eQ Plc interim report
January to
- The Group's net revenue during the period was
EUR 57.8 million (EUR 36.6 million from 1 Jan. to30 Sept. 2020 ). - The Group’s net fee and commission income was
EUR 52.1 million (EUR 37.3 million ). - The Group’s net investment income from own investment operations was
EUR 5.7 million (EUR -0.6 million ), including the return from private equity and real estate fund investments and liquid fixed income funds. - The Group’s operating profit grew by 82% to
EUR 35.0 million (EUR 19.2 million ). - The Group’s profit was
EUR 28.0 million (EUR 15.4 million ). - The consolidated earnings per share were
EUR 0.71 (EUR 0.40 ). - The net revenue of the Asset Management segment increased by 40% to
EUR 48.5million (EUR 34.6 million ) and the operating profit by 45% toEUR 30.2 million (EUR 20.8 million ). - The net revenue of the Corporate Finance segment was
EUR 3.7 million (EUR 2.7 million ) and the operating profit wasEUR 1.1 million (EUR 0.7 million ). - The net cash flow from the Group’s own private equity and real estate fund investment operations was
EUR 3.7 million (EUR -0.2 million ).
July to
- In the third quarter, the Group’s net revenue totalled
EUR 20.9 million (EUR 12.7 million from 1 July to 30 Sept. 2020). - The Group’s net fee and commission income was
EUR 18.9 million (EUR 12.9 million ). - The Group’s net investment income from own investment operations was
EUR 2.1 million (EUR -0.2 million ), including the return from private equity and real estate fund investments and liquid fixed income funds. - The Group’s operating profit grew by 84% to
EUR 13.8 million (EUR 7.5 million ). - The Group’s profit was
EUR 11.1 million (EUR 6.0 million ). - The consolidated earnings per share were
EUR 0.28 (EUR 0.16 ).
Key ratios | 1–9/21 | 1–9/20 | Change | 7–9/21 | 7–9/20 | Change | 1–2/20 |
Net revenue, Group, M€ | 57.8 | 36.6 | 58% | 20.9 | 12.7 | 65% | 56.7 |
Net revenue, Asset Management, M€ | 48.5 | 34.6 | 40% | 17.6 | 11.9 | 48% | 52.8 |
Net revenue, Corporate Finance, M€ | 3.7 | 2.7 | 34% | 1.3 | 1.0 | 27% | 4.1 |
Net revenue, Investments, M€ | 5.5 | -0.7 | 928% | 2.0 | -0.3 | 748% | -0.1 |
Net revenue, Group administration | |||||||
and eliminations, M€ | 0.0 | -0.1 | 0.0 | 0.1 | 0.0 | ||
Operating profit, Group, M€ | 35.0 | 19.2 | 82% | 13.8 | 7.5 | 84% | 30.8 |
Operating profit, Asset Management, M€ | 30.2 | 20.8 | 45% | 11.8 | 7.8 | 51% | 32.1 |
Operating profit, Corporate Finance, M€ | 1.1 | 0.7 | 60% | 0.5 | 0.4 | 32% | 1.1 |
Operating profit, Investments, M€ | 5.5 | -0.7 | 928% | 2.0 | -0.3 | 748% | -0.1 |
Operating profit, Group administration, M€ | -1.9 | -1.6 | -0.4 | -0.3 | -2.4 | ||
Profit for the period, M€ | 28.0 | 15.4 | 82% | 11.1 | 6.0 | 84% | 24.6 |
Key ratios | 1–9/21 | 1–9/20 | Change | 7–9/21 | 7–9/20 | Change | 1–2/20 |
Earnings per share, € | 0.71 | 0.40 | 78% | 0.28 | 0.16 | 75% | 0.64 |
Equity per share, € | 1.76 | 1.50 | 17% | 1.76 | 1.50 | 17% | 1.74 |
Cost/income ratio, Group, % | 39.3 | 47.3 | -17% | 33.8 | 40.9 | -17% | 45.6 |
Liquid assets, M€ | 40.7 | 23.0 | 77% | 40.7 | 23.0 | 77% | 36.3 |
Private equity and real estate fund investments, M€ | 17.6 | 15.8 | 11% | 17.6 | 15.8 | 11% | 15.7 |
Interest-bearing liabilities, M€ | 0.0 | 0.0 | 0% | 0.0 | 0.0 | 0% | 0.0 |
Assets under management excluding reporting services, € billion | 8.8 | 7.2 | 21% | 8.8 | 7.2 | 21% | 7.5 |
Assets under management, € billion | 11.0 | 8.7 | 27% | 11.0 | 8.7 | 27% | 9.0 |
Mikko Koskimies, CEO
In the third quarter of 2021, the strong recovery of economies continued above all in the US but in
The increasing inflation and improving employment situation alerted central banks.
In the equity market, the third quarter began in a positive tone, but towards the end of the quarter, the statements of central banks led to a small pressure on interest rate, which, together with the problems in the Chinese real estate sector, lead to a fall of shares prices. This was not long-lived, however. In the first three quarters, equity market returns were very good, and the return of the global index exceeded 19%. Small-caps have given even clearly better returns than this. The fear for inflation raised interest rates, and the interest returns in the first part of the year were negative as for euro government bonds and investment grade loans. High yield loans, on the other hand, benefited from the narrowing of the interest rate spread and gave a return of almost 4% since the beginning of the year.
eQ’s growth very strong
eQ’s growth was very strong in the first nine months. The net revenue of the Group during the period under review was
eQ Asset Management’s growth accelerated
The result of eQ Asset Management was once more excellent. The net revenue of eQ Asset Management increased by 40% on the corresponding period last year to
The returns of client portfolios were excellent during the first nine months. As much as 85% of the funds that eQ manages itself exceeded their benchmark indices, and during a three-year period the corresponding figure was 67%. Within the discretionary asset management portfolios, both absolute and relative returns were also exceptionally good. The excellent returns from traditional asset management were complemented by the good real estate and private equity returns.
The first nine months period was also very good with regard to sales, above all for real estate and private equity asset management. Net subscriptions in the eQ
Advium’s fee income and profit grew
Advium’s net revenue was
The high activity in M&As, both in
During the nine-month period, Avdium acted as advisor in eight transactions. Among these eight transactions, two were real estate transactions and six M&As. In the major transactions, Advium acted as financial advisor to Alma Media,
The operating profit of the Investments segment excellent
The operating profit of the Investments segment was
Outlook
The strong market development during the first nine months supports eQ’s business operations.
The outlook for the financial year is still unaltered, and we expect the net revenue and operating profit of the Asset Management segment to grow from the previous year.
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eQ’s interim report 1 January to
eQ Plc
Additional information:
Mikko Koskimies, CEO, tel. +358 9 6817 8799
Antti Lyytikäinen, CFO, tel. +358 9 6817 8741
Distribution: Nasdaq Helsinki, www.eQ.fi, media
eQ Group is a group of companies that concentrates on asset management and corporate finance business. eQ Asset Management offers a wide range of asset management services (including private equity funds and real estate asset management) for institutions and private individuals. The assets managed by the Group total approximately
Attachment
- eQ Plc Interim Report Q3 2021
© OMX, source