EVLI BANK PLC STOCK EXCHANGE RELEASE OCTOBER 20, 2016, AT 12 PM
Evli Bank Plc's Interim Report for January-September 2016
Client assets under management exceed EUR 10 billion
January-September 2016
- The Group's net revenue was EUR 44.1 million (EUR 46.2 million). - The Group's operating profit was EUR 7.8 million (EUR 9.2 million). - The Group's profit increased to EUR 7.9 million (EUR 7.0 million). The profit was positively affected by the exit fees received by the associated company. - Evli was ranked best asset manager in Finland again in a survey by TNS Sifo Prospera. - Evli purchased the entire stock of Evli Awards Management Oy with an agreement signed at the end of May. - Evli's diluted earnings per share were EUR 0.33 (EUR 0.27). - Net assets under management grew year on year and totaled EUR 10.0 billion (EUR 8.5 billion) at the end of September, including associated companies and Evli Awards Management Oy.
July-September 2016
- The Group's net revenue decreased by five percent year on year and was EUR 12.7 million (EUR 13.4 million). - The Group's operating profit for the review period was EUR 2.3 million (EUR 2.7 million). - Earnings per share amounted to EUR 0.08 (EUR 0.09).
Outlook for 2016 unchanged
Evli's business performance has been strong in recent years, and interest in Evli's services and products is expected to remain stable. In the Corporate Finance business, substantial fluctuations in annual profits are possible. The unit's mandate base is at a healthy level. The ratio of Evli's recurring revenue to expenses has developed as planned. We believe that the result for 2016 will be clearly positive.
Key figures
| 7-9 /2016 | 7-9 /2015 | 1-9 /2016 | 1-9 /2015 | 1-12 /2015 | |
| Sales, M€ | 13.2 | 13.8 | 45.7 | 47.4 | 66.0 |
| Net revenue, M€ | 12.7 | 13.4 | 44.1 | 46.2 | 64.2 |
| Operating profit/loss, M€ | 2.3 | 2.7 | 7.8 | 9.2 | 13.3 |
| Profit / Loss for financial year, M€ | 1.8 | 1.9 | 7.9 | 7.0 | 12.3 |
| Operating profit/loss % of net revenue | 18.2 | 20.2 | 17.6 | 20.0 | 20.6 |
| Earnings/share (EPS) | 0.08 | 0.09 | 0.34 | 0.28 | 0.54 |
| Diluted earnings/share IFRS | 0.07 | 0.08 | 0.33 | 0.27 | 0.53 |
| Return on equity % (ROE)* | - | - | 15.8 | 18.0 | 20.2 |
| Recurring revenue ratio, % | - | - | 90 | 90 | 93 |
| Dividend/share** | - | - | - | - | 0.31 |
| Shareholders' equity per share | - | - | 2.71 | 2.35 | 2.96 |
| Market value, M€*** | - | - | 158.53 | - | 190.94 |
| Share price in end of period | - | - | 6.80 | - | 8.19 |
| Personnel in end of period | - | - | 242 | 240 | 248 |
* Annualized ** Dividend from 2015 approved by the Annual General Meeting. The dividend was paid on March 17, 2016. *** Series A shares are valued at the closing value of the series B shares.
Share-specific key figures for the comparison period have been calculated using a split-corrected share count in accordance with the decision of the Extraordinary General Meeting of October 1, 2015.
The figures are unaudited.
Maunu Lehtimäki, CEO
"In the third quarter, the Evli Group's revenue contracted by five percent from the previous year, which was reflected as a reduction in operating profit. The revenue performance of the Markets unit was held back by the continuing low level of trading activity of Markets unit clients, and the market making and trading returns that were lower than the previous year. The revenue of the Corporate Finance unit was clearly below that of the previous year as orders are concentrated in the remaining part of the year.
Performance in Wealth Management and the Treasury operations has been positive and we achieved a new landmark as the Group's client assets under management (including associated companies and incentive programs) exceeded EUR 10 billion. Evli Fund Management Company's net subscriptions starting from the beginning of the year were EUR 536 million, and at the end of the period market share had increased to 5.7% of fund capital registered in Finland. I am really pleased that Finnish institutional investors have, for the second year running, chosen Evli as Finland's best institutional asset manager (TNS Sifo Prospera 2016).
On account of the recognition received and the success of our products, and also our current system development project and the measures implemented so far to reduce costs, our near-term earnings outlook is stable and full-year result is expected to be clearly positive."
EVLI BANK PLC Board of Directors For additional information, please contact:
Maunu Lehtimäki, CEO, tel. +358 (0)9 4766 9304 or +358 (0)50 553 3000, maunu.lehtimaki@evli.com Juho Mikola, CFO, tel. +358 (0)9 4766 9871 or +358 (0)40 717 8888, juho.mikola@evli.com
Invitation to investors and analysts CEO Maunu Lehtimäki and CFO Juho Mikola will present the Interim Report to investors and analysts at Evli Bank (Aleksanterinkatu 19 A, 4 fl, Helsinki) on Thursday, October 20, 2016 at 1 pm. The presentation will be held in Finnish. The presentation material will be available in English at the address www.evli.com > Investors after the event.
Evli Bank Plc in brief Evli is a private bank that specializes in investment and helps private persons and institutions increase their wealth. The Company offers asset management services, various services related to the capital markets, such as brokerage of equity and other investment products, market making and investment research, and Corporate Finance services. Distribution: Nasdaq Helsinki Ltd, main media, www.evli.com
Appendix: Evli Bank Plc's Interim Report January-September 2016
