EXCELLENT QUARTER
Financial performance January-
- Operating income was
EUR 80.6 million (1-9/2020:EUR 51.6 million ) - Operating profit was
EUR 36.9 million (EUR 15.5 million ) - Operating result of the Wealth Management and Investor Clients segment increased to
EUR 29.7 million (EUR 15.6 million ) - Operating result of the Advisory and Corporate Clients segment increased to
EUR 6.5 million (EUR 1.2 million ) - Revenue from own balance sheet developed positively and amounted to
EUR 2.9 million (EUR 1.0 million ) - At the end of September, assets under management amounted to
EUR 16.8 billion (EUR 13.6 billion ) on net basis. - Diluted earnings per share were
EUR 1.02 (EUR 0.46 ) and return on equity was 36.7 percent (19.8%) - The ratio of recurring revenues to operational costs was 136 percent (128%).
Financial performance July-September 2021
- The Group's net revenue was
EUR 24.8 million (EUR 18.7 million ) - The Group's operating profit was
EUR 12.1 million (EUR 6.9 million ) - Earnings per share amounted to
EUR 0.39 (EUR 0.21 ).
Outlook for 2021 unchanged
Supported by strong client demand and a favourable stock market performance, business has developed well during the year.
Demand for advisory services has developed positively and its outlook for 2021 is stable. Although investment activities through Evli’s own balance sheet constitute only a limited proportion of Evli’s business, these could still have a substantial impact on the earnings development during sudden market movements. Seasonal and annual fluctuations in income from advisory business and own investments are possible.
However, there are always risks associated with the overall development of the stock and fixed income markets. Any fall in prices or a reduction in investors' risk appetite would have a negative impact on the company's earnings development. The group's assets under management reached a new record level at the end of the third quarter, and the product range has expanded especially to alternative investment products, mitigating the negative impact of a possible market downturn.
Taking into account the above considerations, we estimate that the operating profit in 2021 will clearly exceed the level of the previous year.
Key figures describing the Group’s financial performance
1-9/2021 | 1-9/2020 | 1-12/2020 | ||||
Income statement key figures | ||||||
Operating income, M€ | 8.6 | 51.6 | 79.7 | |||
Operating profit/loss, M€ | 36.9 | 15.5 | 29.1 | |||
Operating profit margin, % | 45.8 | 30.0 | 36.5 | |||
Profit/loss for the financial year, M€ | 30.4 | 12.3 | 23.2 | |||
Profitability key figures | ||||||
Return on equity (ROE), % | 36.7 | 19.8 | 26.2 | |||
Return on assets (ROA), % | 5.3 | 1.7 | 2.7 | |||
Balance sheet key figures | ||||||
Equity-to-assets ratio, % | 16.7 | 8.1 | 12.3 | |||
Group capital adequacy ratio, % | 16.1 | 15.5 | 15.2 | |||
Key figures per share | ||||||
Earnings per Share (EPS), fully diluted, € | 1.02 | 0.46 | 0.87 | |||
Comprehensive Earnings per Share (EPS), fully diluted, € | 1.02 | 0.46 | 0.88 | |||
Dividend per share, € | 0.73 | |||||
Equity per share, € | 5.01 | 3.40 | 3.86 | |||
Share price at the end of the period, € | 24.40 | 10.00 | 12.20 | |||
Other key figures | ||||||
Expense ratio (operating costs to net revenue) | 0.54 | 0.70 | 0.63 | |||
Recurring revenue ratio, % | 136 | 128 | 124 | |||
Personnel at the end of the period | 282 | 258 | 261 | |||
Market value, M€ | 588.3 | 241.1 | 294.1 |
Maunu Lehtimäki, CEO
The strong rise in share prices at the beginning of the year levelled off in the third quarter. Share prices rose until the end of August but turned lower in September as inflation fears increased. Investors' nervousness was reinforced by the US Federal Reserve's plans to reduce its quantitative easing and expectations that interest rate hikes could be brought forward. Other key concerns included the rapid spread of the delta variant of COVID-19, and
In the third quarter, Evli's business developed extremely well. Operating income increased by one third versus the comparison period and amounted to
Operating income in the Wealth Management and Investor Clients segment increased by 40 percent to
Operating income in the Advisory & Corporate Clients segment increased by 55 percent to
The key drivers for Evli's strategy, international sales and alternative investment products, developed as planned in the first half of the year. Despite travel restrictions, international sales have performed well, with net subscriptions exceeding
During the third quarter, we launched practical actions toward the climate targets we set in
On
The new Evli aims to be the leading asset manager in the Nordic countries, with an even broader international reach. Growth, profitability, and responsibility will be the guiding themes. The company aims to achieve a return on equity of more than 25% and an operating profit margin of more than 30% over the business cycle, as well as to double the assets under management from current levels in the long term. In addition, the company aims to increase the ratio of recurring revenues to operating costs to over 130%. The Board of Directors of the new Evli will further specify its financial objectives after the implementation of the demerger.
For additional information, please contact:
Maunu Lehtimäki, CEO,
Evli Bank Plc
Evli is a bank specialised in investments that helps institutions, companies and individuals grow their wealth responsibly. The range of products and services includes investment funds, wealth management and capital markets services, alternative investment products, equity research, incentive plan design and management services, as well as Corporate Finance services. The company also offers banking services that support clients' investment operations. Evli is ranked as the best and most used institutional asset manager in
Evli has
*Kantar Prospera External Asset Management Finland 2015, 2016, 2017, 2018, 2019, 2020, 2021 and SFR Scandinavian Financial Research Institutional Investment Services,
Distribution:
Attachment
Evli Bank Plc Interim report Q3
© OMX, source