Evli’s operating income nearly doubled in relation to the comparison period and was EUR 27.1 million. The Group’s operating profit rose more than five-fold to EUR 11.8 million.
EXCELLENT FIRST QUARTER
Financial performance January-March 2021
- Net revenue was EUR 27.1 million (1-3/2020: EUR 14.2 million)
- Operating profit was EUR 11.8 million (EUR 2.1 million)
- The Wealth Management and Investor Clients segment’s operating profit increased and was EUR 10.6 million (EUR 6.2 million)
- The Advisory and Corporate Clients segment’s operating profit increased and was EUR 1.1 million (EUR 0.4 million)
- The return from own balance sheet items developed positively and were EUR 1.0 million (EUR -3,7 million), which resulted in an increase in the operating profit in the Group Operations segment
- Net assets under management amounted to EUR 15.0 billion (EUR 12.2 billion) at the end of March
- Evli’s diluted earnings per share were EUR 0.34 (EUR 0.07) and return on equity was 40.6 percent (10.1%)
- Proportion of recurring revenue to operating costs was 117 percent (118%).
Outlook for 2021 specified
This year has started positively from a business perspective, supported by strong client demand and favorable equity market performance.
The general performance of the equity and fixed income markets is always prone to risks, however. A decline in equity prices or a reduction in investors’ risk appetite would have a negative impact on the company’s profit performance, for example. Nevertheless, the assets under the Group’s management that reached a new record level by the end of the first quarter and the product selection that expanded, especially in alternative investment products, alleviate negative profit impacts of a possible market reversal.
There has been positive development in the demand for advisory services, and its outlook for 2021 is stable. Although investment activities through Evli’s own balance sheet constitute only a limited proportion of Evli’s business, these could still have a substantial impact on profit performance during sudden market movements. Seasonal and annual fluctuations in revenues from advisory business and own investments are possible.
In the view of the above mentioned reasons, the company has adjusted its outlook. If the market conditions continue to be favorable, we estimate that the operating profit for 2021 will exceed the level of the comparison period.
Earlier, we estimated that the operating profit for 2021 would be clearly positive.
