Evli Bank Plc’s Interim Report 1-9/2018

30.10.2018

GROWTH IN SALES AND PROFITABILITY

  • In the Wealth Management and Investor Clients segment operating profit increased by 20 percent and was EUR 13.5 million (1-9/2017: EUR 11.2 million)
  • The operating profit in the Advisory and Corporate Clients segment increased by over 30 percent and was EUR 0.8 million (EUR 0.6 million)
  • The revenues from the trading activities through the own balance sheet declined in the Group Operations segment.

January-September 2018

  • The Group’s net revenue increased to EUR 51.0 million (EUR 50.4 million)
  • The Group’s operating profit was EUR 15.3 million (EUR 14.8 million)
  • The Group’s profit for the financial year was EUR 14.8 million (EUR 11.8 million). Profit for the full year 2017 was EUR 17.5 million
  • Evli’s diluted earnings per share were EUR 0.59 (EUR 0.49) and return on equity was 26.8 percent (23.9%)
  • Net assets under management grew year on year and totaled EUR 12.3 billion (EUR 11.1 billion) at the end of September, which is historically the highest amount for Evli. Respectively from the beginning of the year, growth was EUR 1.2 billion
  • The proportion of recurring revenue to operating costs was 118 percent (116%).

July-September 2018

  • The Group’s net revenue was EUR 16.1 million (EUR 16.3 million)
  • The Group’s operating profit was EUR 4.9 million (EUR 5.0 million)
  • Earnings per share amounted to EUR 0.20 (EUR 0.18).


Outlook for 2018 specified

The risks associated with the general trend in the equity and fixed income markets are high due to the prevailing uncertainty on the markets. A continued decline in equity prices or a reduction in investors’ risk appetite would have a negative impact on the company’s profit performance. Demand for Evli’s products has remained stable and assets under the Group’s management have grown substantially in recent years, which would soften the result-impact of any reversal of the market. The company has initiated a series of internal, strategy-based actions, where Evli among others is considering terminating brokerage operations in Sweden. This may lead to non-recurring costs already for the current year.

There has been positive development in the demand for advisory services, and its outlook for 2018 is stable. Customer's demand for Evli's products and services has developed positively, which has also led to a systematic increase in lending. In the advisory business and in own investment activities, fluctuations in quarterly and annual returns are possible. The result for the beginning of the year was affected positively by the performance of Evli’s associated company Northern Horizon Capital that had clearly improved on the previous year due to the exit fees received by the company.

Because of successful and stable performance at the beginning of the year, we estimate that our profit for the 2018 financial year, excluding non-recurring costs from restructuring, will be at the same level as in the previous year.


Earlier we said that, because of successful and stable development at the beginning of the year, we estimate that our result for the 2018 financial year will be clearly positive.
 

Evli Bank Plc’s Interim Report 1-9/2018 (PDF)