- The company’s business developed favourably, especially with respect to asset management and capital markets operations.
- Asset Management commission income increased 9 percent on the corresponding period of 2014 and was EUR 30.2 million (1-9/2014: EUR 27.7 million). The Capital Markets unit’s net revenue increased 7 percent year on year and was EUR 8.9 million (EUR 8.3 million).
- The Group’s net revenue of EUR 46.2 million was similar to that recorded in the corresponding period of 2014 (EUR 46.4 million). The net revenue was strained by the decrease in income from advisory services. The income from advisory services were EUR 4.2 million for the review period (EUR 6.4 million). In addition, an adjustment in asset management fees which negatively impacted the net revenues, was made.
- The Group’s operating profit for the review period was EUR 9.2 million (EUR 9.1 million). The operating profit was impacted by non-recurring expenses.
- Net assets under management grew by approximately 10 percent and totalled EUR 8.5 billion at the end of September, including associated companies.
- The company strengthened its asset management service offer by acquiring a majority holding in Head Asset Management Oy. The transaction was executed on October 19, 2015 after the Financial Supervisory Authority approved the arrangement.
- Evli Bank’s liquidity is good and its capital adequacy remained at a high level.
- The Group’s net revenue decreased compared to the corresponding period of 2014 and was EUR 13.4 million (EUR 16.2 million). During the review period the Corporate Finance unit’s invoicing decreased compared to the corresponding period and was EUR 1.4 million (EUR 3.0 million). In addition, an adjustment of asset management fees impacted the net revenue.
- The Group’s operating profit was EUR 2.7 million (EUR 4.2 million). The operating profit was impacted by non-recurring expenses.
Earnings for 2015 are expected to be better than in 2014. This view is supported by the earnings performance in the early part of the year and the fact that recurring revenue covers a substantial portion of the company’s overall costs.
CEO Maunu Lehtimäki
“Evli’s financial result during the January-September 2015 review period was good. The operating profit was EUR 9.2 million, which corresponds to an operating margin of approximately 20 percent. Return on equity was 18 percent, which exceeds the Group’s 15 percent long-term return on equity target. However, there is no significant change in the revenue or the operating profit when the performance is compared with the corresponding period in the previous year. This is partly because Corporate Finance orders were received during the second and third quarters during the comparison period and some non-recurring expense items were recorded during the review period. Our Wealth Management and Markets business units performed favourably and our net client assets grew by approximately 10 percent year on year and totalled EUR 8.5 billion.”