The recovery that started in the spring continued until the end of the third quarter. Net subscriptions to Evli's funds grew and fund capital increased from the level at the end of June. Evli's operating profit improved, which was a result of an increase in revenue and a reduction in costs.
STRONG THIRD QUARTER
Financial performance January-September 2020
- Net revenue was EUR 51.6 million (1-9/2019: EUR 53.1 million)
- Operating profit was EUR 15.5 million (EUR 15.4 million)
- The Wealth Management and Investor Clients segment’s operating profit increased and was EUR 15.6 million (EUR 12.3 million)
- The Advisory and Corporate Clients segment’s operating profit declined and was EUR 1.2 million (EUR 1.6 million)
- The return from own balance sheet items declined during the beginning of the year as a consequence of the market collapse and were EUR 1.0 million (EUR 3.2 million), which resulted in a weaker operating profit in the Group Operations segment
- Net assets under management amounted to EUR 13.6 billion (EUR 13.6 billion) at the end of September
- Evli’s diluted earnings per share were EUR 0.46 (EUR 0.47) and return on equity was 19.8 percent (21.1%)
- Proportion of recurring revenue to operating costs was 128 percent (118%).
Financial performance July-September 2020
- The Group's net revenue was EUR 18.7 million (EUR 18.0 million)
- The Group's operating profit was EUR 6.9 million (EUR 5.9 million)
- Earnings per share amounted to EUR 0.21 (EUR 0.18).
Outlook for 2020 specified
We estimate that the operating profit for 2020 will be clearly positive.
The view is supported by a high ratio of recurring revenue to operating costs, as well as sales of alternative investment products, which have brought new, stable revenue.
Previously we stated that, in the current market environment, we estimate that the operating profit for 2020 will be clearly positive. In a situation where market conditions would deteriorate from the current situation, we estimate the operating profit to be positive.
