In 2024, Evli’s result and assets under management rose to a new high. International sales turned clearly positive towards the end of the year. Fund sales to foreign customers exceeded EUR 240 million during the review period.
Despite the challenging market environment, sales of alternative investment funds also performed well. For example, the Evli Private Equity IV fund raised a record amount of more than EUR 75 million in investment commitments during the first closing.
Furthermore, Evli received significant recognition for its expertise as institutional investors once again ranked Evli as Finland's best asset manager in both SFR Research's and Kantar Prospera's annual customer survey.
Financial performance January-December 2024 (comparison period 1–12/2023)
- Net revenue was EUR 126.8 million (EUR 108.7 million). Comparable net revenue after eliminating the effects of the corporate transaction was EUR 109.7 million (EUR 96.6 million).
- Operating profit was EUR 58.2 million (EUR 40.2 million). Comparable operating profit after eliminating the effects of the corporate transaction was EUR 43.3 million (EUR 36.4 million).
- Operating result of the Wealth Management and Investor Clients segment increased to EUR 39.8 million (EUR 33.0 million).
- Operating result of the Advisory and Corporate Clients segment increased to EUR 3.3 million (EUR 2.7 million).
- At the end of December, net assets under management amounted to EUR 18.9 billion (EUR 18.0 billion), including assets managed by associated companies. Assets under management excluding the associated companies amounted to EUR 16.6 billion (EUR 15.6 billion).
- Return on equity was 34.4 percent (22.8%).
- The ratio of recurring revenue to operating costs was 132 percent (130%).
- Earnings per share, fully diluted, were EUR 1.63 (EUR 1.05).
- The Board of Directors proposes that a dividend of EUR 1.18/share (EUR 1.16/share) be distributed for the financial year 2024.
Financial performance October-December 2024 (comparison period 10-12/2023)
- The Group's net revenue was EUR 30.1 million (EUR 30.7 million). Comparable net revenue after eliminating the effects of the corporate transaction was EUR 30.1 million (EUR 27.1 million).
- The Group's operating profit was EUR 10.5 million (EUR 10.9 million). Comparable operating profit after eliminating the effects of the corporate transaction was EUR 10.6 million (EUR 9.5 million).
- Diluted earnings per share amounted to EUR 0.25 (EUR 0.26).
Possible US trade policy measures increased investors' concerns
In the later part of 2024, economic growth continued as in the early part of the year. In the United States, growth remained strong, supported by private consumption and a high employment rate, while growth in Europe was subdued. At its December meeting, the Federal Reserve (Fed) cut its key interest rate by a quarter of a percent, bringing it into a new target range of 4.25–4.50 percent. In Europe, too, interest rate cuts continued.
The US presidential election in November and the subsequent change of direction in US domestic and foreign policy as well as the development of geopolitical risks were prominent towards the end of the year. Divisions within the US, growing nationalism, and possible trade policy measures increased investors' concerns. If enacted, possible import tariffs would raise prices in the United States, increase inflationary pressures, and weaken growth in other parts of the world.
“In the fourth quarter, capital market returns were mixed. The returns on fixed income investments were almost without exception positive, but in equities, strong returns focused on the United States and, there, especially on shares of technology companies. In Europe, including Finland, stock price performance was weak, reflecting the continent's dependence on exports and traditional industries, which could be subject to possible U.S. import tariffs. There were no significant changes in valuations of other asset classes in the fourth quarter,” explains CEO Maunu Lehtimäki.
At the end of the year, open real estate funds became a topic of discussion in Finland.
“The property market, which has remained weak for two years, and slowed transaction activity led to an increase in redemption requests and, consequently, to delays or temporary closures of them in several real estate funds. Of Evli's three open real estate funds, only Evli Rental Yield II had to delay redemptions. In the Evli Rental Yield and Evli Logistics Properties funds, redemptions have been carried out normally from the cash resources of the funds,” Lehtimäki says.
Evli’s comparable pro forma net revenue was 14 percent higher than in the previous year
“In the fourth quarter, Evli Group's net revenue was almost at the same level as in the previous year, EUR 30.1 million (EUR 30.7 million). Net revenue for the full year increased by 17 percent from the previous year to EUR 126.8 million (EUR 108.7 million). Taking into account the incentive business transaction carried out in March 2024, comparable pro forma net revenue was 14 percent higher than in the previous year, rising to EUR 109.7 million (EUR 96.6 million). Commission income from traditional funds and advisory fees developed best, both of which grew clearly. Commission income from private equity funds and asset management was at the previous year's level,” Lehtimäki says.
The Group's operating profit for the fourth quarter decreased by four percent to EUR 10.5 million (EUR 10.9 million). Operating profit for the full year increased by 45 percent from the previous year to EUR 58.2 million (EUR 40.2 million). Correspondingly, comparable pro forma operating profit increased by 19 percent to EUR 43.3 million (EUR 36.4 million). Evli's return on equity in 2024 was 34.4 percent (22.8%). The ratio of recurring revenue to operating costs was 132 percent (130%). The Group's solvency and liquidity were at an excellent level.
Due to positive market development and net subscriptions, customer assets under management increased to EUR 18.9 billion (EUR 18.0 billion). The key areas of Evli's strategy, international sales and alternative investment products, developed positively during the quarter.
“In the area of responsibility, Evli prepared reporting according to the EU’s standardized sustainability reporting (CSRD), the nature reporting according to the Taskforce on Nature-related Financial Disclosures framework, and the emissions evaluation of its own operations,” Lehtimäki says.
Outlook for 2025
The operating environment is expected to remain uncertain and difficult to predict in 2025. The expansion of geopolitical risks and concerns about the sustainability of economic growth increase uncertainty in the markets.
Despite the challenging operating environment, Evli has succeeded in strengthening its position in the market. Growth has been supported by a wide product range and customer base. With a strong market position and growth outlook, we estimate the operating result to be clearly positive.
