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The business developed positively in the third quarter. Client activity was high, as it had been in the first half, and this was reflected as strong demand for fund products, discretionary asset management services and corporate services.

Third quarter operating profit increased by nearly 20 percent

  • The Wealth Management and Investor Clients segment’s operating profit decreased and was EUR 12.3 million (1-9/2018: EUR 13.5 million)
  • The Advisory and Corporate Clients segment’s operating profit nearly doubled and was EUR 1.6 million (EUR 0.8 million)
  • The return from own balance sheet items developed favourably and totaled EUR 3.2 million (EUR 1.1 million) improving operating profit in the Group Operations segment
  • According to strategy, Evli's assets under management in alternative investment products increased during the review period and were EUR 814 million (about EUR 250 million).
January-September 2019
  • Net revenue was EUR 53.1 million (EUR 51.0 million)
  • Operating profit was EUR 15.4 million (EUR 15.3 million)
  • Profit for the financial year was EUR 12.1 million (EUR 14.8 million). Profit for the financial year includes EUR -0.1 million (EUR 2.1 million) of the share of the associated company
  • Evli’s diluted earnings per share were EUR 0.47 (EUR 0.59) and return on equity was 21.1 percent (26.8%)
  • Net assets under management grew and totaled record-high EUR 13.6 billion (EUR 12.3 billion) at the end of September
  • Proportion of recurring revenue to operating costs was 118 percent (118%).
July-September 2019
  • The Group's net revenue was EUR 18.0 million (EUR 16.1 million)
  • The Group's operating profit was EUR 5.9 million (EUR 4.9 million)
  • Earnings per share amounted to EUR 0.18 (EUR 0.20).

Outlook for 2019 specified

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 our operating profit for 2019 will remain at or above the level of the comparison period.

Earlier we said that, because of profitable and stable development, we estimate that the result for the 2019 financial year, will be clearly positive.

Evli Bank Plc’s Interim Report 1-9/2019

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