Evli Bank Plc’s Interim Report 1-9/2017

26.10.2017

The Operating profit already exceeded last year’s total outcome

  • The operating profit of the Wealth Management and Investor Clients segment almost tripled from the comparison period as a result of increased recurring revenue
  • The operating profit of the Advisory and Corporate Clients segment decreased. Demand for all of the segment’s products has, however, developed favorably
  • The income from trading activities increased from the comparison period in the Group Operations segment.

January-September 2017

  • The Group’s net revenue was EUR 50.4 million (1-9/2016: EUR 44.1 million)
  • The Group’s operating profit was EUR 14.8 million (EUR 7.8 million)
  • Evli’s diluted earnings per share were EUR 0.49 (EUR 0.33) and the annualized return on equity was 23.9 percent (15.8%)
  • Net assets under management totaled EUR 11.1 billion (EUR 10.0 billion) at the end of September
  • The proportion of recurring revenue to operating costs improved to 116 percent (90%).

July-September 2017

  • The Group’s net revenue was EUR 16.3 million (EUR 12.7 million)
  • The Group’s operating profit for the review period more than doubled to EUR 5.0 million (EUR 2.3 million)
  • Earnings per share amounted to EUR 0.18 (EUR 0.07).

 

Outlook for 2017 updated

The assets under management of Evli’s Wealth Management and Investor Clients segment have grown significantly during the beginning of the year. As a result, the proportion of recurring revenue to operating expenses has exceeded the long-term target level of 100 percent. The risk related to the development of general equity and fixed income markets have increased with high valuation levels and a possible decline in exchange rates would negatively affect the development of the recurring revenues.

The performance of the Advisory and Corporate Clients segment has developed positively despite the lower level of activity in corporate advisory services. The return from investment activities through Evli’s own balance sheet has also grown considerably on the previous year. In the advisory business and own investment activities, substantial fluctuations in annual returns are, however, possible.

As a consequence of the success in Wealth Management operations, it is very possible that performance-based fees will arise in the final quarter of the year. As a result of this and a successful first half and steady development in assets under management, we estimate that the result for 2017 will clearly exceed that of the previous year.

Previously:

As a result of a successful first half and steady development in assets under management, we estimate that the result for 2017 will exceed that of the previous year.

 

Evli Bank Plc’s Interim Report 1-9/2017 (PDF)