STRONG THIRD QUARTER
Financial performance January-
- Net revenue was
EUR 51.6 million (1-9/2019:EUR 53.1 million ) - Operating profit was
EUR 15.5 million (EUR 15.4 million ) - The Wealth Management and Investor Clients segment’s operating profit increased and was
EUR 15.6 million (EUR 12.3 million ) - The Advisory and Corporate Clients segment’s operating profit declined and was
EUR 1.2 million (EUR 1.6 million ) - The return from own balance sheet items declined during the beginning of the year as a consequence of the market collapse and were
EUR 1.0 million (EUR 3.2 million ), which resulted in a weaker operating profit in the Group Operations segment - Net assets under management amounted to
EUR 13.6 billion (EUR 13.6 billion ) at the end of September - Evli’s diluted earnings per share were
EUR 0.46 (EUR 0.47 ) and return on equity was 19.8 percent (21.1%) - Proportion of recurring revenue to operating costs was 128 percent (118%).
Financial performance July-
- The Group's net revenue was
EUR 18.7 million (EUR 18.0 million ) - The Group's operating profit was
EUR 6.9 million (EUR 5.9 million ) - Earnings per share amounted to
EUR 0.21 (EUR 0.18 ).
Outlook for 2020 specified
We estimate that the operating profit for 2020 will be clearly positive.
The view is supported by a high ratio of recurring revenue to operating costs, as well as sales of alternative investment products, which have brought new, stable revenue.
Previously we stated that, in the current market environment, we estimate that the operating profit for 2020 will be clearly positive. In a situation where market conditions would deteriorate from the current situation, we estimate the operating profit to be positive.
1-9/2020 | 1-9/2019 | 1-12/2019 | |||
Income statement key figures | |||||
Operating income, M€ | 51.6 | 53.1 | 75.8 | ||
Operating profit/loss, M€ | 15.5 | 15.4 | 24.1 | ||
Operating profit margin, % | 30.0 | 29.0 | 31.8 | ||
Profit/loss for the financial year, M€ | 12.3 | 12.1 | 18.7 | ||
Profitability key figures | |||||
Return on equity (ROE), % | 19.8 | 21.1 | 23.4 | ||
Return on assets (ROA), % | 1.7 | 1.7 | 2.1 | ||
Balance sheet key figures | |||||
Equity-to-assets ratio, % | 8.1 | 7.1 | 8.9 | ||
Group capital adequacy ratio, % | 15.5 | 14.9 | 15.1 | ||
Key figures per share | |||||
Earnings per Share (EPS), fully diluted, € | 0.46 | 0.47 | 0.71 | ||
Comprehensive Earnings per Share (EPS), fully diluted, € | 0.46 | 0.47 | 0.71 | ||
Dividend per share, € | 0.66* | ||||
Equity per share, € | 3.40 | 3.15 | 3.40 | ||
Share price at the end of the period, € | 10.00 | 8.32 | 10.40 | ||
Other key figures | |||||
Expense ratio (operating costs to net revenue) | 0.70 | 0.71 | 0.68 | ||
Recurring revenue ratio, % | 128 | 118 | 124 | ||
Personnel at the end of the period | 258 | 254 | 249 | ||
Market value, M€ | 241.1 | 198.9 | 248.6 | ||
*Approved by the Annual General Meeting. The dividend was paid on
Maunu Lehtimäki, CEO
The recovery that started in the spring continued until the end of the third quarter. Investor optimism grew stronger with the decline in the number of coronavirus infections during the summer and expectations of vaccines being introduced to the market at the beginning of next year. Investor optimism was also strengthened by extensive economic support packages and long-term commitment by central banks to expansionary monetary policy. Net subscriptions to Evli's funds grew and fund capital increased from the level at the end of June. Evli's operating profit improved, which was a result of an increase in revenue and a reduction in costs.
Despite the coronavirus pandemic and the resulting broad recommendation to favor remote work, Evli's operations continued in the third quarter without disruption and we maintained our client activity at the level of previous years. Our determined efforts to develop our information systems and to renew our processes carried out over recent years have increased our capacity to operate in conditions such as the present exceptional circumstances.
In the third quarter, the return from Evli's operations rose by four percent to
Overall, the return from the Wealth Management and Investor Clients segment’s operations remained at the same level year on year and was
The Advisory and Corporate Clients segment’s return declined 13 percent and were
Among Evli's strategic focus areas, international fund sales faced a challenging spring due to redemptions following market turbulence, but the situation calmed down during the third quarter. Evli's fixed income funds that are widely recognized and invest in European and Nordic corporate bonds are at the core of international fund sales. In August, we launched a new Evli Green Corporate Bond fund that invests in green corporate bonds. In this short amount of time, the fund has already been positively received by our clients.
Another strategic focus area – sales of alternative investment products – performed as planned in the third quarter. We started the marketing of our new forest fund, Evli Impact
We made responsibility a strategic focus area for Evli at the beginning of the year, as we believe that responsibility will become even more important in the future. During the third quarter we received very good ratings of our responsibility in two external evaluations. The
I would like to thank our clients and shareholders for their trust and our employees for their hard and successful work in this exceptional environment.
For additional information, please contact:
Maunu Lehtimäki, CEO,
Evli is a bank specialized in investments that helps institutions, corporations and private persons increase their wealth. The product and service offering includes mutual funds, asset management and capital markets services, alternative investment products, equity research, the administration of incentive programs and Corporate Finance services. The company also offers banking services that support clients' investment operations. Evli is the highest ranked and most used institutional asset manager in
Evli has a total of
*KANTAR SIFO Prospera External Asset Management Finland 2015, 2016, 2017, 2018, 2019 and SFR Scandinavian Financial Research Institutional Investment Services,
Distribution:
Attachment
Evli Bank Plc : Interim Report 1-9/2020
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