Evli's operations developed excellently during the second quarter and our client activity was at a high level. Evli's operating income grew by 53 percent compared to the comparison period and totaled EUR 28.7 million. The Group's operating profit doubled to EUR 13.1 million.
Record first half
Financial performance January-June 2021
• Operating income was EUR 55.8 million (1-6/2020: EUR 33.0 million)
• Operating profit was EUR 24.9 million (EUR 8.6 million)
• Operating result of the Wealth Management and Investor Clients segment increased to EUR 19.1 million (EUR 10.1 million)
• Operating result of the Advisory and Corporate Clients segment increased to EUR 5.7 million (EUR 0.9 million)
• Revenue from own balance sheet developed positively and amounted to EUR 1.8 million (EUR -0.8 million)
• At the end of June, assets under management amounted to EUR 16.1 billion (EUR 12.9 billion) on net basis.
• Diluted earnings per share were EUR 0.63 (EUR 0.25) and return on equity was 37.7 percent (17.3%)
• The ratio of recurring revenues to operational costs was 127 percent (121%).
Financial performance April-June 2021
• The Group's net revenue was EUR 28.7 million (EUR 18.8 million)
• The Group's operating profit was EUR 13.1 million (EUR 6.5 million)
• Earnings per share amounted to EUR 0.29 (EUR 0.18).
Outlook for 2021 revised
The current year has started business-strong, supported by strong customer demand and favorable stock market developments.
Demand for advisory services has developed positively and its outlook for 2021 is stable. Evli's investment activities through its own balance sheet account for a limited share of Evli's business, but nevertheless it can have a significant impact on the development of profit in sudden market movements. Seasonal and annual variations in advisory activities and own investment returns are possible.
However, there are always risks associated with the overall development of the stock and interest rate markets. Any fall in prices or a reduction in investors' willingness to take risks would have a negative impact on the company's profit development. The group's assets under management reached a new record level at the end of the current quarter, and the product range has expanded especially to alternative investment products, mitigating the negative impact of a possible market turn.
Demand for advisory services has developed positively and its outlook for 2021 is stable. Evli's investment activities through its own balance sheet account for a limited share of Evli's business, but nevertheless it can have a significant impact on the development of profit in sudden market movements. Seasonal and annual variations in advisory activities and own investment returns are possible.
Taking into account the above considerations, and with the accumulated operating profit being almost at the level of the entire comparison year, we estimate that the operating profit in 2021 will clearly exceed the level of the previous year.
