Despite the challenging market environment, we succeeded in increasing the sales of our strategic focus areas in 2018. Our international fund capital grew to EUR 1.9 billion and foreign customers' share of Evli's fund capital grew to 25 percent. Correspondingly over EUR 300 million in investments were raised for alternative investment products.
Good result in a challenging market environment
- In the Wealth Management and Investor Clients segment operating profit increased and was EUR 17.4 million (1-12/2017: EUR 16.2 million)
- The operating profit in the Advisory and Corporate Clients segment declined and was EUR 2.2 million (EUR 2.4 million)
- The revenues from the trading activities through the own balance sheet declined by EUR 4.2 million compared to the previous year, which led to a decrease of the operating profit in the Group Operations segment.
January-December 2018
- The net revenue was EUR 68.5 million (EUR 71.4 million)
- The operating profit was EUR 18.9 million (EUR 21.3 million). The result was weakened by non-recurring costs of EUR 0.6 million related to operational efficiency actions
- The profit for the financial year was EUR 17.3 million (EUR 17.5 million)
- Evli’s diluted earnings per share were EUR 0.68 (EUR 0.72) and return on equity was 23.0 percent (25.5%)
- A dividend of EUR 0.61 per share is proposed (EUR 0.52 per share)
- Net assets under management grew year on year and totaled EUR 11.4 billion (EUR 11.2 billion) at the end of December
- The proportion of recurring revenue to operating costs was 113 percent (113%).
October-December 2018
- The net revenue was EUR 17.5 million (EUR 21.0 million). The revenue was affected by EUR 1.5 million lower performance-based fees than in the comparison period and the lower return from the own balance sheet investment activities
- The operating profit was EUR 3.6 million (EUR 6.5 million). The result was weakened by non-recurring costs of EUR 0.6 million related to operational efficiency actions
- Earnings per share amounted to EUR 0.07 (EUR 0.21).
Outlook for 2019
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 possible continued decline in equity prices or a reduction in investors’ risk appetite would have a negative impact on the company’s profit performance. Evli Group’s assets under management have grown substantially in recent years, which softens the result-impact of any reversal of the market. Sales of alternative investment products, in particular, have brought new, stable revenue. Evli has initiated a series of internal, strategy-based actions and cost savings, leading to improvements in the company’s cost effectiveness.
There has been positive development in the demand for advisory services, and its outlook for 2019 is stable. Own balance sheet investments share of Evli’s business decreased during 2018. Nevertheless, it may have a significant impact on the company’s result performance. In the advisory business and in own investment activities, fluctuations in quarterly and annual returns are possible. Customer's demand for Evli's products and services has continued to be good, which has also led to a systematic increase in lending.
Because of profitable and stable development, we estimate that the result for the 2019 financial year, will be clearly positive.
Evli Bank Plc’s Financial Statements Bulletin 2018
