company's values.

3.1.3 Recommended regional and functional performance award bonus pool

The performance award bonus pool determination process is based on quantitative and qualitative assessments and results in a recommendation from the Group CEO to the Remuneration & Nomination Committee.

3.1.4 Final Group performance award bonus pool for non-CROs

The Remuneration & Nomination Committee considers the recommendation with respect to the factors outlined above and verifies it is in line with EFG International Group's strategy and its Total Remuneration Principles to create sustainable shareholder value and support the growth of the Group. The Committee may alter the recommendation of the Group CEO (upward or downward, including recommending a bonus pool of nil), before making its final recommendation to the Board of Directors.

3.2 Performance award approach for Client Relationship Officers (CROs)

EFG International generally only hires experienced bankers for the role of CROs who bring with them previous business development experience in this area.

The Group is known for its distinctive CRO remuneration approach which rewards CROs based on net contribution, taking into account the Group's risk management framework, individual conduct in line with EFG International's corporate values besides growth potential. The CROs are required to provide top quality service and advice to clients. The CROs are made stakeholders in the business in line with EFG International's entrepreneurial approach within the strict boundaries of EFG International Group's risk management framework and guidelines. CROs have the possibility to build their own team (Client Service Officers and Junior CROs) and benefit from EFG's open architecture approach.

The performance award approach for CROs therefore includes all revenues and related costs attributable to them. Bona fide operational errors leading to losses are debited from their net contribution. Losses arising from operational errors, serious mistakes, or non-compliance with internal or external regulations or applicable laws, as well as violation of the EFG International Group's values directly reduce performance awards in line with the CRO risk score card and the yearly conduct assessment.

3.3 Compensation approach for US Financial Advisors

In line with US market practice, the compensation of Financial Advisors consists of revenue and product focused pay-out and is delivered monthly. Part of Financial Advisors' compensation is deferred over three years and may be reduced in case of unfavourable risk and conduct assessments. The Financial Advisor CRO model does not envisage payment of a fixed base salary and therefore is a 100% variable compensation approach.

4. Remuneration framework for members of the Board of Directors

The Board of Directors is responsible for the remuneration strategy and approves such remuneration, as recommended by the Remuneration & Nomination Committee, following the principles set forth in the Articles of Association (AoA).

As determined in the AoA, EFG International's Organisational and Management Regulation and the Terms of Reference of the Remuneration & Nomination Committee, the Remuneration & Nomination Committee has the following key responsibilities, in the name and on behalf of the Board of Directors:

– With regard to remuneration:

To determine the remuneration strategy of EFG International and its subsidiaries.

To ensure that decisions made by the Board of Directors in respect of remuneration (in particular general salary increases and bonuses) are complied with and to approve the remuneration.

To make recommendations to the Board with regards to the remuneration of the members of the Board of Directors and Executive Committee within the limits set by the General Meeting of Shareholders.

To approve the remuneration of senior executives of the Company and its subsidiaries, including management incentive plans, in particular plans using equity. To ensure that the policy regarding bonuses and other variable compensation elements of employee remuneration is not in conflict with client interests. Finally, it ensures together with the Risk Committee that the remuneration framework is in line with the Group's risk management framework and encourages risk awareness across the organisation.

– With regard to nomination of Board members:

To propose the composition, size and skills of the Board of Directors to adequately discharge their responsibilities and duties; the plans for the succession of the members of the Board of Directors; the selection criteria and processes for the identification and submission to the Board of Directors of suitable candidates to become members of the Board of Directors for election by the General Meeting of Shareholders; and the external directorships and other positions held by any person being considered for the appointment to the Board of Directors or any new appointment for existing members of the Board of Directors (Article 2.10.a of the Organisational and Management Regulations).

EFG International's Remuneration & Nomination Committee consists of five Board of Directors members, who are

elected annually by the shareholders at the Annual General Meeting (AGM).

Among the responsibilities described above, the Remuneration & Nomination Committee, on behalf of the Board of Directors, annually:

• Reviews and approves EFG International's remuneration policies and processes
• Reviews the performance award bonus determination and proposes the final performance award bonus pool to the Board of Directors for approval
• Reviews and approves the remuneration of Heads of Control Functions jointly with the Risk or Audit Committee
• Establishes performance targets, evaluates performance and proposes the compensation for EFG International's CEO to the Board of Directors
• Together with EFG International's CEO, reviews performance targets and performance assessments and proposes base salaries and annual performance award for the other members of the Executive Committee
• Proposes the compensation approach for the Board of Directors for approval by the Board of Directors
• Together with the Board of Directors, proposes the maximum aggregate amounts of compensation for the Board of Directors and for the Executive Committee for submission for approval by the AGM

EFG International Group's Remuneration & Nomination Committee currently comprises the following members of the Board of Directors who were individually elected by the General Meeting 2023 for a term of office of one year.

• Freiherr Bernd-A. von Maltzan (Chair)
• Emmanuel L. Bussetil
• Alexander Classen
• Boris Collardi
• Roberto Isolani

The Remuneration & Nomination Committee meets at least once a year. In 2023, the Remuneration & Nomination Committee held ten meetings with an average participation rate of 98%.

The minutes of the Remuneration & Nomination Committee meetings are sent to all Board of Directors members.

EFG International Group's Remuneration & Nomination Committee reviews annually and recommends to the Board of Directors the form and amount of the compensation of the members of the Board of Directors and any additional compensation to be paid for service as Chairman, for service on committees of the Board of Directors and for service as a chairman of a committee (article 30 paragraph 2 of the Articles of Association).

In line with article 32 of the Articles of Association of EFG International Group, the compensation of the members of the Board of Directors consists of a fixed base fee paid in cash and/or awarded in deferred equity or equity-linked instruments with multi-year vesting period. The compensation of the members of the Board of Directors is intended to recognise the responsibility and governance nature of their role, to attract and retain qualified individuals and to ensure alignment with shareholders' interests.

4.1. 2023 compensation framework for Board of Directors members

Those members of the Board of Directors which receive compensation, receive a fixed base board fee and a fee for serving on each of the Board Committees. Remuneration for chairmanship of a board-delegated committee is higher than for a simple membership, considering the greater responsibility and time required to perform the respective chairing role. Fixed base board fees are delivered in cash and/or deferred equity instruments – RSUs (restricted stock units) until 2021 and shares since 2022 – which are subject to a vesting/blocking period over three years.

Members of the Board of Directors have the right to waive their fees. Members of the Board of Directors are not eligible for performance awards and meeting attendance fees. Board of Directors members may not receive severance payments in any form.

(i) Compensation governance

	Compensation proposal by	Approval body
Chair of the Board of Directors	Remuneration & Nomination Committee	Remuneration & Nomination Committee as delegate of the Board of Directors1
Board of Directors members	Remuneration & Nomination Committee	Remuneration & Nomination Committee as delegate of the Board of Directors1
Group CEO	Chair of the Board of Directors and Remuneration & Nomination Committee	Remuneration & Nomination Committee as delegate of the Board of Directors1
Other Executive Committee members	Group CEO and Remuneration & Nomination Committee	Remuneration & Nomination Committee as delegate of the Board of Directors1

¹ Aggregate compensation for the Executive Committee and aggregate remuneration for the Board of Directors are subject to shareholder approval.

5. Compensation framework for Executive Committee members

The overview below illustrates the compensation elements, pay mix and features for Executive Committee members.

5.1. 2023 compensation framework for Executive Committee members

Executive Committee members' base salary is reviewed annually by EFG International's Remuneration & Nomination Committee. The CEO's annual base salary for 2023 was CHF 1.58 million and has remained unchanged since his appointment in 2018.

Each year, the AGM approves separately the proposals of the Board of Directors on the aggregate maximum amounts of the fixed base salary paid in cash of the Executive

Committee members for the following year plus a reserve for new hires and promotions. Refer to Articles of Association articles 18 and 33.

With respect to awarded variable compensation for the business performance of one year, a maximum of 40% is paid in the form of cash and at least 60% is deferred until the end of year three in the form of shares. In 2023, variable compensation in the form of an LTIP was granted (please refer to section 6.2.2.).

5.2. Executive Committee employment contracts and severance terms

Performance award caps	 Cap of 40% of performance award in cash
Delivery and deferrals	 At least 60% of annual performance awards are at risk of forfeiture for three years  Alignment with shareholders through EIP
Contract terms	 No severance payments  Six-month notice period
Other safeguards	 NA

The employment contracts of our Executive Committee members are subject to a six-month notice period. Neither severance payments nor supplemental pension scheme contributions are part of these employment contracts. For Executive Committee members leaving EFG International Group during the performance year, a performance bonus award may be considered to receive such an award as part of the non-CRO performance award pool and is subject to Board of Directors and shareholder approval at the respective AGM.

5.3. Benchmarking for the Group CEO and other Executive Committee members

EFG International Group regularly benchmarks the total compensation of its Executive Committee functions and its CEO to its peer group. For 2022 and 2023, benchmarking with McLagan included the following peers:

Julius Baer	LGT Bank
Lombard Odier	Pictet
UBP	Vontobel

This list of competitors is extended by regional competitors for benchmarking other functions in the different regional businesses.

6. Remuneration framework for employees other than Executive Committee members

6.1. Remuneration elements for all employees

6.1.1. Total remuneration

EFG International Group's approach to compensation focuses on total remuneration, consisting of total compensation as well as total benefits. The Remuneration & Nomination Committee regularly reviews the EFG International's remuneration principles and framework to ensure EFG International Group remains competitive and aligned with stakeholders' interest.

Fixed compensation development, e.g. base salaries, follows relevant labour markets in line with the type of business and function to ensure we offer our employees competitive base salaries. Therefore, salary increases are a direct result of functional promotions, performance, conduct, overall responsibility and skill set.

In principle, employees of EFG International Group are eligible for an annual performance award, depending on the performance of EFG International Group, the employee's organisational unit, individual performance and conduct assessment. Performance awards may be reduced for conduct and risk in case of adverse assessment.

6.1.2. Total benefits

Besides the statutory benefits, EFG International Group offers all employees retirement benefits and health insurance, where such is local market practice. Benefits and contributions vary and follow local market practice.

6.2. EFG International Group's deferred compensation plans

6.2.1. Equity incentive plan (EIP)

To align employees' objectives with the company's longterm sustainable goals, risk framework and culture, we defer delivery of part of the annual performance awards. Deferred compensation is mainly provided via our equity-based instrument RSUs (restricted stock units)/shares in the form of our equity incentive plan (EIP) and to a lesser extent via deferred cash. EFG International Group uses a deferral regime of up to three years.

For Executive Committee members, Senior Managers with global responsibility and material risk takers (MRT) as

defined by local regulators, a three-year cliff vesting deferral regime is in place.

6.2.2. Long-term incentive plan

In 2023 EFG International launched a long-term incentive plan (LTIP) for members of the Executive Committee, Global Business Committee and other Senior Managers with a prospective three-year performance period. The plan is meant to further align management's interests and ambitions with those of the shareholders through increased stock-based remuneration, and to honour valuable employees as well as to incentivise long-lasting employment relationships.

The LTIP grants 9 million EFG International shares via restricted stock units (RSUs) and shares in the base case scenario. Subject to meeting minimum thresholds and performance targets by the end of the three-year performance period, the award will be within 55% to 150% of the base case allocation, corresponding to the percentage achievement of each target, and any reduction due to risk and conduct aspects. If either of the minimum financial and business targets are not achieved, the respective grant is forfeited. If all minimum targets are achieved, the final award will amount to between 4,950,000 and 13,500,000 RSUs/shares.

The RSUs/shares are allocated in two tranches over the three-year performance period. 4.6 million of RSUs were granted at the beginning of the performance period in 2023. If the targets are not achieved, no further RSUs/shares will be allocated. For Executive Committee members, for formal reasons, the envisaged maximum award (i.e. 150% of the base case scenario) was allocated at the beginning of the performance period with special restrictions and forfeiture terms, resulting in an equal treatment of, and equal incentive, for all participants of the LTIP.

6.3. Other variable compensation components

To support recruiting and retention at senior levels, EFG International Group may offer certain other compensation elements, such as:

• Buy-out payments to compensate employees for deferred performance awards with their former employer, which were forfeited as a result of joining EFG International. We strictly follow a like-to-like approach in such cases with respect to deferral periods and instruments in which such awards were made as far as our employee incentive plans allows us
• Retention awards made to employees to induce them to stay and support the implementation of critical projects, such as divestments or reorganisations. Such awards may be delivered partially in a deferred form
• On a limited basis, guarantees may be required to attract individuals with certain skills and experience – these incentives follow our standard equity-based deferral rules and are limited to the first year of employment
• Award grants to employees hired in the second half of the business year to replace performance awards which they would have earned at their former employers but lose by joining EFG International. Such awards are delivered as part of the normal performance award time wise as well as using our standard equity-based deferral rules

Severance payments may occur in line with regulatory requirements, local market practice and local social plans negotiated with our local social partners.

7. 2023 Board of Directors compensation

7.1. Chair of the Board compensation

The Chair's total compensation for the term from AGM to AGM is contractually fixed without any variable component. For the current period from the 2023 AGM to the 2024 AGM, the compensation of Alexander Classen amounts to CHF 1.32 million (annualised from AGM to AGM), excluding social charges and pension scheme contributions. The Chair's

fixed compensation consists of a cash payment of CHF 1.27 million and a deferred equity award of CHF 50,000 in the form of shares which vest over three years.

Compensation of the Chair of the Board of Directors (audited)

		Fixed compensation (2)		Social charges (4)	Total
	AGM to AGM (year)	Cash	Shares
Name and function	(1)	CHF	CHF (3)	CHF	CHF
Alexander Classen, Chair*	2023 to 2024	1,270,000	50,000	261,540	1,581,540
	2022 to 2023**	723,195	28,472	108,899	860,566
Peter A. Fanconi, Chair***	2023 to 2024				–
	2022 to 2023	400,000	100,000	85,436	585,436

^* Elected at the EGM on 06 October 2022 as member of the Board of Directors with immediate effect and as the Chair as from 01 November 2022.

Notes:

• 2 Gross fixed compensation including the Chair of the Board of Directors' contribution for social charges
• 3 The amount represents the value of shares awarded during the period. For the valuation of the shares, refer to note 63 of the consolidated financial statements.
• 4 2023 to 2024: estimation; employer social charges of CHF 261,540 include an amount of CHF 157,183 of pension contributions. 2022 to 2023: employer social charges of CHF 194,335 include an amount of CHF 78,978 of pension contributions.

^** From 01 November 2022 until AGM 2023

^*** Stepped down 31 October 2022

¹ Compensation numbers for a 12-month period as per AGM 2023 approval. The Annual General Meeting 2024 has been brought forward by one month.

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Compensation report

7.2. Remuneration details and additional information for Board of Directors members (audited)

		Fixed compensation (2)		Social charges (4)	Total
	AGM to AGM (year)	Cash	Shares
Name and function	(1)	CHF	CHF (3)	CHF	CHF
	2023 to 2024				–
Susanne Brandenberger, member*	2022 to 2023	205,000	50,000	65,678	320,678
	2023 to 2024				–
Emmanuel L. Bussetil, member (5)	2022 to 2023				–
	2023 to 2024	200,000		46,178	246,178
Boris Collardi, member**	2022 to 2023	113,889		22,692	136,581
	2023 to 2024	175,001	50,000	45,365	270,366
Roberto Isolani, member	2022 to 2023	141,667	50,000	46,146	237,813
	2023 to 2024				–
Steven M. Jacobs, member*	2022 to 2023	150,000	50,000	40,122	240,122
	2023 to 2024				–
John S. Latsis, member (5)	2022 to 2023				–
	2023 to 2024	167,168	50,000	39,304	256,472
Maria Leistner, member***	2022 to 2023				–
	2023 to 2024	230,001	50,000	58,762	338,763
Philip J. Lofts, member****	2022 to 2023				–
	2023 to 2024	270,001	50,000	71,648	391,649
Carlo M. Lombardini, member	2022 to 2023	270,000	50,000	72,058	392,058
	2023 to 2024				–
Périclès Petalas, member (5)	2022 to 2023				–
	2023 to 2024	236,660	50,000	51,059	337,719
Stuart M. Robertson, member*	2022 to 2023	299,341	50,000	55,708	405,049
Freiherr Bernd-A. von Maltzan,	2023 to 2024	297,600	50,000	15,651	363,251
member**	2022 to 2023	326,325	50,000	14,620	390,945
	2023 to 2024	218,750	50,000	7,996	276,746
Yok Tak A. Yip, member*	2022 to 2023	226,163	50,000	7,996	284,159
	2023 to 2024	1,795,181	350,000	335,963	2,481,144
Total	2022 to 2023	1,732,385	350,000	325,020	2,407,405

^* Stepped down at AGM 2023

Notes:

• 1 Compensation numbers for a 12-month period as per AGM 2023 approval. The Annual General Meeting 2024 has been brought forward by one month.
• 2 Gross fixed compensation including board members' contributions for social charges
• 3 The amount represents the value of shares awarded during the period. For the valuation of the shares, refer to note 63 of the consolidated financial statements.
• 4 2023 to 2024: estimation; employer social charges of CHF 335,963 include an amount of CHF 225,235 of pension contributions. 2022 to 2023: employer social charges of CHF 325,020 include an amount of CHF 141,154 of pension contributions.
• 5 No compensation has been paid to this member of the Board of Directors.

^** Elected at EGM 2022 on 06 October 2022

^*** Elected at AGM 2023. Includes Luxembourg subsidiary Board of Directors' fees.

^**** Elected at AGM 2023

^***** Includes UK subsidiary Board of Directors' fees.

^****** Includes Luxembourg and Spain subsidiaries Board of Directors' fees

^******* Includes additional fee for membership to the EFG Advisory Board for Asia

7.3. Total payments to Board of Directors members (audited)

		Fixed compensation (2)		Social charges (4)	Total (5)
	AGM to AGM (year)	Cash	Shares
Board of Directors	(1)	CHF	CHF (3)	CHF	CHF
Total to all Board of Directors	2023 to 2024	3,065,182	400,000	597,502	4,062,684
members	2022 to 2023	2,855,579	478,472	519,353	3,853,404

Notes:

• 1 Compensation numbers for a 12-month period as per AGM 2023 approval. The Annual General Meeting 2024 has been brought forward by one month.
• 2 Gross fixed compensation including board members' contributions for social charges
• 3 The amount represents the value of shares awarded during the period. For the valuation of the shares, refer to note 63 of the consolidated financial statements.
• 4 2023 to 2024: estimation; employer social charges of CHF 597,502 include an amount of CHF 382,418 of pension contributions. 2022 to 2023: employer social charges of CHF 519,353 include an amount of CHF 220,133 of pension contributions.
• 5 At the AGM 2023, the shareholders have approved a maximum fixed compensation of CHF 4,550,000 for all members of the Board of Directors for their term of office from AGM 2023 to AGM 2024. The table above shows that the expected total fixed compensation paid to the members of the Board of Directors has not exceeded the amount approved by the shareholders.

7.4. Remuneration framework for Board of Directors members

		Amount AGM 2022 to AGM 2023		Amount AGM 2023 to AGM 2024		Delivery
Function	CHF	CHF	CHF	CHF	AGM to AGM Grant year		Year 1	Year 2	Year 3
Members:
					50,000
Base amount	150,000		150,000		shares		16,666	16,666	16,668
					100,000 cash	100,000
Additional committee fees	Member	Chair	Member	Chair
Audit Committee	25,000	55,000	25,000	55,000
Risk Committee	25,000	55,000	25,000	55,000	100% cash	100%
Other, per committee	25,000	15,000	25,000	15,000

Compensation report

7.5. Shares and deferred compensation of Board of Directors members (audited)

					2023			2022
				2023	Total		2022	Total
			2023	Unvested	outstanding	2022	Unvested	outstanding
	Shares	Shares	Vested	shares/	shares/	Vested	shares/	shares/
	2023	2022	RSUs	RSUs	RSUs	RSUs	RSUs	RSUs
Board of Directors
Alexander Classen, Chair*	57,008			2,870	2,870		2,644	2,644
Peter A. Fanconi, Chair**	N/A	178,901	N/A	N/A	N/A	39,824	36,174	75,998
Susanne Brandenberger***	N/A	26,684		3,570	3,570		5,427	5,427
Emmanuel L. Bussetil
Boris Collardi****	10,775,862*	10,775,862*
Roberto Isolani	86,996	69,124		14,143	14,143		10,842	10,842
Steven M. Jacobs***	N/A	37,303	3,801	7,180	10,981	13,196	10,842	24,038
John S. Latsis	140,421,406**	140,421,406**
Maria Leistner*	5,574
Philip Lofts*				6,963	6,963
Carlo M. Lombardini	10,880	4,335	9,773	3,570	13,343	5,972	5,427	11,399
Périclès Petalas
Stuart M. Robertson	25,215	12,970	3,801	3,570	7,371	5,700	5,427	11,127
Freiherr Bernd-A. von Maltzan	33,229	20,984	3,801	3,570	7,371	5,700	5,427	11,127
Yok Tak A. Yip	2,776		9,230	14,143	23,373	5,610	10,661	16,271
Total Board of Directors	151,418,946	151,547,569	30,406	59,579	89,985	76,002	92,871	168,873

^* Elected at the EGM on 06 October 2022 as member of the Board of Directors with immediate effect and as the Chair as from 01 November 2022.

7.6. Loans granted to Board of Directors members and related parties of Board of Directors members (audited)

In line with article 36a of the Articles of Association of EFG International Group, loans and credits to members of the Board of Directors may be provided at market conditions or generally applicable employee conditions. The total amount of such loans may not exceed CHF 3 million for unsecured loans and credits and not exceed CHF 20 million for secured loans and credits per Board of Director member.

At the end of 2023, there were no loans to members of the Board of Directors outstanding (end of 2022: CHF 14,435 for Mr. Freiherr Bernd-A. von Maltzan).

There were no loans and credits to related parties of members of the Board of Directors outstanding at the end of 2023 (2022: nil).

^** Stepped down 31 October 2022

^*** Stepped down at AGM 2023

^**** Elected at the EGM on 06 October 2022

^***** Total number of shares beneficial owner Boris Collardi

^****** Total number of shares controlled by the Latsis Family Interests

^******* Elected at AGM 2023

8. 2023 Total remuneration for the Executive Committee members

8.1. Total remuneration for Executive Committee members 2023 and 2022 (audited)

								Total
								compen
				Total				sation (incl.	Social
	Fixed			variable			Total other	other	charges &	Total
	compen	Variable		compen			compen	compen	other	remunera
	sation (1)	compensation (2)		sation (4)	Other compensation		sation	sation)	benefits (5)	tion
			Shares/RSU			Shares/RSU
	Cash	Cash bonus	s (3)		Cash	s
Year	CHF	CHF	CHF	CHF	CHF	CHF	CHF	CHF	CHF	CHF
Total Executive Committee* (6, 7)
2023	4,678,748	3,160,000	4,740,000	7,900,000	91,218			91,218 12,669,966		1,422,812 14,092,778
2022	4,901,647	2,392,000	5,208,674	7,600,674	98,875		98,875	12,601,196	1,249,845	13,851,041
		Of which highest paid: Piergiorgio Pradelli, CEO EFG International (8)
2023	1,580,801	1,360,000	2,040,000	3,400,000				4,980,801	495,932	5,476,733
2022	1,580,801	920,000	1,901,594	2,821,594				4,402,395	418,080	4,820,475

^* Including members of the Executive Committee who joined and left in 2023/2022. For those members, the compensation disclosed represents the amounts received as Executive Committee members.

Notes:

• 1 Gross fixed compensation including employees' contributions for social charges.
• 2 2023: subject to approval by the shareholders at the AGM 2024.
• 3 2023: the amount represents the value of the deferred variable compensation to be awarded in 2024. For 2021 and going forward, shares/RSUs are delivered instead of RSUs. For specific valuation of the Employee equity incentive plan, refer to note 63 of the consolidated financial statements.
• 4 Not including LTIP: under the LTIP (see further details in section 6.2.2. of the Compensation Report), 1,550,000 RSUs have been allocated to the Executive Committee in 2023 (CHF 14,012,000 at grant date value under the base case scenario representing 100%) to be awarded in 2026 covering a three-year performance period starting in 2023 (actual compensation subject to achieving performance targets and vesting over a 3 year period until 2028). The CEO has been allocated 500,000 RSUs (CHF 4,520,000). Due to formal reasons, for the participating members of the Executive Committee including the CEO, the currently envisaged maximum award was allocated at the start of the LTIP (150% of the allocation in the base case scenario).
• 5 Including employer social charges. 2023: total benefits of the Executive Committee of CHF 1,422,812 include an amount of CHF 541,761 of pension contributions. 2022: total benefits of the Executive Committee of CHF 1,249,845 include an amount of CHF 353,224 of pension contributions.
• 6 2023: the AGM 2023 has approved a maximum aggregate fixed compensation for all members of the Executive Committee for the business year 2023 of CHF 8,500,000. The table above shows that the total fixed compensation paid to the members of the Executive Committee in 2023 has not exceeded that amount.
• 7 2022 and 2023: other compensation for the Executive Committee includes replacements of forfeited variable compensation to members of the Executive Committee who joined in 2021.
• 8 Social charges and other benefits for the CEO include health care coverage.

Compensation report

8.2. Total compensation for Executive Committee members for 2021 to 2023

	Fixed compensation (1)	Variable compensation (2)		Total variable compensation (4)	Total compensation	Number of ExCo members*
	Cash	Cash bonus	Shares/RSUs (3)
Year	CHF	CHF	CHF	CHF	CHF
Total Executive Committee*
2023	4,678,748	3,160,000	4,740,000	7,900,000	12,578,748	6
2022	4,901,647	2,392,000	5,208,674	7,600,674	12,502,321	7
2021	5,183,191	1,680,000	4,814,000	6,494,000	11,677,191	7

^* Including members of the Executive Committee who joined and left in 2023/2022/2021. For those members, the compensation disclosed represents the amounts received as Executive Committee members.

Notes:

• 1 Including employees' contributions for social charges. Including payment of untaken holidays balance to members of the Executive Committee who left in 2021.
• 2 2023: subject to approval by the shareholders at the AGM 2024. 2021: including an increase of variable compensation of CHF 200,000 after publication of the 2021 Compensation Report, approved by the shareholders at the AGM 2022 as part of the variable compensation of the Executive Committee.
• 3 2023: the amount represents the value of deferred variable compensation to be awarded in 2024. For 2021 and going forward, shares/RSUs are delivered instead of RSUs. For specific valuation of the Employee equity incentive plan, refer to note 63 of the consolidated financial statements.
• 4 Not including LTIP: under the LTIP (see further details in section 6.2.2. of the Compensation Report), 1,550,000 RSUs have been allocated to the Executive Committee in 2023 (CHF 14,012,000 at grant date value under the base case scenario representing 100%) to be awarded in 2026 covering a three-year performance period starting in 2023 (actual compensation subject to achieving performance targets and vesting over a 3 year period until 2028). The CEO has been allocated 500,000 RSUs (CHF 4,520,000). Due to formal reasons, for the participating members of the Executive Committee including the CEO, the currently envisaged maximum award was allocated at the start of the LTIP (150% of the allocation in the base case scenario).

8.3. Shares and deferred compensation of Executive Committee members (audited)

					2023			2022
				2023	Total		2022	Total
			2023	Unvested	outstanding	2022	Unvested	outstanding
	Shares	Shares	Vested	shares/	shares/	Vested	shares/	shares/
	2023	2022	RSUs	RSUs (1)	RSUs (1)	RSUs	RSUs	RSUs
Executive Committee*
Piergiorgio Pradelli	1,182,183	858,720		135,084	135,084		244,673	244,673
Yves Aeschlimann**	N/A			90,482	90,482	23,383	138,427	161,810
Vassiliki Dimitrakopoulou***	64,033	10,848	20,397	46,425	66,822	47,169	19,653	66,822
Martin Freiermuth	169,595	90,454		2,568	2,568		7,470	7,470
Enrico Piotto	70,610	40,000		127,503	127,503		66,923	66,923
Dimitris Politis	383,557	206,727		61,913	61,913		116,707	116,707
Harald Reczek****		104,545
Total Executive Committee	1,869,978	1,311,294	20,397	463,975	484,372	70,552	593,853	664,405

^* Totals including members of the Executive Committee who left in 2022 and in 2021

Notes:

1 Not including LTIP: under the LTIP (see further details in section 6.2.2. of the Compensation Report), 1,550,000 RSUs have been allocated to the Executive Committee in 2023 (CHF 14,012,000 at grant date value under the base case scenario representing 100%) to be awarded in 2026 covering a three-year performance period starting in 2023 (actual compensation subject to achieving performance targets and vesting over a 3 year period until 2028). The CEO has been allocated 500,000 RSUs (CHF 4,520,000). Due to formal reasons, for the participating members of the Executive Committee including the CEO, the currently envisaged maximum award was allocated at the start of the LTIP (150% of the allocation in the base case scenario).

^** Executive Committee member until 01 April 2022

^*** Executive Committee member since 01 November 2022

^**** Stepped down effective as at 01 February 2023.

Compensation report

8.4. Loans granted to Executive Committee members and related parties of Executive Committee members (audited)

In line with article 36a of the Articles of Association of EFG International Group, loans and credits to members of the Executive Committee may be provided at market conditions or generally applicable employee conditions. The total amount of such loans may not exceed CHF 3 million for unsecured loans and credits and not exceed CHF 20 million for secured loans and credits per member of the Executive Committee.

There were no loans and credits to members of the Executive Committee outstanding at the end of 2023 (2022: nil).

There were no loans and credits to related parties of members of the Executive Committee outstanding at the end of 2023 (2022: nil).

9. Compensation paid to former Board of Directors and Executive Committee members (audited)

Former	Year	Compensation CHF	Benefits/ Social charges CHF	Total
	AGM 2023 to AGM 2024			–
Board of Directors members	AGM 2022 to AGM 2023	500,000	85,436	585,436
	2023	48,500	9,358	57,858
Executive Committee members	2022	158,100	32,892	190,992

10. External mandates of the Board of Directors and Executive Committee members

Details about the external mandates of the members of the Board of Directors and the Executive Committee can be found in the corporate governance section of the Annual Report, sections 4.8. (page 49) and 5.2. (page 58).

Report of the statutory auditor

to the General Meeting of EFG International AG

Zürich

Report on the audit of the Compensation report

Opinion

We have audited the Compensation report of EFG International AG (the Company) for the year ended 31 December 2023. The audit was limited to the information pursuant to article 734a-734f CO in the tables marked 'audited' on pages 66 to 82 of the Compensation report.

In our opinion, the information pursuant to article 734a-734f CO in the accompanying Compensation report complies with Swiss law and the Company's articles of association.

Basis for opinion

We conducted our audit in accordance with Swiss law and Swiss Standards on Auditing (SA-CH). Our responsibilities under those provisions and standards are further described in the 'Auditor's responsibilities for the audit of the Compensation report' section of our report. We are independent of the Company in accordance with the provisions of Swiss law and the requirements of the Swiss audit profession, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Other information

The Board of Directors is responsible for the other information. The other information comprises the information included in the annual report, but does not include the tables marked 'audited' in the Compensation report, the consolidated financial statements, the parent financial statements and our auditor's reports thereon.

Our opinion on the Compensation report does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the Compensation report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the audited financial information in the Compensation report or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Board of Directors' responsibilities for the Compensation report

The Board of Directors is responsible for the preparation of a Compensation report in accordance with the provisions of Swiss law and the Company's articles of association, and for such internal control as the Board of Directors determines is necessary to enable the preparation of a Compensation report that is free from material misstatement, whether due to fraud or error. It is also responsible for designing the remuneration system and defining individual remuneration packages.

Auditor's responsibilities for the audit of the Compensation report

Our objectives are to obtain reasonable assurance about whether the information pursuant to article 734a-734f CO is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Swiss law and SA-CH will always detect a material misstatement when it exists. Misstatements can arise from fraud or

PricewaterhouseCoopers SA, avenue Giuseppe-Motta 50, case postale, 1211 Genève 2, Switzerland Téléphone: +41 58 792 91 00, www.pwc.ch

PricewaterhouseCoopers SA is a member of the global PricewaterhouseCoopers network of firms, each of which is a separate and independent legal entity.

error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this Compensation report.

As part of an audit in accordance with Swiss law and SA-CH, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement in the Compensation report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made.

We communicate with the Board of Directors or its relevant committee regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the Board of Directors or its relevant committee with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.

PricewaterhouseCoopers SA

Alex Astolfi Omar Grossi Licensed audit expert Licensed audit expert

Geneva, 20 February 2024

Auditor in charge

Consolidated financial statements

EFG International for the year ended 31 December 2023

Consolidated income statement	86
Consolidated statement of comprehensive income	87
Consolidated balance sheet	88
Consolidated statement of changes in equity	89
Consolidated cash flow statement	91
Notes to the consolidated financial statements	94
Report on the audit of the consolidated financial statements	213

Consolidated income statement for the year ended 31 December 2023

	Note	Year ended 31 December 2023 CHF millions	Year ended 31 December 2022 CHF millions
Interest and discount income		1,389.4	678.5
Interest expense		(877.4)	(283.0)
Net interest income	13	512.0	395.5
Banking fee and commission income		793.2	860.4
Banking fee and commission expense		(206.0)	(230.9)
Net banking fee and commission income	14	587.2	629.5
Dividend income	15	2.8	2.2
Income from foreign exchange activities	16	254.8	224.7
Fair value gains less losses on financial instruments measured at fair value	17	72.8	28.5
Gains less losses on disposal of investment securities		(0.3)	(10.1)
Other operating income/(expense)	18	1.4	(0.3)
Net other income		331.5	245.0
Operating income		1,430.7	1,270.0
Operating expenses	19	(1,057.9)	(975.0)
Impairment of intangible assets	21	(23.6)
Provisions	49	(9.3)	(55.0)
Loss allowances expense	22	(6.7)	(2.9)
Profit before tax		333.2	237.1
Income tax expense	23	(30.0)	(33.4)
Net profit for the year		303.2	203.7
Net profit for the year attributable to:
Net profit attributable to equity holders of the Group		303.2	202.4
Net profit attributable to non-controlling interests			1.3
		303.2	203.7
		Year ended	Year ended
	Note	31 December 2023 CHF	31 December 2022 CHF
Earnings per ordinary share Basic	24	0.94	0.60
Diluted	24	0.91	0.57

Consolidated statement of comprehensive income for the year ended 31 December 2023

		Year ended 31 December 2023	Year ended 31 December 2022
	Note	CHF millions	CHF millions
Net profit for the year		303.2	203.7
Other comprehensive income
Items that may be reclassified subsequently to the income statement:
Adjustment on reclassification of investments	3	166.6
Tax effect of adjustment on reclassification of investments	3	(6.4)
Foreign exchange losses on net investments in foreign operations, with no tax
effect		(3.0)	(7.9)
Currency translation differences, with no tax effect		(111.8)	(50.8)
Currency translation losses transferred to the income statement, with no tax
effect	18		12.2
Net losses on investments in debt instruments measured at fair value through
other comprehensive income			(153.5)
Tax effect on net losses on investments in debt instruments measured at fair
value through other comprehensive income			6.8
Net realised losses on debt instruments measured at fair value through other
comprehensive income reclassified to the income statement, with no tax effect			10.1
Net gains on cash-flow hedge, with no tax effect	31	11.9
Change in loss allowance on debt instruments measured at fair value through
other comprehensive income, with no tax effect			0.1
Items that will not be reclassified to the income statement:
Retirement benefit losses	52	(28.7)	(39.6)
Tax effect on retirement benefit losses	39	5.6	7.9
Total other comprehensive income for the year, net of tax		34.2	(214.7)
Total comprehensive income for the year		337.4	(11.0)
Total comprehensive income for the year attributable to:
Equity holders of the Group		337.4	(10.9)
Non-controlling interests			(0.1)
		337.4	(11.0)

Consolidated balance sheet at 31 December 2023

		31 December 2023	31 December 2022
	Note	CHF millions	CHF millions
Assets
Cash and balances with central banks	27	4,726.9	9,487.6
Treasury bills and other eligible bills	29	2,340.6	3,055.4
Due from other banks	30	2,617.6	2,095.9
Derivative financial instruments	31	1,574.3	1,796.2
Financial assets at fair value through profit and loss	32	1,363.6	1,457.5
Investment securities	33	8,489.8	7,669.7
Loans and advances to customers	34	16,019.1	16,748.1
Property, plant and equipment	36	299.9	311.7
Intangible assets	37	203.5	239.1
Deferred income tax assets	39	73.9	80.1
Other assets	40	876.7	596.8
Total assets		38,585.9	43,538.1
Liabilities
Due to other banks	45	943.0	922.8
Due to customers	46	30,056.5	34,035.4
Derivative financial instruments	31	1,570.3	1,642.9
Financial liabilities at fair value through profit and loss	47	173.9	402.0
Financial liabilities at amortised cost	48	2,807.8	3,684.7
Current income tax liabilities		13.0	19.7
Deferred income tax liabilities	39	16.4	17.4
Provisions	49	134.4	171.0
Other liabilities	51	653.5	576.9
Total liabilities		36,368.8	41,472.8
Equity
Share capital	53	150.9	151.3
Share premium		1,932.9	1,971.4
Other reserves	54	(52.8)	(94.9)
Retained earnings		(164.9)	(314.3)
Total shareholders' equity		1,866.1	1,713.5
Additional equity components	55	351.0	351.0
Non-controlling interests	57	–	0.8
Total equity		2,217.1	2,065.3
Total equity and liabilities		38,585.9	43,538.1

Consolidated statement of changes in equity for the year ended 31 December 2023

					Attributable to owners of the Group
						Total share	Additional	Non
		Share	Share	Other	Retained	holder's	equity	controlling	Total
CHF millions	Note	capital	premium	reserves	earnings	equity	components	interests	equity
Balance at 01 January 2022		152.2	2,014.7	138.2	(407.2)	1,897.9	351.0		42.6 2,291.5
Net profit for the year					202.4	202.4		1.3	203.7
Foreign exchange losses on net investments
in foreign operations, with no tax effect				(7.9)		(7.9)			(7.9)
Currency translation differences, with no tax
effect				(49.4)		(49.4)		(1.4)	(50.8)
Currency translation losses transferred to the
income statement, with no tax effect	18			12.2		12.2			12.2
Net losses on investments in debt
instruments measured at fair value through
other comprehensive income				(153.5)		(153.5)			(153.5)
Tax effect on net losses on investments in
debt instruments measured at fair value
through other comprehensive income				6.8		6.8			6.8
Net realised losses on debt instruments
measured at fair value through other
comprehensive income reclassified to the
income statement, with no tax effect				10.1		10.1			10.1
Change in loss allowance on debt
instruments measured at fair value through
other comprehensive income, with no tax
effect	8.4			0.1		0.1			0.1
Retirement benefit losses	52			(39.6)		(39.6)			(39.6)
Tax effect on retirement benefit losses	39			7.9		7.9			7.9
Total comprehensive
income for the year		–	–	(213.3)	202.4	(10.9)	–	(0.1)	(11.0)
Dividend paid on ordinary shares	56				(109.7)	(109.7)			(109.7)
Distributions to additional equity
components	56				(20.5)	(20.5)			(20.5)
Repurchase of Bons de Participation		(0.2)	0.4	(12.9)		(12.7)			(12.7)
Ordinary shares repurchased	53	(3.9)	(57.2)			(61.1)			(61.1)
Disposal of subsidiaries	57							(41.7)	(41.7)
Equity-settled share-based plan expensed in
the income statement	62			30.5		30.5			30.5
Employee equity incentive plans exercised	62	3.2	13.5	(37.4)	20.7				–
Balance at 31 December 2022		151.3	1,971.4	(94.9)	(314.3)	1,713.5	351.0		0.8 2,065.3

Consolidated statement of changes in equity for the year ended 31 December 2023 continued

			Attributable to owners of the Group
						Total share	Additional	Non
CHF millions	Note	Share capital	Share premium	Other reserves	Retained earnings	holder's equity	equity components	controlling interests	Total equity
Balance at 01 January 2023		151.3	1,971.4	(94.9)	(314.3)	1,713.5	351.0		0.8 2,065.3
Net profit for the period					303.2	303.2			303.2
Adjustment on reclassification of investments	3			166.6		166.6			166.6
Tax effect of adjustment on reclassification of
investments	3			(6.4)		(6.4)			(6.4)
Foreign exchange losses on net investments
in foreign operations, with no tax effect				(3.0)		(3.0)			(3.0)
Currency translation differences,
with no tax effect				(111.9)		(111.9)		0.1	(111.8)
Net gains on cash flow hedges, with no tax
effect	31			11.9		11.9			11.9
Retirement benefit losses	52			(28.7)		(28.7)			(28.7)
Tax effect on retirement benefit losses	39			5.6		5.6			5.6
Total comprehensive
income for the year		–	–	34.1	303.2	337.3	–	0.1	337.4
Ordinary shares repurchased	53	(4.0)	(72.6)			(76.6)			(76.6)
Dividend paid on ordinary shares	56				(136.7)	(136.7)			(136.7)
Distribution to additional equity components	56				(20.4)	(20.4)			(20.4)
Dividend paid on non-controlling interests								(0.9)	(0.9)
Equity-settled share-based plan expensed
in the income statement	62			51.9		51.9			51.9
Employee equity incentive plans exercised	62	3.6	34.1	(43.9)	6.2	0.0			0.0
Other movements					(2.9)	(2.9)			(2.9)
Balance at 31 December 2023		150.9	1,932.9	(52.8)	(164.9)	1,866.1	351.0		(0.0) 2,217.1

Consolidated cash flow statement for the year ended 31 December 2023

		Year ended 31 December 2023 CHF millions	Year ended 31 December 2022 CHF millions
Cash flows from operating activities
Interest received		1,361.9	648.7
Interest paid		(819.7)	(251.7)
Banking fee and commission received		792.3	866.3
Banking fee and commission paid		(205.3)	(232.9)
Dividend received	15	2.8	2.2
Net trading income	16	254.8	226.1
Other operating income receipts/(payments)	18	1.3	(1.7)
Staff costs paid		(688.4)	(647.8)
Other operating expenses paid		(212.7)	(197.0)
Income tax paid		(31.5)	(38.0)
Cash flows from operating activities before changes
in operating assets and liabilities		455.5	374.2
Changes in operating assets and liabilities
Net decrease/(increase) in treasury bills		447.2	(325.7)
Net (increase) in due from other banks (> 90 days)		(71.9)	(65.0)
Net decrease/(increase) in derivative financial instruments		118.3	(23.4)
Net decrease in loans and advances to customers		404.9	1,039.8
Net (increase)/decrease in other assets		(77.5)	68.3
Net increase in due to other banks		36.6	366.8
Net (decrease)/increase in due to customers		(3,124.1)	2,236.4
Issuance of financial liabilities at amortised cost and fair value		4,230.6	5,431.5
Redemption of financial liabilities at amortised cost and fair value		(5,116.5)	(5,993.1)
Net increase/(decrease) in other liabilities		52.8	(10.0)
Net cash flows from operating activities		(2,644.1)	3,099.8
Cash flows from investing activities
Purchase of securities		(2,697.6)	(4,386.0)
Proceeds from sale of securities		1,508.5	2,446.8
Purchase of property, plant and equipment	36	(0.5)	(7.9)
Purchase of intangible assets	37	(25.7)	(36.1)
Proceeds from sale of property, plant and equipment			2.2
Net proceeds from disposal of businesses and subsidiaries			54.9
Net cash flows used in investing activities		(1,215.3)	(1,926.1)

Consolidated cash flow statement for the year ended 31 December 2023 continued

		Year ended 31 December 2023 CHF millions	Year ended 31 December 2022 CHF millions
Cash flows from financing activities
Dividend paid on ordinary shares	56	(136.7)	(109.7)
Repurchase of Bons de Participation			(12.7)
Ordinary shares repurchased		(76.6)	(61.1)
Share capital issuance			0.8
Additional equity components distributions	55	(20.4)	(20.5)
Subordinated loan redeemed			(189.0)
Principal element of lease payments		(30.9)	(36.7)
Transactions with non-controlling interests		(0.9)	(3.8)
Net cash flows from financing activities		(265.5)	(432.7)
Effect of exchange rate changes on cash and cash equivalents		(85.1)	(309.4)
Net change in cash and cash equivalents		(4,210.0)	431.6
Cash and cash equivalents at beginning of period	27	13,086.1	12,654.5
Net change in cash and cash equivalents		(4,210.0)	431.6
Cash and cash equivalents		8,876.1	13,086.1

Notes to the consolidated financial statements

1	General information	96
2	Principal accounting policies	96
3	Change in accounting policies	97
4	Critical accounting estimates and judgements in applying
	accounting policies	98
5	Risk management	98
6	Credit risk	109
7	Credit risk exposure	115
8	Credit staging and loss allowances	117
9	Market risk	128
	10 Life insurance and longevity risk	130
	11 Liquidity risk	132
	12 Capital management	134
	13 Net interest income	136
	14 Net banking fee and commission income	137
	15 Dividend income	138
	16 Income from foreign exchange activities	138
	17 Fair value gains less losses on financial instruments
	measured at fair value	139
	18 Other operating income/(expense)	139
	19 Operating expenses	139
	20 Staff costs	140
	21 Impairment of intangible assets	140
	22 Loss allowances expense	141
	23 Income tax expense	141
	24 Basic and diluted earnings per ordinary share	142
	25 Segmental reporting	143
	26 Analysis of Swiss and foreign income and expenses	146
	27 Cash and balances with central banks	147
	28 Cash and cash equivalents	147
	29 Treasury bills and other eligible bills	147
	30 Due from other banks	148
	31 Derivative financial instruments	149
	32 Financial assets at fair value through profit and loss	154
	33 Investment securities	158
	34 Loans and advances to customers	159
	35 Loss allowances on loans and advances to customers	159

36 Property, plant and equipment	160
37 Intangible assets	162
38 Intangible assets – impairment tests	163
39 Deferred income tax assets and liabilities	164
40 Other assets	167
41 Held-for-sale	168
42 Valuation of financial assets and liabilities	169
43 Offsetting	181
44 Shares in subsidiary undertakings	183
45 Due to other banks	184
46 Due to customers	184
47 Financial liabilities at fair value through profit and loss	184
48 Financial liabilities at amortised cost	186
49 Provisions	186
50 Contingent liabilities	187
51 Other liabilities	190
52 Retirement benefit obligations	190
53 Share capital	197
54 Other reserves	199
55 Additional equity components	201
56 Dividends	202
57 Non-controlling interests	202
58 Off-balance-sheet items	202
59 Securities repurchase and reverse purchase agreements	203
60 Fiduciary transactions	204
61 Analysis of Swiss and foreign assets, liabilities and
shareholders' equity	204
62 Employee equity incentive plans	205
63 Related party transactions	206
64 Key management compensation	207
65 Assets under Management and Assets under Administration	208
66 Events occurring after the reporting period	209
67 Swiss banking law requirements	209

Notes to the consolidated financial statements EFG International consolidated entities

1. General information

EFG International AG and its subsidiaries (hereinafter collectively referred to as 'EFG International Group' or 'The Group') are a leading global private banking group, offering private banking, wealth management and asset management services. The Group's principal places of business are in Australia, Bahamas, Cayman, Channel Islands, Dubai, Hong Kong, Liechtenstein, Luxembourg, Monaco, Singapore, Switzerland, the United Kingdom, and the United States of America. Across the whole Group, the number of employees (FTEs) at 31 December 2023 was 3,025 (31 December 2022: 2,828) and the average for the year was 2,927 (2022: 2,927).

EFG International AG is a limited liability company and is incorporated and domiciled in Switzerland. The Group is listed on the SIX Swiss Exchange with its registered office at Bleicherweg 8, 8022 Zurich. For details of significant shareholders, refer to note 13 of the Parent Company Financial Statements.

These consolidated financial statements were approved for issue by the Board of Directors on 20 February 2024.

2. Principal accounting policies

The principal accounting policies and accounting judgements applied in the preparation of the consolidated financial statements have been disclosed below and as part of the notes to the Consolidated financial statements where appropriate. These policies have been consistently applied to all the years presented, unless otherwise stated.

(a) Basis of preparation

These financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and International Financial Reporting Standards Interpretations Committee (IFRS Interpretations Committee) interpretations issued and effective for the year ended 31 December 2023. These consolidated financial statements are subject to the approval of the shareholders.

The consolidated financial statements are prepared under the historical cost convention as modified by the revaluation of financial assets and financial liabilities (including derivative instruments) at fair value.

The Group's presentation currency is the Swiss franc (CHF), being the functional currency of the parent company and of its major operating subsidiary, EFG Bank AG.

The accounting policies adopted in the preparation of the consolidated financial statements are consistent with those followed in the preparation of the Group's annual consolidated financial statements for the year ended 31 December 2022.

New and amended standards adopted by the Group:

The Group has applied the following standards and amendments for the first time for their annual reporting period commencing 01 January 2023:

• IFRS 17 Insurance Contracts,
• Definition of Accounting Estimates amendments to IAS 8,
• International Tax Reform Pillar Two Model Rules amendments to IAS 12,
• Deferred Tax related to Assets and Liabilities arising from a Single Transaction – amendments to IAS 12,
• Disclosure of Accounting Policies Amendments to IAS 1 and IFRS Practice Statement 2,
• Amendments to IAS 1 Classification of Liabilities as Current or Non-current and Amendments to IAS 1 – Non-current Liabilities with Covenants.

These standards and amendments do not have a material impact on the Group in the current or future reporting periods and on foreseeable future transactions.

The Group does not expect any impact from the application of the International Tax Reform – Pillar 2 Model Rules.

New and amended standards not yet adopted:

Certain new accounting standards and interpretations have been published that are not mandatory for 31 December 2023 reporting periods and have not been early adopted by the Group. These standards are not expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions.

(b) Consolidation

(i) Subsidiaries

Subsidiaries are fully consolidated from the date on which control is transferred to the Group and are no longer consolidated from the date that control ceases. The Group applies the acquisition method of accounting to record business combinations. The cost of an acquisition is measured at the fair value of the assets acquired, equity instruments or liabilities undertaken at the date of acquisition including those resulting from contingent consideration arrangements. Costs related to the acquisition are expensed as incurred. If the consideration is less than the fair value of the net assets of the subsidiary acquired, the difference is recognised directly in the income statement.

Unrealised losses are also eliminated, but considered an impairment indicator of the asset transferred. Where necessary, accounting policies of subsidiaries have been changed to ensure consistency with the policies adopted by the Group.

A listing of the Company's main subsidiaries is set out in note 44.

(ii) Non-controlling interests

The Group treats transactions with non-controlling interests that do not result in loss of control as transactions with equity owners of the Group. For purchases from non-controlling interests, the difference between any consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary is recorded in equity. Gains or losses on disposals to non-controlling interests are also recorded in equity.

(iii) Disposal of subsidiaries

When the Group ceases to have control or significant influence, any retained interest in the entity is remeasured to its fair value, with the change in carrying amount recognised in the income statement. The fair value is the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognised in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognised in other comprehensive income are reclassified to the income statement.

(c) Foreign currencies

Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates (functional currency). The consolidated financial statements are presented in CHF, which is the Group's presentation currency, as the functional currency of the parent company and of its major operating subsidiary, EFG Bank AG.

Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate.

Year-end exchange rates and average exchange rates for translation of foreign denominated subsidiaries for the main currencies are as follows:

	2023	2023	2022	2022
	Closing	Average	Closing	Average
	rate	rate	rate	rate
USD	0.8380	0.8988	0.9232	0.9551
GBP	1.0655	1.1174	1.1102	1.1793
EUR	0.9260	0.9718	0.9847	1.0049

(d) Comparatives

Where necessary, comparative information has been adjusted to conform to changes in presentation in the current year.

3. Change in accounting policies

No new accounting standards and interpretations have been published for the reporting period that impact the Group in the current or future reporting periods and on foreseeable future transactions.

On 22 December 2022 the Group announced an accounting change related to its holdings of fixed income securities in connection with the new capital management framework that it presented in October 2022. As a result of this change, the Group reclassified a portfolio of financial assets from "financial assets measured at fair value through other comprehensive income" to "other financial assets measured at amortised cost", effective 01 January 2023. This reclassification helps to reduce volatility in the Group's regulatory capital and had no impact on its income statement.

The Group has continuously strengthened its liquidity position in recent years and has a highly liquid balance sheet which does not require it to hold the same high levels of available-for-sale investment securities. To reduce volatility in its CET1 capital ratio (management floor of 12%, reduced from 14% previously), the Group decided to change its treasury business model for the management of its holdings of fixed income securities to align it with the new capital management framework and liquidity funding model.

In line with the principles of IFRS 9, that require a reclassification when an entity changes its business model for managing financial instruments, the Group has reclassified a portfolio of high quality liquid financial assets with a fair value of CHF 5.2 billion from "financial assets measured at fair value through other comprehensive income" to "other financial assets measured at amortised

Notes to the consolidated financial statements EFG International consolidated entities

cost", effective 01 January 2023. Prior to the reclassification of the portfolio, the Group recognised cumulative unrealised losses of CHF 166.6 million in Other comprehensive income has been cancelled on 01 January 2023. The Group has recognised a net increase of CHF 160.2 million of shareholders' equity. The portfolio of financial assets carrying value has increased by CHF 166.6 million and the related deferred tax assets decreased by CHF 6.4 million.

4. Critical accounting estimates and judgements in applying accounting policies

In the process of applying accounting policies, the Group's management makes various judgements, estimates and assumptions that may affect the reported amounts of assets and liabilities recognised in the financial statements in future periods. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The different judgements, estimates and assumptions are disclosed in the notes.

5. Risk management

EFG International offers private banking and asset management services as well as financial products with a focus on high-net-worth individuals. In pursuing its business objectives, it is exposed to risks, which may have an impact on its financial, business, social or other objectives.

A strong risk management framework is fundamental to a sustainable management of its business. EFG International is committed to actively managing and mitigating risks specific to its private banking and institutional clients, being particularly alert to compliance and operational risks, including financial crime risks, fraud risks and conduct risks.

EFG International monitors legacy risks in connection with its nostro life insurance investment portfolio and litigation cases relating to discontinued businesses.

EFG International is committed to maintaining a strong risk management framework in its day-to-day business activities and decision-making processes across the organisation.

5.1 Risk governance

The EFG International risk management framework sets out the overall governance of risks. Responsibilities of involved stakeholders in the management of risks are clearly defined, as well as terms of reference for its risk and compliance functions.

The EFG International risk management framework is underpinned by the EFG International risk appetite framework, which focuses on the approach to risk capacity, risk appetite, risk limits and indicators, documenting the level of risk that EFG International is prepared to accept.

Risk management framework

The risk management framework comprises people, policies and processes, and systems and controls designed to ensure that risks are appropriately identified, assessed, measured, monitored and reported, as well as mitigated on an ongoing basis.

For EFG International, the risk management framework:

• Ensures all employees understand and control exposure to risks taken
• Ensures that risk exposures are in line with risk capacity and defined risk appetite and strategy
• Ensures that key controls over business risks are functioning effectively
• Supports the successful implementation of the business strategy
• Protects clients from potential risks, such as unsuitable products or excess concentrations
• Contributes to the orderly functioning and sound reputation on the markets in which EFG International operates
• Ensures independent risk oversight over risk and control processes

The EFG International risk management framework is deployed across the following dimensions:

• Approach to risk management
• Risk culture
• Three lines of defence model
• Committees and functions

5.1.1 Approach to risk management

EFG International has developed a multidimensional approach to risk management based on the following measures:

• Independent Risk Control and Compliance functions with clearly defined objectives

• A comprehensive and prioritised list of risk categories (risk taxonomy)

• A defined risk strategy and risk appetite

• A coherent and comprehensive set of policies, directives and procedures to govern risk management, including compliance
• The first and second line of defence role of the Executive Committee and its delegated committees to manage risks in alignment with the risk strategy and risk appetite
• The supervisory oversight of the Board of Directors which oversees the effectiveness of the risk management framework and provides oversight and advisory support through the Risk, the Audit and the Credit Committees

The objectives of risk management are to:

• Provide transparency on the risks EFG International incurs
• Provide independent risk oversight and challenge that risks are appropriately assessed and managed
• Enable better management of the risk-return trade-off
• Support the Board of Directors in defining an appropriate risk appetite and strategy in line with available risk capacity and ensure the actual risk exposure profile remains in line with these
• Ensure that key controls over business risks are functioning effectively

5.1.2 Risk culture, core values and ethical standards

EFG International believes that behaviour is key for sound risk management, and that this is guided by the risk culture of the organisation and that risk culture is viewed as a core component of effective risk management.

EFG International approaches risk culture along four dimensions, in line with Financial Stability Board principles:

• Tone from the top: The Board of Directors, Executive Committee and senior management set the risk culture, core values and ethical standards; their actions and behaviour reflect the risk culture that is expected throughout EFG International and is communicated through formal and informal channels, with the aim that all stakeholders also share EFG International's risk culture, core values and ethical standards
• Accountability: The risk management framework and the related risk policies and directives clearly assign accountability for risk management and decision-making to functions and specific unit heads
• Effective communication and challenge: The corporate culture promotes open communication and promotes effective challenge in the decision-making process; this is supported by independent Risk Control, Compliance and Internal Audit

– Incentives: Financial and non-financial incentives are monitored to ensure they do not encourage excessive risk-taking

The risk awareness and culture programme, which promotes the above-mentioned principles, is focused on the following activities:

• Embedding the risk management and risk appetite frameworks across EFG International
• Comprehensive training in risk and compliance topics
• Consistent application of the client relationship officer's risk scorecard (composed by the risk assessment, the control results, the losses and the KRI figures) to foster a risk-conscious and compliant culture and reduce operational risks

5.1.3 Three lines of defence model

EFG International manages its risks in accordance with a three lines of defence model.

The three lines of defence model delineates the key responsibilities for the business, Risk and Compliance functions and Internal Audit to ensure that the organisation has a coherent and comprehensive approach to risk management and monitoring.

EFG International's interpretation of the three lines of defence model is in line with industry practice, and the model is operated both centrally and in the business units. This ensures that the material activities and processes are subject to the risk management, oversight and assurance.

Notes to the consolidated financial statements EFG International consolidated entities

Risk appetite framework

The risk appetite framework is complementary to the risk management framework and sets the overall approach to risk appetite, documenting the level of risk that EFG International is prepared to incur for the achievement of strategic objectives and in line with the available risk capacity. It includes:

• Risk capacity
• Risk appetite statement
• Risk metrics and limits framework
• Cascading and embedding process to business units
• Responsibilities of the (Group and local) bodies overseeing the implementation and monitoring of the risk appetite framework
• Risk appetite process, including the escalation of the risk metrics exceeding their predetermined thresholds

The risk appetite framework is linked to the risk limit system and is influenced by the overarching risk available capacity, the risk management framework and the strategic business objectives.

5.1.4 Risk capacity

The risk capacity is the maximum level of risk EFG International can assume before breaching EFG International's strategic targets and risk appetite. In determining the risk capacity, EFG International has to take into account the constraints determined by regulatory capital and liquidity requirements and law enforcement agencies. Risk capacity defines an outer boundary within which EFG International must operate.

Risk appetite and risk capacity are aligned through the annual budget and planning process. EFG International holds appropriate capital and liquidity buffers to accommodate circumstances where exposures extend beyond EFG International's risk appetite. This protects EFG International from the financial and/or reputational consequences that might be associated with a breach of its risk capacity or rating ambition.

5.1.5 Risk appetite statement

The risk appetite statement comprises the qualitative component of EFG International's risk appetite. It comprises a set of statements describing the level of risk that EFG International is prepared to accept in each risk category to achieve its strategic business objectives.

The risk appetite statement is aligned with the business strategy of EFG International. The risk appetite statement is operationalised through the risk appetite metrics and the limit framework.

5.1.6 Risk metrics

The quantitative component of risk appetite contains measures (i.e. metrics) that describe the quantum of risk to which EFG International is exposed.

The metrics are compared to trigger levels (i.e. thresholds), which can have the nature of limits or warning indicators. The metrics are selected, and thresholds are calibrated in accordance with the risk appetite statement, which in turn reflects the business strategy.

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Risk metrics can be set at EFG International Board of Directors aggregated level or, if deemed appropriate, at EFG International Executive Committee level.

5.1.7 Limits framework

EFG International risk management: EFG International Executive Committee's delegated committees review risk limits and indicators and the related trigger levels for EFG International at a global and business unit level.

The EFG International Executive Committee reviews and recommends the Board global thresholds to the Risk Committee for its review and recommendation for approval by the EFG International Board of Directors.

5.1.8 Cascading and embedding process

The risk appetite framework, risk appetite statement and risk metrics and related thresholds are defined at EFG International level and are binding for all EFG International business units and local and foreign entities, as set out in the risk management framework.

The EFG International Executive Committee allocates, according to cascading and embedding rules, the limits and risk thresholds to the various local entities.

In this way, EFG International appropriately identifies, limits and monitors the risks associated with its local business activities and measures and reports local risk appetite according to consolidated supervision rules.

5.1.9 Risk appetite process

This process is composed of four main pillars: annual review, off-cycle adjustments, reporting and escalation. The risk appetite statements and metrics are reviewed annually by the respective competent bodies. If needed, off-cycle adjustments of existing metrics and thresholds are also undertaken. The regular reporting is performed on a monthly and quarterly basis while escalations are reported immediately to the respective committees.

5.2 Risk categories

The risk categories of EFG International are defined in the risk taxonomy included in the risk management framework and are described in the related risk policies and general directives.

EFG International's risk categories establish a common denominator on risks across EFG International and thereby enable alignment across business units, geographies and functions.

Strategic and business risk

Strategic and business risk is the risk of loss arising from changes in the business environment and from adverse business decisions or improper implementation of decisions. The business and strategic risk includes the following risk categories:

• Client portfolio risk: The risk inherent in client portfolios in general as well as the risk of a reduction in assets under management and/or loss of client relationships as a result of other risk types, e.g. performance, reputation, operational risks, compliance, etc.
• Strategic risk and governance: The risk of the enterprise or particular business areas making inappropriate strategic choices, or being unable to successfully implement selected strategies or related plans and decisions, which may result in a variance to business plans and strategies
• Competitive risk: The risk of an inability to create or maintain sustainable competitive advantage in a given market or markets
• Project risk: The risk of damage or loss resulting from an acquisition and/or subsequent post-merger integration or any other large-scale project the institution is undertaking
• Human resources risk: The risk arising from inadequate or insufficient human resource performance and/or staffing or key people (including client relationship officers) leaving EFG International

The business and strategic risk management strategy approved by the Board of Directors is defined as follows:

• Whilst the nature of EFG International business entails a certain level of earnings volatility, this is monitored and controlled to remain consistent safeguarding EFG International's financial performance and reputation, also under severe stress conditions
• EFG International limits earnings volatility by focusing on the core business activities in line with business strategy
• EFG International monitors client investment portfolios in order to avoid excessive risk concentrations across portfolios and inadequate performance with potential negative implications on clients' assets under management and thereby its own reputation and revenue base
• EFG International monitors concentrations of clients and assets under management across its client relationship officers and will investigate potential actions when these concentrations exceed the defined thresholds, in order to mitigate key person risk
• EFG International actively manages the cost base, balancing the target of a healthy cost-income ratio with ensuring adequate resourcing and infrastructure

– EFG International actively manages the risks arising through the integration of any acquired or merged entity and for potential further mergers and acquisitions

Compliance risk

Compliance risk is defined as the risk of legal or regulatory sanctions, material financial loss, or loss of reputation which EFG International may suffer as a result of its failure to comply with laws, regulations, rules, self-regulatory organisation standards, generally accepted practices, and codes of conduct applicable to all its activities.

Compliance risk is identified, assessed and measured, monitored, reported and mitigated by the Compliance function, in alignment with the roles and responsibilities defined in EFG International's risk management framework. The Compliance function reports to the Group Head of Legal & Compliance.

Changes in the regulatory environment are monitored, and directives and procedures are adapted as required. In line with these evolving regulations, EFG International continuously invests in its people, processes, systems and controls to ensure effective compliance risk management.

EFG International's Compliance function is centrally managed from Switzerland, with local compliance officers situated in all the organisation's booking centres and other entities around the world. A compliance risk policy is in place, complemented by a comprehensive set of directives and procedures and ongoing training sessions for all staff to ensure they maintain appropriate knowledge of compliance risks and understand their roles and responsibilities in mitigating these risks. Group Compliance maintains a common platform of tools and processes to ensure the consistent application of compliance guidelines across the organisation.

Compliance risk in EFG International is mitigated through the three lines of defence model, outlined in detail in the risk management framework.

In mitigating compliance risks that it is exposed to, EFG International takes into account the size, structure, nature and diversity of its business and services/product offerings. EFG International is committed to a sound and effective compliance risk management framework, as being the core foundation for a sustainable financial institution, protecting EFG International from loss or reputational damage. It supports the way EFG International conducts business both for its clients and its shareholders and is prerequisite for

long-term and sustainable growth, in line with shareholders' expectations.

A major focus of regulators around the world is the fight against money-laundering and terrorism financing which could expose EFG International to enforcement actions, criminal proceedings and high reputational risks. A proper and timely mitigation of AML/CFT risks is a prerequisite to the guarantee of irreproachable business activity required by the Swiss regulator.

AML/CFT risk refers to risks associated with the firm being exposed to money-laundering or terrorist financing schemes, which comprises (1) laundering money deriving from AML predicate offenses/criminal misconduct and (2) using legitimate or illegitimate assets to finance terrorism and/or terrorist activities.

International sanction risks refer generally to the risk associated with the firm (1) providing services to individuals or entities targeted by applicable sanction regimes or located in countries under embargo-like applicable sanctions, (2) being used to service this category of clients and/or to make economic resources available to them and (3) being used to circumvent the implementation of applicable sanction regimes.

EFG International has in place comprehensive directives on anti-money-laundering, know your customer, as well as on international sanctions, anti-bribery and corruption, to prevent, detect and report such risks. Through dedicated monitoring and quality assessment programmes and applications, EFG International Compliance monitors compliance with such directives across the Group.

EFG International has defined a set of standards governing the cross-border services it offers and has developed country-specific manuals for the major markets it serves. A mandatory staff training programme is in place to ensure adherence to the standards and compliance with the country manuals. They are complemented by a tax compliance framework, the purpose of which is to prevent the unlawful acceptance of untaxed assets. Those frameworks are continuously enhanced to comply with new regulatory updates or developments.

Conduct and regulatory compliance risk refers to the risk that EFG International fails to abide by the letter and spirit of all applicable laws, regulations, regulatory expectations, and standards of conduct applicable to its activities, and, as a consequence, incurs regulatory censure and sanctions, reputational damage, and faces litigation risk. Conduct and

Regulatory Compliance Risk arises from: i) breaching duties towards customers; ii) failing to detect, monitor or prevent inappropriate market abuse, and failing to abide by appropriate market conduct requirements; iii) failing to properly manage cross-border risk and complying with rules applicable to cross border activities; iv) failing to perform appropriate oversight over Independent Asset Managers and Business Introducers; v) failing to appropriately identify and properly manage conflicts of interests; and vi) failing to identify and implement, in a timely manner, regulatory developments concerning Conduct and Regulatory Compliance Risk management.

Legal risk

Legal risk is the risk to the firm's profitability arising from changes in legislation and/or as a result of legal actions against the institution. Any change in the legal environment can constitute a challenge for EFG International in its relations with competent authorities, clients and counterparties in Switzerland and globally.

Group Head of Legal & Compliance and Group Head of Litigation and Investigations ensure that EFG International adequately manages and controls its legal risks. This includes supervising and giving strategic direction to all outside counsel advising EFG International on civil, regulatory and enforcement matters.

Group Head of Legal & Compliance is responsible for providing legal advice to EFG International's management as well as handling client complaints, litigations and assisting federal and local authorities in their criminal and administrative investigations.

Group Head of Litigation and Investigations has principal responsibility for overseeing and advising EFG International's management on significant civil litigation and all government enforcement matters involving EFG International globally.

Operational risk

Operational risk is defined as the risk of losses resulting from the inadequacy or failure of internal processes, people or systems or from external events. Operational risk is an inherent part of the day-to-day activities and is therefore a risk common to all EFG International's activities.

EFG International aims at mitigating operational risk to a level appropriate and commensurate with the size, structure, nature and complexity of its service and product offerings, thus adequately protecting its assets, clients and its shareholders' interests.

EFG International's Board of Directors and senior management strive to set the operational risk culture through, among others, the definition of the overall operational risk tolerance of the organisation (expressed in quantitative thresholds and qualitative statements), which is embedded in the organisation's risk management practices. The supervision of operational risk at the Board of Directors level is under the responsibility of the Board Risk Committee.

EFG International and its local business entities design and implement internal controls and monitoring mechanisms in order to mitigate key operational risks that EFG International inherently runs in conducting its business.

While the primary responsibility for managing operational risk lies with EFG International's business entities and business lines (first line of defence), the development, implementation and oversight of the operational risk policy of EFG International forms part of the objectives of the Operational Risk function (second line of defence) of EFG International. It ensures that EFG International has an appropriate operational risk management framework and programme in place for identifying, assessing, mitigating, monitoring and reporting operational risk.

EFG International's Operational Risk function is a global function that reports to the Chief Risk Officer. It works in collaboration with operational risk officers of the local business entities, regional risk officers within EFG International, as well as certain centralised EFG International functions that also undertake operational risk oversight for their respective area of responsibility. These functions include the Chief Financial Officer and the Group Head of Legal & Compliance.

Main measures applied by the Operational Risk function are:

• Assessment and monitoring of key operational risks
• Monitoring of key risk indicators
• Collection, analysis and reporting of operational risk events and losses
• Consolidated operational risk reporting
• Follow-up of actions taken to remedy key operational risk-related control issues
• Establishment of an operational risk awareness programme
• Independent internal control monitoring, testing and oversight

EFG International continuously invests in business continuity management and more broadly operational resilience to ensure the continuity of critical operations in the event of a major disruptive event. Business continuity management encompasses backup operating facilities and IT disaster recovery plans, which are in place throughout EFG International.

The management of information security risk, including technology, cybersecurity, data protection and third-party risks, is an essential component of operational resilience. As such, it is strongly interconnected with the Bank's business continuity management. The management of cybersecurity and data protection risks is aligned with international standards and applicable regulations. Efforts are sustained to ensure ex ante and ex post controls are fully functional to protect the Bank against evolving and highly sophisticated attacks. EFG International's focus is on:

• Data loss prevention
• Access rights, application and infrastructure security (including vulnerability management)
• Third-party management and
• An appropriate IT and process governance to prevent and respond to threats

EFG International establishes operational risk transfer mechanisms when necessary; in particular, all entities of EFG International are covered by insurance to hedge potential low-frequency-high-impact events. EFG International administers centrally for all its subsidiaries three layers of insurance cover, being comprehensive crime insurance, professional indemnity insurance and directors' and officers' liability insurance. Other insurances such as general insurances are managed locally.

Outsourcing risk

Risks related to outsourcing are managed by the entities that outsource a function, process or a service and the Global Chief Operating Officer procurement function maintains the list of all EFG International critical outsourcing activities, drives the annual group-wide risk assessment cycle for the critical outsourcing and collects the annual risk assessments from all local procurement functions or from the contract owners. Finally, it reviews the annual risk assessments on a yearly basis. Acting as second line of defence, the Operational Risk function provides independent review and challenge of the annual risk assessment and also provides advisory input in risk and control matters.

EFG International has also entered into specific agreements with a Swiss fintech company to manage all the material aspects of the structured notes issuance programme. While EFG International relies on the organisation, expertise and

processes, documented and regularly reviewed by reputable independent third parties, it has implemented and continuously evaluates additional oversight controls to mitigate the outsourcing risk with this service provider.

Model risk

Model risk is the risk that arises from decisions based on the incorrect selection, implementation or usage of models. The following principles are applied in establishing appropriate governance and supervision:

• EFG International has an established definition of a model and maintains a model inventory
• EFG International has implemented an effective governance framework, procedures and controls to manage model risks
• EFG International has implemented a robust model development and implementation process and ensures appropriate use of models
• EFG International undertakes appropriate model validation and independent review activities to ensure sound model performance and greater understanding of model uncertainties

EFG International has developed a series of models and methodologies to measure and to quantify the risks of different portfolios and potential risk sensitivities and concentrations. These models are periodically reviewed by the independent Risk Model Validation function, corresponding to model risk tiering, subject to regulatory requirements, as well as internal general directive on model risk. The Risk Model Validation function reports to the Chief Risk Officer.

The validation has the primary objective to test whether models perform as expected, produce results comparable with actual events and values and reflect best-in-practice approaches. The validation includes checks to ensure models are performing adequately, whether additional examination is required and whether they need to be adjusted or even redeveloped. Results are presented to the relevant governance body and, as required, to regulators.

Market risk

EFG International is exposed to market risk, which mainly arises from foreign exchange, interest rate and credit spread volatility.

EFG International implements different risk management strategies to eliminate or reduce market risk exposures. Risks being hedged through derivative financial instruments are typically changes in interest rates and foreign currency

rates. Specific risk management strategies are defined for both the banking and trading book.

Banking book

The market risk strategy at balance sheet level approved by the Board of Directors is defined as follows:

• EFG International manages interest rate risk in line with predefined interest rate limits and risk appetite to generate profits for the benefit of EFG International
• EFG International manages foreign exchange risk in order to control its impact on annual results
• EFG International generates income primarily through taking liquidity, interest rate and credit spread risk, and only incurs non-material FX risk in the banking book
• EFG International limits the extent of concentrations in its investment portfolios

Market risks related to the balance sheet structure are managed by the Asset & Liability Management Committee and monitored by the Financial Risk Committee, in accordance with the principles and the risk appetite defined in the market risk policy, which defines the organisational structure, responsibilities, limit systems and maximum acceptable risk set by the Board of Directors. The centralised ALM and Liquidity Risk function, reporting to the Chief Risk Officer, ensures that EFG International has an appropriate market risk management framework in place for identifying, assessing, mitigating, monitoring and reporting risks under its responsibility.

Interest rate risk in the banking book refers to the current and prospective risk to the Bank's capital and earnings arising from adverse movements in interest rates that affect EFG International's balance sheet positions. EFG International manages the interest rate risk exposure in accordance with risk appetite based on the impact of various interest rate scenarios on both the economic value of equity and the interest income sensitivity. The interest rate risk assessment includes risks deriving from assets, liabilities and off-balance-sheet transactions, considering behavioural assumptions. Interest rate risk qualitative and quantitative information are reported in the Pillar 3 report for transparency purposes.

Foreign exchange risk arises from exposure to changes in the exchange rate of foreign currencies versus the reference currency. EFG International uses value at risk (VaR), sensitivity analysis and stress tests as methodologies to monitor and manage foreign exchange risk, both on balance sheet (FX translation risk) and on expected revenues and costs (FX transaction risk).

EFG International holds investment portfolios to diversify balance sheet assets and to optimise any excess liquidity. Investment activities are organised within Treasury and are under the supervision of the Asset & Liability Management Committee and of the Financial Risk Committee. The centralised Market Risk function monitors on a daily basis the risk exposures of the investment portfolio and reports to the Chief Risk Officer.

EFG International investment portfolios carry interest and credit spread exposure on governments, governmentrelated entities, multilateral development banks, banking institutions and, to a lesser extent, corporate names.

To mitigate the credit spread exposure, minimum country and issuer rating standards and concentration limits have been determined. In addition, VaR, interest rate, credit spread sensitivities and stress metrics, as well as P&L limit are computed and monitored at stand-alone portfolio level and on a combined portfolio basis.

EFG International is also exposed to market risk in relation to its holding of life insurance policies, related to interest rate risk (refer to Insurance risk section), which has been hedged through derivative financial instruments.

Trading book

The trading book market risk strategy approved by the Board of Directors is defined as follows:

• EFG International trading activities are designed to ensure that we can effectively serve the client needs
• In addition to execution-only services on behalf of clients, EFG International takes market risks in the form of forex principal trading where beneficial for its clients, principal trading on its own accounts to deliver a return to the Group as well as its structured products business
• EFG International has an appetite for a minimal amount of higher-risk activities in the fixed income trading portfolio positions being held in order to facilitate client flows, while trying to benefit from the positive carry and credit spreads movements.

EFG International carries out trading operations both for its clients and on its own account with daily monitoring. The trading activities are organised in different trading desks: forex delta, forex forwards, forex options, precious metals and fixed income managed by expert traders.

The market risk carried by proprietary trading primarily relates to position risk which derives from the fact that any interest rate, credit, foreign exchange rate fluctuation or

equity prices or implied volatilities can cause a change in EFG International's profits.

The centralised Group Market Risk function monitors on a daily basis the risk exposures of the trading portfolio and reports to the Chief Risk Officer.

All trading positions are valued at market value using market prices, data and parameters published by recognised stock exchanges or financial data providers. On an intra-day or daily basis, the risk measurement systems support the computation and analysis of: (i) the mark-to-market of the positions exposed to risk; (ii) the daily and cumulative monthly and year-to-date P&L; (iii) the various risk metrics (incl. sensitivities – Greeks stress test, VaR, concentration risk) and (iv) the regulatory and economic capital requirements. Daily risk reports are produced assessing compliance with nominal and sensitivity limits and stop loss limits.

Insurance risk

EFG International is exposed to insurance risk in relation to its holding of life insurance policies. The major risk factors are counterparty risk, longevity risk and increase in cost of insurance. The risk of increase in interest rates has been mitigated using interest rate hedging strategies.

EFG International assesses those risks using internal models to calculate the fair value of each life insurance policy and through independent estimations done by external service providers as far as the estimation of life expectancies and forecasted premium payments are concerned, in conjunction with management judgements. Moreover, scenario analyses are done to calculate the sensitivity of the life insurance portfolio to increases in life expectancies, in premium payments, in the credit worthiness of the insurance companies and in interest rates. Finally, management judgement is applied to these models and scenarios.

Credit risk

Credit risk is defined as the risk of loss resulting from the failure of EFG International's borrowers and other counterparties to fulfil their contractual obligations and that collateral provided does not cover EFG International's claims.

EFG International incurs credit risk from traditional onbalance sheet products (such as loan or issued debt), where the credit exposure is the full value, but also on offbalance-sheet products (such as derivatives), where the credit equivalent exposure covers both actual exposure (as

a function of prevailing market prices) and potential exposures (i.e. an add-on for volatility of market price) or other guarantees issued (contingent liabilities).

The credit risk arises not only from EFG International's clients lending operations, but also from its treasury and global market activities.

Client credit risk

The client credit risk management strategy approved by the Board of Directors is defined as follows:

• EFG International targets specific lending activities and incurs credit risk only in areas where it has the required skill set and can make a complete assessment of the risk
• EFG International requires an adequate risk return for the credit offerings, and considers the overall relationship with a client or client group, establishing minimum pricing standards at individual credit facilities
• EFG International concentrates on the core credit offerings of lombard lending and real estate financing
• For lombard lending, the focus is on diversified and liquid collateral portfolios, but EFG International accepts higher concentrated collateral pools and single asset loans in selective cases, if the risk return is justified
• For real estate financing, the focus is on residential mortgages, but EFG International is willing to engage in commercial real estate financing and real estate development in select cases and select locations, if the risk return is justified
• EFG International is willing to provide lombard lending and real estate financing suitable for private banking clients with an established private banking relationship and lodged funds commensurate with the credit that is extended

The supervision of credit risk strategy at the Board of Directors level is under the responsibility of the Board Credit Committee.

The Executive Credit Committee has the oversight on the credit portfolio, supported by the Credit function, reporting to the Chief Risk Officer, which ensures that EFG International has an appropriate client credit management framework and programme in place.

Credit exposures against approved limits and pledged collateral are regularly monitored. Financial collateral is valued where possible on a daily basis, but may be valued more frequently, if particular portfolios and severe market conditions demand.

Counterparty and country risks

Country risk is defined as the transfer and conversion risk that arises from cross-border transactions. Country risk also encompasses direct and indirect sovereign risk, the default risk of sovereigns or state entities acting as borrowers, guarantors or issuers.

The counterparty and country risk management strategy approved by the Board of Directors is defined as follows:

• EFG International actively monitors and manages the credit portfolio and consciously takes concentrations in certain sectors, countries and clients/counterparties
• EFG International engages and maintains relationships with counterparties that either have an explicit Investment Grade rating or are non-rated, but fulfil comparable criteria
• EFG International accepts a speculative rating of countries and counterparties within the lending, repo and trading portfolio activities on a limited basis
• EFG International targets collateralised transactions when interacting with counterparties
• EFG International is willing to take exposures across countries, but focused on its target regions

Management of exposure to financial institutions is based on a system of counterparty limits coordinated at the EFG International level, and also subject to pre-approved country limits. The limits are set and monitored by the Country & Counterparty Credit (Sub) Committee.

The principal aim of the Counterparty and Country Risk function, reporting to the Chief Risk Officer, is to ensure that EFG International has an appropriate counterparty and country risk management framework in place for identifying, assessing, mitigating, monitoring and reporting risks under its responsibility.

EFG International determines the country risk that it wishes to accept via a country classification in low- medium- and high-risk countries. The low and medium countries include countries with which business relationships exist and for which the risk is intended to be accepted, albeit to a differing extent. The high-risk countries category includes selected countries with a speculative grade, for which risk is nonetheless maintained within strict global limits.

Liquidity risk

Liquidity risks arise when financing activities are difficult or expensive as a result of liquidity crisis on the markets or reputational issues. They also arise when it is difficult to meet own commitments in a timely manner due to a lack of very liquid assets. Liquidity risk has a twofold dimension: funding risk and asset liquidity risk. The two liquidity risk

types are connected, as asset liquidity risk could directly increase funding risk, if EFG International is not any more able to raise sufficient liquidity in case of need.

As defined in the risk appetite framework approved by the Board of Directors, the liquidity risk strategies are defined as follows:

• EFG International holds sufficient liquid assets that it could survive more than one month a sustained and severe run on its deposit base, without any recourse to mitigating actions beyond liquidating those assets, and without breaching regulatory liquidity limits
• EFG International funds the balance sheet primarily from customer deposits, using capital markets opportunistically, without being subject to funding concentration, due to a small number of funding sources or clients

EFG International manages liquidity risk in such a way as to ensure that ample liquidity is available to meet commitments to customers, both in demand for loans and repayments of deposits and to satisfy EFG International's own cash flow needs within all of its business entities. EFG International customer deposit base, capital and liquidity reserves position and conservative gapping policy, when funding customer loans, ensure that EFG International runs only limited liquidity risks.

EFG International's liquidity risk management process is carried out by the Asset & Liability Management Committee and monitored by the Financial Risk Committee, in accordance with the principles and the risk appetite defined in the liquidity risk policy, which defines the organisational structure, responsibilities, limit systems and maximum acceptable risk set by the Board of Directors.

Liquidity is handled by the Treasury function, which ensures the ongoing process of sourcing new funds, in the case of a lack of liquidity, or the investing of funds, if there is an excess of liquidity. Main subsidiaries/regions have their own local Treasury departments, regulated by the Group Treasury function. The Treasury function reports to the Head of Global Markets and Treasury.

The principal aim of the Assets and Liability Management and Liquidity Risk function, reporting to the Chief Risk Officer, is to ensure that EFG International has an appropriate liquidity risk management framework in place for identifying, assessing, mitigating, monitoring and reporting risks under its responsibility.

EFG International aims to avoid concentrations of its funding facilities. It observes its current liquidity situation and determines the pricing of its assets and credit business through the liquidity transfer pricing model. The liquidity risk management process also includes EFG International's contingency funding plans.

EFG International has a liquidity management process in place that includes stress tests, which are undertaken regularly as part of the reporting requirements established within EFG International risk guidelines.

Reputational risk

Reputational risk is defined as the risk of an activity performed by an entity of EFG International or its representatives impairing its image in the community or public confidence, and that this will result in the loss of business and/or legal action or potential regulatory sanction. Typically, a result of other risk categories.

EFG International considers its reputation to be among its most important assets and is committed to protecting it. Reputational risk for EFG International inherently arises from:

• Potential non-compliance with increasingly complex regulatory requirements
• Potential non-compliance with anti-money-laundering regulatory requirements
• Its dealings with politically exposed persons or other clients with prominent public profiles
• Its involvement in transactions executed on behalf of clients other than standard investment products
• Potential major incidents in the area of IT security and data confidentiality
• Potential misconduct by its employees
• Any other potential negative internal or external event arising from other risk categories (e.g. in case of financial risk arising from significant downturn on bonds, equities markets or of a particular housing market speculative bubble, etc.)

EFG International manages these potential reputational risks through the establishment and monitoring of the risk appetite set by the Board of Directors, and through established policies and control procedures.

Emerging risk

EFG International aims to prevent or manage emerging risks; they can be new risks or they can even be familiar risks that become apparent in new or unfamiliar conditions. Their sources can be natural or human, and often are both.

Emerging risks arise from environmental, social and governance (ESG) aspects affecting other risk categories, or may include new technologies, for example, artificial intelligence and as well as economic, regulatory or political change.

EFG International monitors, via regular risk assessments, emerging risks that could create potential reputational risks and impact future income generation capacity:

• EFG International closely monitors developments in new technologies like artificial intelligence and cyber as well as economic, regulatory or political changes
• EFG International strives to ensure that current and potential clients perceive and share EFG International as a responsible institution on environmental, social and governance aspects

Environmental and social challenges are a source of both opportunities and risks, and the financial industry has a crucial role to play in addressing these topics. Since 2021, EFG International refined the sustainability strategy and established the Sustainability Advisory Board (see section dedicated to the sustainability governance) to oversee and monitor the progress in implementing this strategy across the organisation.

Assessing and managing ESG-related risks is a key component of this new strategy. EFG International defined a specific risk appetite statement as part of the overarching risk appetite framework, underscoring the commitment to positioning EFG International as an ESG-focused financial institution. In line with international guiding principles, EFG International also launched an ESG risk management process to identify and manage potential adverse impacts that EFG International operations could have on the environment and society, as well as any associated reputational consequences or other risks affecting EFG International and its clients. The assessment and management of ESG risks has been further developed in 2023.

In 2023 the Board of Directors defined specific metrics to monitor progress in this area. These include:

• i) a reduction of greenhouse gas (GHG) emissions from our own operations;
• ii) an increase in female representation in senior management (in percentage terms); and
• iii) a dedicated ESG focus on Assets under Management in investment products and services.

As pointed out in the Sustainability Report 2023, EFG International has committed to five strategic climaterelated measures in the areas of sustainable finance and greenhouse gas (GHG) reduction. The publication of our TCFD report fulfils one of these strategic climate-related measures.

Since the time when EFG International first began measuring the GHG emissions from its operations, it has set a specific target to reduce those emissions by 50% by 2030 and to achieve net zero emissions by 2050. Furthermore, EFG International is implementing a GHG reduction trajectory for its own assets and expanding its responsible investment offering to enable clients to invest in assets that help the transition to a more regenerative economy.

Regarding climate risks in particular, EFG International is focusing its attention on the creation and integration of a dedicated climate risks management process in the overall risk management framework. EFG International is embedding climate-related financial risks affecting the known risk categories (credit, market, liquidity, business and operational risks).

EFG International has enhanced its climate-related risk monitoring activities and is continuously strengthening its internal control framework and operational capabilities to define appropriate metrics for assessing climate-related risks. At this regard, in line with regulatory requirements and expectations, EFG International is monitoring a set of climate-related risk metrics at single entity and at Group level for key portfolios (loans, own investments and securities in assets under management) via dedicated dashboards that enable the organisation to assess the main exposures and track key risk indicators pertaining to the mentioned financial risks.

6. Credit risk

6.1 Credit risk management

(a) Loans and advances

A basic feature of the credit approval process is a separation between the firm's business origination and credit risk management activities.

Credit facilities are granted according to delegated credit approval authorities, depending on predefined risk, and on collateral and size parameters. The approval competencies for large exposures and exposures with increased risk

profiles are centralised in Switzerland, in compliance with local regulatory and legal requirements of the individual international business units.

Mortgages are mainly booked at EFG Bank AG and EFG Private Bank Ltd, London. They are granted predominantly on properties in Switzerland and in prime London locations.

EFG International's internal grading system assigns each client credit exposure to one of ten grading categories. The grading assesses the borrower's repayment ability and the value, quality, liquidity and diversification of the collateral securing the credit exposure. The credit policy and the nature of the loans ensure that EFG International's loan book is of high quality. Consequently, an overwhelming majority of EFG International's credit exposures are graded within the top three categories.

(b) Debt securities and other bills

For debt securities and other bills, external ratings or their equivalents are used by EFG International for managing the credit risk exposures.

6.2 Credit risk mitigation

To qualify as collateral for a lombard loan, a client's securities portfolio must generally be well diversified with different haircuts applied depending on the asset class and collateral risk profile. Additional haircuts are applied if the loan and the collateral are not in the same currency or diversification criteria are not fully met.

Loans guaranteed by real estate are treated in conformity with local regulatory requirements and with the internal directives (regulations, procedures) pertaining to valuation and affordability calculation. All real estate property used as collateral must be evaluated by internal appraisers or by selected external surveyors. External valuations are accepted, as long as the competence and the independence of the external professional have been verified. Credit departments monitor credit exposures against approved limits and pledged collateral.

Other specific control and mitigation measures are outlined below.

(a) Collateral

EFG International employs a range of policies and procedures to mitigate credit risk. EFG International implements guidelines and procedures on the acceptability of specific asset classes as collateral for credit risk mitigation. The main asset classes accepted as collateral for loans and advances are:

• Cash and cash equivalent
• Financial instruments such as debt securities, equities and funds
• Bank guarantees
• Mortgages for residential and to a limited extent commercial properties
• Assignment of guaranteed cash surrender value of life insurance policies

(b) Derivatives

EFG International maintains a strict monitoring of credit risk exposure induced by over-the-counter derivative transactions and exchange-traded derivatives against limits granted. Credit risk exposure is computed as the sum of the mark-to-market of the transactions and the potential future exposure calculated through dedicated add-on factors applied to the notional amount of the transactions. EFG International has signed risk-mitigating agreements with its most important financial institutions' counterparties.

(c) Credit-related commitments

Credit-related commitments include the following:

• Guarantees and standby letters of credit; these carry the same credit risk as loans
• Commitments to extend credit; these represent unused portions of authorisations to extend credit in the form of loans, guarantees or letters of credit

EFG International is potentially exposed to losses in an amount equal to the total commitments after application of any recovery rates. However, commitments to extend credit are typically contingent upon customers maintaining specific credit standards.

For all of the above, the same standards apply regarding approval competences, collateral requirements and monitoring procedures.

6.3 Credit loss measurement

The entity applies the IFRS 9 three-stage approach for impairment measurement:

• Stage 1: for financial assets that have not experienced a significant increase in credit risks since initial recognition, a 12-month expected credit loss (ECL) is measured
• Stage 2: for financial assets that experienced a significant increase in credit risks since initial recognition (but not

yet deemed to be credit-impaired), a lifetime ECL is measured

– Stage 3: for credit-impaired or defaulted financial assets, a lifetime ECL is measured

Specific ECL measurements have been developed for each type of credit exposure.

6.4 Due from banks and investment securities

This category includes balances with central banks, due from other banks, treasury bills and other eligible bills, and investment securities.

Inputs and assumptions

The ECL for all products above is estimated using three components:

• EAD (exposure at default): book value (amortised cost assets) and purchase value adjusted for amortisation and discount unwind (financial assets at fair value through other comprehensive income)
• PD (probability of default): estimated based on external counterparty credit risk rating information (Standard & Poor's annual global corporate default study and rating transition). For unrated instruments, a BBB is considered as a proxy
• LGD (loss given default): for stage 1 and stage 2 assets aligned to the credit default swap ISDA market standard (recovery rate 40%). In case of stage 3 assets, determined on an individual basis

Estimation techniques

Macroeconomic expectations for sovereign securities and central banks debt are incorporated via their respective external rating as part of their assessment of counterparty credit risk. For banks and corporate counterparties, the PD and related transition matrices are impacted based on macroeconomic expectations.

Significant increase in credit risk

A significant increase in credit risk (SICR) is determined based on rating changes and individually assessed by an internal expert panel considering a range of external market information (e.g. credit default spreads, rating outlook).

Definition of default

The default is triggered through a payment default on the instrument or any cross-default indication.

6.5 Lombard lending

Lombard lending includes loans and advances to customers covered by financial collaterals. Being secured by diversified portfolios of investment securities, the risk of default of the loan is driven by the collateral.

Inputs and assumptions

The exposure of lombard loans considers potential drawdowns, and the ECL is estimated by means of two components:

• ECL due to adverse market price movements that captures the risk that a shortfall arises when collateral values decrease to a level insufficient to cover the respective lombard loan exposure (based on assumptions regarding market price volatility of collateral asset classes, currency mismatch between loan and collateral, close-out periods and LGD considering collateral liquidation sales cost) and
• ECL due to a default of a large single collateral position (top 1 to top 5) yielding a shortfall for the lombard loan exposure (based on PD and LGD for each sub-asset class based on counterparty risk ratings, LGD to assess the collateral value after default and close-out periods).

Estimation techniques

As opposed to the general measurement approach, the ECL measurement for lombard loans is not based on the PD, but on the probability to reach the close-out trigger level and the related expected positive exposure (EPE). The latter corresponds to an uncovered shortfall which in combination with the LGD parameter determines the ECL. No additional macro-conditioning of variables is necessary as macroeconomic effects are captured through parameters such as volatility and loan-to-value (LTV) levels. Post-model adjustments have been recognised on selected individual cases for which risks and uncertainties cannot be adequately reflected with the existing models.

Significant increase in credit risk

A SICR occurs once the close-out trigger (based on collateral LV) is reached and contextually the computed ECL is above a materiality threshold.

Definition of default

Lombard loans that were closed out or have their collateral liquidated, resulting in an actual shortfall, or where liquidation is still in progress, resulting in a potential shortfall, are considered credit-impaired and classified as stage 3.

6.6 Mortgages and other loans

All loans and advances to customers not considered lombard lending are included in this classification. These are residential and commercial mortgages, commercial loans, and overdrafts.

Inputs and assumptions

The ECL for mortgages and for other loans is estimated using three components:

• EAD: The exposure considers contractual repayments, as well as potential drawdown over the lifetime of the loan
• PD: derived from historical transition matrices. To derive forward-looking default estimates, these matrices are calibrated to the macroeconomic expectation
• LGD: calculated based on the possibility to cure (derived from the transition matrix), considering the current LTV and the future recovery value of underlying properties for mortgages (computed considering house price development and sales costs proxies)

Estimation techniques

Each loan is assigned to a risk grade on the basis of its credit quality (i.e. rank order estimation). Forward-looking macroeconomic effects are incorporated with forecasts on gross domestic product (GDP) growth, unemployment rate and house price index (HPI). Post-model adjustments have been recognised on selected individual cases for which risks and uncertainties cannot be adequately reflected with the existing models.

Significant increase in credit risk

A SICR is experienced by any exposure greater than 30 days past due, or with a deterioration of other criteria (such as rank order estimation or watchlist status), or previously defaulted (one-year cure).

Definition of default

Any exposure greater than 90 days past due, or other criteria (such as rank order estimation or watchlist status) or following an individual assessment is considered creditimpaired and classified as stage 3.

6.7 Contractual modifications

EFG International modifies the terms of loans provided to customers due to commercial renegotiations, or for distressed loans, with a view of maximising recovery. Such restructuring activities include extended payment term arrangements, payment holidays and payment forgiveness. Restructuring policies and practices are based on indicators or criteria which, in the judgement of management, indicate that payment will most likely continue.

The risk of default of such assets after modification is assessed at the reporting date and compared with the risk under the original terms of initial recognition, when the modification is not substantial and so does not result in derecognition of the original asset. EFG International may determine that the credit risk has significantly reduced after restructuring, so that the assets are removed from stage 3 or stage 2 in accordance with the new terms for the six consecutive months or more.

6.8 Write-off policy

EFG International writes off financial assets, in whole or in part, when it has exhausted all practical recovery efforts and has concluded there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include:

• Ceasing enforcement activity
• Where EFG International's recovery method is foreclosing on collateral and the value of the collateral is such that there is no reasonable expectation of recovering in full

EFG International may write off financial assets that are still subject to enforcement activity. EFG International still seeks to recover amounts it is legally owed in full, but which have been partially written off due to no reasonable expectations of full recovery.

6.9 Macroeconomic scenario

The ECL results are based on forward-looking projections. These projections consider different macroeconomic scenarios, in particular a base, upside, downside and stress scenario is considered.

The most significant assumptions affecting the ECL are as follows:

• For residential and commercial mortgages: HPI, given the impact it has on mortgage collateral valuations; GDP and unemployment rate, given the correlation with the customers' wealth, as well as the commercial clients' business environment, hence in turn their ability to repay the loans
• For due from customers lombard lending: asset volatility, given the impact it has on financial collateral valuations

		2024	2025	2026
World GDP growth	Base	2.9%	3.2%	3.2%
	Upside	4.5%	3.8%	3.5%
	Downside	1.5%	2.6%	2.9%
	Stress	(0.1%)	1.9%	2.6%
Switzerland GDP growth	Base	1.8%	1.2%	1.8%
	Upside	3.6%	2.1%	2.1%
	Downside	0.2%	0.4%	1.5%
	Stress	(1.6%)	(0.5%)	1.1%
G7 GDP growth	Base	1.2%	1.7%	1.8%
	Upside	3.1%	2.6%	2.4%
	Downside	(0.4%)	0.8%	1.1%
	Stress	(2.3%)	(0.1%)	0.4%
G7 unemployment rate	Base	4.3%	4.2%	4.1%
	Upside	3.3%	3.4%	3.3%
	Downside	5.1%	4.9%	4.7%
	Stress	6.1%	5.7%	5.4%
UK government bond yields 10 years	Base	3.5%	3.8%	3.8%
	Upside	1.5%	1.9%	1.9%
	Downside	5.3%	5.5%	5.5%
	Stress	7.3%	7.4%	7.3%
House price index Switzerland	Base	(1.1%)	0.3%	1.1%
	Upside	2.9%	3.8%	4.2%
	Downside	(4.7%)	(2.9%)	(1.8%)
	Stress	(8.6%)	(6.4%)	(4.9%)
House price index UK (London)	Base	0.0%	3.5%	6.0%
	Upside	9.6%	10.7%	12.6%
	Downside	(8.6%)	(3.0%)	0.1%
	Stress	(18.1%)	(10.1%)	(6.4%)

6.10 Sensitivity analysis

The table below illustrates the impact on stage 1 and stage 2 ECL from reasonably possible changes in the main parameters from the actual assumptions used. For

mortgages and other loans the upside, downside and stress ECL scenarios have been applied, while for lombard loans, the volatilities have been doubled (stress scenario).

Portfolio	Parameter		Scenario
		Upside sensitivity CHF millions	Downside sensitivity CHF millions	Stress sensitivity CHF millions
Mortgages and other loans	GDP growth, Unemployment and yields	(0.1)	0.1	0.2
Mortgages and other loans	House price indices	0.0	0.3	6.5
Lombard loans	Volatilities	n.a.	n.a.	0.2

6.11 Collateral and other credit enhancements

EFG International employs a range of policies and practices to mitigate credit risk. The most traditional of these is the collateralisation of securities for credit exposures. EFG International adheres to guidelines on the acceptability of specific classes of collateral for credit risk mitigation. The principal collateral types for loans and advances are:

• Charges over financial instruments such as debt securities and equities
• Mortgages over residential and to a limited extent commercial properties

6.12 Concentration of risks of financial assets with credit risk exposure

EFG International manages the concentration risk by monitoring and reviewing on a regular basis its large exposures.

As of 31 December 2023, the carrying value of the exposure of the ten largest borrowers was CHF 1,103.5 million (2022: CHF 1,446.4 million).

7. Credit risk exposure

The table below summarises the carrying values, credit grades, expected credit loss (ECL) allowance by stage and fair values of collateral of those financial assets that were measured at amortised cost (or at fair value through other comprehensive income) as of 31 December 2023. The ECL allowance for all assets excluding financial assets at fair value through other comprehensive income are deducted from the carrying value.

						Total carrying
	AAA–AA	A	BBB–BB	B–C	Unrated	value
31 December 2023	CHF millions	CHF millions	CHF millions	CHF millions	CHF millions	CHF millions
Cash and balances with
central banks	4,726.9					4,726.9
Treasury bills and other
eligible bills	2,340.6					2,340.6
Due from other banks	1,198.2	1,345.0	74.0	0.4		2,617.6
Mortgages	4,132.7	585.4	352.1	294.2		5,364.4
Lombard and other loans	9,929.9	445.6	250.6	28.6		10,654.7
Investment securities	8,489.8					8,489.8
Total on-balance sheet
assets as at
31 December 2023	30,818.1	2,376.0	676.7	323.2	–	34,194.0
Loan commitments	198.9					198.9
Financial guarantees	187.7	23.0	5.3	8.1		224.1
Total	31,204.7	2,399.0	682.0	331.3	–	34,617.0

Rating range based on external rating. If not available computed based on final ECL calculation and aligned with external rating agencies default data.

	Total carrying					Fair value of the collateral
	value		ECL Staging		ECL allowance	held
31 December 2023	CHF millions	Stage 1	Stage 2	Stage 3	CHF millions	CHF millions
Cash and balances with
central banks	4,726.9
Treasury bills and other
eligible bills	2,340.6	0.1			0.1
Due from other banks	2,617.6	0.1			0.1
Mortgages	5,364.4	1.0	0.7	7.3	9.0	10,913.2
Lombard and other loans	10,654.7	1.7	0.6	6.8	9.1	34,787.5
Investment securities	8,489.8	0.4			0.4
Total on-balance sheet
assets as at
31 December 2023	34,194.0	3.3	1.3	14.1	18.7	45,700.7
Loan commitments	198.9
Financial guarantees	224.1	0.1	0.3		0.4
Total	34,617.0	3.4	1.6	14.1	19.1	45,700.7

The table below summarises the carrying values, credit grades, expected credit loss allowance by stage and fair values of collateral of those financial assets that were measured at amortised cost (or at fair value through other comprehensive income) as of 31 December 2022:

						Total carrying
	AAA–AA	A	BBB–BB	B–C	Unrated	value
31 December 2022	CHF millions	CHF millions	CHF millions	CHF millions	CHF millions	CHF millions
Cash and balances with
central banks	9,487.6					9,487.6
Treasury bills and other
eligible bills	3,055.4					3,055.4
Due from other banks	1,326.2	733.3	35.8	0.6		2,095.9
Mortgages	5,105.8	188.6	147.9	218.0		5,660.3
Lombard and other loans	10,689.3	63.6	161.5	173.4		11,087.8
Investment securities	7,669.7					7,669.7
Total on-balance sheet
assets as at
31 December 2022	37,334.0	985.5	345.2	392.0	–	39,056.7
Loan commitments	164.8					164.8
Financial guarantees	223.0	3.3	1.9	3.6		231.8
Total	37,721.8	988.8	347.1	395.6	–	39,453.3
	Total carrying				ECL allowance included in	Fair value of the collateral
	value		ECL Staging		carrying values	held
31 December 2022	CHF millions	Stage 1	Stage 2	Stage 3	CHF millions	CHF millions
Cash and balances with
central banks	9,487.6
Treasury bills and other
eligible bills	3,055.4	0.1			0.1
Due from other banks	2,095.9
Mortgages	5,660.3	0.5	0.3	5.2	6.0	12,679.6
Lombard and other loans	11,087.8	1.9	0.3	6.0	8.2	33,448.5
Investment securities	7,669.7	0.5			0.5
Total on-balance sheet
assets as at
31 December 2022	39,056.7	3.0	0.6	11.2	14.8	46,128.1
Loan commitments	164.8
Financial guarantees	231.8	0.1	0.4		0.5
Total	39,453.3	3.1	1.0	11.2	15.3	46,128.1

8. Credit staging and loss allowances

8.1 Balances with central banks

The table below presents the aggregate changes in gross carrying values and loss allowances for Balances with central banks:

Balances with central banks - Gross carrying value	Stage 1	Stage 2	Stage 3	Total
	CHF millions	CHF millions	CHF millions	CHF millions
At 01 January 2022	9,801.5	–	–	9,801.5
Financial assets derecognised during the
period other than write-offs	(5,560.2)			(5,560.2)
New financial assets originated
or purchased	5,444.0			5,444.0
Exchange differences	(197.7)			(197.7)
At 31 December 2022	9,487.6	–	–	9,487.6
Financial assets derecognised during the
period other than write-offs	(6,270.1)			(6,270.1)
New financial assets originated
or purchased	1,549.5			1,549.5
Exchange differences	(40.1)			(40.1)
At 31 December 2023	4,726.9	–	–	4,726.9
Balances with central banks - Loss allowance	Stage 1	Stage 2	Stage 3
	12-month ECL	Lifetime ECL	Lifetime ECL	Total
	CHF millions	CHF millions	CHF millions	CHF millions
At 01 January 2022	–	–	–	–
Movements with P&L impact
Other movements with no P&L impact				–
At 31 December 2022	–	–	–	–
Movements with P&L impact
Other movements with no P&L impact				–
At 31 December 2023	–	–	–	–

There were no purchased credit-impaired balances during the reporting period, nor were the terms of any contracts modified. In addition, no amounts were written off in the period.

8.2 Treasury bills and other eligible bills

The table below presents the aggregate changes in gross carrying values and loss allowances for Treasury and other eligible bills held at amortised cost:

Treasury bills and other eligible bills - Gross carrying value	Stage 1 CHF millions	Stage 2 CHF millions	Stage 3 CHF millions	Total CHF millions
At 01 January 2022	1,452.8	–	–	1,452.8
Financial assets derecognised during the period other than write-offs	(1,016.0)			(1,016.0)
New financial assets originated or purchased	2,613.3			2,613.3
Exchange differences	5.4			5.4
At 31 December 2022	3,055.5	–	–	3,055.5
Financial assets derecognised during the period other than write-offs	(2,664.6)			(2,664.6)
New financial assets originated or purchased	2,290.4			2,290.4
Amounts transferred to Investment securities	(335.5)			(335.5)
Exchange differences	(5.1)			(5.1)
At 31 December 2023	2,340.7	–	–	2,340.7

Treasury bills and other eligible bills - Loss allowance	Stage 1 12-month ECL CHF millions	Stage 2 Lifetime ECL CHF millions	Stage 3 Lifetime ECL CHF millions	Total CHF millions
At 01 January 2022	–	–	–	–
Movement with P&L impact
New financial assets originated or purchased	0.1			0.1
Loss allowance as at 31 December 2022	0.1	–	–	0.1
Movement with P&L impact				–
At 31 December 2023	0.1	–	–	0.1

There were no purchased credit-impaired balances during the reporting period, nor were the terms of any contracts modified. In addition, no amounts were written off in the period.

8.3 Due from other banks

The table below presents the aggregate changes in gross carrying values and loss allowances for Due from other banks:

	CHF millions	CHF millions	CHF millions	CHF millions
At 01 January 2022	2,562.4	–	–	2,562.4
Financial assets derecognised during the
period other than write-off	(1,859.9)			(1,859.9)
New financial assets originated
or purchased	1,407.6			1,407.6
Exchange differences	(14.2)			(14.2)
At 31 December 2022	2,095.9	–	–	2,095.9
Financial assets derecognised during the
period other than write-off	(1,299.2)			(1,299.2)
New financial assets originated
or purchased	1,919.9			1,919.9
Changes in interest accrual	(6.2)			(6.2)
Exchange differences	(92.7)			(92.7)
At 31 December 2023	2,617.7	–	–	2,617.7
Due from other banks - Loss allowance	Stage 1 12-month ECL CHF millions	Stage 2 Lifetime ECL CHF millions	Stage 3 Lifetime ECL CHF millions	Total CHF millions
At 01 January 2022	0.1	–	–	0.1
Movements with P&L impact
New financial assets originated or purchased				–
Changes in PD/LGDs/EADs	(0.1)			(0.1)
At 31 December 2022	–	–	–	–
Movements with P&L impact
New financial assets originated or purchased	0.1			0.1
Changes in PD/LGDs/EADs				–
Total net P&L charge during the period	0.1	–	–	0.1
At 31 December 2023	0.1	–	–	0.1

Due from other banks - Gross carrying value Stage 1 Stage 2 Stage 3 Total

There were no purchased credit-impaired balances during the reporting period, nor were the terms of any contracts modified. In addition, no amounts were written off in the period.

8.4 Investment Securities

The table below presents the aggregate changes in gross carrying values and loss allowances for investment securities:

Investment Securities - Carrying value	Stage 1 CHF millions	Stage 2 CHF millions	Stage 3 CHF millions	Total CHF millions
At 01 January 2022	5,877.8	–	–	5,877.8
Financial assets derecognised during the
period other than write-offs	(1,962.3)			(1,962.3)
New financial assets originated
or purchased	4,086.7			4,086.7
Changes in fair value	(311.2)			(311.2)
Changes in interest accrual	18.8			18.8
Exchange differences	(40.0)			(40.0)
At 31 December 2022	7,669.8	–	–	7,669.8
Financial assets derecognised during the
period other than write-offs	(1,358.1)			(1,358.1)
New financial assets originated
or purchased	2,402.6			2,402.6
Increase in carrying value due to reclassification of investments	166.6			166.6
Amounts transferred from Treasury bills	335.5			335.5
Amounts transferred to Other assets	(216.4)			(216.4)
Changes in interest accrual	12.2			12.2
Exchange differences	(522.0)			(522.0)
At 31 December 2023	8,490.2	–	–	8,490.2

Investment Securities - Loss allowance	Stage 1 12-month	Stage 2 Lifetime	Stage 3 Lifetime
	ECL	ECL	ECL	Total
	CHF millions	CHF millions	CHF millions	CHF millions
At 01 January 2022	0.3	–	–	0.3
Movements with P&L impact
New financial assets originated or purchased	0.2			0.2
Changes in PD/LGDs/EADs				–
At 31 December 2022	0.5	–	–	0.5
Movements with P&L impact
New financial assets originated or purchased	0.1			0.1
Changes in PD/LGDs/EADs	(0.2)			(0.2)
Total net P&L charge during the period	(0.1)	–	–	(0.1)
At 31 December 2023	0.4	–	–	0.4

For expected credit losses on Investment securities at fair value through other comprehensive income, the movement with P&L impact is recognised in other comprehensive income, as the ECL has no impact on the fair value of the assets. For expected credit losses on investment securities at amortised cost, the ECL is deducted from the carrying value.

There were no purchased credit-impaired balances during the reporting period, nor were the terms of any contracts modified. In addition, no amounts were written off in the period.

8.5 Loans and advances to customers

Loans and advances to customers comprise the following:

		31 December 2023	31 December 2022
		CHF millions	CHF millions
(i) Mortgage loans	Gross	5,373.4	5,666.3
	Loss allowance	(9.0)	(6.0)
(ii) Lombard loans	Gross	10,494.1	10,941.9
	Loss allowance	(5.4)	(3.2)
(iii) Other loans	Gross	169.7	154.1
	Loss allowance	(3.7)	(5.0)
Total loans and advances to customers		16,019.1	16,748.1

(i) Mortgage Loans

The table below presents the aggregate changes in gross carrying values and loss allowances for Mortgage loans:

Mortgage loans - Gross carrying value	Stage 1 CHF millions	Stage 2 CHF millions	Stage 3 CHF millions	Total CHF millions
At 01 January 2022	5,450.4	195.2	150.9	5,796.5
Transfers:
Transfer from Stage 1 to Stage 2	(139.4)	139.4		–
Transfer from Stage 1 to Stage 3	(59.6)		59.6	–
Transfer from Stage 2 to Stage 1	39.6	(39.6)		–
Transfer from Stage 2 to Stage 3		(27.4)	27.4	–
Transfer from Stage 3 to Stage 1	5.4		(5.4)	–
Transfer from Stage 3 to Stage 2		27.2	(27.2)	–
Financial assets derecognised during the
period other than write-offs	(1,097.5)	(106.1)	(91.7)	(1,295.3)
New financial assets originated
or purchased	1,162.4			1,162.4
Net change of exposure	(287.0)	70.8	18.8	(197.4)
Reclassification from other loans	240.9	149.7	109.4	500.0
Changes in interest accrual	(3.4)			(3.4)
Write-offs			(0.2)	(0.2)
Exchange differences	(252.7)	(25.2)	(18.4)	(296.3)
At 31 December 2022	5,059.1	384.0	223.2	5,666.3
Transfers:
Transfer from Stage 1 to Stage 2	(165.4)	165.4		–
Transfer from Stage 1 to Stage 3	(114.8)		114.8	–
Transfer from Stage 2 to Stage 3		(38.9)	38.9	–
Financial assets derecognised during the
period other than write-offs	(908.3)	(120.7)	(70.0)	(1,099.0)
New financial assets originated
or purchased	998.6			998.6
Net change of exposure	(87.2)	39.0	13.8	(34.4)
Exchange differences	(128.4)	(17.0)	(12.7)	(158.1)
At 31 December 2023	4,653.6	411.8	308.0	5,373.4

Mortgage loans - Loss allowance	Stage 1 12-month ECL	Stage 2 Lifetime ECL	Stage 3 Lifetime ECL	Total
	CHF millions	CHF millions	CHF millions	CHF millions
At 01 January 2022	0.7	0.2	4.7	5.6
Movements with P&L impact
Transfers:
Transfer from Stage 3 to Stage 1	0.1		(0.1)	–
New financial assets originated or purchased	0.1			0.1
Financial assets derecognised during
the period	(0.1)	(0.1)	(0.9)	(1.1)
Changes in PD/LGDs/EADs	(0.3)	0.2	0.2	0.1
Unwind of discount				–
Exchange differences		(0.1)	(0.4)	(0.5)
Total net P&L charge during the period	(0.2)	–	(1.2)	(1.4)
Other movements with no P&L impact
Reclassification from other loans		0.1	1.9	2.0
Write-offs			(0.2)	(0.2)
At 31 December 2022	0.5	0.3	5.2	6.0
Movements with P&L impact
New financial assets originated or purchased	0.3			0.3
Financial assets derecognised during
the period		(0.1)	(1.8)	(1.9)
Changes in PD/LGDs/EADs	0.2	0.5	4.4	5.1
Unwind of discount			(0.1)	(0.1)
Exchange differences			(0.4)	(0.4)
Total net P&L charge during the period	0.5	0.4	2.1	3.0
Other movements with no P&L impact
Reclassification from other loans				–
Write-offs				–
At 31 December 2023	1.0	0.7	7.3	9.0

There were no purchased credit-impaired balances during the reporting period, nor were the terms of any contracts modified.

(ii) Lombard loans

The table below presents the aggregate changes in gross carrying values and loss allowances for Lombard loans:

Lombard loans - Gross carrying value	Stage 1 CHF millions	Stage 2 CHF millions	Stage 3 CHF millions	Total CHF millions
Transfers:
Transfer from Stage 1 to Stage 2	(29.7)	29.7		–
Transfer from Stage 1 to Stage 3	(10.7)		10.7	–
Transfer from Stage 2 to Stage 1	19.3	(19.3)		–
Transfer from Stage 2 to Stage 3		(2.3)	2.3	–
Financial assets derecognised during the
period other than write-offs	(2,137.6)	(95.6)		(2,233.2)
New financial assets originated
or purchased	1,734.3			1,734.3
Changes in interest accrual	30.7			30.7
Net change of exposure	(129.3)	(22.0)	(1.1)	(152.4)
Write-offs			(0.5)	(0.5)
Exchange differences	(123.9)			(123.9)
At 31 December 2022	10,891.6	34.5	15.8	10,941.9
Transfers:
Transfer from Stage 1 to Stage 2	(12.3)	12.3		–
Transfer from Stage 1 to Stage 3	(3.0)		3.0	–
Financial assets derecognised during the
period other than write-offs	(2,504.3)	(24.0)	(13.1)	(2,541.4)
New financial assets originated
or purchased	3,172.8			3,172.8
Net change of exposure	(688.1)	(1.2)	83.3	(606.0)
Changes in interest accrual	24.5			24.5
Write off			(1.8)	(1.8)
Exchange differences	(492.4)	(1.0)	(2.5)	(495.9)
At 31 December 2023	10,388.8	20.6	84.7	10,494.1

Lombard loans - Loss allowance	Stage 1	Stage 2	Stage 3
	12-month	Lifetime	Lifetime
	ECL	ECL	ECL	Total
	CHF millions	CHF millions	CHF millions	CHF millions
At 01 January 2022	–	1.1	3.0	4.1
Movements with P&L impact
New financial assets originated or purchased	0.1			0.1
Financial assets derecognised during the period		(1.0)		(1.0)
Changes in PD/LGDs/EADs		0.2	0.1	0.3
Unwind of discount				–
Exchange differences			0.2	0.2
Total net P&L charge during the period	0.1	(0.8)	0.3	(0.4)
Other movements with no P&L impact
Write-offs			(0.5)	(0.5)
At 31 December 2022	0.1	0.3	2.8	3.2
Movements with P&L impact
New financial assets originated or purchased	0.3			0.3
Financial assets derecognised during the period	(0.1)	(0.1)	(0.3)	(0.5)
Changes in PD/LGDs/EADs	(0.1)	0.4	4.1	4.4
Exchange differences			(0.2)	(0.2)
Total net P&L charge during the period	0.1	0.3	3.6	4.0
Other movements with no P&L impact
Write-offs			(1.8)	(1.8)
At 31 December 2023	0.2	0.6	4.6	5.4

There were no purchased credit-impaired balances during the reporting period, nor were the terms of any contracts modified.

(iii) Other loans

The table below presents the aggregate changes in gross carrying values and loss allowances for Other loans (which include commercial loans and unsecured overdrafts):

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Other loans - Gross carrying value	Stage 1 CHF millions	Stage 2 CHF millions	Stage 3 CHF millions	Total CHF millions
At 01 January 2022	541.2	96.2	121.7	759.1
Transfers:
Transfer from Stage 1 to Stage 3	(7.7)		7.7	–
Transfer from Stage 2 to Stage 3		(0.1)	0.1	–
Financial assets derecognised during the
period other than write-offs	(37.0)	(4.7)	(4.0)	(45.7)
New financial assets originated
or purchased	52.2			52.2
Net change of exposure	(165.2)	59.2	(0.5)	(106.5)
Reclassification to mortgage loans	(240.9)	(149.7)	(109.4)	(500.0)
Write-offs			(4.7)	(4.7)
Exchange differences	(0.2)	0.1	(0.2)	(0.3)
At 31 December 2022	142.4	1.0	10.7	154.1
Transfers:
Transfer from Stage 1 to Stage 3	(0.1)		0.1	–
Transfer from Stage 2 to Stage 3		(0.6)	0.6	–
Financial assets derecognised during the
period other than write-offs	(20.2)	(0.1)	(11.4)	(31.7)
New financial assets originated
or purchased	26.5			26.5
Net change of exposure	20.4	0.5	5.5	26.4
Write-offs			(1.4)	(1.4)
Exchange differences	(4.0)		(0.2)	(4.2)
At 31 December 2023	165.0	0.8	3.9	169.7

Other loans - Loss allowance	Stage 1	Stage 2	Stage 3
	12-month	Lifetime	Lifetime
	ECL CHF millions	ECL CHF millions	ECL CHF millions	Total CHF millions
At 01 January 2022	1.5	0.1	5.6	7.2
Movements with P&L impact
Financial assets derecognised during the period	(0.1)	(0.1)	(0.3)	(0.5)
New financial assets originated or purchased	0.2			0.2
Changes in PD/LGDs/EADs	0.3		4.4	4.7
Exchange differences	(0.1)	0.1	0.1	0.1
Total net P&L charge during the period	0.3	–	4.2	4.5
Other movements with no P&L impact
Reclassification of loans collateralised by real estate		(0.1)	(1.9)	(2.0)
Write-offs			(4.7)	(4.7)
At 31 December 2022	1.8	–	3.2	5.0
Movements with P&L impact
Financial assets derecognised during the period	(0.1)		(0.3)	(0.4)
New financial assets originated or purchased				–
Changes in PD/LGDs/EADs	(0.1)		0.8	0.7
Exchange differences	(0.1)		(0.1)	(0.2)
Total net P&L charge during the period	(0.3)	0.0	0.4	0.1
Other movements with no P&L impact
Write-offs			(1.4)	(1.4)
At 31 December 2023	1.5	–	2.2	3.7

There were no purchased credit-impaired balances during the reporting period, nor were the terms of any contracts modified.

9. Market risk

9.1 Market risk measurement methodology

(a) Value at risk

The Value at risk (VaR) is an indicator used to estimate the maximum potential loss of a position, given predefined confidence interval and time horizon, under normal market conditions following adverse movements of markets parameters (interest rates, credit spreads and foreign currencies).

The VaR methodology applied in EFGI is based on a full revaluation historical approach based on 251 daily observations and considering a confidence interval of 99% and a time horizon of ten days (VaR 10d/99%).

VaR is used for internal control purpose and not for regulatory reporting of risks.

(b) Sensitivity analysis

The risk assessment through sensitivity analysis considers all major market risks deriving from assets, liabilities and off-balance-sheet transactions. The simulations analyse the impacts on risk exposures of adverse movements in market parameters. For interest rate risk, the following risk exposures are assessed:

• Impact on net interest income (NII): The NII assessment determines the impact of a change in the interest rate structure on the forecasted interest income (and thus on current earnings). This view is based on nominal values and considers the impact on the basis of a 12-month time horizon.
• Impact on economic value of equity (EVE): The EVE assessment measures the impact of changes in interest rates on current values of future cash flows and thus on the current economic value of EFG International's equity

In contrast to the first approach, which focuses solely on a one-year time frame, the impact on the economic value of equity expresses the long-term impact deriving from all future cash flows, if there is a shift in market interest rates.

For foreign exchange rate risk, the sensitivity measurement covers in particular:

The mismatch between on- and off-balance-sheet positions denominated in foreign currencies

The forecasted earnings that are originated by positions in foreign currencies

(c) Stress tests

VaR calculation and sensitivity analysis are complemented by stress tests, which identify the potential impact of extreme market scenarios on EFG International's equity and income statements. These stress tests simulate both exceptional movements in prices or rates, and drastic deteriorations in market correlations.

Stress tests provide an indication of the potential size of losses that could arise in extreme conditions.

The stress tests include:

• Risk factor stress testing, where stress movements are applied to each risk category
• Ad hoc stress testing, which includes applying possible stress events to specific positions or regions
• Reverse stress test to examine vulnerabilities of the implemented models and risks embedded in EFGI's exposures

9.2 Market risk mitigation

EFG International is exposed to financial risks arising from many aspects of its business. EFG International implements different risk management strategies to eliminate or reduce market risk exposures. Risks being hedged through derivative financial instruments are typically changes in interest rates, foreign currency rates or effects of other risks (e.g. mortality risk on insurance policies portfolio). EFG International implements fair value hedging strategies.

The risk being hedged in a fair value hedging strategy is a change in the fair value of an asset or liability that is attributable to a particular risk and could affect P&L or the economic value of equity.

9.3 Market risk exposure

The following table summarises the interest repricing gap of EFG International's financial instruments based on the undiscounted cashflows, categorised by the earlier of contractual repricing or maturity dates (interest rate risk view)

Repricing gap by interest repricing bucket	Up to 3 months CHF millions	3–12 months CHF millions	1–5 years CHF millions	Over 5 years CHF millions	Non-interest bearing CHF millions	Total CHF millions
As at 31 December 2023
Assets
Cash and balances with central banks	4,684.1				42.8	4,726.9
Treasury bills and other eligible bills	1,972.6	370.3				2,342.9
Due from other banks	2,407.4	92.3	117.9			2,617.6
Loans and advances to customers	13,317.7	1,515.1	1,081.3	105.0		16,019.1
Derivative financial instruments	1,574.3					1,574.3
Financial assets at fair value through profit
and loss	614.2	314.5	91.1	49.0	445.8	1,514.6
Investment securities	1,744.5	2,134.2	4,760.2	76.9		8,715.8
Total financial assets	26,314.8	4,426.4	6,050.5	230.9	488.6	37,511.2
Liabilities
Due to other banks	912.8	30.2				943.0
Due to customers	17,121.5	2,533.6	83.0		10,318.4	30,056.5
Derivative financial instruments	1,570.3					1,570.3
Financial liabilities at fair value through
profit and loss	133.9	3.7	20.7	16.9		175.2
Financial liabilities at amortised cost	2,366.4	271.2	152.4	37.3		2,827.3
Subordinated loans
Total financial liabilities	22,104.9	2,838.7	256.1	54.2	10,318.4	35,572.3
On-balance-sheet interest repricing gap	4,209.8	1,587.7	5,794.5	176.8	(9,829.8)	1,939.0
Off-balance-sheet interest repricing gap	1,481.2	(73.9)	(1,381.2)	(102.6)		(76.5)

The quantitative interest rate risk impact on equity economic value and on net interest income are reported in the Basel III Pillar 3 Disclosures report, together with qualitative information.

9.4 Value-at-risk trading and investment books

The following table presents the VaR (10d/99%) attribution by interest rates risk, credit spread risk and currency risk:

		thereof
		Trading book
VaR by risk type	Total VaR	VaR
At 31 December	CHF millions	CHF millions
2023
Credit spread risk	6.6	0.7
Interest rate risk	27.2	0.6
Currency risk	1.6	0.7
VaR	35.4	2.0
2022
Credit spread risk	6.1	1.4
Interest rate risk	16.0	0.3
Currency risk	2.6	2.6
VaR	24.7	4.3

EFG International carries out foreign currency operations both for its clients, and for its own account. The aggregated foreign currency exposure was CHF 61.7 million.

The year 2023 was characterised by inflationary pressure in all western economies, with central banks increasing interest rates trying to contain inflation. In addition, following several geopolitical tensions, markets volatility remained elevated during the year. The main reason for the VaR increase is the high interest rates volatility, while credit spread risk remains stable. All investment portfolios have been reclassified under HTC accounting treatment, and consequently bond prices fluctuations do not impact either profit and loss statement or bank capital.

The Group is not exposed to market risk through its structured product activities as the positions are fully economically hedged. Moreover, the Group does not perform OTC equity derivatives transactions with customers.

10. Life insurance and longevity risk

10.1 Definitions

(a) Demographic experience risk

Demographic experience risk is defined as the risk that arises from the inherent uncertainties as to the occurrence, amount and timing of future cash flows due to demographic and expense experience.

Demographic experience risk is limited to EFG International Group's legacy insurance portfolio (for which we have appropriate valuation models in place for this risk where demographic experience is a key assumption) and for the valuation of the EFG International Group's retirement benefit obligations.

(b) Longevity risk

The key risk faced in terms of demographic is longevity risk which is the risk that the underlying insured lives longer than expected. There are three subcomponents of this risk which are:

• i) Improvement risk, which is the future longevity improvements of collective lives or a singular life are different than expected
• ii) Diversion from base life table risk, which is relatively low in EFG International Group's portfolio, as EFG International Group tracks individual lives
• iii) The per single life risk, which is the random variation from EFG International Group's estimated likelihood of each insured life dying in each year. In the case of the latter, it is a material risk due to the small number of insured lives in the portfolio

(c) Expense risk

Expense risk is related primarily to the potential change in premiums. These changes in premium relate to increases payable to the life insurers based on their permissible premium increases under the discrete policy. EFG International Group is required to pay these higher

premiums to keep the policy in force, in order to ensure receipt of the cash flow upon maturity.

10.2 Exposure

EFG International Group is exposed to longevity estimates in the valuation of the following assets and liabilities:

• i) Financial assets and liabilities
• Financial assets at fair value through profit and loss
• Financial liabilities designated at fair value
• Derivatives
• ii) Other liabilities

(a) Financial assets and liabilities

EFG International Group holds life insurance related assets and liabilities issued by US life insurance companies valued at fair value and the valuations rely on assumptions (see note 31 for further details).

Upon the insured individual having deceased, the life insurance company pays a lump sum death benefit to EFG International Group. EFG International Group pays a periodic premium to the life insurance company to keep the policy valid.

The key risks of these life insurance related assets and liabilities are due to the uncertainty arising from:

• i) Longevity risk related to the number of periodic premium payments that are payable by EFG International Group. EFG International Group has to continue paying periodic premiums whilst the insured individual is alive. The longer the insured individual lives, the greater the premium payments will be, usually with no change in the proceeds that will be received from the insurance company
• ii) Expense risk relates to the risk that the insurance companies increase the periodic premiums. The insurance companies face longevity risk, and risk from having mispriced the cost of insurance. The insurance companies are now attempting to pass the costs of this risk and/or pricing error onto the policy holders, via increased cost of insurance adjustments to the periodic premiums payable

(i) Longevity risk

The assumptions on life expectancies are based on the Valuation Basic Table (VBT) last published by the Society of Actuaries in 2015 and adjusted by external life settlement underwriters and actuaries to reflect the individual medical characteristics of each referenced insured. Premium estimates are based on cost of insurance estimates, which are provided by independent parties specialised and experienced in the field of premium calculations for life

settlement policies. EFG International Group conducts a regular in-depth review of such providers to ensure high-quality standards and reliability of the forecasts.

The determination of the best estimate cash flows included in the valuation of the life insurance for the fair value estimate of these assets under IFRS 13 is considered to be a critical accounting judgement by EFG International Group, due to the lack of observable readily available information and the complexity of the determination of these assumptions.

The EFG International Group uses management's best estimate (considering historic information and relying on specialised opinions) and information from external service providers about trends and market developments. Management judgement is applied to this information.

(ii) Expense risk

Management also considers that the outcome of disputes involving significant increases in premiums observed in the US market will affect the expected premiums payable.

The determination of the appropriate level of increase of cost of insurance in the underlying policies is one of the more significant assumptions applied by management in the valuation model. Increases in cost of insurance considers the aging of the insured persons and increases in pricing levels of premiums imposed by certain carriers that issued these policies. The majority of life insurance policies have increasing annual premiums payable. In certain instances, additional increases have been announced by the insurance companies. EFG International Group considers these increases in cost of insurance to be unjustified and has challenged their implementation in US courts.

The estimated outcome of disputes involving significant increases in premiums observed in the US market affecting the life insurance policies in the portfolio are taken into account. In these cases, management has, in line with market participants, set their own best estimates taking into account the factors outlined above and the relevant contracts as the ultimate resolution of these legal actions is significant for EFG International Group, it relies on actuaries and management judgement to set the cost of insurance assumptions. Management judgement is applied to this information.

(b) Other liabilities - retirement benefit obligations

EFG International Group operates retirement benefit plans which under IFRS are classified as defined benefit plans. Two of these plans are in Switzerland for EFG Bank AG and one in the Channel Islands. The two Switzerland plans are considered as defined benefit plans under IFRS due to a

minimum guaranteed return in Swiss pension legislation, EFG International Group having no obligation relative to these funds other than to provide the minimum guaranteed return.

The plans provide annuity options to individuals on retirement. These annuity options are calculated using a conversion rate which is established by the foundation and reviewed periodically.

The valuation of the liability recognised in the balance sheet for the net pension obligation includes actuarial assumptions (see note 52 for further details). One of the key assumptions relates to longevity. Actuarial assumptions are established as unbiased best estimates of future expectations.

10.3 Sensitivities

The following table presents the carrying value (and related death benefits) and the impact that a three-month extension in life expectancies will have on the balance sheet valuations:

Sensitivity to 3 months extension in life expectancy Carrying value CHF millions Net death benefits CHF millions Life insurance CHF millions Retirement benefit obligations CHF millions 31 December 2023 Assets Derivatives 24.3 47.1 (0.3) Financial assets at fair value through profit and loss 537.7 938.8 (18.0) Other assets 51.9 (6.3) Liabilities Financial liabilities designated at fair value (131.0) (201.9) 3.9 Other liabilities (38.7) (2.9) 31 December 2022 Assets Derivatives 31.8 61.3 (0.3) Financial assets at fair value through profit and loss 690.1 1,281.2 (25.6) Other assets 49.2 (5.7) Liabilities Financial liabilities designated at fair value (145.9) (235.4) 4.4 Other liabilities (10.4) (2.2)

11. Liquidity risk

EFG International manages liquidity risk to ensure that ample liquidity is available to meet commitments to customers, both in demand for loans and repayments of deposits, and to satisfy EFG International's own cash flow needs within all of its business entities.

EFG International has a liquidity risk management process in place that includes contingency funding plans, and stress tests that are undertaken to highlight EFG International's

liquidity profile in adverse conditions, also analysing intraday and topical liquidity stress scenarios.

11.1 Liquidity risk mitigation

The liquidity risk management process includes:

– Day-to-day funding, managed by monitoring future cash flows to ensure that requirements can be met. This includes replenishment of funds as they mature or are borrowed by customers

• Maintaining a portfolio of highly marketable assets that can easily be liquidated as protection against any unforeseen interruption to cash flow
• Monitoring balance sheet liquidity ratios against internal and regulatory requirements
• Managing the concentration and profile of funding

EFG International aims to avoid concentrations of its funding facilities. It continuously observes its current liquidity situation and determines the pricing of its assets and credit business through the liquidity transfer pricing model. The liquidity risk management process also includes EFG International's contingency funding plans. The contingency measures include, among other actions, the activation of repo transactions with prime counterparties, the liquidation of marketable securities and/or drawdowns on lines of credit (liquidity shortage financing) with the Swiss National Bank.

Overall, EFG International, through its business units, enjoys a favourable funding base with stable and diversified customer deposits, which provide the vast majority of EFG International's total funding. The surplus of stable customer deposits over loans and other funding resources are invested or placed to central banks by EFG International's Treasury in compliance with the local regulatory requirements and internal guidelines.

EFG International manages the liquidity and funding risks on an integrated basis. The liquidity positions of the business units are monitored and managed daily. Internal limits are more conservative than the regulatory minimum levels, as required by EFG International's risk appetite framework and liquidity risk policy.

The overall level of liquidity exposure and corresponding limits are tightly monitored by means of specific risk metrics approved by the Board of Directors and in line with EFG International's overall committed level of risk appetite. Sources of liquidity are regularly assessed in terms of diversification by currency, geography, provider, term and product.

11.2 Liquidity transfer pricing model

EFG International's liquidity transfer pricing model supports the management of the balance sheet structure and the measurement of risk-adjusted profitability, taking into account liquidity risk, maturity transformation and interest rate risk. The liquidity allocation mechanism credits providers of funds for the benefit of liquidity and charges users of funds.

Customers' loans are charged for the usage of liquidity, based on the liquidity risk embedded in business activities. Short- and long-term loans receive differentiated charges for the cost of liquidity.

Liquidity adjustments are made for loans that have the same duration, but due to differing liquidity attributes are not of the same value or cost.

Customers' deposits are credited for liquidity based on their likelihood of withdrawal. As a general rule, sticky money, such as term deposits, is less likely to be withdrawn and, therefore, receives larger credits than volatile money, such as demand deposits, savings and transaction accounts, which is more likely to be withdrawn at any time.

11.3 Financial liabilities' cash flows

The following table analyses EFG International's financial liabilities by remaining contractual maturities at the balance sheet date. The amounts disclosed in the table are the contractual undiscounted cash flows.

Although due to customers are mainly at sight from a contractual point of view, in practice and from an economical perspective, it has been observed that they provide a stable funding source, thereby reducing the exposure to liquidity risk.

	Up to 1	1–3	3–12	1–5	Over 5
Financial liabilities by remaining	month	months	months	years	years	Total
contractual maturities	CHF millions	CHF millions	CHF millions	CHF millions	CHF millions	CHF millions
31 December 2023
Liabilities
Due to other banks	868.4	44.4	30.2			943.0
Due to customers	23,688.9	3,751.0	2,533.6	83.0		30,056.5
Derivative financial instruments	18,970.2	16,273.2	14,741.3	1,573.4	143.9	51,702.0
Financial liabilities at fair value through
profit and loss	129.6	4.3	3.7	20.7	16.9	175.2
Financial liabilities at amortised cost	2,195.8	170.6	271.2	152.4	37.3	2,827.3
Total financial liabilities	45,852.9	20,243.5	17,580.0	1,829.5	198.1	85,704.0
Total off-balance-sheet	37.2	58.4	92.5	130.9	104.1	423.1
	Up to 1	1–3	3–12	1–5	Over 5
Financial liabilities by remaining contractual maturities	month CHF millions	months CHF millions	months CHF millions	years CHF millions	years CHF millions	Total CHF millions
31 December 2022
Liabilities
Due to other banks	894.3	24.8	3.7			922.8
Due to customers	30,070.6	2,210.2	1,655.5	99.2		34,035.5
Derivative financial instruments	18,469.6	13,585.2	16,626.7	2,053.2	119.9	50,854.6
Financial liabilities at fair value through
profit and loss	198.0	6.3	2.8	222.5	13.3	442.9
Financial liabilities at amortised cost	3,136.0	143.2	161.7	228.6	32.5	3,702.0
Total financial liabilities	52,768.5	15,969.7	18,450.4	2,603.5	165.7	89,957.8
Total off-balance-sheet	32.8	31.9	88.6	141.8	105.1	400.2

For more detailed information on off-balance-sheet exposures by maturity, refer to note 58.

12. Capital management

The Group's objectives when managing regulatory capital are to comply with the capital requirements set by regulators of the jurisdictions in which the Group entities operate and to safeguard the Group's ability to continue as a going concern.

Capital adequacy

Capital adequacy and the use of regulatory capital are continually monitored and reported by the Group's management, using the framework developed by the Bank for International Settlements (BIS). The regulatory capital requirement of the Group is ultimately determined by the rules implemented by the Swiss banking regulator, the Swiss Financial Market Supervisory Authority (FINMA).

For 2023, the Group reports regulatory capital using IFRS as a basis. This is also the basis the Group uses to report to the FINMA. The Group will publish the Basel III Pillar 3 Disclosures for the year ended 31 December 2023 on the Group website by 30 April 2024.

The Group's eligible capital comprises two tiers:

• Tier 1 capital: share capital (net of any book value of treasury shares), non-controlling interests arising on consolidation from interests in permanent shareholders' equity, retained earnings, additional equity components and reserves created by appropriations of retained earnings. The book value of acquisition-related intangible assets net of acquisition-related liabilities is deducted in arriving at Tier 1 capital.
• Tier 2 capital: subordinated loans and unrealised gains arising on the fair valuation of financial instruments at fair value through other comprehensive income.

Risk-weighted assets are determined according to specified requirements which reflect the varying levels of risk attached to assets and off-balance-sheet exposures, and include amounts in respect of credit risk, market risk, non-counterparty-related risk, settlement risk, and operational risk.

The following table summarises the composition of regulatory capital and the ratios of the Group for the years ended 31 December 2023 and 2022.

	Basel III
	31 December 2023	31 December 2022
	Unaudited	Unaudited
	CHF millions	CHF millions
Tier 1 capital
Share capital	150.9	151.3
Share premium / Capital reserves	1,932.9	1,971.4
Other reserves and Retained earnings	(217.7)	(409.2)
Minority interests		0.8
Additional equity components	351.0	351.0
Total equity	2,217.1	2,065.3
Less: Proposed dividend on Ordinary Shares	(166.0)	(136.2)
Less: Pro rata distribution to Additional Tier 1 holders	(13.8)	(15.4)
Less: Equity components included in Additional Tier 1	(351.0)	(351.0)
Less: Other, including Goodwill and intangible assets	(221.1)	(234.6)
Common Equity Tier 1 (CET1)	1,465.2	1,328.1
Additional Tier 1	351.0	351.0
Total qualifying Tier 1 capital	1,816.2	1,679.1
Tier 2 capital
Additional adjustments		0.3
Total regulatory capital	1,816.2	1,679.4
Risk-weighted assets
Credit risk including settlement risk and credit value adjustment	5,941.0	6,157.8
Market risk*	364.9	807.9
Operational risk*	2,332.4	2,044.0
Total risk-weighted assets	8,638.3	9,009.7
	31 December 2023	31 December 2022
	Unaudited	Unaudited
	CHF millions	CHF millions
	%	%
Basel III – CET1 Ratio
(after deducting proposed dividend on Ordinary Shares)	17.0	14.7
Basel III – Total Capital Ratio
(after deducting proposed dividend on Ordinary Shares)	21.0	18.6

^* Risk-weighted figure calculated by taking 12.5 times the capital adequacy requirement

In addition to the existing requirement for the Group to hold eligible capital proportionate to risk-weighted assets, the Group is required to report the leverage ratio. This is a non-risk-based metric, defined as the ratio between 'total

qualifying Tier 1 capital' and total exposure. Total exposure includes balance sheet and off-balance-sheet exposures. The Basel Committee on Banking Supervision defined the requirements at 3%.

	Basel III
	31 December 2023	31 December 2022
	Unaudited	Unaudited
	CHF millions	CHF millions
On-balance sheet exposure (excluding derivatives and other adjustments)	38,364.8	43,304.5
Derivative exposures (including add-ons)	269.8	338.5
Securities financing transactions	13.8	30.5
Other off-balance sheet exposures	212.5	214.3
Total exposure	38,860.9	43,887.8
Total qualifying Tier 1 capital	1,816.2	1,679.1
Basel III – Leverage Ratio	4.7%	3.8%

The Groups CET1 and Total Capital ratios increased by 2.3% and 2.4% respectively, primarily due to the retained profits for the year, and the reclassification of bonds to held to collect effective 01 January 2023 (see note 3 for further details).

13. Net interest income

Accounting principles

Interest income and expenses are recognised for all interest-bearing instruments on an accrual basis, using the effective interest method. When calculating the effective interest rate, the Group estimates cash flows considering all contractual terms of the financial instrument, but does not consider future credit losses. The calculation includes all amounts paid or received between parties to the contract that are an integral part of the effective interest rate, transaction costs, and any other premiums or discounts. Negative interest on assets is recorded as an interest expense, and negative interest on liabilities is recorded as interest income. For financial assets at amortised cost or debt instruments at fair value through other comprehensive income classified in Stage 3 for expected credit loss purposes, the original effective interest rate is applied to the amortised cost of the asset rather than to the gross carrying amount.

	31 December 2023	31 December 2022
	CHF millions	CHF millions
Banks and customers	1,122.9	539.0
Investment securities	192.3	104.8
Treasury bills and other eligible bills	74.2	34.7
Total interest and discount income	1,389.4	678.5
Banks and customers	(771.7)	(234.2)
Financial liabilities at amortised cost	(101.7)	(43.1)
Lease liabilities	(4.0)	(3.2)
Subordinated loans		(2.5)
Total interest expense	(877.4)	(283.0)
Net interest income	512.0	395.5

Total interest expense on banks and customers included negative interest on Swiss francs and Euro deposits placed by the Group at the Swiss National Bank and the European

Central Bank. For the year end 31 December 2023, this amounted to nil (2022: CHF 19.3 million).

14. Net banking fee and commission income

Accounting principle

Fees and commissions are recognised on an accrual basis.

The Group generates fees and commission income from services provided over time (such as portfolio management and advisory services) or when the Group delivers a specific transaction at a point in time (such as brokerage services). The Group recognises fees earned on transaction-based arrangements at a point in time when the service has been fully provided to the customer. Where the contract requires services to be provided over time, income is recognised on a systematic basis over the life of the agreement.

Except for certain portfolio management and advisory fees, all fees are generated at a fixed price. Portfolio management and advisory fees can be variable depending on the size of the customer portfolio and the Group's performance as fund manager. Variable fees are recognised when the performance benchmark has been met and when collectability is assured. The Group acts as principal in the majority of contracts with customers. When the Group acts as agent (in certain brokerage, custody and retrocession arrangements), it recognises income net of fees payable to other parties in the arrangement.

Fee income generated from providing a service that does not result in the recognition of a financial instrument is presented within banking fees and commission income. Fees generated from the acquisition, issue or disposal of a financial instrument are presented in the income statement in line with the balance sheet classification of that financial instrument. Performance-related fees or fee components are recognised when the performance criteria are fulfilled and the fee can be reliably measured.

	31 December 2023 CHF millions	31 December 2022 CHF millions*
Advisory and management fees	396.7	428.0
Brokerage fees	253.2	286.2
Commission and fee income on other services	143.3	146.2
Banking fee and commission income	793.2	860.4
Commission and fee expenses on other services	(206.0)	(230.9)
Banking fee and commission expense	(206.0)	(230.9)
Net banking fee and commission income	587.2	629.5

^* The comparative information has been restated, the Group reclassified "Brokerage fees" for CHF 100.0 million that were

previously reported under "Commission and fee income on other services".

15. Dividend income

	31 December 2023 CHF millions	31 December 2022 CHF millions
Financial assets at fair value through profit and loss	2.8	2.2
Dividend income	2.8	2.2

16. Income from foreign exchange activities

Accounting principle

At the balance sheet date, all monetary assets, including those at FVOCI, and monetary liabilities denominated in foreign currencies are translated into the functional currency using closing exchange rates. Translation differences are reported in Income from foreign exchange activities. Non-monetary items measured at historical cost are translated at the exchange rate on the date of the transaction.

	31 December 2023 CHF millions	31 December 2022 CHF millions*
Clients revenue from currency and metals transactions	106.1	100.4
Currency, precious metals operations	142.9	133.5
Other	5.8	(9.2)
Income from foreign exchange activities	254.8	224.7

^* The comparative information has been restated, the Group reclassified client currency revenues that were previously reported under "Other" for CHF 8.4 million and "Currency,

precious metals operations" for CHF 0.6 million to "Clients revenue from currency and metals transactions".

17. Fair value gains less losses on financial instruments measured at fair value

Accounting principles and details of changes in valuation of level 3 assets are set out in note 42.

	31 December 2023 CHF millions	31 December 2022 CHF millions
Financial instruments measured at fair value
Equity securities	1.4	(5.9)
Life insurance securities	70.3	19.8
Other	1.1	14.6
Fair value gains less losses on financial instruments measured at fair value	72.8	28.5

18. Other operating income/(expense)

	31 December 2023 CHF millions	31 December 2022 CHF millions
Gain on disposal of subsidiary		7.6
Currency translation losses recycled to the income statement on disposal of subsidiary		(12.2)
Other losses	(8.5)	(4.8)
Other profits	9.9	9.1
Other operating income/(expense)	1.4	(0.3)

19. Operating expenses

	Note	31 December 2023 CHF millions	31 December 2022 CHF millions
Staff costs	20	(764.8)	(688.7)
Professional services		(39.1)	(35.0)
Advertising and marketing		(13.0)	(11.4)
Administrative expenses		(86.6)	(80.2)
Depreciation of property, plant and equipment	36	(11.5)	(11.6)
Depreciation of right-of-use assets	36	(33.9)	(37.0)
Amortisation of intangible assets
Computer software and licences	37	(23.6)	(23.8)
Other intangible assets	37	(9.6)	(10.3)
Legal and litigation expenses		(26.6)	(32.7)
Other		(49.2)	(44.3)
Operating expenses		(1,057.9)	(975.0)

20. Staff costs

Accounting principles

Short-term employee benefits

The Group recognises short-term compensated absences and approved bonuses as a liability and an expense.

Share-based compensation

The Group operates an equity-settled, share-based compensation plan. The fair value of the employee services received in exchange for the grant of the options or restricted stock units is recognised as an expense over the vesting period for options or restricted stock units granted under the plan.

	Note	31 December 2023 CHF millions	31 December 2022 CHF millions
Wages, salaries and staff bonuses		(590.9)	(553.2)
Social security costs		(59.9)	(52.8)
Pension costs
Retirement benefits	52	(21.3)	(15.4)
Other net pension costs		(16.2)	(12.9)
Employee equity incentive plans	62	(51.9)	(30.5)
Other		(24.6)	(23.9)
Staff costs		(764.8)	(688.7)

As at 31 December 2023, the number of full-time equivalent employees (FTEs) of the Group was 3,025 (2022: 2,828) and the average for the year was 2,927 (2022: 2,927).

21. Impairment of intangible assets

	31 December 2023 CHF millions	31 December 2022 CHF millions
Computer software, licenses and others	(23.6)
Impairment of intangible assets	(23.6)	–

Total impairment of intangible assets amounts to CHF 23.6 million for the year ended 31 December 2023 (2022: nil). The charge arises primarily from the decision to implement a new e-Banking solution, the carrying value of the existing eBanking solution has been written down with no remaining recoverable amount (CHF 16.2 million write-off). The asset previously belonged to the Corporate segment.

22. Loss allowances expense

For accounting principles and basis for calculating expected credit losses, see note 6.

Loss allowances release/(expense) includes all expected credit losses movements with an income statement impact:

	31 December 2023 CHF millions	31 December 2022 CHF millions
Change in loss allowance on due from other banks	(0.1)	0.1
Change in loss allowance on lombard loans	(4.0)	0.4
Change in loss allowance on other loans	0.1	(4.5)
Change in loss allowance on mortgages	(3.0)	1.4
Change in loss allowance on Treasury bills		(0.1)
Change in loss allowance on investment securities (at amortised cost)	0.1	(0.1)
Change in loss allowance on off-balance sheet items	0.2
Total loss allowance release/(expense)	(6.7)	(2.9)

23. Income tax expense

Accounting principles

Current tax expense comprises income tax payable on profits, based on the applicable tax law in each jurisdiction, and is recognised as an expense in the period in which profits arise.

Deferred income tax is provided, using the liability method, on all temporary differences arising between the tax bases of assets and liabilities and their carrying values for financial reporting purposes. The expected effective tax rates are used to determine deferred income tax. The principal temporary differences arise from intangible amortisation, pension obligations, and revaluation of certain financial assets and liabilities.

Deferred tax assets are only recognised to the extent that it is probable that they will crystallise in the future. Deferred tax relating to changes in fair values of financial assets classified as 'Investment securities', which is taken directly to the 'Statement of other comprehensive income', is charged or credited directly to other comprehensive income and for debt instruments is subsequently recognised in the income statement together with the deferred gain or loss on disposal.

Accounting judgement

The Group is subject to income taxes in various jurisdictions. Estimates are required in determining the worldwide provision for income taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business.

Significant estimates are required to determine the current and deferred tax assets and liabilities. A deferred tax asset is recognised for the carry forward of unused tax losses to the extent that it is probable that future taxable profits will be available and used against these losses. To the extent that it is not probable that taxable profit will be available against which unused tax losses can be utilised, the deferred tax asset is not recognised.

	Note	31 December 2023 CHF millions	31 December 2022 CHF millions
Current tax expense		(25.1)	(40.7)
Deferred income tax (expense)/credit	39	(4.9)	7.3
Income tax expense		(30.0)	(33.4)

The tax on the Group's profit before tax differs from the theoretical amount that would arise using the weighted average tax rate of the Group, as follows:

	31 December 2023 CHF millions	31 December 2022 CHF millions
Operating profit before tax	333.2	237.1
Tax at the weighted average applicable rate of 19% (2022: 19%)	(63.3)	(45.0)
Tax effect of:
Unrecognised tax losses carried forward for the year	(3.3)	(2.8)
Profit not subject to tax	10.3	7.1
Additional prior year tax losses recognised	22.6	7.2
Release of prior years tax over-provisions	1.7
Other differences	2.0	0.1
Total income tax expense	(30.0)	(33.4)

The weighted average tax rate of 19% (2022: 19%) is based on the operating entities' local tax rates relative to the taxable income in these jurisdictions.

24. Basic and diluted earnings per ordinary share

	31 December 2023 CHF millions	31 December 2022 CHF millions
Net profit for the year attributable to equity holders of the Group	303.2	202.4
Estimated distribution on additional equity components	(18.4)	(20.5)
Net profit for the year attributable to ordinary shareholders	284.8	181.9
Weighted average number of ordinary shares ('000s of shares)	303,138	305,165
Basic earnings per ordinary share (CHF)	0.94	0.60
Diluted-weighted average number of ordinary shares ('000s of shares)	311,668	318,081
Diluted earnings per ordinary share (CHF)	0.91	0.57

Basic earnings per ordinary share is calculated by dividing the net profit attributable to ordinary shareholders by the weighted average number of ordinary shares in issue during the year, excluding the average number of ordinary shares

owned by the Group amounting to 8,083,336 (2022: 2,078,944).

For the purpose of the calculation of earnings per ordinary share, net profit for the period attributable to ordinary shareholders has been adjusted by an estimated accrued distribution of 5.5% p.a. on the additional equity components.

Diluted earnings per ordinary share is calculated by adjusting the weighted average number of ordinary shares outstanding for the dilutive impact of 8.5 million ordinary shares projected to be issued related to the employee equity incentive plan (2022: 12.9 million shares). The restricted stock units as part of the employee equity incentive plan have the effect to increase the dilutedweighted average number of ordinary shares of the Group in periods when the Group has profits attributable to ordinary shareholders.

For information regarding the EFG International equity incentive plan, see note 62.

25. Segmental reporting

The segmental reporting is based on how the Executive Committee reviews the performance of the Group's operations.

The primary split is between the Private Banking and Wealth Management business, the Investment & Wealth Solutions business, Global Markets & Treasury, and an aggregation of other activity. The Private Banking and Wealth Management business is managed on a regional basis and is split into:

• Switzerland & Italy
• Continental Europe & Middle East
• Americas
• United Kingdom
• Asia Pacific

The expense allocation between segments follows a basis using a combination of directly attributable costs, and allocated costs using appropriate allocation keys (Assets under Management, FTEs, Client Relationship Officers, Revenues or other drivers as applicable).

Refer to note 65 for the definition of Assets under Management.

	Private Banking and Wealth Management
		Continental
	Switzerland	Europe		United
CHF millions	& Italy	& Middle East	Americas	Kingdom
At 31 December 2023
Segment revenue	451.9	256.7	133.1	178.2
Segment expenses	(259.9)	(167.0)	(112.4)	(131.8)
Tangible assets and software depreciation	(10.9)	(6.6)	(3.2)	(4.3)
Total operating margin	181.1	83.1	17.5	42.1
Cost to acquire intangible assets and impairment
of intangible assets
Provisions		(0.4)
Loss allowances release/(expense)	(1.7)	(7.0)	0.1	(0.8)
Segment profit/(loss) before tax	179.4	75.7	17.6	41.3
Income tax expense	(16.0)	(6.8)	(1.6)	(3.7)
Profit/(loss) for the year	163.4	68.9	16.0	37.6
Assets under Management	38,761	25,856	17,457	19,877
Employees (FTEs)	335	217	164	205

	Private Banking and Wealth Management
		Continental
	Switzerland	Europe		United
CHF millions	& Italy	& Middle East	Americas	Kingdom
At 31 December 2022
Segment revenue	359.3	194.2	102.3	154.6
Segment expenses	(243.6)	(161.4)	(95.3)	(114.2)
Tangible assets and software depreciation	(9.1)	(6.3)	(2.6)	(4.0)
Total operating margin	106.6	26.5	4.4	36.4
Cost to acquire intangible assets and impairment
of intangible assets		(0.4)
Provisions	(0.5)	(1.4)	(1.0)	(0.5)
Loss allowances release/(expense)	(4.3)	0.2	(0.4)	0.2
Segment profit/(loss) before tax	101.8	24.9	3.0	36.1
Income tax expense	(12.5)	(3.1)	(0.4)	(4.4)
Profit/(loss) for the year	89.3	21.8	2.6	31.7
Assets under Management	42,325	24,471	16,102	20,117
Employees (FTEs)	329	204	146	180

Total	Eliminations	Corporate	Global Markets & Treasury	Investment & Wealth Solutions
					Total	Asia Pacific
1,430.7		39.2	83.7	122.4	1,185.4	165.5
(1,022.9)		(35.4)	(53.9)	(117.1)	(816.5)	(145.4)
(35.1)		0.1	(2.1)	(3.0)	(30.1)	(5.1)
372.7	–	3.9	27.7	2.3	338.8	15.0
(23.6)		(23.6)			–
(9.2)		(8.5)			(0.7)	(0.3)
(6.7)		3.6	(0.7)		(9.6)	(0.2)
333.2		(24.6)	27.0	2.3	328.5	14.5
(30.0)		2.0	(2.4)	(0.2)	(29.4)	(1.3)
303.2	–	(22.6)	24.6	2.1	299.1	13.2
142,244	(38,890)			48,241	132,893	30,942
3,025		1,377	94	296	1,258	337

		Investment & Wealth Solutions	Global Markets & Treasury	Corporate	Eliminations	Total
Asia	Total
166.6	977.0	139.6	173.5	(20.1)		1,270.0
(134.9)	(749.4)	(109.2)	(49.8)	(21.0)		(929.4)
(5.2)	(27.2)	(3.6)	(4.4)	(0.1)		(35.3)
26.5	200.4	26.8	119.3	(41.2)	–	305.3
(0.2)	(0.6)			(9.7)		(10.3)
	(3.4)		(0.2)	(51.4)		(55.0)
	(4.3)	0.5		0.9		(2.9)
26.3	192.1	27.3	119.1	(101.4)		237.1
(3.2)	(23.6)	(3.4)	(14.7)	8.3		(33.4)
23.1	168.5	23.9	104.4	(93.1)	–	203.7
30,153	133,168	46,936			(36,969)	143,135
304	1,163	284	90	1,291		2,828

26. Analysis of Swiss and foreign income and expenses

	Swiss CHF millions	Foreign CHF millions	Total CHF millions
Year ended 31 December 2023
Operating income	776.8	653.9	1,430.7
Operating expenses	(606.0)	(451.9)	(1,057.9)
Impairment of intangible assets	(23.6)		(23.6)
Provisions	(8.8)	(0.5)	(9.3)
Loss allowances expense	(3.6)	(3.1)	(6.7)
Profit before tax	134.8	198.4	333.2
Income tax expense	(13.3)	(16.7)	(30.0)
Net profit for the year	121.5	181.7	303.2
Net profit for the period attributable to:
Net profit attributable to equity holders of the Group	121.6	181.6	303.2
Net profit attributable to non-controlling interests
	121.6	181.6	303.2
	Swiss	Foreign	Total
	CHF millions	CHF millions	CHF millions
Year ended 31 December 2022
Operating income	689.2	580.8	1,270.0
Operating expenses	(523.2)	(451.8)	(975.0)
Provisions	(10.6)	(44.4)	(55.0)
Loss allowances expense	(2.9)		(2.9)
Profit before tax	152.5	84.6	237.1
Income tax expense	(21.2)	(12.2)	(33.4)
Net profit for the year	131.3	72.4	203.7
Net profit for the period attributable to:
Net profit attributable to equity holders of the Group	131.3	71.1	202.4
Net profit attributable to non-controlling interests		1.3	1.3
	131.3	72.4	203.7

27. Cash and balances with central banks

	31 December 2023 CHF millions	31 December 2022 CHF millions
Cash in hand	42.8	39.4
Balances with central banks	4,684.1	9,448.2
Cash and balances with central banks	4,726.9	9,487.6

28. Cash and cash equivalents

Accounting principle

Cash and cash equivalents include cash in hand, deposits held at call with banks, short-term deposits and other shortterm highly liquid investments with original maturities of less than 90 days maturity.

	31 December 2023 CHF millions	31 December 2022 CHF millions
Cash and balances with central banks	4,726.9	9,487.6
Treasury bills and other eligible bills	1,979.1	1,878.3
Due from other banks – at sight	876.5	1,247.2
Due from other banks – at term	1,293.6	473.0
Cash and cash equivalents with less than 90 days maturity	8,876.1	13,086.1

29. Treasury bills and other eligible bills

	31 December 2023 CHF millions	31 December 2022 CHF millions
Treasury bills - with maturity of less than 90 days	1,979.1	1,878.3
Treasury bills - with maturity of more than 90 days	361.5	1,177.1
Treasury bills and other eligible bills	2,340.6	3,055.4
Pledged treasury bills with central banks and clearing system companies	–	–

30. Due from other banks

	31 December 2023 CHF millions	31 December 2022 CHF millions
At sight	876.5	1,247.2
At term – with maturity of less than 90 days	1,293.6	472.9
At term – with maturity of more than 90 days	447.6	375.8
Less: Loss allowance	(0.1)
Due from other banks	2,617.6	2,095.9
Pledged due from other banks	680.7	353.2

31. Derivative financial instruments

Accounting principle

Derivative financial instruments are initially recognised in the balance sheet at fair value on the date on which the derivative contract is entered into and are subsequently remeasured at their fair value. Fair values are obtained from quoted market prices, including recent market transactions, discounted cash flow models and option pricing models, as appropriate. Certain derivatives embedded in other financial instruments, such as the option in a structured product, are treated as separate derivatives when their economic characteristics and risks are not closely related to those of the host contract and the host contract is not carried at fair value through profit and loss. These embedded derivatives are measured at fair value with changes in fair value recognised in the income statement, unless the Group chooses to designate the hybrid contracts at fair value through profit and loss.

When the Group applies hedge accounting, the Group documents, at the inception of the transaction, the relationship between hedged items and hedging instruments, as well as its risk management objective and strategy for undertaking various hedge transactions. The Group also documents its assessment, at hedge inception and on an ongoing basis (as well as upon a significant change in the circumstances affecting the hedge effectiveness requirements) of whether a hedging relationship meets the hedge effectiveness requirements.

The Group will discontinue hedge accounting in the following scenarios:

• When the Group determines that a hedging relationship no longer meets the risk management objective
• When the hedging instrument expires or is sold or terminated
• When there is no longer an economic relationship between the hedge item and the hedging instrument or the effect of credit risk starts to dominate the value changes that result from that economic relationship

The below summarises the different treatment of derivatives (whether or not hedge accounting is applied):

(i) Fair value hedge

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in the income statement, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk. If the hedge no longer meets the criteria for hedge accounting, the adjustment to the carrying amount of a hedged item, for which the effective interest method is used, is amortised to the income statement over the period to maturity.

(ii) Derivatives that do not qualify for hedge accounting

Certain derivative instruments do not qualify for hedge accounting. Changes in the fair value of any derivative instrument that does not qualify for hedge accounting are recognised immediately in the income statement.

(iiI) Cash flow hedge

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognised in other comprehensive income. The gains and losses relating to the ineffective portion is recognised immediately in the income statement. Amounts accumulated in equity are recycled to the income statement in the periods when the hedged items affect profit or loss.

31.1 Derivatives

Credit risk in derivatives is driven by the potential cost to replace the forward or swap contracts if counterparties fail to perform their contractual obligations and collateral provided does not cover EFG International's claims. This risk is monitored on a regular basis with reference to the current fair value, a collateral margin applied to a proportion of the notional amount of the contracts and the liquidity of the market.

To control the level of credit risk taken, EFG International assesses counterparties using the same techniques as for its lending activities. Credit risk on index, interest rate and bond futures and other quoted derivatives is negligible because futures contracts are collateralised by cash or marketable securities, and changes in their value are settled daily. The counterparty credit risk related to derivative with

banks, corporates and financial institutions and the counterparty credit risk related to securities lending and borrowing as well as repo activities are mitigated by applying daily collateral exchange and operating under international ISDA/ CSA or GMRA/ GMSLA agreements.

The notional amounts of financial instruments provide a basis for comparison, but do not indicate the amount of future cash flows, or the current fair value of the underlying instruments. Accordingly, they do not indicate EFG International's exposure to credit or price risks. The derivative instruments become favourable (assets) or unfavourable (liabilities) as a result of fluctuations in market interest rates, credit spreads or foreign exchange rates, relative to their terms.

The fair values of derivative instruments held are set out in the following table:

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	31 December 2023		31 December 2022
	Fair values	Fair values	Fair values	Fair values
	Assets	Liabilities	Assets	Liabilities
	CHF millions	CHF millions	CHF millions	CHF millions
Derivatives held for trading
Currency and precious metal derivatives
Forward contracts	43.2	56.2	47.1	39.4
Currency swaps	915.4	979.8	638.3	659.1
OTC currency options	90.4	85.4	62.4	49.9
	1,049.0	1,121.4	747.8	748.4
Interest rate derivatives
Interest rate swaps	33.0	13.3	19.5	38.4
OTC interest rate options	0.8	2.3	1.9
Interest rate futures	0.1	11.7	6.5
	33.9	27.3	27.9	38.4
Other derivatives
Equity options and index futures	352.0	392.8	794.0	831.8
Credit default swaps	6.8	6.8	10.2	13.7
Total return swaps	24.3		31.8
Commodity options and futures	3.7	3.7	3.2	3.2
	386.8	403.3	839.2	848.7
Total derivative assets/liabilities held
for trading	1,469.7	1,552.0	1,614.9	1,635.5
Derivatives held for hedging
Derivatives designated as fair value hedges
Cross currency swap		0.1		0.3
Interest rate swaps	104.6	6.3	181.3	7.1
	104.6	6.4	181.3	7.4
Derivatives designated as cash flow hedges
Forward contracts		11.9
	–	11.9	–	–
Total derivative assets/liabilities held
for hedging	104.6	18.3	181.3	7.4
Total derivative assets/liabilities	1,574.3	1,570.3	1,796.2	1,642.9

31.2 Hedge accounting

Fair value hedge

The Group applies hedge accounting under IFRS 9 to interest rate risk on fixed rate bonds (fair value hedge). The Group holds a portfolio of long dated fixed rate bonds and therefore is exposed to changes in fair value due to movements in market interest rates. The Group manages the risk exposure by entering into cross currency swaps and interest rate swaps that pay fixed rates matching the coupons of the bonds and receive floating interest rates.

Only the interest rate element is hedged and therefore other risks, such as credit risk, are managed but not hedged by the Group. The interest rate risk component is determined as the change in fair value of the long-term fixed rate bond arising solely from changes of the interest rate environment. Such changes are usually the largest component of the overall changes in fair value.

This strategy is designated as a fair value hedge and its effectiveness is assessed by comparing changes in the fair value of the bonds attributable to changes in the

benchmark rate of interest with changes in the fair value of the interest rate swaps.

The Group enters into these transactions on a 'package basis', i.e. enters into the swap at the same time as purchasing the bond and structures the swap so that the principal terms of the swap exactly match those of the bond.

Cash flow hedge

The Group hedges the expected foreign exchange cash flows from commission and interest income, designating foreign exchange derivatives as hedging instruments and the expected profit and loss cash flows (i.e., highly probable forecasted commission and interest revenues transactions) as hedged items.

The cash flows relating to a portion of gross commission and interest revenues originating from foreign currencies flows are subject to variation in market foreign exchange rates versus the Group's reference currency and this could affect the cash flows booked in the income statement.

31 December 2023

	Notional amount of hedging item CHF millions	Fair value of assets CHF millions	Fair value liabilities CHF millions	Balance sheet line item	Change in fair value used for hedge ineffectiveness CHF millions
Fair value hedge
Cross currency swaps			0.1	Derivatives	0.1
Interest rate swaps	1,434.2	104.6 6.3		Derivatives				(39.8)
Cash flow hedge
Forward contracts	245.4		11.9	Derivatives	11.9
Total hedging item	1,679.6	104.6	18.3		(27.8)
			Fair value		Change in fair value
	Carrying amount of hedged assets	Carrying amount of hedged liabilities	adjustments on the hedged item	Balance sheet line item	for hedge ineffectiveness
Fair value hedge	CHF millions	CHF millions	CHF millions		CHF millions
Fixed rate bonds	1,522.0			(122.0) Investment securities	39.8
Total hedged item	1,522.0	–	(122.0)		39.8
			31 December 2022
	Notional amount of	Fair value		Balance sheet	Change in fair value for hedge
	hedging item	of assets	Fair value liabilities	line item	ineffectiveness
	CHF millions	CHF millions	CHF millions		CHF millions
Fair value hedge
Cross currency swaps	8.8		0.3	Derivatives	0.4
Interest rate swaps	2,030.5	181.3	7.1	Derivatives	155.0
Total hedging item	2,039.3	181.3	7.4		155.4
			Fair value		Change in fair value
	Carrying amount of	Carrying amount of	adjustments on	Balance sheet	for hedge
	hedged assets	hedged liabilities	the hedged item	line item	ineffectiveness
	CHF millions	CHF millions	CHF millions		CHF millions
Fair value hedge
Fixed rate bonds	1,870.3			(195.1) Investment securities	(155.4)
Total hedged item	1,870.3	–	(195.1)		(155.4)

32. Financial assets at fair value through profit and loss

Accounting judgement

Unquoted life insurance policies are measured at fair value, following the guidance of IFRS 13. The market for life insurance policies is illiquid and in the absence of market observable valuations for portfolios of similar characteristics, EFG International Group had to exercise judgement in determining the fair value of these assets. The Group has adopted an Income Approach for determining the fair value. The Income Approach risk adjusts future cash flows and then discounts these using a risk-free rate. The key risk adjustments made in the fair value measurement include longevity risk (including the risk of statistical volatility) and risk of change in cost of insurance. The valuation is highly sensitive to longevity risk and risk of change in cost of insurance (premium increase risk), and as a result the Group discloses sensitivities to these. Management judgement is applied to the estimation of future premium streams and cost of insurance, and the outcome of disputes with insurers involving significant increases in premiums.

		31 December 2023 CHF millions	31 December 2022 CHF millions
Issued by non-public issuers:	Banks	141.5	81.7
Issued by non-public issuers:	Corporates and other	684.4	685.7
Issued by other issuers:	US life insurance companies	537.7	690.1
Total		1,363.6	1,457.5
At 01 January		31 December 2023 CHF millions 1,457.5	31 December 2022 CHF millions 1,807.3
Additions		295.0	298.8
Disposals (sale and maturity)		(150.4)	(484.7)
Net (losses)/gains from changes in fair value		(127.6)	(157.6)
Exchange differences		(110.9)	(6.3)
At 31 December		1,363.6	1,457.5

Pledged assets

The Group has pledged financial investment securities as collateral for CHF 7.2 million (2022: CHF 14.4 million) related to the Group's role as collateral provider in relation to structured products issued by a subsidiary.

The Group has pledged financial investment securities issued by US life insurance companies as collateral for CHF 114.4 million (2022: CHF 136.7 million) related to the Group's financial liabilities at fair value through profit and loss. See note 47.

Life insurance related assets

The Group holds the following life insurance related financial assets and liabilities as at 31 December 2023:

		31 December 2023 Number of	31 December 2023 Average age	31 December 2023 Average life expectancy	31 December 2023 Net death benefits	31 December 2023 Fair value
Classification		insureds	Years	Years	CHF millions	CHF millions
Financial asset at fair value through profit
and loss	Physical policies	160	93.5	3.6	938.8	537.7
Derivative financial instruments	Synthetic policies	50	92.4	4.4	47.1	24.3
Financial liabilities designated at fair value	Synthetic policies	(43)	(91.1)	(4.1)	(201.9)	(131.0)
Total		167			784.0	431.0

Classification		31 December 2022 Number of insureds	31 December 2022 Average age Years	31 December 2022 Average life expectancy Years	31 December 2022 Net death benefits CHF millions	31 December 2022 Fair value CHF millions
Financial asset at fair value through profit
and loss	Physical policies	195	92.7	3.8	1,281.2	690.1
Derivative financial
instruments	Synthetic policies	59	91.4	4.5	61.3	31.8
Financial liabilities designated at fair
value	Synthetic policies	(48)	(90.3)	(4.5)	(235.4)	(145.9)
Total		206			1,107.1	576.0

These life insurance policies are issued by US life insurance companies. The Group pays a periodic premium to the life insurance company to keep the policy in good standing and, upon the insured individual (US based) having deceased, the life insurance company pays a lump sum death benefit to the Group. Should the Group not pay the necessary periodic premium, the insurance policy would lapse, and this would imply a full write-down of the life insurance policy.

The key risks that the Group is exposed to (and which impact the fair value) include the following:

• Longevity (see note 10)
• Changes in the premium streams (cost of insurance)
• Counterparty credit risk
• Interest rate risk

The Group values these financial assets and liabilities at fair value using models. As the market for life settlement policies is private and fragmented, the models rely on inputs to the models that are not based on observable

market data (unobservable inputs) and assumptions are made in determining relevant risk adjustments. These financial instruments are classified as level 3.

The fair value is calculated using cash flows market participants would expect, based on management judgement that is based on information provided by independent parties specialised in calculating future cost of insurance charges for life insurance policies and adjusted to account for uncertainties.

The determination of the fair value for this portfolio is a critical process and therefore the Group reviews these estimates on a periodic basis and relies on expert actuaries and legal advisors in order to minimise risks surrounding the assumptions related to the life expectancy and cost of insurance estimates.

The determination of the fair value of these financial assets and liabilities requires management judgement on the below valuation inputs:

(a) Longevity assumptions

The assumptions on life expectancy are based on the Valuation Basic Table (VBT) last published by the Society of Actuaries in 2015 and adjusted by external life settlement underwriters and actuaries to reflect the individual medical characteristics of the referenced insureds. Premium estimates are based on cost of insurance estimates, which are provided by independent parties specialised and experienced in the field of premium calculations for life settlement policies. The Group conducts a regular in-depth review of such providers to ensure high-quality standards and reliability of the forecasts.

(b) Premium streams and cost of insurance

The determination of the best estimate cash flows included in the valuation of the life insurance for the fair value estimate of these assets under IFRS 13 is considered to be a critical accounting judgement for the Group, due to the lack of observable readily available information and the complexity of the determination of these assumptions.

The Group uses management's best estimate (considering historic information and relying on specialised opinions) and information from external service providers about trends and market developments. Management also considers that the outcome of disputes involving significant increases in premiums observed in the US market will affect the expected premiums payable.

The determination of the appropriate level of increase of cost of insurance in the underlying policies is one of the most important assumptions applied by management in the valuation model. Increases in cost of insurance considers the aging of the insured persons and increases in pricing levels of premiums imposed by certain carriers that issued these policies. The majority of life insurance policies have increasing annual premiums payable. In certain instances, additional increases have been announced by the insurance companies. The Group considers these increases in cost of insurance to be unjustified and has challenged their implementation in US courts.

The outcome of disputes involving significant increases in cost of insurance observed in the US market affecting the life insurance policies in the portfolio are taken into account. In these cases, management has, in line with market participants, set their own best estimates taking into account the factors outlined above and the relevant contracts. As the ultimate resolution of these legal actions is significant for the Group, it relies on actuaries to set the cost of insurance assumptions.

The Group will also take legal actions against other carriers that have indicated that they will increase premiums. The Group believes that it will prevail in these claims, however legal proceedings are inherently unpredictable and the actual future outcome might materially differ from the Group's expectations.

(c) Counterparty credit risk

This is the risk of default of the insurance carrier. Credit risk is taken into account through applying a notching-based probability of default approach that takes the credit rating assigned by a recognised agency into consideration as starting point. The Group is of the view that US life insurance carriers are operating in a highly regulated environment, which would ensure that the rights of the beneficiary under a life insurance policy remain protected and claims under such policies rank among the most senior liabilities.

(d) Interest rate risk

The risk-adjusted cash flows have been discounted at the term matching linearly interpolated US Treasury curve.

Sensitivities

The sensitivity to the fair value of the Group's life insurance related assets and liabilities held at fair value are included below:

		Discount Factor		Longevity		Premium Estimates
		–1%			+1% –3 months +3 months		+5%
		CHF	CHF	CHF	CHF	CHF	CHF
		millions	millions	millions	millions	millions	millions
Life settlement sensitivities
Financial assets at fair value	Physical policies	26.2	(24.2)	18.6	(18.0)	13.0	(12.9)
Derivative financial instruments	Synthetic policies	0.9	(0.8)	0.2	(0.3)
Financial liabilities designated at fair value	Synthetic policies	(4.8)	4.5	(3.9)	3.9
Profit and loss sensitivity		22.3	(20.5)	14.9	(14.4)	13.0	(12.9)

The assumptions related to premiums and cost of insurance take the market participants' view on the merits of the ongoing legal cases of the Group and other plaintiffs into account. The development and ultimate resolution of these proceedings have an impact on the Group's fair value

assumptions by a potential loss of CHF 53.7 million (2022: CHF 77.2 million).

The impact of counterparty credit risk for a two-notch downgrade would be CHF 1.6 million (2022: CHF 3.2 million) decrease in fair value.

33. Investment securities

Accounting principles are set out in note 42.

		31 December 2023	31 December 2022
		CHF millions	CHF millions
Debt securities	Amortised cost	8,490.2	2,402.4
Debt securities	Fair value through other comprehensive income		5,267.4
Gross investment securities		8,490.2	7,669.8
Less: Loss allowance on investment
securities at amortised cost		(0.4)	(0.1)
Investment securities		8,489.8	7,669.7

On 22 December 2022 the Group announced an accounting change related to its holdings of fixed income securities in connection with the new capital management framework that it presented in October 2022. For further information,

refer to note 3 "Change in accounting policies".

The following table presents the split by issuer and respective loss allowances (ECL):

	31 December 2023		31 December 2022
	Carrying amount CHF millions	Loss allowance CHF millions	Carrying amount CHF millions	Loss allowance CHF millions
Government	5,649.1	0.2	5,091.2	0.2
Banks	2,667.6	0.2	2,421.6	0.3
Other issuers	173.1		156.9
Total	8,489.8	0.4	7,669.7	0.5

34. Loans and advances to customers

Accounting principles are set out in note 42.

	Note	31 December 2023 CHF millions	31 December 2022 CHF millions
Mortgages		5,373.4	5,666.3
Lombard loans		10,494.1	10,941.9
Other loans		169.7	154.1
Gross loans and advances		16,037.2	16,762.3
Less: Loss allowance	35	(18.1)	(14.2)
Loans and advances to customers		16,019.1	16,748.1

The other loans include CHF 27.6 million (2022: CHF 45.3 million) of loans made with no collateral and CHF 71.3 million (2022: CHF 79.3 million) of loans where the collateral value is below the value of the loan.

The uncollateralised portion of these loans is classified as 'unsecured'; however, they are within the approved unsecured lending limits for the customers.

35. Loss allowances on loans and advances to customers

Accounting judgement

The measurement of the expected credit loss allowance for financial assets measured at amortised cost and fair value through other comprehensive income is an area that requires the use of complex models and significant assumptions about future economic conditions and credit behaviour (e.g. the likelihood of customers defaulting and the resulting losses). Explanation of the inputs, assumptions and estimation techniques used in measuring the expected credit losses are further detailed in note 6, which also sets out the key sensitivities of the expected credit losses to changes in these elements.

A number of significant judgements are also required in applying the accounting requirements for measuring the expected credit losses, such as:

• Determining the criteria for significant increase in credit risk
• Choosing appropriate models and assumptions for the measurement of expected credit losses
• Establishing the number and relative weightings of forward-looking scenarios for each type of product and the associated expected credit losses
• Establishing groups of similar financial assets for the purposes of measuring the expected credit losses

		2023	2022
	Note	CHF millions	CHF millions
At 01 January		(14.2)	(16.9)
Loss allowance release/(expense) through profit and loss		(6.7)	(2.9)
Utilisation of provision		1.8	5.4
Exchange differences		1.0	0.2
At 31 December		(18.1)	(14.2)

36. Property, plant and equipment

Accounting principles

Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses.

Depreciation is calculated using the straight-line method to write down the cost of property, plant and equipment, to their residual values over their estimated useful life as follows:

• Buildings own use: 50 years
• Buildings and leasehold improvements: 5–20 years
• Computer hardware: 3–10 years
• Furniture, equipment and motor vehicles: 3–10 years
• Artwork: no depreciation, tested for impairment
• Right-of-use assets: over the non-cancellable period for which the Group has the right to use an asset, including optional periods when the Group is reasonably certain to exercise an option to extend (or not to terminate) a lease

Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in net other income in the income statement.

The Group primarily leases office premises, as well as some IT equipment. Rental contracts vary from fixed periods of six months to 15 years.

The Group recognises lease liabilities in relation to leases. These liabilities are measured at the present value of the remaining lease payments, discounted using the lessee's incremental borrowing rate at the date of entering the lease.

The remeasurements to the lease liabilities are recognised as adjustments to the related right-of-use assets immediately after the date of initial application. Right-of-use assets are measured at the amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments relating to that lease recognised in the balance sheet.

	Note	Land and Buildings CHF millions	Other tangible assets CHF millions	Right-of-use assets CHF millions	Total CHF millions
Year ended 31 December 2022
Opening net book amount		73.7	46.0	214.9	334.6
Additions			12.1		12.1
New leases and modification of leases				22.8	22.8
Disposal, write-offs and lease modifications		(2.2)			(2.2)
Depreciation charge for the year	19	(1.9)	(9.7)	(37.0)	(48.6)
Exchange differences		0.1	(0.7)	(6.4)	(7.0)
At 31 December 2022		69.7	47.7	194.3	311.7
Year ended 31 December 2023
Opening net book amount		69.7	47.7	194.3	311.7
Additions		0.5	12.0		12.5
New leases and modification of leases				29.3	29.3
Depreciation charge for the year	19	(2.1)	(9.4)	(33.9)	(45.4)
Exchange differences			(1.1)	(7.1)	(8.2)
At 31 December 2023		68.1	49.2	182.6	299.9

Other tangible assets include leasehold improvements, furniture, equipment, motor vehicles and computer

hardware. The right-of-use assets are composed of office premises for CHF 182.6 million (2022: CHF 194.3 million).

37. Intangible assets

Accounting principles

The intangible assets include the following categories:

(i) Computer software, licences and others

Amortisation is calculated using the straight-line method over a 3- to 10- year basis. The acquisition cost of software, licences and other assets capitalised is on the basis of the cost to acquire and bring into use the specific software, licenses and other assets.

(ii) Acquisition-related intangibles

Customer relationships - amortisation is calculated on the basis of a 13- to 14-year useful life. The remaining life is reviewed periodically for reasonableness.

Brand name - amortisation is calculated on the basis of a 15-year useful life. The remaining life is reviewed periodically for reasonableness.

(iii) Goodwill

Goodwill represents the excess of the consideration over the fair value of the Group's share of the net identifiable assets of the acquired undertaking at the date of acquisition. Goodwill is allocated to cash-generating units for the purpose of impairment testing. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold.

	Note	Computer software, licences and others CHF millions	Acquisition-related intangible assets CHF millions	Goodwill CHF millions	Total intangible assets CHF millions
Year ended 31 December 2022
Opening net book amount		83.9	96.6	48.8	229.3
Acquisitions/disposals of intangible assets		48.3			48.3
Amortisation of intangible assets	19	(23.8)	(10.3)		(34.1)
Exchange differences and other movements		(0.9)	(1.1)	(2.4)	(4.4)
Closing net book value		107.5	85.2	46.4	239.1
Year ended 31 December 2023
Opening net book amount		107.5	85.2	46.4	239.1
Acquisitions/disposals of intangible assets		25.7			25.7
Amortisation of intangible assets	19	(23.6)	(9.6)		(33.2)
Impairment of intangible assets	21	(23.6)			(23.6)
Exchange differences and other movements		1.3	(2.2)	(3.6)	(4.5)
Closing net book value		87.3	73.4	42.8	203.5

Acquisition-related intangible assets mainly include client relationships intangible assets for CHF 66.1 million (2022: CHF 76.7 million), brand names intangibles for CHF 3.4

million (2022: CHF 4.2 million) and other for CHF 3.9 million (2022: CHF 4.2 million). Other intangible assets are mainly related to rights to lease.

38. Intangible assets – impairment tests

Accounting judgement

EFG International Group tests at least annually whether goodwill has suffered impairment in accordance with the accounting policy. The recoverable amounts of cash-generating units are the higher of the assets' value in use and fair value less costs of disposal which is determined on the basis of the best information available on the amount that could be obtained from the disposal of the assets in an arm's-length transaction, after deduction of the costs of disposal. The value in use is determined by using a discounted cash flow calculation based on the estimated future operating cash flows of the asset. An impairment is recorded when the carrying amount exceeds the recoverable amount.

The Group's goodwill is reviewed for impairment by comparing the carrying amount of each cash-generating units (CGU) to which goodwill is allocated to its recoverable amount.

Where the carrying values have been compared to recoverable amounts using the 'Value in use' approach, the riskadjusted discount rates used are based on observable market long-term government bond yields (15 years) for the relevant currencies plus a risk premium of 3.6% to 5.3% (2022: 3.9% to 6.5%). The risk premiums were determined using capital asset pricing models and are based on capital market data as of the date of impairment test. A period of five years is used for cash flow projections, with a discounted

terminal value added. The terminal value is into perpetuity using the year 5 cashflows and discount and growth rates as detailed in the following table.

Where the carrying values have been compared to 'Fair value less costs to sell', the fair value has been calculated using a price earnings (PE) approach based on similar transactions for comparable listed companies. The revenue basis for the PE approach was based on expected future revenues.

The carrying amounts of goodwill and intangible assets at 31 December 2023 allocated to each cash-generating unit are as follows:

		31 December 2023
Segment	Cash-generating unit	Discount rate/ Growth rate	Period	Intangible assets CHF millions	Goodwill CHF millions	Total CHF millions
Value in use Asia	Shaw and Partners	7.8%/2.3%	5 years	16.6	23.1	39.7
BSI Group	Various	9.5%/–8.8%	6.8 years	52.0		52.0
Fair value less costs to sell		P/E
Continental Europe	Monaco	12.3×			17.9	17.9
Other
Various	Other CGUs			4.8	1.8	6.6
Total carrying values				73.4	42.8	116.2

Total carrying values				85.2	46.4	131.6
Various	Other CGUs			5.5	1.9	7.4
Other
Continental Europe	Monaco	9.2×			19.0	19.0
Fair value less costs to sell		P/E
BSI Group	Various	9.6%/–8.8%	7.8 years	59.4		59.4
Asia	Shaw and Partners	8.1%/2.0%	5 years	20.3	25.5	45.8
Value in use
Segment	Cash-generating unit	Discount rate/ Growth rate	Period	assets CHF millions	Goodwill CHF millions	Total CHF millions
				Intangible
				31 December 2022

The Group considers that no reasonably possible change in a key assumption will result in an impairment of goodwill of any of the cash-generating units.

39. Deferred income tax assets and liabilities

Accounting policies are set out in note 23. Deferred income taxes are calculated under the liability method on all temporary differences, using the expected effective local applicable rate. Deferred income tax assets and liabilities comprise the following:

	31 December 2023 CHF millions	31 December 2022 CHF millions
Deferred income tax assets	73.9	80.1
Deferred income tax liabilities	(16.4)	(17.4)
Net deferred income tax	57.5	62.7

The movement on the net deferred income tax account is as follows:

At 01 January	62.7	42.0
Deferred income tax gain/(loss) for the period in the income statement (note 23)	(4.9)	7.3
Financial assets at fair value through other comprehensive income	(6.4)	6.8
Change in retirement benefit obligations	5.6	7.9
Exchange differences	0.5	(1.3)
At 31 December	57.5	62.7

Deferred income tax assets and liabilities are attributable to the following items:

	31 December 2023 CHF millions	31 December 2022 CHF millions
Deferred tax assets
Tax losses carried forward	63.0	65.9
Provisions not yet deductible for local tax	15.9	19.5
Retirement benefit obligation not applicable for local tax	7.8	2.6
Valuation of financial assets not reflected in local tax accounts		6.4
Other differences between local tax rules and accounting standards	3.5	3.6
Effect of deferred tax netting	(16.3)	(17.9)
Deferred income tax assets	73.9	80.1
Deferred tax liabilities
Arising from acquisition of intangible assets	(16.2)	(17.4)
Valuation of financial assets not reflected in local tax accounts	(16.3)	(17.9)
Pension asset not applicable for local tax
Sundry differences between local tax rules and accounting standards	(0.2)
Effect of deferred tax netting	16.3	17.9
Deferred income tax liabilities	(16.4)	(17.4)
Net deferred income tax	57.5	62.7

Certain entities within the Group have recognised deferred income tax assets, despite having incurred losses in 2022 or 2023, on the basis that such losses are considered to be temporary in nature.

The relevant entities have already returned to profitability or are expected to do so in the near future. The deferred income tax (expense)/income in the income statement comprises the following temporary differences:

	31 December 2023 CHF millions	31 December 2022 CHF millions
Utilisation of tax losses carried forward	(30.0)	(37.7)
Creation of deferred tax assets on tax losses carried forwards	28.9	23.1
Deferred tax liabilities related to intangible assets	0.4	2.1
Other temporary differences	(4.2)	19.8
Deferred income tax (expense)/Income (note 23)	(4.9)	7.3

The Group has deferred tax assets related to tax losses carried forward of CHF 63.0 million (2022: CHF 65.9 million) as a result of Group companies with tax losses of CHF 306.6 million (2022: CHF 314.5 million) to carry forward against future taxable income. These tax losses will expire as summarised below:

	31 December 2023		Carried forward losses	Expiry in 1–3 years	Expiry in 4–7 years	Expiry after 7 years
	CHF millions	Tax rate	CHF millions	CHF millions	CHF millions	CHF millions
EFG Bank AG, Switzerland	38.7	18.5%	209.2	209.2
EFG Bank (Luxembourg) SA,
Luxembourg	23.8	25.0%	95.5			95.5
EFG Bank (Luxembourg) SA,
Portugal Branch	0.5	27.7%	1.9			1.9
Total	63.0		306.6	209.2	–	97.4
	31 December 2022		Carried forward losses	Expiry in 1–3 years	Expiry in 4–7 years	Expiry after 7 years
	CHF millions	Tax rate	CHF millions	CHF millions	CHF millions	CHF millions
EFG Bank AG, Switzerland	46.5	19.6%	237.2	237.2
EFG Bank (Luxembourg) SA,
Luxembourg	18.9	25.0%	75.5			75.5
EFG Bank (Luxembourg) SA,
Portugal Branch	0.5	27.7%	1.8			1.8
Total	65.9		314.5	237.2	–	77.3

The Group has unused tax losses for which no deferred tax asset is recognised as follows:

	31 December 2023 CHF millions	Expiry in 1–3 years CHF millions	Expiry in 4–7 years CHF millions	Expiry after 7 years CHF millions
EFG Bank AG, Switzerland	76.6	76.6
EFG Bank AG, Hong Kong Branch	49.4			49.4
EFG Bank (Luxembourg) SA, Portugal Branch	5.0		2.7	2.3
EFG Bank (Luxembourg) SA, Luxembourg *	0.2			0.2
Total	131.2	76.6	2.7	51.9

^* Taxed as single fiscal unity with EFG Investment (Luxembourg) SA.

	31 December 2022 CHF millions	Expiry in 1–3 years CHF millions	Expiry in 4–7 years CHF millions	Expiry after 7 years CHF millions
EFG Bank AG, Switzerland	350.7	350.7
EFG Bank (Luxembourg) SA, Luxembourg	73.4			73.4
EFG International AG, Switzerland	54.0	54.0
EFG Bank AG, Hong Kong Branch	53.2			53.2
EFG Bank (Luxembourg) SA, Portugal branch	5.8		2.9	2.9
Total	537.1	404.7	2.9	129.5

40. Other assets

	Note	31 December 2023 CHF millions	31 December 2022 CHF millions
Held-for-sale	41	56.4	56.4
Gold and other precious metals		535.5	247.7
Settlement balances		74.4	83.1
Prepaid expenses		46.2	53.9
Net pension asset	52	51.9	50.1
Accrued income		24.2	24.2
Repossessed properties		6.7	13.7
Current income tax assets		4.2	4.5
Other assets and receivables		77.2	63.2
Other assets		876.7	596.8

Settlement balances of CHF 74.4 million (2022: CHF 83.1 million) reflect the trade date versus settlement date accounting principle, which is applied on the issuance

of structured products and relate to transactions executed over the year-end period, and also to amounts to be received relating to matured life insurance policies.

41. Held-for-sale

Held-for-sale assets mainly reflect a building in the process of being sold. The building with a carrying value of CHF 56.4 million is included in Held-for-sale assets since 2020. The Group has a purchase commitment for this asset and remains committed to its plan to sell, however delays

are being experienced due to events and circumstances beyond the Groups' control, which meet the criteria of IFRS 5 Appendix B for the continued recognition of this asset as held for sale.

42. Valuation of financial assets and liabilities

Accounting principle

All financial assets are recorded on the day the transaction is undertaken, with the exception of loans and advances to customers, which are entered in the balance sheet on their respective value dates. Purchases and sales of other financial assets at fair value or amortised cost are recognised on trade date, which is the date on which the Group commits to purchase or sell the asset. Loans and advances to customers are recognised when cash is advanced to the borrowers.

Measurement methods:

Amortised cost and effective interest rate

The amortised costs do not consider expected credit losses and does include transaction costs, premiums or discounts and fees paid or received that are integral to the effective interest rate, such as origination fees.

When the Group revises the estimates of future cash flows, the carrying value of the respective financial asset or financial liability is adjusted to reflect the new estimated discount using the original effective interest rate. Any changes are recognised in profit or loss.

Initial recognition and measurement

At initial recognition, the Group measures a financial asset or financial liability at its fair value. In case of a financial asset or financial liability subsequently not measured at fair value through profit or loss, transaction costs that are incremental and directly attributable to the acquisition or issue of the financial asset or financial liability, such as fees and commissions, are included in the fair value at initial recognition. Transaction costs of financial assets and financial liabilities carried at fair value through profit or loss are expensed as incurred.

Business models: The business model reflects how the Group manages the assets in order to generate cash flows. That is, whether the Group's objective is solely to collect the contractual cash flows from the assets or is to collect both the contractual cash flows and cash flows arising from the sale of assets. If neither of these is applicable (e.g. financial assets are held for trading purposes), then the financial assets are classified as 'other' business model and measured at FVTPL. Factors considered by the Group in determining the business model for a group of assets include past experience on how the cash flows for these assets were collected, how the asset's performance is evaluated and reported to key management personnel, how risks are assessed and managed and how management are compensated.

Solely payment of principal and interest: where the business model is to hold assets to collect contractual cash flows or to collect contractual cash flows and sell, the Group assesses whether the financial instrument's cash flows represent solely payments of principal and interest (the 'SPPI test'). In making this assessment, the Group considers whether the contractual cash flows are consistent with a basic lending arrangement, i.e. interest includes only consideration for the time value of money, credit risk, other basic lending risks and a profit margin that is consistent with a basic lending arrangement. Where the contractual terms introduce exposure to risk or volatility that are inconsistent with a basic lending arrangement, based on qualitative or quantitative criteria, the related financial asset is classified and measured at fair value through profit or loss.

Fair value through other comprehensive income

Debt instruments that are held for collection of contractual cash flows and for selling the assets, where the asset's cash flows represent solely payments of principal and interest, and that are not designated at fair value through profit or loss, are measured at fair value through other comprehensive income. Movements in the carrying amount are taken through other comprehensive income, except for loss allowances, interest revenue and foreign exchange gains and losses on the instruments' amortised cost, which are recognised in profit and loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised in other comprehensive income is reclassified from

equity to profit or loss and recognised in 'Net gains/losses on derecognition of financial assets and liabilities'. Interest income from these financial assets is included in 'Interest income' using the effective interest rate method.

Equity investments are instruments that meet the definition of equity from the issuer's perspective. Examples of equity investments include basic ordinary shares. The Group subsequently measures all equity investments at fair value through profit and loss, except where the Group's management has elected at initial recognition to irrevocably designate an equity investment at fair value through other comprehensive income. The Group's policy is to designate equity investments in fair value through other comprehensive income when those investments are held for purposes other than to generate investment returns. When this election is used, fair value gains and losses are recognised in other comprehensive income and are not subsequently reclassified to profit and loss, including on disposal. Impairment losses (and reversal of impairment losses) are not reported separately from other changes in fair value. Dividends, when representing a return on such investments, continue to be recognised in profit and loss as other income when the Group's right to receive payment is established.

Fair value through profit or loss

Assets that do not meet the criteria for amortised cost or fair value through other comprehensive income are measured at fair value through profit or loss. Other movements in the fair value (for example from interest rate or credit risk changes) are not part of a hedging relationship and are presented in the income statement within 'Fair value gains less losses on financial instruments measured at fair value' in the period in which they arise.

Gains and losses on equity investments at fair value through profit and loss are included in 'Fair value gains less losses on financial instruments measured as fair value'.

Impairment

The Group assesses loss allowances at each reporting date. The measurement of expected credit loss reflects:

• An unbiased and probability-weighted value that is determined by evaluating a range of possible outcomes
• The time value of money
• Reasonable and supportable information that is available without undue cost or effort at the reporting date about past events, current conditions and forecasts of future economic conditions

Classification and subsequent measurement of financial liabilities, financial guarantees contracts and loan commitments

In both the current and prior period, financial liabilities are classified as subsequently measured at amortised cost, except for:

• Financial liabilities at fair value through profit or loss: this classification is applied to derivatives, financial liabilities held for trading (e.g. short positions in the trading booking). Gains or losses on financial liabilities designated at fair value through profit or loss are presented partially in other comprehensive income (the value of change in the fair value of the financial liability that is attributable to changes in the credit risk of that liability, which is determined as the value that is not attributable to changes in market conditions that give rise to market risk) and partially profit or loss (the remaining value of change in the fair value of the liability). This is unless such a presentation would create, or enlarge, an accounting mismatch in which case the gains and losses attributable to changes in the credit risk of the liability are also presented in profit or loss.
• Financial guarantee contracts and loan commitments: financial guarantee contracts are initially measured at fair value and subsequently measured at the higher of the expected credit loss value; and the premium received on initial recognition less any income recognised upfront. Loan commitments provided by the Group are measured as the value of the expected loss allowance. For loan commitments and financial guarantee contracts, the loss allowance is recognised as a provision. If the contract includes both a loan and an undrawn commitment and the expected credit loss on the undrawn commitment cannot be separated from the loan component, the expected credit loss on the undrawn commitment is recognised together with the loss allowance for the loan.

Derecognition of financial assets and liabilities

A financial asset, or a portion thereof, is derecognised when the contractual rights to receive cash flows from the asset have expired, or when they have been transferred and either (i) the Group transfers substantially all the risks and rewards of ownership, or (ii) the Group neither transfers nor retains substantially all the risks and rewards of ownership and the Group has not retained control. A financial liability is derecognised when extinguished (i.e. the obligation specified in the contract is discharged, cancelled or expires).

42.1 Financial assets and liabilities measured at fair value

Accounting judgement

The fair value of financial instruments that are not quoted in an active market is determined using valuation techniques. Where valuation techniques (for example, models) are used to determine fair values, they are validated and periodically reviewed by qualified personnel independent of the personnel that created them. All models are validated before they are used, and models are calibrated to ensure that outputs reflect actual data and comparative market prices. To the extent practicable, models use only observable data, however areas such as credit risk (both own and counterparty), volatilities and correlations require management to make estimates. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

(a) Fair value hierarchy

IFRS 13 requires classification of financial instruments at fair value using a fair value hierarchy that reflects the significance of the inputs used in making the measurements.

The fair value hierarchy has the following levels:

• Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities
• Level 2: inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as price) or indirectly (i.e. derived from prices)

– Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs)

For financial instruments that are recognised at fair value on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by reassessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

There were no transfers between levels in the current year.

		31 December 2023
	Level 1	Level 2	Level 3	Total
	CHF millions	CHF millions	CHF millions	CHF millions
Derivative financial instruments (assets)
Currency derivatives		1,049.0		1,049.0
Interest rate derivatives		138.4		138.4
Equity derivatives		352.1		352.1
Other derivatives		10.5		10.5
Life insurance related			24.3	24.3
Total derivatives assets	–	1,550.0	24.3	1,574.3
Financial assets at fair value through profit and loss
Debt	306.2	394.6		700.8
Equity	0.7		98.3	99.0
Life insurance related			537.8	537.8
Investment funds		21.6		21.6
Total financial assets at fair value through profit and loss	306.9	416.2	636.1	1,359.2
Total assets measured at fair value	306.9	1,966.2	660.4	2,933.5

		31 December 2023
	Level 1	Level 2	Level 3	Total
	CHF millions	CHF millions	CHF millions	CHF millions
Derivative financial instruments (liabilities)
Currency derivatives		(1,133.4)		(1,133.4)
Interest rate derivatives		(33.6)		(33.6)
Equity derivatives		(392.8)		(392.8)
Other derivatives		(10.5)		(10.5)
Total derivatives liabilities	–	(1,570.3)	–	(1,570.3)
Financial liabilities designated at fair value
Equity		(0.3)		(0.3)
Debt	(34.7)	(8.1)		(42.8)
Structured products				–
Life insurance related			(131.0)	(131.0)
Total financial liabilities designated at fair value	(34.7)	(8.4)	(131.0)	(174.1)
Total liabilities measured at fair value	(34.7)	(1,578.7)	(131.0)	(1,744.4)
Assets less liabilities measured at fair value	272.2	387.5	529.4–	1,189.1

	31 December 2022
	Level 1	Level 2	Level 3	Total
	CHF millions	CHF millions	CHF millions	CHF millions
Derivative financial instruments (assets)
Currency derivatives		747.8		747.8
Interest rate derivatives		209.2		209.2
Equity derivatives		794.0		794.0
Other derivatives		13.4		13.4
Life insurance related			31.8	31.8
Total derivatives assets	–	1,764.4	31.8	1,796.2
Financial assets at fair value through profit and loss
Debt	195.7	451.3		647.0
Equity	0.2	0.1	98.6	98.9
Life insurance related			690.1	690.1
Investment funds		21.5		21.5
Total financial assets at fair value through profit and loss	195.9	472.9	788.7	1,457.5
Total assets measured at fair value through profit and loss	195.9	2,237.3	820.5	3,253.7
Debt Equity Total financial assets at fair value through other comprehensive income	5,267.4 5,267.4	–	–	5,267.4 5,267.4
Total assets measured at fair value	5,463.3	2,237.3	820.5	8,521.1
Derivative financial instruments (liabilities)
Currency derivatives		(748.8)		(748.8)
Interest rate derivatives		(45.5)		(45.5)
Equity derivatives		(831.8)		(831.8)
Other derivatives		(16.8)		(16.8)
Total derivatives liabilities	–	(1,642.9)	–	(1,642.9)
Financial liabilities designated at fair value
Equity	(0.8)	(0.3)		(1.1)
Debt	(25.6)	(10.6)		(36.2)
Structured products		(218.8)		(218.8)
Life insurance related			(145.9)	(145.9)
Total financial liabilities designated at fair value	(26.4)	(229.7)	(145.9)	(402.0)
Total liabilities measured at fair value	(26.4)	(1,872.6)	(145.9)	(2,044.9)

(i) Financial instruments in level 1

The fair value of financial instruments traded in active markets is based on quoted market prices at the balance sheet date. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm's-length basis. The quoted market price used for financial assets held by the group is the current bid price. These instruments are included in level 1. Instruments included in level 1 comprise primarily quoted bonds and equity.

(ii) Financial instruments in level 2

The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined by using valuation techniques. These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2. If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

Specific valuation techniques used to value financial instruments include:

• Quoted market prices or dealer quotes for similar instruments
• The fair value of interest rate swaps is calculated as the present value of the estimated future cash flows based on observable yield curves
• The fair value of forward foreign exchange contracts is determined using forward exchange rates at the balance sheet date, with the resulting value discounted back to present value
• Other techniques, such as discounted cash flow analysis, are used to determine fair value for the remaining financial instruments

(b) Movements of level 3 instruments

		Assets in level 3
	Derivative	Financial assets	Total
	financial	measured at fair value	assets in
	instruments	through profit and loss	level 3
	CHF millions	CHF millions	CHF millions
At 01 January 2023	31.8	788.7	820.5
Total gains or losses
in the income statement – Net loss from changes in fair value	0.4	(48.2)	(47.8)
Purchases/Premiums paid	2.6	90.1	92.7
Disposals/Premiums received	(8.1)	(139.5)	(147.6)
Exchange differences	(2.5)	(54.9)	(57.4)
At 31 December 2023	24.2	636.2	660.4
Change in unrealised gains or losses for the period
included in the income statement for assets held
at the end of the reporting period	0.4	(48.2)	(47.8)

	Liabilities in level 3
	Financial	Total
	liabilities designated at	liabilities
	fair value	in level 3
	CHF millions	CHF millions
At 01 January 2023	145.9	145.9
Total gains or losses
in the income statement – Net gains from change in fair value	(4.4)	(4.4)
Purchases/Premiums paid	11.9	11.9
Disposals/Premiums received	(9.2)	(9.2)
Exchange differences	(13.2)	(13.2)
At 31 December 2023	131.0	131.0
Change in unrealised gains or losses for the period
included in the income statement for liabilities
held at the end of the reporting period	(4.4)	(4.4)

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	Assets in level 3
	Derivative	Financial assets	Total
	financial	measured at fair value	assets in
	instruments	through profit and loss	level 3
	CHF millions	CHF millions	CHF millions
At 01 January 2022	34.1	891.7	925.8
Total gains or losses
in the income statement – Net loss from changes in fair value	0.4	(149.9)	(149.5)
Purchases/Premiums paid	2.7	131.3	134.0
Disposals/Premiums received	(5.7)	(92.7)	(98.4)
Exchange differences	0.3	8.3	8.6
At 31 December 2022	31.8	788.7	820.5
Change in unrealised gains or losses for the period
included in the income statement for assets held
at the end of the reporting period	0.4	(149.9)	(149.5)

	Liabilities in level 3
	Financial	Total
	liabilities designated at	liabilities
	fair value	in level 3
	CHF millions	CHF millions
At 01 January 2022	163.2	163.2
Total gains or losses
in the income statement – Net loss from changes in fair value	(22.0)	(22.0)
Purchases/Premiums paid	12.0	12.0
Disposals/Premiums received	(9.1)	(9.1)
Exchange differences	1.8	1.8
At 31 December 2022	145.9	145.9
Change in unrealised gains or losses for the period
included in the income Statement for liabilities
held at the end of the reporting period	(22.0)	(22.0)

(c) Fair value methodology used for level 3 instruments – valuation technique

Valuation governance

The Group's model governance is outlined in a model vetting policy, which describes the Group's model risk governance framework, model validation approach and the model validation process.

A significant part of the independent price verification process is the assessment of the accuracy of modelling methods and input assumptions, which return fair value estimates derived from valuation techniques. As part of the model governance framework, the benchmarking of fair value estimates is performed against external sources and recalibration is performed on a continuous basis against changes in fair value versus expectations. Fair value measurements are compared with observed prices and market levels, for the specific instrument to be valued whenever possible.

As a result of the above and in order to align with independent market information and accounting standards, valuation adjustments may be made to the fair value estimate.

Valuation techniques

If the market for a financial instrument is not active, the Group establishes fair value by using one of the following valuation techniques:

• Recent arm's-length market transactions between knowledgeable, willing parties (if available)
• Reference to the current fair value of another instrument (that is substantially the same)
• Discounted cash flow analysis
• Option pricing models
• Net asset values
• Price earnings multiples

Financial statement line item	Products	Valuation techniques	31 December 2023 CHF millions	31 December 2022 CHF millions
Financial assets at fair value through profit and loss	Equities	Net asset value	8.6	82.4
Financial assets at fair value through profit and loss	Equities	Price earnings multiples, and others	89.7	16.2
	Synthetic life	Discounted cash flow analysis and life		31.8
Derivatives	insurance policies	expectancies (non-market observable inputs)	24.3
Financial assets at fair value through profit and loss	Physical life insurance policies	Discounted cash flow analysis and life expectancies (non-market observable inputs)	537.8	690.1
Financial liabilities designated at fair value	Synthetic life insurance policies	Discounted cash flow analysis and life expectancies (non-market observable inputs)	(131.0)	(145.9)
Total			529.4	674.6

The Group values certain financial instruments at fair value using models which rely on inputs to the models that are not based on observable market data (unobservable inputs). These financial instruments are classified as level 3. Below is a summary of the valuation techniques and unobservable inputs to the valuations of these level 3 financial instruments that significantly affect the value and describe the interrelationship between observable inputs and how they affect the valuation.

(i) Life insurance policies

The Group uses a discounted cash flow valuation technique

for the valuation of physical and synthetic life settlement policies and related financial instruments. The approach makes use of market observable and non-market observable inputs. See note 32 for further details.

(ii) Equities

Equities comprise primarily the holding in SIX Group for CHF 67.8 million (2022: CHF 74.1 million).

In 2023 the valuation of SIX Group is based on a market approach, maximising observable inputs from SIX Group and comparable listed data for European Exchanges. The

valuation approach uses a combination of price earning multiples, EBITDA multiples and dividend yields.

In 2022 the valuation was based on the assumption that the principal market would be between shareholders due to the shareholders agreement in place. In 2023, due to the low level of transactions between shareholders, the Group has reassessed the principal market for SIX Group, and as a result changed from a net asset value based approach to a price earnings multiple approach.

The 2022 valuation was based on the expected net asset value at the end of December 2022 and used published SIX Group half-year net asset value and added a projected

profit for the period to December 2022, net of dividends paid.

The fair value of SIX Group at 31 December 2023 has decreased relative to the value at 31 December 2022, and as a result, the Group recorded a loss of CHF (6.3) million (2022: loss of CHF (5.6) million).

The sensitivity to the valuation of SIX Group is primarily linked to the changes in the projected future earnings of SIX Group, and the gain/loss taken through profit and loss for a 10% higher and 10% lower SIX Group profit would be CHF 5.5 million gain or CHF 5.5 million loss on this position classified as fair value through profit and loss.

42.2 Financial assets and liabilities measured at amortised cost

The table below summarises the carrying values and fair values of those financial assets and liabilities that were measured at amortised cost as of 31 December 2023:

	Note	Carrying value CHF millions	Fair value CHF millions	Difference CHF millions
31 December 2023
Financial assets
Due from other banks	(i)	2,617.6	2,611.9	(5.7)
Loans and advances to customers	(ii)	16,019.1	16,084.5	65.4
Investment securities	(iii)	8,489.8	8,416.1	(73.7)
		27,126.5	27,112.5	(14.0)
Financial liabilities
Due to other banks	(iv)	943.0	941.5	(1.5)
Due to customers	(iv)	30,056.5	30,022.7	(33.8)
Financial liabilities at amortised cost	(v)	2,807.8	2,807.6	(0.2)
		33,807.3	33,771.8	(35.5)
Net assets and liabilities not measured at fair value		(6,680.8)	(6,659.3)	21.5
As at 31 December 2022
Financial assets
Due from other banks	(i)	2,095.9	2,092.7	(3.2)
Loans and advances to customers	(ii)	16,748.1	16,740.7	(7.4)
Investment securities	(iii)	2,402.3	2,312.2	(90.1)
		21,246.3	21,145.6	(100.7)
Financial liabilities
Due to other banks	(iv)	922.8	922.3	(0.5)
Due to customers	(iv)	34,035.4	33,993.3	(42.1)
Financial liabilities at amortised cost	(v)	3,684.7	3,622.0	(62.7)
		38,642.9	38,537.6	(105.3)
Net assets and liabilities not measured at fair value		(17,396.6)	(17,392.0)	4.6

(i) Due from other banks

Due from other banks includes inter-bank placements and items in the course of collection. The fair value of floating rate placements, overnight deposits and term deposits with a maturity of less than 90 days is assumed to be their carrying amount, as the effect of discounting is not significant. The fair values are within level 2 of the fair value hierarchy.

(ii) Loans and advances to customers Loans and advances are net of provisions for impairment. The estimated fair value of loans and advances represents the discounted amount of estimated future cash flows expected to be received up to the next interest reset date. Expected cash flows are discounted at current market rates to determine fair value. Determined fair values are within level 2 of the fair value hierarchy.

(iii) Investment securities

Investment securities held to maturity are reflected on an amortised costs basis. The fair value of the investment securities is based on the quoted market price of the

instrument. The fair values are within level 1 of the fair value hierarchy.

(iv) Due to other banks and customers The estimated fair value of deposits with no stated maturity, which includes non-interest-bearing deposits, is the amount repayable on demand. Expected cash flows are discounted at current market rates to determine fair value. Determined fair values are within level 2 of the fair value hierarchy.

(v) Financial liabilities at amortised cost The value of structured products sold to clients is reflected on an accrual basis for the debt host (and on a fair value for the embedded derivative). The fair value of the debt host is based on the discounted amount of estimated future cash flows expected to be paid up to the date of maturity of the instrument. Expected cash flows are discounted at current market rates to determine fair value. The fair values are within level 2 of the fair value hierarchy.

43. Offsetting

Accounting principle

Financial assets and liabilities are offset and the net amount presented in the balance sheet when there is a legally enforceable right to offset the recognised amount and there is an intention to settle on a net basis, or realise the asset and settle the liability simultaneously. Such a right of set-off must not be contingent on a future event and must be legally enforceable in all of the following circumstances:

• In the normal course of business
• In the event of default
• In the event of insolvency or bankruptcy

The following financial assets and financial liabilities are subject to offsetting, enforceable master netting arrangements and similar agreements.

	Gross amounts	Gross amounts of recognised financial	Net amounts of recognised financial assets	Related amounts not set off in the balance sheet
At 31 December 2023	of recognised financial assets	liabilities set off in the balance sheet	presented in the balance sheet	Financial assets subject to netting agreements	Financial collateral	Net exposure
Cash and balances with central banks
Due from other banks	899.6		899.6		(899.6)
Loans and advances to customers	111.1		111.1		(111.1)
Derivatives	1,574.3		1,574.3	(1,534.6)	(30.7)	9.0
FVTPL – Life insurance policies	114.4		114.4	(114.4)
Total financial assets	2,699.4	–	2,699.4	(1,649.0)	(1,041.4)	9.0

	Gross amounts	Gross amounts of recognised financial	Net amounts of recognised financial liabilities	Related amounts not set off in the balance sheet
At 31 December 2023	of recognised financial liabilities	assets set off in the balance sheet	presented in the balance sheet	Financial liabilities subject to netting agreements	Financial collateral	Net exposure
Derivatives	1,570.3		1,570.3	(1,518.0)	(49.2)	3.1
FVTPL – Synthetic life
insurance	131.0		131.0	(131.0)
Total financial liabilities	1,701.3	–	1,701.3	(1,649.0)	(49.2)	3.1

			Net amounts
		Gross amounts	of recognised
		of recognised	financial	Related amounts not set off
	Gross amounts	financial	assets	in the balance sheet
	of recognised	liabilities	presented	Financial assets
	financial	set off in the	in the	subject to netting	Financial
At 31 December 2022	assets	balance sheet	balance sheet	agreements	collateral	Net exposure
Cash and balances with
central banks	3,500.0		3,500.0		(3,500.0)
Due from other banks	295.4		295.4		(295.4)
Derivatives	1,796.2		1,796.2	(1,041.5)	(732.1)	22.6
FVTPL – Life insurance
policies	136.7		136.7	(136.7)
Total financial assets	5,728.3	–	5,728.3	(1,178.2)	(4,527.5)	22.6

Total financial liabilities	1,788.8	–	1,788.8	(1,004.0)	(775.8)	9.0
insurance	145.9		145.9	(145.9)
FVTPL – Synthetic life
Derivatives	1,642.9		1,642.9	(858.1)	(775.8)	9.0
At 31 December 2022	liabilities	balance sheet	balance sheet	agreements	collateral	Net exposure
	financial	set off in the	in the	subject to netting	Financial
	of recognised	assets	presented	Financial liabilities
	Gross amounts	financial	liabilities	in the balance sheet
		of recognised	financial	Related amounts not set off
		Gross amounts	of recognised
			Net amounts

At the end of December 2022 and December 2023, no derivative financial instruments have been netted. As of 31 December 2022, the Group had reverse-purchase agreements with the Swiss National Bank, and received Swiss Confederation bonds as financial collateral.

For the financial assets and liabilities subject to enforceable master netting arrangements or similar arrangements above, each agreement between the Group and the counterparty allows for the net settlement of the relevant financial assets and liabilities when both elect to settle on a

net basis. In the absence of such an election, financial assets and liabilities will be settled on a gross basis, however, each party to the master netting agreement or similar agreement will have the option to settle all such amounts on a net basis in the event of default of the other party. Per the terms of each agreement, an event of default includes failure by a party to make payment when due; failure by a party to perform any obligation required by the agreement (other than payment) if such failure is not remedied within periods of 30 to 60 days after notice of such failure is given to the party; or bankruptcy.

44. Shares in subsidiary undertakings

The following is a listing of the Group's main subsidiaries at 31 December 2023:

Name	Line of business	Country of incorporation	Entity currency	Share capital	Ownership
Main subsidiaries
EFG Bank AG, Zurich	Bank	Switzerland	CHF	162,410,000	100%
EFG Bank (Monaco), Monaco	Bank	Monaco	EUR	57,256,000	100%
EFG Bank & Trust (Bahamas) Ltd, Nassau	Bank	Bahamas	USD	52,000,000	100%
EFG Bank von Ernst AG, Vaduz	Bank	Liechtenstein	CHF	25,000,000	100%
EFG Bank (Luxembourg) S.A., Luxembourg	Bank	Luxembourg	EUR	168,000,000	100%
EFG Private Bank Ltd, London	Bank	England & Wales	GBP	31,595,905	100%
EFG Asset Management (Switzerland) SA, Geneva	Asset Management Company	Switzerland	CHF	2,000,000	100%
EFG Asset Management (UK) Ltd, London	Asset Management Company	England & Wales	GBP	2,999,999	100%
EFG Capital International Corp, Miami	Broker-dealer	USA	USD	10	100%
Shaw and Partners Ltd, Sydney	Broker-dealer	Australia	AUD	5,106,007	100%
EFG International Finance (Luxembourg) Sarl, Luxembourg	Finance Company	Luxembourg	CHF	20,000	100%
EFG International Finance (Guernsey) Ltd, St. Peter Port	Structured product issuance	Guernsey	CHF	5,000,000	100%
EFG Investment (Luxembourg) SA, Luxembourg	Holding	Luxembourg	EUR	113,964,371	100%

The list of entities comprises subsidiaries that are generally contributing CHF 5 million or more to the Net profit attributable to equity holders of the Group. Also included are entities that are deemed regionally significant or otherwise relevant from an operational perspective.

The Group uses other entities to manage assets on behalf of its customers. These entities are subject to an investment management agreement in which the Group acts as

administrator only and is remunerated via a fixed fee. In some of these entities, the Group is participating in the funding by providing loan facilities granted which are secured by way of fund assets. The management has assessed that the Group has no effective power over these entities nor over the operations of the entity, as it is not the asset manager, and also it is not exposed materially to a variability of returns from these entities.

45. Due to other banks

	31 December 2023 CHF millions	31 December 2022 CHF millions
Due to other banks at sight	626.7	701.5
Due to other banks at term	316.3	221.3
Due to other banks	943.0	922.8

46. Due to customers

	31 December 2023 CHF millions	31 December 2022 CHF millions
Non-interest bearing	10,318.4	16,547.5
Interest bearing	19,738.1	17,487.9
Due to customers	30,056.5	34,035.4

47. Financial liabilities at fair value through profit and loss

	Valuation basis	31 December 2023 CHF millions	31 December 2022 CHF millions
Synthetic life insurance	Discounted cash flow analysis	131.0	145.9
Equity securities	Quoted	0.3	1.1
Debt securities	Quoted	42.6	36.2
Structured products	Unquoted		218.8
Total financial liabilities at fair value through
profit and loss		173.9	402.0

The movement in the account is as follows:

	31 December 2023 CHF millions	31 December 2022 CHF millions
At 01 January	402.0	487.6
Additions	52.6	44.4
Disposals (sale and redemption)	(259.0)	(73.8)
Net gains from changes in fair value through profit and loss	(4.4)	(57.6)
Exchange differences	(17.3)	1.4
At 31 December	173.9	402.0

Synthetic life insurance

See note 32 for further details.

48. Financial liabilities at amortised cost

	31 December 2023 CHF millions	31 December 2022 CHF millions
Structured products issued	2,807.8	3,684.7
Total financial liabilities at amortised cost	2,807.8	3,684.7

The movement in the account is as follows:

	31 December 2023	31 December 2022
	CHF millions	CHF millions
At 01 January	3,684.7	4,222.1
Additions	4,178.0	5,168.3
Disposals (sale and redemptions)	(4,857.5)	(5,664.9)
Accrued interests	0.2	0.1
Exchange differences	(197.6)	(40.9)
At 31 December	2,807.8	3,684.7

49. Provisions

Accounting principle

The Group is involved in various legal and arbitration proceedings in the normal course of its business operations. The Group establishes provisions for current and pending legal proceedings if management is of the opinion that the Group is more likely than not to face payments or losses and if the amount of such payments or losses can be reliably estimated. The nature and amount of provisions are disclosed, unless management expects the disclosure of that fact could prejudice our position with other parties in the matter.

Restructuring provisions comprise employee termination payments and costs to terminate contracts. Provisions are not recognised for future operating losses. Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole.

Accounting judgement

Provisions are recognised when EFG International Group has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount can be reliably estimated. The determination of whether an outflow is probable and the amount, which is assessed by EFG International Group management in conjunction with the Group's legal and other advisors, requires the judgement of the Group's management.

	Provision for litigation risks CHF millions	Other provisions CHF millions	Total CHF millions
At 01 January 2023	129.8	41.2	171.0
Increase in provisions recognised
in the income statement	3.3	11.7	15.0
Release of provisions recognised in the income statement	(1.5)	(4.2)	(5.7)
Provisions used during the year	(17.2)	(19.0)	(36.2)
Reclassification and other movements	4.1	(2.2)	1.9
Exchange differences	(10.2)	(1.4)	(11.6)
At 31 December 2023	108.3	26.1	134.4
Expected payment within 1 year	3.4	14.5	17.9
Expected payment between 1 year and 3 years	104.7	10.0	114.7
Expected payment thereafter	0.2	1.6	1.8
	108.3	26.1	134.4

Provision for litigation risks

The provision for litigation risks decreased by CHF 21.5 million; primarily due to the utilisation of CHF 9.2 million of the provision against an escrow account (see (i) below).

• (i) A provision of CHF 95.5 million (2022: CHF 110.3 million) relates to the terms of a settlement agreement resolving all outstanding litigation between the Group and the rehabilitator of a Taiwanese insurance company. The settlement resolved a dispute concerning a secured loan facility granted in 2007 to an affiliate of the Taiwanese insurance company, which was placed into receivership in 2014. Under the terms of the settlement, EFG paid USD 150 million into an escrow account of which USD 10 million has been utilised in 2023. As part of the agreement, EFG currently expects to recover in excess of USD 30 million over the next years.
• (ii) Other provisions of CHF 12.8 million remain for various litigation cases.

Other provisions

Other provisions decreased by CHF 15.1 million, primarily due to a CHF 19.0 million utilisation of provision following the settlement of a case described in (i) below, the utilisation of the provision for restructuring costs described in (ii) below for CHF 5.0 million, and the successful resolution of part of the litigation dispute described in (iii) below.

• (i) Settlement of CHF 7.5 million for claims arising from fraudulent activity by an ex-CRO.
• (ii) The Group has a provision of CHF 4.8 million (2022: CHF 9.2 million) for restructuring costs primarily relating to businesses being closed, which are likely to be utilised

within a year.

• (iii) The Group has a provision of CHF 5.8 million (2022: CHF 13.8 million) for success fees payable if the Group succeeds in recovering excess life insurance premiums from insurers who increased premiums. CHF 4.7 million was used in 2023 following the settlement of part of the dispute. The overall position is likely to be resolved between one and three years.
• (iv) The Group has a provision of CHF 0.4 million (2022: CHF 0.5 million) for credit default risks. This relates to the expected credit losses under IFRS 9. The Group calculates expected credit losses on off-balance sheet positions primarily related to guarantees. These losses are not expected to arise in the next 12 months. The profit and loss impact is reflected in the loss allowances expense, while for all other provision movements, the profit and loss impact is reflected in the provision expense line of the profit and loss.
• (v) Other provisions of CHF 15.1 million (2022: CHF 12.1 million) remain for various other potential cash outflows.

50. Contingent liabilities

EFG International Group is involved in various legal and arbitration proceedings in the normal course of its business operations. The Group establishes provisions (see note 49) for current and threatened pending legal proceedings if management is of the opinion that the Group is more likely than not to face payments or losses and if the amount of such payments or losses can be reliably estimated.

The Group discloses contingent liabilities that the management considers to be material, or to be significant due to potential financial, reputational and other effects.

The Group has differentiated the contingent liabilities into four categories as follows:

• a) Group does not expect a material cash outflow
• b) Group cannot reliably measure the obligation
• c) Group cannot reliably measure the obligation, however, any obligation arising would be offset by indemnification received
• d) Group does not expect a material cash outflow, and any obligation arising would be offset by indemnification received.

(a) Group does not expect a material cash outflow

The Group is engaged in certain litigation proceedings mentioned below and is vigorously defending the cases. The Group believes it has strong defences to the claims. The Group does not expect the ultimate resolution of any of the below-mentioned proceedings to which the Group is party to have a significantly adverse effect on its financial position.

• (i) Certain investors and the liquidator of an investment fund regulated in Guernsey have commenced legal proceedings in the Guernsey courts. The lawsuit alleges damages in an amount ranging up to approximately GBP 73.0 million, exclusive of prejudgment interest claimed, arising out of the fund's performance and alleges that the fund directors and the Group, as fund administrator, misled investors and acted in breach of their statutory duties. The Group believes it has strong defences to the allegations and maintains its vigorous defence.
• (ii) Certain investors and the liquidator of a fund filed claims against the Group in the Bahamian courts in 2014. The claims allege damages and interest, which the Group's external counsel has estimated at approximately USD 17 million, arising out of the fund's performance and alleged misleading statements and fund mismanagement. The Group believes it has strong defences to the allegations and maintains its vigorous defence.
• (iii) The Group has been named as a defendant in a lawsuit filed in Illinois, USA, by a former BSI client. The former client's allegations arise out of wrongdoing by an external asset manager who had a relationship with the former client. The external asset manager was sentenced by the Swiss criminal courts. The former client's civil lawsuit against the Group alleges that a BSI client relationship officer aided and abetted the alleged unauthorised transactions in the 2004 to 2007 time period. The lawsuit alleges damages of approximately

USD 11 million, exclusive of prejudgment interest claimed. The Group believes it has strong defences to the claims and will vigorously defend the lawsuit.

(b) Group cannot reliably measure the obligation

The following contingent liabilities that management is aware of could have a material effect on the Group. However, based on presently available information and assessments, the Group is not able to reliably measure the possible obligation.

• (i) The Group is engaged in litigation proceedings initiated in 2012 by a client claiming that he has been misled insofar as he thought that his investments were capitalprotected, that the agreed investment strategy has not been followed, and that unauthorised transactions were performed. The damages claimed are approximately EUR 49 million (including a claim for the reimbursement of retrocessions), exclusive of prejudgment interest claimed since 2008. Although the Group is vigorously defending the case and believes it has strong defences to the claims, there is no reliable estimate of what losses might be sustained on the claims.
• (ii) In 2019, the Group was named as a defendant in a claim brought against over 30 defendants in the Commercial Court in London by the Public Institution for Social Security (PIFSS) of Kuwait. The allegations centre on the former Director General of PIFSS, who is alleged to have been paid secret commissions, and to have been an account holder at EFG beginning in 2008. The claim against the Group in the amount of USD 368.1 million, exclusive of prejudgment interest claimed, centres on allegations that, between 1995 and 2012, the former Director General of PIFSS procured into EFG accounts the payment to another defendant of approximately USD 332.1 million of secret commissions, as well as USD 44.6 million in other payments representing proceeds of other schemes alleged in the claim. An eight-month trial is scheduled to begin in March 2025. Although the Group is vigorously defending the case and believes it has strong defences to the claims, there is no reliable estimate of what losses might be sustained on the claims.

• (iii) The Trustee of Bernard L. Madoff Investment Securities LLC (BLMIS) has filed a complaint asserting that payments totalling approximately USD 377 million, exclusive of prejudgment interest claimed, allegedly received by the Group on behalf of clients should be returned to BLMIS. This action includes the transfers claimed by the Fairfield liquidators (see next paragraph), as the BLMIS Trustee is purporting to seek to recover all transfers received by the Group from the Fairfield funds during the relevant period. The court has

• not yet scheduled trial dates. Although the Group is vigorously defending the case and believes it has strong defences to the claims, there is no reliable estimate of what losses might be sustained on the claims.

• (iv) The Group has been named as a defendant in lawsuits filed by the liquidators of Fairfield Sentry Ltd. and Fairfield Sigma Ltd. asserting that redemption payments received by the Group on behalf of clients from the Fairfield funds should be returned. The amount claimed is uncertain, but the Group believes the amount claimed is approximately USD 222 million, exclusive of prejudgment interest claimed, and is subsumed by the amount sought by the BLMIS Trustee (see previous paragraph), as the BLMIS Trustee is purporting to seek to recover all transfers received by the Group from the Fairfield funds during the relevant period. The court has not yet scheduled trial dates. Although the Group is vigorously defending the case and believes it has strong defences to the claims, there is no reliable estimate of what losses might be sustained on the claims.

(c) Group cannot reliably measure the obligation, however any obligation arising would be offset by indemnification received

The following contingent liabilities (that arose through the acquisition of BSI), that management is aware of, could have a material effect on the Group. However, based on presently available information and assessments, the Group is not able to reliably measure the possible obligation. The Group is entitled to indemnification against losses that may arise from these matters listed below from the seller of the former BSI Group.

• (i) The criminal investigations against BSI into money laundering allegations involving 1Malaysia Development Berhad (1MDB), a sovereign wealth fund owned by the government of Malaysia have been terminated by summary penalty order issued by the Swiss Federal Prosecutor in early 2024. The summary penalty order includes a fine against BSI SA in the amount of CHF 4.5 million which will be fully borne by the seller of the former BSI Group. The Federal Prosecutor determined that it does not have authority to adjudicate the civil claims brought by SRC International (Malaysia) Ltd. (a former indirect, wholly owned subsidiary of 1MDB) in the amount of USD 864.5 million, and 1MDB and five affiliated companies in the amount of USD 5.24 billion. The private claimants have objected to the summary penalty order, these proceedings are currently ongoing.

• (ii) The US Attorney's Office for the Eastern District of New York initiated criminal investigations into bribery and money laundering allegations involving officials of Fédération Internationale de Football Association (FIFA)

• and its member associations and related parties. Certain FIFA-related accounts were opened and maintained by the Group and they are currently under review. The US Department of Justice has issued requests for assistance to the Swiss authorities in obtaining information for some of the FIFA-related accounts. The US authorities are also investigating whether the Group complied with their anti-money laundering obligations in connection with the FIFA-related accounts. The Group is cooperating with the US authorities in the ongoing investigations.

• (iii) The Group (through the acquisition of BSI) is the defendant in two civil proceedings in Italy commenced in 2015, arising from its role as a Trustee of certain trusts associated with the family who owned an Italian shipping company which was declared bankrupt in 2012, allegedly causing aggregate losses to approximately 13,000 bondholders through the issuance of approximately EUR 1 billion of bonds that did not comply with applicable laws. In 2014, members of the families involved were convicted for embezzlement and fraud in Italy. In the civil proceedings pursued by the liquidator of the bankrupt issuer, the seizure of trust assets is sought, as well as damages based on allegations of trust mismanagement. The Group is vigorously defending and believes it has strong defences to the claims.

(d) Group does not expect a material cash outflow, however any obligation arising would be offset by indemnification received

The following contingent liability is not expected to have a significant adverse effect on the Group's financial position and the Group is entitled to indemnification against losses that may arise from this matter from the seller of the former BSI Group.

• (i) ln August 2019, the Chilean tax authority made a tax liability determination arising out of BSI's September 2015 sale of shares in a Chilean subsidiary to a third party. ln its tax return filed in 2016, BSI requested a tax refund on the grounds that the sale of the shares had generated a tax loss. The Chilean tax authority, however, disputed the appropriate fair market value of the disposed shares, as well as the appropriate tax rate applicable to the transaction. The total outstanding tax liability as determined by the Chilean tax authority amounts to CHF 24.0 million. In April 2020, the Group commenced legal proceedings challenging the tax authority's assessment, and believes it has strong defences to the tax assessment.
• (ii) A former group of clients commenced legal proceedings in the Swiss courts alleging investment mismanagement claims in the 2010 to 2016 period and seeks

approximately USD 52 million, exclusive of prejudgment interest claimed, since various dates during the period. In a June 2023 judgement, the Geneva Court of First Instance has admitted these claims in full and found in favour of the claimants. The Group disagrees with the

Court of First Instance and has appealed the judgement and believes it has strong arguments on appeal. Enforcement of the Judgment is suspended pending appeals.

51. Other liabilities

	Note	31 December 2023 CHF millions	31 December 2022 CHF millions
Deferred income and accrued expenses		319.1	292.4
Lease liabilities (see below)		196.4	207.5
Settlement balances		22.4	25.8
Short-term compensated absences		9.4	8.6
Retirement benefit obligations	52	38.7	10.4
Other liabilities		67.5	32.2
Total other liabilities		653.5	576.9

The contractual maturity of undiscounted lease liabilities is as follows:

Contractual maturities of undiscounted lease liabilities	Up to 1 month CHF millions	1–3 months CHF millions	3–12 months CHF millions	1–5 years CHF millions	Over 5 years CHF millions	Total CHF millions
31 December 2023
Contractual lease liabilities	2.9	5.7	27.6	111.5	66.7	214.4
Total contractual lease liabilities	2.9	5.7	27.6	111.5	66.7	214.4
	Up to	1–3	3–12	1–5	Over
Contractual maturities of undiscounted	1 month	months	months	years	5 years	Total
lease liabilities	CHF millions	CHF millions	CHF millions	CHF millions	CHF millions	CHF millions
31 December 2022
Contractual lease liabilities	2.8	5.9	25.8	124.8	62.9	222.2
Total contractual lease liabilities	2.8	5.9	25.8	124.8	62.9	222.2

52. Retirement benefit obligations

Accounting principle

Retirement benefit obligations

The Group operates various pension schemes which are either defined contribution or defined benefit plans, depending on prevailing practice in each country.

For defined contribution plans, the Group pays contributions to publicly or privately administered pension plans and has no further payment obligations once the contributions have been paid. The contributions are recognised as employee benefit expense when they are due. This applies to most of the locations where the Group operates except for Switzerland.

A defined benefit plan is a pension plan that is not a defined contribution plan. Typically, defined benefit plans define an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation. In Switzerland, the Group maintains two pension plans, where the legal obligation is merely to pay contributions at defined rates (defined contribution), however, these plans incorporate certain guarantees of minimum interest accumulation and conversion of capital to pension, and as a result, these plans are reported as defined benefit pension plans.

The liability recognised in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension obligation. In countries where there is no deep market in such bonds, the market rates on government bonds are used as reference of risk-free rates. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to other comprehensive income in the period in which they arise. Past-service costs are recognised immediately in income statement.

Prepaid contributions are recognised as an asset. The Group has no legal or constructive obligations to pay further contributions if the funds do not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Accounting judgement

The present value of the pension obligations depends on a number of factors that are determined on an actuarial basis using a number of assumptions. The assumptions used in determining the net cost (income) for pensions include the discount rate. Any changes in these assumptions will impact the carrying amount of pension obligations.

EFG International Group determines the appropriate discount rate at each reporting date. This is the interest rate used to determine the present value of estimated future cash outflows expected to be required to settle the pension obligations. In determining the appropriate discount rate, the EFG International Group considers the interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid and that have terms to maturity approximating the terms of the related pension obligation. Other key assumptions for pension obligations are based in part on current market conditions.

The Group operates four plans which under IFRS are classified as defined benefit plans. Three of these plans are in Switzerland ('the Swiss plans') for EFG Bank AG and one in the Channel Islands ('the Channel Islands plan').

				(Gain)/loss	(Gain)/loss
	Present value of	Fair value of	Net	through other	through other
	obligation	plan assets	(asset)/liability	comprehensive	comprehensive
				income	income
	CHF millions	CHF millions	CHF millions	CHF millions	CHF millions
	2023	2023	2023	2023	2022
Channel Islands pension plan	2.3	(3.2)	(0.9)		(0.4)
Swiss pension plans	1,220.0	(1,265.3)	(45.3)	78.9	(41.4)
Effect of the asset ceiling on the Swiss plans			33.0	(50.2)	81.4
Total	1,222.3	(1,268.5)	(13.2)	28.7	39.6

The disclosures below relate to the Swiss plans.

		31 December 2023	31 December 2022
	Note	CHF millions	CHF millions
Net amount recognised in the balance sheet
Present value of funded obligation		1,220.0	1,107.4
Fair value of plan assets		(1,265.3)	(1,227.6)
Irrecoverable surplus		33.0	81.4
(Asset)/Liability recognised in the balance sheet		(12.3)	(38.8)
(Asset)/Liability at 01 January		(38.8)	(72.0)
Net amount recognised in the income statement - Staff costs	20	21.3	15.4
Net amount recognised in the income statement - Interest
expense/(income)		(1.1)
Net amount recognised in other comprehensive income		28.7	40.0
Total transactions with fund		(22.4)	(22.2)
(Asset)/Liability at 31 December		(12.3)	(38.8)
Fund with net asset position	40	(51.0)	(49.2)
Fund with net liability position	51	38.7	10.4
(Asset)/Liability at 31 December		(12.3)	(38.8)

	Present value of obligation CHF millions	Fair value of plan assets CHF millions	Impact of asset ceiling CHF millions	Total CHF millions
At 01 January 2023	1,107.4	(1,227.6)	81.4	(38.8)
Current service cost	17.0			17.0
Past service credit - plan amendments	3.2			3.2
Interest expense/(income)	22.5	(25.4)	1.8	(1.1)
Administrative costs and insurance premiums	1.1			1.1
Net amount recognised in the income statement	43.8	(25.4)	1.8	20.2
Remeasurements:
Return on plan assets, excluding amounts
included in interest expense/(income)		(23.1)		(23.1)
Actuarial (gain) due to experience	(1.8)			(1.8)
Actuarial loss due to financial assumptions	103.8			103.8
Change in asset ceiling			(50.2)	(50.2)
Net amount recognised in other comprehensive income	102.0	(23.1)	(50.2)	28.7
Plan participants contributions	12.0	(12.0)		–
Company contributions		(22.4)		(22.4)
Benefit payments	(45.2)	45.2		–
Total transactions with fund	(33.2)	10.8	–	(22.4)
At 31 December 2023	1,220.0	(1,265.3)	33.0	(12.3)
	Present value of obligation CHF millions	Fair value of plan assets CHF millions	Impact of asset ceiling CHF millions	Total CHF millions
At 01 January 2022	1,430.8	(1,502.8)		(72.0)
Current service cost	18.9			18.9
Past service cost-plan amendments	(4.4)			(4.4)
Interest expense/(income)	3.4	(3.6)		(0.2)
Administrative costs and insurance premiums	1.1			1.1
Net amount recognised in the income statement	19.0	(3.6)	–	15.4
Remeasurements:
Return on plan assets, excluding amounts
included in interest expense/(income)		160.2		160.2
Actuarial loss due to experience	31.7			31.7
Change in asset ceiling			81.4	81.4
Actuarial (gain) due to financial assumptions	(233.3)			(233.3)
Net amount recognised in other comprehensive income	(201.6)	160.2	81.4	40.0
Plan participants contributions	12.4	(12.4)		–
Company contributions		(22.2)		(22.2)
Administrative costs and insurance premiums	(89.8)	89.8		–
Benefit payments Total transactions with fund	(63.4) (140.8)	63.4 118.6	–	– (22.2)

	31 December 2023	31 December 2022	31 December 2021
Significant actuarial assumptions
Discount rate	1.35%	2.20%	0.25%
Salary growth rate	2.25%	1.50%	1.25%
Pension growth rate	0.00%	0.00%	0.00%
Life expectancy for a female member aged 65	23.61	23.54	23.48
Life expectancy for a male member aged 65	21.86	21.80	21.75
Life expectancy at age 65 for a female member aged 50	24.83	24.75	24.67
Life expectancy at age 65 for a male member aged 50	23.13	23.04	22.96

	Change in assumption	Impact of an increase in assumption on present value of obligation CHF millions	Impact of a decrease in assumption on present value of obligation CHF millions
2023 Sensitivity analysis
Discount rate	0.30%	(37.6)	41.7
Salary growth rate	0.30%	2.8	(2.6)
Pension growth rate	0.30%	31.8	n/a
Life expectancy	3 months	9.2	(9.1)
2022 Sensitivity analysis
Discount rate	0.10%	(11.2)	12.3
Salary growth rate	0.10%	0.8	(0.8)
Pension growth rate	0.10%	8.6	n/a
Life expectancy	3 months	7.9	(7.9)

Actuarial assumptions of both financial and demographic nature are established as unbiased best estimates of future expectations. Assumptions are changed from time to time to reflect changes in the information available to use in formulating best estimates.

The expected mortality is based on the UK's Continuous Mortality Investigation (CMI) unit's model calibrated with historical Swiss mortality data (LPP2020 generational tables) and using a 1.25% long-term trend rate.

By applying the risk sharing provisions of IAS 19, the plan liabilities are calculated assuming that the pension conversion rate currently in effect will decrease in the next decade to a level based on 1.75% local funding discount rate and the mortality tables assumed for the current plan liabilities.

Financial assumptions include the discount rate, the expected rate of salary growth and the expected rate of pensions increases. The discount rate is set based on

consideration of the yields of high-quality corporate debt of duration similar to that of the pension liabilities. Where availability of such data is limited, the company considers yields available on government bonds and allowing for credit spreads available in other deeper and more liquid markets for high-quality corporate debt. The salary growth assumption is set based on the employer's expectation for inflation and market forces on salaries.

The plans do not guarantee any pension increases, although in the event that the plan developed a surplus according to Swiss pension law, then a discretionary pension adjustment could be possible. At the present time, projections for the plan's development do not indicate a pension adjustment is likely and so it is assumed that pensions are fixed.

The sensitivity of the valuation result to changes in assumptions is illustrated by introducing changes to one specific assumption at a time and comparing the result before and after the change. This is separately illustrated for changes in the discount rate and the expected rate of future salary increases. In practice, there may be some correlation in changes of assumptions, but for the purposes of the valuation the effect is ignored.

The operation of the pension plans involves exposure to a range of risks, with the most significant being presented further below. The impact of these risks is shared between the Group and the plan participants in case of negative effects. In situations where the pension funds will accumulate surplus assets after providing the target benefits, the boards of the foundation may consider a distribution of the surplus to participants. No part of the surplus may be attributed to the Group.

(i) Investment risk

Plan assets are invested to achieve a target return. The actual returns earned each year are likely to vary with a result higher or lower than the target. There is a risk that the long-term average return may be higher or lower than the target. If the long-term return is lower than the target, then the fund will not have sufficient assets for plan benefits. The year-on-year variation in the return will generally be reflected directly in the defined benefit remeasurements.

A component of the return earned each year is derived from investment in bonds, and these bond returns are reflected in changes in the discount rate used to measure the defined benefit obligation. As a result, benefit remeasurements through other comprehensive income resulting from asset volatility may be reduced by changes in the related obligation resulting from changes in the discount rate.

(ii) Longevity risk

The plans provide annuity options to individuals on retirement. These annuity options are calculated using a conversion rate which is established by the foundation and reviewed periodically.

The conversion rate is calculated with an assumption for the target rate of return and the life expectancy of the pensioner. Historic experience is that life expectancy

improved faster than actuarial tables predicted, and so longevity risk tended to be 'loss generating'.

(iii) Interest volatility risk

There is a substantial year-on-year liability volatility due to the volatility of the discount rate used in the model which is based on market yields on bonds of a specified type. The funds allocate a substantial proportion of assets to bonds, but the availability of bonds of duration and characteristics similar in nature to the discount rate is limited so that the interest rate volatility risk cannot be eliminated. Interest rate volatility does not result in any effect on the Group performance but rather on the remeasurements recognised in other comprehensive income.

(iv) Death and disability risk

The number of cases of death and disability of active employees may fluctuate considerably from year to year. To mitigate the effect of this risk, the Swiss plans have contracted insurance contracts covering the cost of death and disability benefits arising each year.

Plan asset

The pension funds have established written investment policies whereby the fund periodically establishes an allocation strategy with target allocations and tactical ranges for the principal classes of investments (equity, fixed income, real estate and liquidity) which aims to maximise the returns on plan assets.

Plan assets are invested under mandates to a number of investment portfolio managers. Investment portfolio managers' performance is regularly evaluated against its established strategy. The actual return on plan assets was a gain of CHF 48.5 million in 2023 (2022: loss of CHF 156.6 million). The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the income statement.

The plan assets do not include any shares of the EFG International Group or of any of its subsidiaries.

The plan asset allocation is as follows:

2023 Asset allocation	Quoted CHF millions	Unquoted CHF millions	Total CHF millions	in %
Cash and cash equivalents	98.9		98.9	7.8%
Equity instruments	223.8		223.8	17.7%
Debt instruments	733.1		733.1	57.9%
Real estate	34.3	155.1	189.4	15.0%
Other	17.8	2.3	20.1	1.6%
Total plan assets at the end of the year	1,107.9	157.4	1,265.3	100.0%
2022 Asset allocation	Quoted CHF millions	Unquoted CHF millions	Total CHF millions	in %
Cash and cash equivalents	23.8		23.8	1.9%
Equity instruments	274.3		274.3	22.3%
Debt instruments	425.5		425.5	34.7%
Real estate	82.7	227.1	309.8	25.2%
Other	190.3	3.9	194.2	15.8%
Total plan assets at the end of the year	996.6	231.0	1,227.6	100.0%

The expected employer contributions to the postemployment benefit plan for the year ending 31 December 2024 are CHF 20.0 million. The Group created an employer contribution reserve in 2021 in Switzerland linked to the future liabilities of certain pensioners. The amount that has been contributed is CHF 52.0 million and is part of the net asset of CHF 12.3 million. The weighted average duration of the defined benefit obligation is 10.9 years (2022: 10.6 years). The expected maturity analysis of undiscounted obligation cash flows is as follows:

	31 December 2023 CHF millions	31 December 2022 CHF millions
Expected maturity analysis of undiscounted obligation cash flows
Less than 1 year	88.6	72.4
Between 1–2 years	82.1	70.1
Between 2–5 years	224.8	203.5
Over 5 years	1,041.2	1,105.7
Total	1,436.7	1,451.7

53. Share capital

Accounting principle

Ordinary shares and non-voting Bons de Participation issued are classified as equity.

(i) Share issue costs

Incremental costs directly attributable to the issue of new shares or Bons de Participation are shown in equity as a deduction from the proceeds attributable to share premium.

(ii) Dividends on ordinary shares

Dividends on ordinary shares are recognised in equity in the period in which they are approved by the Company's shareholders.

(iii) Treasury shares

Where the Group purchases its own equity share capital, the consideration paid is deducted from total shareholders' equity and classified as treasury shares until they are cancelled. If such shares are subsequently sold or reissued, any consideration received is included in shareholders' equity.

The following is an analysis of the movement of share capital and share premium. The par value of EFG International AG registered shares issued is CHF 0.50 (ordinary shares).

All EFG International AG shares are fully paid.

Number of shares

The following is an analysis of the movement in the number of shares issued by the Group:

		Bons de
		Participation		Treasury shares
	Ordinary shares	without	Treasury shares	Bons de
	with voting right	voting right	Ordinary shares	Participation	Net
Nominal	CHF 0.50	CHF 15.00	CHF 0.50	CHF 15.00
At 01 January 2022	303,921,019	13,382		(750)
New shares issued	1,600,000		(1,600,000)
Ordinary shares repurchased			(7,718,566)
Bons de participation repurchased		(13,382)		750
Employee equity incentive plans exercised	3,963,976		2,416,019
At 31 December 2022	309,484,995		(6,902,547)
Ordinary shares repurchased			(8,042,883)
Employee equity incentive plans exercised	2,800,961		4,422,292
At 31 December 2023	312,285,956	–	(10,523,138)	–
Net share capital (CHF millions)	156.1	–	(5.2)	–	150.9

On an annual basis, the Group prepares a corporate governance statement which includes a description of the capital structure.

54. Other reserves

Accounting principles

Share-based compensation

When treasury shares or new shares issued are used to settle Restricted Stock Units, the corresponding reserve is transferred and any difference is reflected through retained earnings.

	Investment	Employee
	securities and	share
	derivatives	option plan	Other	Total
	CHF millions	CHF millions	CHF millions	CHF millions
At 01 January 2022	(14.7)	49.4	103.5	138.2
Equity-settled share-based plan expensed in the income statement		30.5		30.5
Employee equity incentive plans exercised		(34.2)	(3.2)	(37.4)
Net losses on investments in debt instruments measured at fair value
through other comprehensive income, with no tax effect	(153.5)			(153.5)
Tax effect on net losses on investments in debt instruments measured at
fair value through other comprehensive income	6.8			6.8
Net realised losses on debt instruments measured at fair value through
other comprehensive income reclassified to the income statement, with no
tax effect	10.1			10.1
Change in loss allowance on debt instruments measured at fair value
through other comprehensive income, with no tax effect	0.1			0.1
Repurchase of Bons de Participation			(12.9)	(12.9)
Retirement benefit losses			(39.6)	(39.6)
Tax effect on retirement benefit losses			7.9	7.9
Foreign exchange losses on net investments in foreign operations, with no
tax effect			(7.9)	(7.9)
Currency translation differences, with no tax effect			(49.4)	(49.4)
Currency translation losses transferred to the income statement, with no
tax effect			12.2	12.2
At 31 December 2022	(151.2)	45.7	10.6	(94.9)

	Investment securities and derivatives CHF millions	Employee share option plan CHF millions	Other CHF millions	Total CHF millions
At 01 January 2023	(151.2)	45.7	10.6	(94.9)
Equity-settled share-based plan expensed in the income statement		51.9		51.9
Employee equity incentive plans exercised		(43.9)		(43.9)
Adjustment on reclassification of investments (see note 3)	166.6			166.6
Tax effect of adjustment on reclassification of investments (see note 3)	(6.4)			(6.4)
Net gains on cash flow hedges, with no tax effect	11.9			11.9
Retirement benefit losses			(28.7)	(28.7)
Tax effect on retirement benefit losses			5.6	5.6
Foreign exchange losses on net investments in foreign operations, with no
tax effect			(3.0)	(3.0)
Currency translation differences, with no tax effect			(111.9)	(111.9)
At 31 December 2023	20.9	53.7	(127.4)	(52.8)

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55. Additional equity components

	Weighted average distribution rate %	Due dates	31 December 2023 CHF millions	31 December 2022 CHF millions
Additional equity components – issuers
EFG International AG –		First optional call date
USD 400,000,000	5.5% p.a.	of 25 January 2028	351.0	351.0
Total additional equity components			351.0	351.0

In January 2021, the Group placed USD 400.0 million of perpetual unsecured, deeply subordinated notes, qualifying as Additional Tier 1 capital, with a 5.5% p.a. fixed distribution amount until the first optional call date of 25 January 2028 and thereafter the aggregate of the five years USD CMT Rate plus 4.659% per annum with a reset every five years. The repayment of this instrument is subject to conditions, including the prior approval of the regulator.

The perpetual Additional Tier 1 Notes (the Notes) may be written off partially or in full, on a permanent basis, under several circumstances described in more detail in the prospectus, among which, if the tier 1 common equity falls below 7.0%.

Based on the contractual terms of the perpetual Additional Tier 1 Notes, the Group may, at its sole discretion, elect to cancel in accordance with the terms and conditions all or part of any payment of interest. Any interest not paid shall

not accumulate or be payable at any time thereafter. The non-payment of interest will not constitute an event of default by the Group. If payment of interest is not made in full, the Group's Board of Directors shall not directly or indirectly recommend that any distribution be paid or made on any other shares issued by EFG International AG. The Notes are perpetual securities and have no fixed final redemption date. The issuer may elect in its sole discretion to redeem the Notes. The Notes will not be redeemable at any time at the option of the holders. On this basis, the Notes have been classified as equity instruments in these consolidated financial statements.

Issuance fees of USD 4.0 million are deducted from the proceeds.

The Group made a distribution of CHF 20.4 million (2022: CHF 20.5 million) in March 2023 in relation to these perpetual Additional Tier 1 Notes.

56. Dividends

Final dividends per share are not accounted for until they have been ratified at the Annual General Meeting in March. A dividend in respect of 2023 of CHF 0.55 (2022: CHF 0.45) per share amounting to approximately CHF 166.0 million (2022: CHF 136.7 million), net of dividends not payable on treasury shares is to be proposed.

The financial statements for the year ended 31 December 2023 do not reflect this resolution, which will be accounted for in shareholders' equity as an appropriation of retained profits, in the year ending 31 December 2024, with no tax effect for the Group.

	31 December 2023 CHF millions	31 December 2022 CHF millions
Dividends on ordinary shares
CHF 0.36 per share related to 2021 paid on 6 May 2022		109.7
CHF 0.45 per share related to 2022 paid on 27 April 2023	136.7
Total dividends on ordinary shares	136.7	109.7
Distribution on additional equity components
For the period 25 March 2021 to 24 March 2022 at 5.50%		20.5
For the period 25 March 2022 to 24 March 2023 at 5.50%	20.4
Total distribution on additional equity components	20.4	20.5

57. Non-controlling interests

	31 December 2023	31 December 2022
	CHF millions	CHF millions
EFG Investment 2 (UK) Ltd.		0.8
Total non-controlling interests	–	0.8

58. Off-balance-sheet items

	31 December 2023 CHF millions	31 December 2022 CHF millions
Guarantees issued in favour of third parties	224.1	231.8
Irrevocable commitments	198.9	164.8
Total	423.0	396.6

The following table summarises the Group's off-balance-sheet items by maturity:

	Not later than 1 year CHF millions	1–5 years CHF millions	Over 5 years CHF millions	Total CHF millions
31 December 2023
Guarantees issued in favour of third parties	84.5	35.5	104.1	224.1
Irrevocable commitments	103.5	95.4		198.9
Total	188.0	130.9	104.1	423.0
31 December 2022
Guarantees issued in favour of third parties	93.8	35.1	102.9	231.8
Irrevocable commitments	58.7	104.0	2.1	164.8
Total	152.5	139.1	105.0	396.6

The financial guarantees maturities are based on the earliest contractual maturity date. The irrevocable commitments maturities are based on the dates on which loan commitments made to customers will cease to exist.

59. Securities repurchase and reverse purchase agreements

Accounting principle

Repurchase and reverse-repurchase agreements are treated as secured financing agreements. The transfer of securities in the case of repurchase and reverse-repurchase agreements is not recorded in the balance sheet since the risks and rewards of ownership of the securities are not transferred. In reverse-repurchase agreements, cash deposited against securities received as collateral, and in repurchase agreements cash received against securities provided as collateral, is stated on the balance sheet. Interest income from reverse-repurchase agreements and interest expense from repurchase agreements are accrued in the period in which they are incurred.

	31 December 2023 CHF millions	31 December 2022 CHF millions
Book value of receivables from cash collateral delivered in connection
with securities borrowing and reverse repurchase transactions	1,010.7	3,795.4
Book value of securities lent in connection with securities lending or delivered as collateral in connection with securities borrowing as well as securities
in own portfolio transferred in connection with repurchase agreements	3,498.8	4,294.4
with unrestricted right to resell or pledge	3,498.8	4,294.4
Fair value of securities received and serving as collateral in connection
with securities lending or securities borrowed in connection with securities
borrowing, as well as securities received in connection with reverse
repurchase agreements with an unrestricted right to resell or repledge	4,721.2	8,341.7
of which repledged securities	2,005.0	7,508.9

Amounts paid or received in cash are booked under the balance sheet item 'Due from other banks' or 'Due to other banks'.

60. Fiduciary transactions

Accounting principle

Where the Group acts in a fiduciary capacity, such as nominee, trustee or agent, assets and income arising on fiduciary activities, together with related undertakings to return such assets to customers, are excluded from the financial statements.

	31 December 2023 CHF millions	31 December 2022 CHF millions
Fiduciary transactions with third-party banks	2,974.4	1,947.9
Total	2,974.4	1,947.9

61. Analysis of Swiss and foreign assets, liabilities and shareholders' equity

	Swiss CHF millions	Foreign CHF millions	Total CHF millions
31 December 2023
Total assets	5,589.5	32,996.4	38,585.9
Total liabilities	(1,569.3)	(34,799.5)	(36,368.8)
Total equity	4,020.2	(1,803.1)	2,217.1
Additional equity components	(351.0)		(351.0)
Non-controlling interests
Total shareholders' equity	3,669.2	(1,803.1)	1,866.1
Total equity and liabilities	5,589.5	32,996.4	38,585.9
	Swiss CHF millions	Foreign CHF millions	Total CHF millions
31 December 2022
Total assets	8,328.7	35,209.4	43,538.1
Total liabilities	(1,949.2)	(39,523.6)	(41,472.8)
Total equity	6,379.5	(4,314.2)	2,065.3
Additional equity components	(351.0)		(351.0)
Non-controlling interests		(0.8)	(0.8)
Total shareholders' equity	6,028.5	(4,315.0)	1,713.5
Total equity and liabilities	8,328.7	35,209.4	43,538.1

62. Employee equity incentive plans

The EFG International Employee Equity Incentive Plan (the 'Plan') has different classes of options and restricted stock units, which are equity-settled and have a vesting period of one, two and three years. The different classes have earliest exercise dates varying from three to five years from the grant date and ending seven years from the grant date.

The expense recorded in the income statement spreads the cost of the grants equally over the vesting period. Assumptions are made concerning the forfeiture rate which is adjusted during the vesting period so that at the end of the vesting period there is only a charge for vested

amounts. Total expense related to the Plan in the income statement for the period ended 31 December 2023 was CHF 51.9 million (2022: CHF 30.5 million).

The Plan has been developed internally by the Group without the use of external consultants, although a service contract with an external company exists for the administration of the scheme.

The following table summarises the outstanding options and restricted stock units at 31 December 2023 which, when exercised, will each result in the issuance of one ordinary share:

	Restricted stock		Long-term
	units	Blocked shares	incentive plan units	Total
Year ended 31 December 2022
01 January 2022	15,045,144		3,802,188	18,847,332
Granted	5,377,424	1,524,136		6,901,560
Lapsed	(216,266)		(3,802,188)	(4,018,454)
Exercised	(4,855,859)	(1,524,136)		(6,379,995)
31 December 2022	15,350,443			15,350,443
Year ended 31 December 2023
01 January 2023	15,350,443			15,350,443
Granted	5,274,125	1,318,982	4,585,001	11,178,108
Lapsed	(100,703)	(15,196)	(8,333)	(124,232)
Exercised	(5,905,017)	(1,303,786)		(7,208,803)
31 December 2023	14,618,848		4,576,668	19,195,516

EFG International granted 5,274,125 (2022: 5,377,424) restricted stock units, 1,318,982 (2022: 1,524,136) blocked shares and 4,585,001 (2022: nil) long-term incentive plan units in the year.

The restricted stock units have no exercise price, with two classes as follows:

• With a 3-year lock-up restriction ('Cliff vesting'),
• With 1/3 annual vesting.

The deemed value of each restricted stock unit granted in 2023 is CHF 8.70 for those vesting in 12 months, CHF 8.24 for those vesting in 24 months and CHF 7.76 for those vesting in 36 months.

The blocked shares have blocking periods ending either after the end of a three-year period or pro rata annually over three years. The deemed value of each blocked share granted in 2023 is CHF 9.15. The ownership of the shares has been directly transferred to employees at the grant date

with blocking periods that restrict the employee from selling the shares. The employees receiving these shares will be eligible to receive dividends from the grant date onwards, however the employees have signed a call option, allowing EFG in case of grave misconduct or in case the employee leaves, to buy back the blocked shares from the employee at a price of CHF 0.01, which is effectively equal to forfeiture.

The long-term incentive plan units have a vesting period of three, four and five years. The different classes have earliest exercise dates varying from three to five years from the grant date and ending seven years from the grant date. The Group expects to grant a total of 9,000,000 long-term incentive plan units based on current performance criteria.

The deemed value of each long-term incentive plan units granted in 2023 is CHF 7.62 for the one vesting in 36 months,

CHF 7.00 for the one vesting in 48 months and CHF 6.34 for the one vesting in 60 months.

The values of the grants were determined as follows:

• blocked shares were determined based on the spot share price on the grant date (CHF 9.15)
• restricted stock units and long-term incentive plan units were determined using a model which considers the

present value of the expected dividends during the period between the grant date and the earliest exercise date. The significant inputs into the model were the spot share price (CHF 9.15 for restricted stock units and CHF 9.20 for longterm incentive plan units), market consensus dividend pay-out and the expected life of the restricted stock units and long-term incentive plan units (12 to 60 months).

63. Related party transactions

Accounting principle

Related parties include associates, fellow subsidiaries, directors and key members of the management, their close families, companies owned or controlled by them and companies whose financial and operating policies they can influence. Transactions of similar nature are disclosed on an aggregate basis.

	Significant shareholders CHF millions	EFG Bank European Financial Group CHF millions	Key management personnel CHF millions
31 December 2023
Assets
Due from other banks	25.3	25.3
Derivatives	2.4	2.4
Other assets	10.5	0.1
Liabilities
Due to other banks	266.6	266.6
Due to customers	63.2		2.7
Other liabilities	0.4	0.1
Year ended 31 December 2023
Interest income	0.9	0.1
Interest expense	(3.5)	(0.9)
Commission income	2.5	1.1
Commission expense	(0.1)
Net other income	1.7	1.5
Operating expenses	(0.7)

	Significant shareholders CHF millions	EFG Bank European Financial Group CHF millions	Key management personnel CHF millions
31 December 2022
Assets
Derivatives	0.9	0.9
Other assets	12.3	0.1
Liabilities
Due to other banks	207.2	207.2
Due to customers	91.8	0.3	5.3
Other liabilities	0.6	0.2
Year ended 31 December 2022
Interest income	1.4	0.1
Interest expense	(0.2)
Commission income	5.3	0.9
Commission expense	(2.0)
Net other income	1.4	1.2
Operating expenses	(0.1)	(0.2)

A number of banking transactions are entered into with related parties. These include loans, deposits, derivative transactions and provision of services. The amounts 'Due from other banks' reflect cash deposits, which like

other third-party amounts classified as due from other banks are unsecured.

No provisions have been recognised in respect of loans granted to related parties (2022: nil).

64. Key management compensation

	31 December 2023 CHF (1)	31 December 2022 CHF
Executive Committee and Board of Directors
Cash compensation	10,918,581	9,937,853
Pension contributions	903,441	565,817
Other compensation and social charges	1,231,602	1,192,117
Restricted stock units	5,140,000	5,684,345
Total	18,193,624	17,380,132

Notes:

1 Not including LTIP: under the LTIP (see further details in section 6.2.2. of the Compensation Report), 1,550,000 RSUs have been allocated to the Executive Committee in 2023 (CHF 14,012,000 at grant date value under the base case scenario representing 100%) to be awarded in 2026 covering a three-year performance period starting in 2023 (actual compensation subject to achieving performance targets and vesting over a 3 year period until 2028). The CEO has been allocated 500,000 RSUs (CHF 4,520,000). Due to formal reasons, for the participating members of the Executive Committee including the CEO, the currently envisaged maximum award was allocated at the start of the LTIP (150% of the allocation in the base case scenario).

Cash compensation includes fixed and variable cash compensation. On an annual basis, the Group prepares a compensation report which includes description of the key management compensation.

65. Assets under Management and Assets under Administration

	31 December 2023 CHF millions	31 December 2022 CHF millions
Character of client assets
Equities	44,885	44,868
Deposits	30,036	33,928
Bonds	32,228	28,983
Loans	16,382	17,332
Structured notes	4,285	4,221
Hedge funds/Fund of hedge funds	2,837	3,169
Fiduciary deposits	2,920	1,948
Other	8,671	8,686
Total Assets under Management	142,244	143,135
Total Assets under Administration	24,451	29,654
Total Assets under Management and Administration	166,695	172,789

Assets under Administration are trust assets administered by the Group. The Group has CHF 7,366 million (2022: 7,801 million) of Assets under Custody not included in the above.

The Group calculates Total Assets under Management (AUM) as the total market value of the assets and liabilities that the Group manages on behalf of clients. AUM include all assets and liabilities managed by or deposited with the

Group on which the Group earns revenue. Assets under Custody excluded from AUM are assets deposited with the Group held solely for safekeeping/custody purposes, and for which the Group does not offer advice on how the assets should be invested. AUM includes lombard loans and mortgages, though does not include the real estate that is security for the mortgage.

	31 December 2023	31 December 2022
	CHF millions	CHF millions
Type of managed assets:
Assets in own administrated collective investment schemes	7,180	8,203
Assets under discretionary management agreements	17,118	18,660
Other assets under management	101,564	98,940
Total Managed assets (including double counts)	125,862	125,803
Thereof double counts	4,302	4,901
Loans	16,382	17,332
Total Assets under Administration	24,451	29,654
Total Assets under Management and Administration	166,695	172,789
Net new asset inflows (including double counts)	6,234	4,179

When AUM is subject to more than one level of asset management services, double counting arises within the total AUM. Each such separate discretionary or advisory service provides additional benefits to the respective client and generates additional revenue to the Group. Double counts primarily include the self-managed collective investment schemes and structured products issued by Group companies which are also included in customer portfolios and already included in AUM.

Net new assets inflows consists of new client acquisitions, client departures and inflows or outflows attributable to existing clients, including new or additional drawdowns of loans and mortgages. Net new assets can be in cash or securities transferred to the bank. Interest and dividend income from Assets under Management, market or currency movements as well as fees and commissions are not included in net new assets. Effects resulting from any acquisition or disposal of EFG's companies are not included in net new assets.

	31 December 2023 CHF millions	31 December 2022 CHF millions
Total Managed assets at 01 January	125,803	152,326
Net new money inflows	5,241	6,143
Market performance and currency impact	(3,706)	(19,805)
Decrease due to disposals of businesses and subsidiaries		(11,911)
Other effects	(1,476)	(950)
Total Managed assets at 31 December	125,862	125,803

Net new money inflows consists of new client acquisition, client departures and inflows or outflows attributable to existing clients (whether in cash or securities). Interest and dividend income from Assets under Management, market or currency movements as well as fees and commissions are not included in net new money.

Effects resulting from any acquisition or disposal of Group companies or businesses are not included in net new money.

66. Events occurring after the reporting period

None.

67. Swiss banking law requirements

The Group is subject to consolidated supervision by Swiss Financial Markets Supervisory Authority. The consolidated financial statements of the Group are prepared in accordance with International Financial Reporting Standards (IFRS). Set out below are the deviations which would result if the provisions of the Banking Ordinance and the Guidelines of Swiss Financial Markets Supervisory Authority governing financial statement reporting, pursuant to Article 23 through Article 27 of Banking Federal Ordinance, were

applied in the preparation of the consolidated financial statements of the Group.

(a) Financial investments

Under IFRS, changes in the fair value of financial assets at fair value through other comprehensive income are recorded as increases or decreases to shareholders' equity (refer to consolidated statement of other comprehensive income) until an investment is sold, collected or otherwise disposed of, or until an investment is determined to be impaired. On disposal of a debt financial instrument at fair value through other comprehensive income, the difference between the net disposal proceeds and carrying amount, including any previously recognised unrealised gain or loss arising from a change in fair value reported in other comprehensive income, is included in the income statement for the period.

Under Swiss law, financial investments are carried at the lower of cost or market value. Positive and negative balance of market-related and/or credit-worthiness-related value adjustments to financial investments valued according to the lower of cost or market value principle are included in the income statement as sundry ordinary income and sundry ordinary expenses, respectively. Gains or losses on disposals are recognised in the income statement as income from the sale of financial investments.

(b) Fair value option

Even if an instrument meets the requirements to be measured at amortised cost or fair value through other comprehensive income, IFRS 9 contains an option to designate, at initial recognition, a financial asset as measured at fair value through profit and loss if doing so eliminates or significantly reduces a measurement or recognition inconsistency ('accounting mismatch') that would otherwise arise from measuring assets or liabilities (or recognising the gains and losses on them) on different bases.

Under Swiss law, this option is not available. Only the financial assets held for trading are reflected on the balance sheet at fair value. Hybrid instruments are bifurcated: the embedded derivative is marked to market through net trading income and the host contract is accounted for on an accrued cost basis. No own credit adjustments are booked for hybrid instruments. Generally, loans are accounted for at amortised cost less impairment, loan commitments stay off-balance sheet and fund investments are accounted for as financial investments.

(c) Derivative financial instruments

Under IFRS 9, derivatives are recorded in the balance sheet at fair value with changes in fair value being recognised in fair value gains less losses on financial instruments measured at fair value.

Under Swiss law, the Group's derivative instruments are recorded on balance sheet at their market values (gross positive and negative replacement values). Replacement values are reported on a net basis provided the netting agreements are legally enforceable. Hedging transactions are valued using the same principles as those for the underlying transactions being hedged.

(d) Goodwill and intangible assets

Under both IFRS and under Swiss law, goodwill and intangible assets resulting from acquisitions and mergers are capitalised in the balance sheet.

Under IFRS, goodwill is not amortised but is tested for impairment at least annually and is carried at cost less accumulated impairment losses. Intangible assets are amortised on a systematic basis over their useful lives. In addition, intangible assets are tested for impairment when there is any indication that the asset may be impaired. Intangible assets are carried at cost less amortisation and accumulated impairment losses.

Under Swiss law, goodwill and intangible assets are amortised over the estimated economic life on a straightline basis. The net carrying value of intangible assets is, in addition, reappraised annually, with any reduction to the net carrying value taken immediately as an expense in the income statement.

(e) Extraordinary income and expense

Under IFRS, items of income and expense shall not be classified as extraordinary items in the income statement or the separate income statement (if presented), or in the notes.

Under Swiss law, income and expense items related to other accounting periods, as long as they are attributable to corrections or mistakes from previous periods, and/or not directly related with the core business activities of the enterprise (realised gains on sale of investments in associated undertakings or property, plant and equipment), are recorded as extraordinary income or expense.

(f) Discontinued operations

Under IFRS, assets and liabilities of an entity held for sale are separated from the ordinary balance sheet positions and reported in separate discontinued operations items. In addition, such assets and liabilities are remeasured at the lower of their carrying value or fair value less costs to sell.

Under Swiss law, these positions remain in the ordinary balance sheet positions until disposal and are not remeasured.

(g) Retirement benefit obligations

Under IFRS and the specific rules of IAS 19R, the Group records an asset or liability for the Swiss pension funds as if they were defined benefit schemes.

Under Swiss law, the funds are classified as defined contribution schemes and the Group's liability for a fully funded pension fund is limited, and as a result no asset or liability exists for any amounts other than prepaid or unpaid employers' contributions.

(h) Lease accounting

Under IFRS, the Group records a right-of-use asset and a lease liability in the balance sheet for leases. The right-ofuse asset is then amortised over the period of the lease.

Under Swiss law, lease expenses are charged to income statement on a straight-line basis over the life of the lease.

(i) Additional Tier 1 Notes

Under IFRS, the Group considers the perpetual unsecured, deeply subordinated notes as additional equity components. The notes are recognised in the balance sheet at the net of the proceeds received less any issuance fees paid in the additional equity components reserve. Distributions to the holders of the notes are directly deducted from retained earnings when paid.

Under Swiss law, the perpetual unsecured, deeply subordinated notes are considered as a liability. Distributions to the holders of the notes are accrued through the income statement and issuance fees are amortised over the period until the first optional call date.

Auditor's report

Report of the statutory auditor

to the General Meeting of EFG International AG, Zurich

Report on the audit of the consolidated financial statements

Opinion

We have audited the consolidated financial statements of EFG International AG and its subsidiaries (the Group), which comprise the consolidated income statement, consolidated statement of comprehensive income for the year ended 31 December 2023, consolidated balance sheet as at 31 December 2023, the consolidated statement of changes in equity and the consolidated cash flow statement, for the year then ended and notes to the consolidated financial statements, including material accounting policy information.

In our opinion, the accompanying consolidated financial statements (pages 86 to 211) give a true and fair view of the consolidated financial position of the Group as at 31 December 2023 and of its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with the IFRS Accounting Standards and comply with Swiss law.

Basis for opinion

We conducted our audit in accordance with Swiss law, International Standards on Auditing (ISA) and Swiss Standards on Auditing (SA-CH). Our responsibilities under those provisions and standards are further described in the "Auditor's responsibilities for the audit of the consolidated financial statements" section of our report. We are independent of the Group in accordance with the provisions of Swiss law and the requirements of the Swiss audit profession, as well as those of the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with these requirements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Our audit approach

Overview Overall group materiality: CHF 16'660'000

We concluded full scope audit work at 7 reporting units in 6 countries. Our audit scope addressed 70% of the Group's profit before tax, 79% of the Group's operating incomes and 78% of the Group's total assets. In addition, specified procedures were performed on 3 reporting units in 3 countries.

As key audit matters the following areas of focus have been identified:

• Impairment of loans and advances to customers
• Valuation of investments in life insurance policies
• Provisions and contingent liabilities in respect of ongoing disputes and litigations

PricewaterhouseCoopers SA, avenue Giuseppe-Motta 50, case postale, 1211 Genève 2, Switzerland Téléphone: +41 58 792 91 00, www.pwc.ch

Materiality

The scope of our audit was influenced by our application of materiality. Our audit opinion aims to provide reasonable assurance that the consolidated financial statements are free from material misstatement. Misstatements may arise due to fraud or error. They are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the consolidated financial statements.

Based on our professional judgement, we determined certain quantitative thresholds for materiality, including the overall group materiality for the consolidated financial statements as a whole as set out in the table below. These, together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both individually and in aggregate, on the consolidated financial statements as a whole.

Overall group materiality	CHF 16'660'000
Benchmark applied	Profit before tax
Rationale for the materiality benchmark applied	We chose profit before tax as the benchmark because, in our view, it is the benchmark against which the performance of the Group is most commonly measured, and it is a generally accepted benchmark.

We agreed with the Board of Directors that we would report to them misstatements above CHF 500'000 identified during our audit as well as any misstatements below that amount which, in our view, warranted reporting for qualitative reasons.

Audit scope

We designed our audit by determining materiality and assessing the risks of material misstatement in the consolidated financial statements. In particular, we considered where subjective judgements were made; for example, in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. As in all of our audits, we also addressed the risk of management override of internal controls, including among other matters consideration of whether there was evidence of bias that represented a risk of material misstatement due to fraud.

We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the consolidated financial statements as a whole, taking into account the structure of the Group, the accounting processes and controls, and the industry in which the Group operates.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Impairment of loans and advances to customers

Key audit matter How our audit addressed the key audit matter The impairment of loans and advances to customers is considered a key audit matter due to the size of the

balance of loans and advances to customers (CHF 16'019.1 million, predominantly lombard loans and mortgage loans) as well as Management's judgements involved in the estimation of the expected credit losses (ECLs).

ECL allowance on loans and advances to customers amounts to CHF 18.1 million. In order to limit the losses from its lending business, the Group has set loan-to-value limits that are tailored to the nature of the supporting

We assessed and tested the design and operating effectiveness of the controls for identification of credit impaired loans and loans with increased credit risks, as well as the calculation of ECLs. As part of our work, on a sample basis, we:

• checked that the assigned pledges are available in order to confirm that the Group could realise collateral in order to recover the loans;
• tested the controls over the automated sourcing of the market prices for financial assets pledged by the customers as collateral in order to ensure that up-to-

collateral. The key judgement made by Management when estimating the ECLs involves assessing whether the realisable value of collateral will be sufficient to cover the exposure.

Management has put in place a comprehensive set of controls in order to monitor the market value of collateral on an ongoing basis, as well as to identify 'Significant Increases in Credit Risk (SICR').

Also refer to Note 6, Note 8.5, Note 34 and Note 35.

• date market values are used when assessing SICR and estimating ECLs; and
• tested the controls over the generation of credit excess list and shortfall reports to ensure that these reports were complete and accurate.

Moreover, we carried out the following procedures:

• on a sample basis, inspected documents used in the valuation of unquoted collateral (e.g. independent valuation reports for mortgage loans and cash surrender value assessments for life insurance policies) in order to ensure that the reports were sufficiently current and that they supported Management's assessment of the adequacy of collateral;
• checked the completeness and accuracy flows of data into the reports used for estimating ECLs by tracing, on a sample basis, key data elements from the reports back to the core banking system and the supporting documents;
• on a sample basis, checked the detailed loan data to ensure that loans with SICR indicators had been classified as either stage 2 or stage 3;
• inspected the credit excess list and shortfall reports to identify potentially underprovided loans; and
• carried out an overall analytical assessment of ECLs.

We found the approach applied by the Group to be reasonable.

Valuation of investments in life insurance policies

The Group holds life insurance policies (LIPs) with a carrying value of CHF 537.8 million which it classifies as financial assets at fair value through profit or loss (FVTPL) and derivatives financial instruments related to life insurance policies with a carrying value of CHF 24.3 million. Management uses an income approach for fair valuation of LIPs and related derivatives. This approach requires significant judgement with respect to (a) the choice of valuation models and (b) the choice of assumptions (for instance choice of mortality table, life expectancy, premiums, death benefits) used in the models. Consequently, we considered this area to be a key audit matter.

During the 2015-2018 period, several insurance carriers notified the Group of increases in insurance premiums ('cost of insurance' or 'CoI'). These increases have attracted interests from US consumers associations and regulators and the Group has filed legal claims in dispute of these increases.

The Group factored these increases into its assessment of the fair value of the LIPs by assuming that market

Key audit matter How our audit addressed the key audit matter

In order to ensure completeness of the LIP population, we have, on a sample basis, tested census data based on external confirmations obtained from servicers and custodians.

We assessed with the involvement of our specialists the adequacy of the fair value model in light of IFRS 13 requirements.

We also reviewed the methodology for the models used, checked that the assumptions are correctly entered in the Group's model, and assessed whether the main assumptions used by Management are in line with historic experience or a market participant's view.

We further checked that the assumptions and risk factors used in the model were consistent with the ones used by the life insurance industry for valuing LIPs. This included (a) assessing whether the choice of mortality table was appropriate, (b) reviewing of the key assumptions (life expectancy, premiums, death benefits), and (c) checking the mathematical accuracy of the model.

participants would also take into consideration the legal dispute when determining the fair value. Management developed a number of discrete scenarios starting with a base case and relying on expert opinions. On the basis of the review of these scenarios, Management have incorporated an assumption based on a market participants view that assumes premiums would increase for all policies subject to a notification of increase by the insurance carriers, but at a rate significantly lower than that notified by the insurers.

For LIPs with insurance carriers that have not notified CoI increase, the Group maintained CoI estimates consistent with the previous year.

Please refer to Note 10, Note 32 and Note 42.1.

Key audit matter How our audit addressed the key audit matter

We found the approach applied by the Group to be reasonable.

Provisions and contingent liabilities in respect of ongoing disputes and litigations

We considered this area a key audit matter because the Group is a defendant in a number of disputes where, as disclosed in Note 49 and Note 50, the amount of compensation claimed is significant. The impact of these cases depends on the final outcome of the disputes, and management tries to estimate the outcomes of each disputes as described below.

On the basis of information from internal and external legal counsels, Management makes judgements about the probability of the outcomes of the pending legal proceedings and magnitude of the potential liabilities arising from claims subject to these future outcomes. As per Note 49, the Group had recognised provisions of CHF 134.4 million for litigations and other claims as of 31 December 2023.

Please refer to Notes 49 and 50.

Key audit matter How our audit addressed the key audit matter

In view of the significant judgements required, we discussed the outstanding claims against the Group with Management (including in-house counsel), evaluated the management's assessment of the nature and expected developments of claims and sought additional evidence we considered appropriate.

We challenged Management's conclusions with respect to the provisions and disclosures made for significant cases, by considering the correspondence between the Group and its external legal counsel and obtaining confirmation letters (concerning the status and outlook of the case) directly from the external legal counsel and ensuring that these were consistent with Management's conclusions. We further audited the disclosures relating to cases provided for (Note 49) and contingent liabilities (Note 50) to ensure that they were in line with the reports provided by the external legal counsels.

We concluded that the approach and disclosures made were reasonable.

Other information

The Board of Directors is responsible for the other information. The other information comprises the information included in the annual report, but does not include the consolidated financial statements, the parent company financial statements, the compensation report and our auditor's reports thereon.

Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Board of Directors' responsibilities for the consolidated financial statements

The Board of Directors is responsible for the preparation of the consolidated financial statements, which give a true and fair view in accordance with the IFRS Accounting Standards and the provisions of Swiss law, and for such internal control as the Board of Directors determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, the Board of Directors is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern, and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the consolidated financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Swiss law, ISA and SA-CH will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with Swiss law, ISA and SA-CH, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made.
• Conclude on the appropriateness of the Board of Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate to the Board of Directors or its relevant committee regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the Board of Directors or its relevant committee with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may

reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.

From the matters communicated to the Board of Directors or its relevant committee, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on other legal and regulatory requirements

In accordance with art. 728a para. 1 item 3 CO and PS-CH 890, we confirm that an internal control system exists, which has been designed for the preparation of the consolidated financial statements according to the instructions of the Board of Directors.

We recommend that the consolidated financial statements submitted to you be approved.

PricewaterhouseCoopers SA

Alex Astolfi Omar Grossi Licensed audit expert Licensed audit expert

Auditor in charge

Geneva, 20 February 2024

Parent company financial statements

EFG International, Zurich, for the year ended 31 December 2023

	Index to the financial statements	221
	Income statement	222
	Balance sheet	223
	Notes to the parent company financial statements	224
1	General information	224
2	Accounting policies	224
3	Contingent liabilities	224
4	Balance sheet assets with retention of title to secure own
	obligations	224
5	Off-balance-sheet obligations relating to leasing contracts	224
6	Liabilities relating to pension plans and other
	retirement benefit obligations	224
7	Subordinated debt	225
8	Principal participations	225
9	Release of undisclosed reserves	225
	10 Revaluation of long-term assets to higher than cost	225
11	Own shares held by the company and by Group companies	225
12	Share capital	226
13	Significant shareholders	227
	14 Income from subsidiaries	227
15	Extraordinary income	227
	16 Operating expenses	228
17	Subsidiary related expenses and other losses	228
	18 Extraordinary expenses	228
	19 Legal reserves	229
	20 Proposed appropriation of available reserves	229
21	Compensation of Board of Directors and Executive Committee	230
	22 Post-balance-sheet events	231
	Statutory auditor's report	232

Income statement for the year ended 31 December 2023, EFG International, Zurich

		Year ended 31 December 2023	Year ended 31 December 2022
	Note	CHF millions	CHF millions
Income
Interest income from subsidiaries		17.0	15.6
Income from subsidiaries	14	306.5	124.6
Foreign exchange gain		6.8
Extraordinary income	15	37.5	0.5
Total income		367.8	140.7
Expenses
Staff expenses		(19.3)	(11.5)
Operating expenses	16	(27.5)	(24.6)
Interest expenses and amortisation of issuance fee on subordinated debt	7	(20.3)	(21.2)
Interest expenses paid to subsidiaries		(1.6)	(1.3)
Foreign exchange losses			(1.9)
Impairment of investments in subsidiaries	8	(59.0)	(1.1)
Subsidiary related expenses and other losses	17	(35.3)	(0.7)
Extraordinary expenses	18	(5.5)	(10.4)
Total expenses		(168.5)	(72.7)
Net profit before tax		199.3	68.0
Tax expense		(0.2)	(0.4)
Net profit for the period		199.1	67.6

Balance sheet as at 31 December 2023 EFG International, Zurich

		Year ended 31 December 2023	Year ended 31 December 2022
	Note	CHF millions	CHF millions
Assets
Cash and cash equivalents (with subsidiaries)		16.4	18.6
Due from subsidiaries		37.2	13.7
Accrued income and prepaid expenses		3.0	1.2
Other assets		7.3	10.2
Current assets		63.9	43.7
Investments in subsidiaries		1,788.5	1,825.6
Subordinated loans to subsidiaries		180.5	188.8
Non-current assets		1,969.0	2,014.4
Total assets		2,032.9	2,058.1
Liabilities
Due to subsidiaries		75.0	157.2
Accrued expenses and deferred income		37.5	22.7
Other liabilities		0.5	0.1
Current liabilities		113.0	180.0
Provisions	17	313.9	306.8
Subordinated debt	7	333.3	366.6
Non-current liabilities		647.2	673.4
Total liabilities		760.2	853.4
Equity
Share capital	12	156.1	154.7
Legal reserves		1,740.4	1,872.9
of which Reserve from capital contributions	19	1,644.9	1,817.7
of which Reserve for own shares from capital contributions		95.5	55.2
Retained earnings		(822.9)	(890.5)
Net profit for the period		199.1	67.6
Total shareholders' equity		1,272.7	1,204.7
Total shareholders' equity and liabilities		2,032.9	2,058.1

Notes to the financial statements EFG International, Zurich

1. General information

EFG International AG is incorporated and domiciled in Switzerland. Its registered office is at Bleicherweg 8, 8022 Zurich.

2. Accounting policies

The EFG International AG stand-alone financial statements are prepared in accordance with the provisions on accounting and financial reporting of the Swiss Code of Obligations (art. 957 to 963b). As the Group is preparing its consolidated financial statements in accordance with IFRS, EFG International AG (stand-alone) is exempt from various disclosures in the stand-alone financial statements.

The stand-alone financial statements of EFG International AG are presented in CHF, its functional currency. Assets and liabilities denominated in foreign currencies are converted at rates of exchange prevailing at year-end, which are presented in note 2 (c) of the consolidated financial statements.

Investments in subsidiaries

Investments in subsidiaries are equity interests and are directly held subsidiaries through which EFG International conducts its business on a global basis. Their values are measured individually and carried at historical cost less any impairments.

Provisions

Provisions are recognised when:

• a) There is a present legal or constructive obligation as a result of past events
• b) It is probable that an outflow of economic benefits will be required to settle the obligation
• c) Reliable estimates of the amount of the obligation can be made

3. Contingent liabilities

EFG International AG has entered into several guarantee agreements mainly with subsidiaries which could theoretically lead to potential obligations of CHF 2,167 million (2022: CHF 2,546 million). Included in this amount is CHF 2,095 million (2022: CHF 2,469 million) related to structured products issued by a fellow subsidiary company (which does not have a stand-alone credit rating) and are guaranteed by EFG International AG (which does have a credit rating). The risks related to these liabilities of the subsidiary are fully hedged by the subsidiary and are fully collateralised in the subsidiary by equal valued assets (primarily cash deposits).

4. Balance sheet assets with retention of title to secure own obligations

There are no such assets.

5. Off-balance-sheet obligations relating to leasing contracts

There are no such obligations.

6. Liabilities relating to pension plans and other retirement benefit obligations

There are no such liabilities.

7. Subordinated debt

	Weighted average distribution rate %	Due dates	31 December 2023 CHF millions	31 December 2022 CHF millions
Subordinated debt – issuers
EFG International AG –
USD 400,000,000	5.5% p.a.	Not applicable	335.2	369.3
Issuance fees		Not applicable	(1.9)	(2.7)
Total subordinated debt			333.3	366.6

In January 2021, EFG International AG issued USD 400.0 million of perpetual unsecured, deeply subordinated notes, qualifying as Additional Tier 1 capital for the Group, carrying a coupon of 5.5% p.a. fixed distribution amount until the first optional call date of 25 January 2028 and thereafter the aggregate of the five-year USD CMT Rate plus 4.659% per annum with a reset every five years. The repayment of this instrument is subject to conditions, including the prior approval of the regulator. The Notes have no fixed final redemption date. The issuer may elect in its sole discretion to redeem the Notes. The Notes will not be redeemable at any time at the option of the holders.

The perpetual Additional Tier 1 Notes may be written off partially or in full, on a permanent basis, under several circumstances described in more detail in the prospectus, among which, if the Tier 1 common equity falls below 7.0%.

Based on the contractual terms of the perpetual Additional Tier 1 Notes, the Group may, at its sole discretion, elect to cancel in accordance with the terms and conditions all or part of any payment of interest. Any interest not paid shall not accumulate or be payable at any time thereafter. The non-payment of interest will not constitute an event of default by the Group. If payment of interest is not made in full, the Group's Board of Directors shall not directly or indirectly recommend that any distribution be paid or made on any other shares issued by EFG International AG.

Issuance fees of USD 4.0 million are amortised over seven years through income statement.

EFG International AG made a distribution of CHF 20.5 million in March 2023 (2022: CHF 20.5 million) in relation to these perpetual Additional Tier 1 Notes, and accrued interest to the end of 2023 is CHF 14.2 million (2022: CHF 15.6 million).

8. Principal participations

The company's principal participations are shown in the note 44 to the consolidated financial statements.

In the current year, the company impaired the carrying value of investments in subsidiaries by CHF 59.0 million (2022: CHF 1.1 million) where capital was invested in subsidiaries with net asset values below the carrying value of the subsidiaries. This primarily relates to an impairment of CHF 37.5 million of participation in a subsidiary in Malta which has been placed into liquidation. As part of the liquidation process a related loan was forgiven resulting in a gain of CHF 37.5 million recorded in extraordinary income (see Note 15).

9. Release of undisclosed reserves

During the period, no undisclosed reserves were released (2022: nil).

10. Revaluation of long-term assets to higher than cost

There was no such revaluation.

11. Own shares held by the company and by Group companies

In the statutory financial statements of EFG International AG, treasury shares held by EFG International AG itself are deducted directly from equity. For treasury shares held by other Group companies, a reserve for treasury shares is stated in equity.

While EFG International AG did not hold any treasury shares in 2023 and 2022, different Group entities held 10,523,138

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Notes to the financial statements EFG International, Zurich

registered shares at 31 December 2023 (2022: 6,902,547 shares held by a Group entity).

See note 53 of the consolidated financial statements.

12. Share capital

	31 December 2023	31 December 2022
	CHF millions	CHF millions
312,285,956 (2022: 309,484,995) registered shares at the nominal value of CHF 0.50	156.1	154.7
Total share capital	156.1	154.7

Conditional share capital

The share capital may be increased by no more than CHF 2,895,587 (2022: CHF 4,296,067.50) by issuing no more than 5,791,174 (2022: 8,592,135) fully paid-in registered shares with a par value of CHF 0.50 each through the exercise of options (including existing or future restricted stock units) granted to employees of all levels of EFG International Group. The pre-emptive rights and the advance subscription rights of the shareholders and the participants are excluded in favour of the holders of the restricted stock units. The conditions for the allocation and the exercise of the options rights and similar rights are determined by the Board of Directors. The shares may be issued at a price below the market price.

In addition, the share capital may be increased by no more than CHF 10,000,000 by issuing no more than 20,000,000 fully paid-in registered shares with a par value of CHF 0.50 each through the exercise of conversion and/or option rights granted in connection with the issuance of newly issued convertible debentures, debentures with option rights or other financing instruments by the Company or one of its subsidiaries. The preferential subscription rights of the shareholders and the participants are excluded in favour of the holders of conversion and/or option rights.

Authorised share capital/Capital band

As at 31 December 2023, the share capital may be changed in a range between CHF 108,319,748.50 and CHF 201,165,246.50 (capital band). The Board of Directors is authorised, at any time until 28 April 2028, to increase the share capital by no more than CHF 46,422,749.00 by issuing no more than 92,845,498 fully paid-in registered shares (equating to 29.7% of the total share capital issued as at 31 December 2023) with a par value of CHF 0.50 each or by way of an equivalent increase of the nominal value of the issued shares. Partial increases are permissible. The Board of

Directors is authorised to determine the issue price, the date of the dividend entitlement and the type of contribution (including, without limitation, contribution in kind, offsetting and conversion of reserves) for any shares issued via the capital band. The Board of Directors is authorised to restrict or exclude the trading of subscription rights and may use any subscription rights not exercised in the interest of the company. The new shares may be issued at a price below the market price for objective reasons.

In case of capital increases the Board of Directors is authorised to exclude subscription rights in favour of third parties (including other group companies) if the shares are to be used:

• (i) For the acquisition of companies or of participations in companies through an exchange of shares
• (ii) For the financing or refinancing of the acquisition of companies or of participations in companies
• (iii) For the participation of members of the Board of Directors, members of the Executive Committee, other officers or employees at all levels of EFG International and its group companies

Furthermore, the Board of Directors is authorised, at any time until 21 April 2028, to reduce the share capital by no more than CHF 46,422,749.00 by cancelling no more than 92,845,498 fully paid-in registered shares with a face value of CHF 0.50 each (equating to 29.7% of the total share capital issued as at 31 December 2023) or by reducing the nominal value of the issued shares accordingly. Partial reduction is permissible.

13. Significant shareholders

The significant shareholders and groups of shareholders, whose participation exceed 5% of all voting rights are:

	31 December 2023		31 December 2022
	Shares Participation of		Shares	Participation of
		%		%
EFG Bank European Financial Group SA, Geneva	140,421,406	45.0%	140,421,406	45.4%
BTGP-BSI Limited, London	61,228,372	19.6%	61,228,372	19.8%

EFG Bank European Financial Group SA is controlled by the Latsis Family Interests through several intermediate parent companies. BTGP-BSI Limited is a subsidiary of Banco BTG Pactual SA, Rio de Janeiro, a bank listed on the B3 São Paulo Stock Exchange in Brazil.

14. Income from subsidiaries

Income from subsidiaries consists of the following:

	31 December 2023 CHF millions	31 December 2022 CHF millions
Dividends	247.0	88.6
Royalties	8.3	7.6
Management service fees	5.9	3.0
Administrator fees	43.8	20.8
Other services	1.5	4.6
Total	306.5	124.6

15. Extraordinary income

The extraordinary income is primarily due to a loan forgiven as part of the liquidation process of a subsidiary. See Note 8.

	31 December 2023 CHF millions	31 December 2022 CHF millions
Other	37.5	0.5
Extraordinary income	37.5	0.5

Notes to the financial statements EFG International, Zurich

16. Operating expenses

Operating expenses consist of the following:

	31 December 2023 CHF millions	31 December 2022 CHF millions
Services provided by subsidiaries	(9.4)	(9.2)
Marketing	(5.2)	(4.3)
Consulting	(8.1)	(4.7)
Insurance		(2.0)
Audit	(1.2)	(1.1)
Legal	(0.6)	(0.7)
Other	(3.0)	(2.6)
Total	(27.5)	(24.6)

17. Subsidiary related expenses and other losses

	31 December 2023 CHF millions	31 December 2022 CHF millions
Non-refundable contribution to subsidiary	(27.0)
Increase in provision for recapitalisation of subsidiary *	(7.1)	(0.7)
Other losses	(1.2)
Total	(35.3)	(0.7)

^* Based on the net realisable assets of the Group companies, a potential liability of CHF 313.9 million (2022: CHF 306.8 million) exists at year-end, assuming the entities are recapitalised.

18. Extraordinary expenses

The extraordinary expense primarily arises from the reversal of the receivable from the seller of a subsidiary, as this will be received directly by the subsidiary. The extraordinary expenses in 2022 were related primarily to a loan to a wholly owned subsidiary forgiven.

	31 December 2023 CHF millions	31 December 2022 CHF millions
Extraordinary expenses	(5.5)	(10.4)
Total	(5.5)	(10.4)

19. Legal reserves

In 2023, a dividend distribution totalling CHF 136.7 million (2022: CHF 109.7 million) has been paid from the 'Reserve from capital contributions' representing CHF 0.45 per registered share paid on 27 April 2023 (2022: CHF 0.36 per registered share).

20. Proposed appropriation of available reserves

The Board of Directors proposes, subject to the approval of the General Meeting of Shareholders, to carry forward the

profit of the year of CHF 199.1 million as cumulative negative retained earnings and to proceed to a distribution to shareholders of CHF 0.55 per share, which will amount to a total distribution of approximately CHF 166.0 million. The Board of Directors proposes to fully charge the proposed distribution for 2023 of CHF 0.55 per share to the balance sheet item 'Reserve from capital contributions'. Subject to the adoption of this proposal by the General Meeting of Shareholders, such distribution will not be subject to the Swiss withholding tax.

Notes to the financial statements EFG International, Zurich

21. Compensation of Board of Directors and Executive Committee

(i) Shareholdings

At 31 December 2023, the following shareholdings were held by the Board of Directors and the Executive Committee and closely linked parties.

					2023			2022
				2023	Total		2022	Total
			2023	Unvested	outstanding	2022	Unvested	outstanding
	Shares	Shares	Vested	shares/	shares/	Vested	shares/	shares/
	2023	2022	RSUs	RSUs	RSUs	RSUs	RSUs	RSUs
Board of Directors
Alexander Classen, Chair*	57,008			2,870	2,870		2,644	2,644
Peter A. Fanconi, Chair**	N/A	178,901	N/A	N/A	N/A	39,824	36,174	75,998
Susanne Brandenberger***	N/A	26,684		3,570	3,570		5,427	5,427
Emmanuel L. Bussetil
Boris Collardi****	10,775,862*	10,775,862*
Roberto Isolani	86,996	69,124		14,143	14,143		10,842	10,842
Steven M. Jacobs***	N/A	37,303	3,801	7,180	10,981	13,196	10,842	24,038
John S. Latsis	140,421,406**	140,421,406**
Maria Leistner**	5,574
Philip Lofts*				6,963	6,963
Carlo M. Lombardini	10,880	4,335	9,773	3,570	13,343	5,972	5,427	11,399
Périclès Petalas
Stuart M. Robertson	25,215	12,970	3,801	3,570	7,371	5,700	5,427	11,127
Freiherr Bernd-A. von Maltzan	33,229	20,984	3,801	3,570	7,371	5,700	5,427	11,127
Yok Tak A. Yip	2,776		9,230	14,143	23,373	5,610	10,661	16,271
Total Board of Directors	151,418,946	151,547,569	30,406	59,579	89,985	76,002	92,871	168,873

^* Elected at the EGM on 06 October 2022 as member of the Board of Directors with immediate effect and as the Chair as from 01 November 2022.

^** Stepped down 31 October 2022

^*** Stepped down at AGM 2023

^**** Elected at the EGM on 06 October 2022

^***** Total number of shares beneficial owner Boris Collardi

^****** Total number of shares controlled by the Latsis Family Interests

^******* Elected at AGM 2023

					2023			2022
				2023	Total		2022	Total
			2023	Unvested	outstanding	2022	Unvested	outstanding
	Shares	Shares	Vested	shares/	shares/	Vested	shares/	shares/
	2023	2022	RSUs	RSUs (1)	RSUs (1)	RSUs	RSUs	RSUs
Executive Committee*
Piergiorgio Pradelli	1,182,183	858,720		135,084	135,084		244,673	244,673
Yves Aeschlimann**	N/A			90,482	90,482	23,383	138,427	161,810
Vassiliki Dimitrakopoulou***	64,033	10,848	20,397	46,425	66,822	47,169	19,653	66,822
Martin Freiermuth	169,595	90,454		2,568	2,568		7,470	7,470
Enrico Piotto	70,610	40,000		127,503	127,503		66,923	66,923
Dimitris Politis	383,557	206,727		61,913	61,913		116,707	116,707
Harald Reczek****		104,545
Total Executive Committee	1,869,978	1,311,294	20,397	463,975	484,372	70,552	593,853	664,405

^* Totals including members of the Executive Committee who left in 2022 and in 2021

Notes:

1 Not including LTIP: under the LTIP (see further details in section 6.2.2. of the Compensation Report), 1,550,000 RSUs have been allocated to the Executive Committee in 2023 (CHF 14,012,000 at grant date value under the base case scenario representing 100%) to be awarded in 2026 covering a three-year performance period starting in 2023 (actual compensation subject to achieving performance targets and vesting over a 3 year period until 2028). The CEO has been allocated 500,000 RSUs (CHF 4,520,000). Due to formal reasons, for the participating members of the Executive Committee including the CEO, the currently envisaged maximum award was allocated at the start of the LTIP (150% of the allocation in the base case scenario).

The members of the Executive Committee have been granted 463,975 shares / restricted stock units which are currently subject to vesting criteria (2022: 593,853 restricted stock units). These units would vest in the period 2024 to 2026.

22. Post-balance-sheet events

None.

^** Executive Committee member until 01 April 2022

^*** Executive Committee member since 01 November 2022

^**** Stepped down effective as at 01 February 2023.

Report of the statutory auditor

to the General Meeting of EFG International AG, Zurich

Report on the audit of the financial statements

Opinion

We have audited the financial statements of EFG International AG (the Company), which comprise the income statement for the year ended 31 December 2023, the balance sheet as at 31 December 2023, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements (pages 222 to 231) comply with Swiss law and the Company's articles of association.

Basis for opinion

We conducted our audit in accordance with Swiss law and Swiss Standards on Auditing (SA-CH). Our responsibilities under those provisions and standards are further described in the 'Auditor's responsibilities for the audit of the financial statements' section of our report. We are independent of the Company in accordance with the provisions of Swiss law and the requirements of the Swiss audit profession, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Our audit approach

Materiality

The scope of our audit was influenced by our application of materiality. Our audit opinion aims to provide reasonable assurance that the financial statements are free from material misstatement. Misstatements may arise due to fraud or error. They are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

Based on our professional judgement, we determined certain quantitative thresholds for materiality, including the overall materiality for the financial statements as a whole as set out in the table below. These, together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both individually and in aggregate, on the financial statements as a whole.

Overall materiality	CHF 12'700'000
Benchmark applied	Net assets
Rationale for the materiality benchmark applied	We chose this benchmark because, in our view, it is the one typically used to measure the result of a holding company.

We agreed with the Audit Committee that we would report to them misstatements above CHF 500'000 identified during our audit as well as any misstatements below that amount which, in our view, warranted reporting for qualitative reasons.

Audit scope

We designed our audit by determining materiality and assessing the risks of material misstatement in the financial statements. In particular, we considered where subjective judgements were made; for example, in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. As in all of our audits, we also addressed the risk of management override of internal controls, including among other

PricewaterhouseCoopers SA, avenue Giuseppe-Motta 50, case postale, 1211 Genève 2, Switzerland Téléphone: +41 58 792 91 00, www.pwc.ch

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matters consideration of whether there was evidence of bias that represented a risk of material misstatement due to fraud.

We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the financial statements as a whole, taking into account the structure of the Company, the accounting processes and controls, and the industry in which the Company operates.

Key audit matters

We have determined that there are no key audit matters to communicate in our report.

Other information

The Board of Directors is responsible for the other information. The other information comprises the information included in the annual report, but does not include the financial statements, the consolidated financial statements, the remuneration report and our auditor's reports thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Board of Directors' responsibilities for the financial statements

The Board of Directors is responsible for the preparation of financial statements in accordance with the provisions of Swiss law and the Company's articles of association, and for such internal control as the Board of Directors determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Board of Directors is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Swiss law and SA-CH will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with Swiss law and SA-CH, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made.
• Conclude on the appropriateness of the Board of Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.

We communicate with the Board of Directors or its relevant committee regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the Board of Directors or its relevant committee with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them regarding all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.

From the matters communicated with the Board of Directors or its relevant committee, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on other legal and regulatory requirements

In accordance with article 728a para. 1 item 3 CO and PS-CH 890, we confirm the existence of an internal control system that has been designed, pursuant to the instructions of the Board of Directors, for the preparation of the financial statements.

We further confirm that the carry forward of the accumulated losses and the proposed repayment of legal reserve from capital contributions comply with Swiss law and the Company's articles of association. We recommend that the financial statements submitted to you be approved.

PricewaterhouseCoopers SA

Alex Astolfi Omar Grossi Licensed audit expert Licensed audit expert Auditor in charge

Geneva, 20 February 2024

Alternative performance measures

Alternative Performance Masure

Assets under Management

Assets under Management is the total market value of the assets and liabilities that EFG manages on behalf of clients. Assets under Management include all assets and liabilities managed by or deposited with EFG on which it earns revenues. Assets under Custody, excluded from Assets under Management, are assets deposited with EFG held solely for safekeeping/custody purposes, and for which EFG does not offer advice on how the assets should be invested. Assets under Management includes lombard loans and mortgages, but does not include the real estate that is security for the mortgage.

When Assets under Management is subject to more than one level of asset management service, double counting arises within total Assets under Management. Each such separate discretionary or advisory service provides additional benefits to the respective client and generates additional revenue for EFG. Double counts primarily include self-managed collective investment schemes and structured products issued by EFG, which are also included in customer portfolios and already included in Assets under Management.

Revenue-generating Assets under Management

See Assets under Management definition above.

Managed assets

Managed assets are total revenue-generating Assets under Management excluding lombard loans and mortgages.

EFG discloses Managed assets on an annual basis in its Annual Report in accordance with the Guidelines of the Swiss Financial Market Supervisory Authority (FINMA) governing financial statement reporting. See note 65 of the 2023 Annual Report.

Average Assets under Management

Average Assets under Management is the monthly average of total Assets under Management.

Net new assets

Net new assets consists of new client acquisitions, client departures and inflows or outflows attributable to existing clients, including new or additional drawdowns of loans and mortgages. Net new assets can be in cash or securities transferred to the bank. Interest and dividend income from Assets under Management, market or currency movements as well as fees and commissions are not included in net new assets. Effects resulting from any acquisition or disposal of EFG's companies are not included in net new assets.

Net new asset growth rate

Net new asset growth rate is calculated by dividing the net new assets of the period by the total Assets under Management at the beginning of the period.

Revenue margin

Revenue margin comprises IFRS operating income divided by the average Assets under Management.

Pre-tax operating profit

Pre-tax operating profit is operating income less operating expenses as disclosed for IFRS purposes.

Cost/income ratio

Cost/income ratio is operating expenses less acquisitionrelated intangible asset amortisation divided by operating income. Acquisition-related intangible asset amortisation comprises the total acquisition-related intangible asset amortisation.

Return on tangible equity

Return on tangible equity is IFRS net profit divided by average tangible equity. Average tangible equity is the monthly average of total equity, less the monthly average of non-controlling interests, less the monthly average of Intangible assets. All these are as defined under IFRS and on the basis as presented in the IFRS balance sheet.

Return on shareholders' equity

Return on shareholders' equity is IFRS net profit divided by average shareholders' equity. Average shareholders' equity is the monthly average of total equity, less the monthly average of non-controlling interests. All these are as defined under IFRS and on the basis as presented in the IFRS balance sheet.

Liquidity Coverage Ratio

Liquidity Coverage Ratio is defined by the FINMA as part of the Basel III framework. EFG is required to hold enough high-quality liquid assets such as short-term government debt that can be sold to fund EFG during a 30-day stress scenario designed by regulators. Banks are required to hold high-quality liquid assets equivalent to at least 100% of projected net cash outflows during the stress scenario.

Loan/deposit ratio

The loan/to deposit ratio is the ratio of loans and advances to customers divided by the total of the sum of 'Due to customers' and financial liabilities at amortised cost on the basis as presented in the IFRS balance sheet.

Forward looking statements

This document has been prepared by EFG International AG ("EFG") solely for use by you for general information only and does not contain and is not to be taken as containing any securities advice, recommendation, offer or invitation to subscribe for or purchase or redemption of any securities regarding EFG.

This report by EFG International AG ("EFG") includes forward-looking statements that reflect EFG's intentions, beliefs or current expectations and projections about EFG's future results of operations, financial condition, liquidity, performance, prospects, strategies, opportunities and the industries in which it operates. Forward-looking statements involve all matters that are not historical facts. EFG has tried to identify those forward-looking statements by using the words 'may', 'will', 'would', 'should', 'expect', 'intend', 'estimate', 'anticipate', 'project', 'believe', 'seek', 'plan', 'predict', 'continue' and similar expressions. Such statements are made on the basis of assumptions and expectations which, although EFG believes them to be reasonable at this time, may prove to be erroneous.

These forward-looking statements are subject to risks, uncertainties and assumptions and other factors that could cause EFG's actual results of operations, financial condition, liquidity, performance, prospects or opportunities, as well as those of the markets it serves or intends to serve, to differ materially from those expressed in, or suggested by, these forward-looking statements. Important factors that could cause those differences include, but are not limited to: changing business or other market conditions, legislative, fiscal and regulatory developments, general economic conditions in Switzerland, the European Union and elsewhere, and EFG's ability to respond to trends in the financial services industry. Additional factors could cause actual results, performance or achievements to differ materially. In view of these uncertainties, readers are cautioned not to place undue reliance on these forwardlooking statements. EFG and its subsidiaries, and their directors, officers, employees and advisors expressly disclaim any obligation or undertaking to release any update of or revisions to any forward-looking statements in this media release and any change in EFG's expectations or any change in events, conditions or circumstances on which these forward-looking statements are based, except as required by applicable law or regulation.

Alternative performance measures and Reconciliations: This document contains certain financial measures of historical and future performance and financial position that are not defined or specified by IFRS, such as "net new assets", "Assets under Management", "operating profit", "underlying net profit", "cost/income ratio", "revenue margin", "Liquidity Coverage Ratio", "Loan/deposit Ratio". These alternative performance measures (APM) should be regarded as complementary information to, and not as a substitute for the IFRS performance measures. The definitions of APM used in this document, together with reconciliations to the most directly reconcilable IFRS line items, are provided in the section headed "Alternative performance measures" of this document.

Concept/Design/Production:

Linkgroup AG, Zurich Print: Printlink AG, Zurich

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The content of the document is intended only for persons who understand and are capable of assuming all risks involved. Before entering into any transaction, the recipient should determine if the relevant security or financial instrument mentioned in the document suits his particular circumstances and should ensure that he independently assesses (together with his professional advisers) the specific risks and the legal, regulatory, credit, tax and accounting consequences of any purchase of securities or financial instruments mentioned in the document. The content of this document shall be limited to opportunities represented by certain Investments with respect to the conditions in the market at a given time, and thus is only valid for a very limited period of time. EFG makes no representation as to the suitability of the information, opinions or securities and financial instruments mentioned in the document. Historical data on the performance of the securities and financial instruments or the underlying assets in this document is no indication for future performance. The value of the Investment and the income arising from the Investment may fall as well as rise. Part or even the whole amount invested may not be recovered upon realization of the Investment.

The present document has been compiled by a department of EFG which is not an "organizational unit responsible for financial research" as defined in the Swiss Bankers Association's Directives on the Independence of Financial Research and, as such, is not subject to the provisions of that regulation. EFG may engage in securities transactions, on a proprietary basis or otherwise and hold long or short positions with regard to the Investment, both in a manner inconsistent with the view taken in this document. In addition, others within EFG, including sales staff, may take a view that is inconsistent with that taken in this report. The content of this document provide information, opinions or conclusions that may differ from analyses carried out by other units of the Bank, and in particular may not comply with the Investment strategy of the Bank.

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