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Friday, 14 July 2017

Evli Bank Plc's Half year financial report January-June 2017

Evli Pankki Oyj    

Published: 09:00 CEST 14-07-2017 /GlobeNewswire /Source: Evli Pankki Oyj / : EVLI /ISIN: FI4000170915

Evli Bank Plc's Half year financial report January-June 2017

EVLI BANK PLC STOCK EXCHANGE RELEASE JULY 14, 2017, AT 10.00 AM

Evli Bank Plc's Half year financial report January-June 2017

The operating profit almost doubled during the review period

  • The operating profit increased in the Wealth Management and Investor Clients segment as a result of the growth in assets under management
  • The Advisory and Corporate Clients segment's operating profit was lower than the previous year. Investment research and the management of incentive programs developed positively, but commission income from Corporate Finance activities developed slower than expected.
  • The income from trading activities increased from the comparison period in the Group Operations segment.

January-June 2017

  • The Group's net revenue was EUR 34.1 million (1-6/2016: EUR 31.4 million)
  • The Group's operating profit was EUR 9.8 million (EUR 5.5 million)
  • Evli's diluted earnings per share were EUR 0.31 (EUR 0.25) and the annualized return on equity was 22.3 percent (18.5%)
  • Net assets under management grew year on year and totaled a record EUR 11.8 billion (EUR 9.4 billion) at the end of June.
  • The proportion of recurring revenue to operating costs improved to 110 percent (86%) as a result of increased revenue and lower costs

April-June 2017

  • The Group's net revenue was EUR 17.9 million (EUR 15.9 million).
  • The Group's operating profit for the review period more than doubled to EUR 5.2 million (EUR 2.4 million).
  • Earnings per share amounted to EUR 0.16 (EUR 0.08).

 

Outlook for 2017 updated

The assets under management of Evli's Wealth Management and Investor Clients business area grew significantly during the first half of the year. As a result, the proportion of recurring revenue to operating expenses is expected to exceed the long-term target level of 100 percent. The risk related to the development of general equity and fixed income markets have increased with high valuation levels and a possible decline in exchange rates would negatively affect the development of the recurring revenues.

The performance of the Advisory and Corporate Clients business area has developed positively despite the lower level of activity in corporate advisory services. The return from investment activities through Evli's own balance sheet has also grown considerably on the previous year. In the advisory business and own investment activities, substantial fluctuations in annual returns are, however, possible.

As a result of a successful first half and steady development in assets under management, we estimate that the result for 2017 will exceed that of the previous year.

Previous guidance:
We estimate that the result for 2017 will be clearly positive.

 

 

4-6/
2017

4-6/
2016

1-6/
2017

1-6/
2016

1-12/
2016

Sales, M€

18.2

16.5

34.8

32.5

62.1

Net revenue, M€

17.9

15.9

34.1

31.4

60.0

Operating profit/loss, M€

5.2

2.4

9.8

5.5

11.1

Profit/Loss for financial year, M€

3.8

1.8

7.1

6.1

9.7

Operating profit/loss % of net revenue

29.2

14.9

28.8

17.4

18.5

Earnings/share (EPS)

0.17

0.08

0.32

0.26

0.42

Diluted earnings/share IFRS

0.16

0.08

0.31

0.25

0.40

Return on equity % (ROE)*

 

 

22.3

18.5

14.3

Recurring revenue ratio, %

 

 

110

86

94

Dividend/share**

 

 

 

 

0.40

Shareholders' equity per share

 

 

2.69

2.63

2.81

Market value, M€***

 

 

160.91

154.57

157.37

Share price in end of period

 

 

6.90

6.63

6.75

Personnel in end of period

 

 

254

247

244

* Annualized
**Dividend from 2016 approved by the Annual General Meeting. The dividend was paid on March 22, 2017.
**Series A shares are valued at the closing value of the series B shares.


Maunu Lehtimäki, CEO

Evli's revenue and operating profit continued to grow during the second quarter. Our revenue grew 13 percent and our operating profit doubled compared to the previous year. The operating result also improved considerably on the previous year.

Growth was accelerated by an increase in the income of the Wealth Management and Investor Clients segment, which was almost 30 percent higher year on year. The increase in income is mainly a result of the growth in client assets under management. The client assets under management reached a record EUR 11.8 billion during the review period. Net subscriptions to Evli's funds were over EUR 800 million during the first half-year. Evli Fund Management Company's market share increased to 6.6% of fund capital registered in Finland, which makes Evli Fund Management Company the fourth largest fund management company in Finland. One of our strategic focus areas is to increase international fund sales. During the first six months of 2017, there was a positive trend in our international sales and the share of foreign investors increased to almost 20 percent of Evli's fund capital. In addition to the growth in international fund sales, the sales of Evli's private asset management services (institutional and Private Banking clients) continued to be favorable, and client numbers as well as client assets under management continued to grow during the second quarter.

The Advisory and Corporate Clients segment's result was weakened by the fact that the Corporate Finance unit's commission income accumulated more slowly than in the previous year. The income declined 20 percent and the operating result was clearly lower than that of the previous year. The project-based nature of operations means that even large fluctuations from one quarter to the next are typical for the Corporate Finance business. There was positive development in the unit's mandate base, which provides a good starting point for the coming quarters. The administration of incentive programs continued its steady performance. The sale of research services to listed companies, which was launched last year, has started well and we have already signed over a dozen research service agreements.

In the Group Operations, the development also continued to be positive as the yield on the portfolio exceeded the revenue of the corresponding period last year and costs continued to decrease.

We have improved our estimate for our full-year result and we anticipate that it will exceed the level of the previous year. This outlook is supported by the strong profit performance in the first half of the year, the growth in client assets under management and the resulting improvement in the ratio of our recurring revenues in relation to the Group's total costs.

 

EVLI BANK PLC

 

For additional information, please contact:
Maunu Lehtimäki, CEO, tel. +358 (9) 4766 9304 or +358 (0)50 553 3000, maunu.lehtimaki@evli.com
Juho Mikola, CFO, Evli Bank Plc, tel. +358 (0)9 4766 9871 or +358 (0)40 717 8888, juho.mikola@evli.com

 

Evli Bank Plc in brief
Evli Bank Plc is a Finnish private bank specializing in investment. Evli's clients are present and future high net worth private individuals, companies, and institutions including insurance companies, pension funds, organizations and municipal authorities. Evli offers asset management services, various services related to the capital markets, alternative investment products, investment research, advisory services related to mergers and acquisitions as well as administration of incentive programs. The company also offers a comprehensive selection of funds, and banking services that support clients' investment activities.

Distribution: Nasdaq Helsinki Ltd, main media, www.evli.com

 



Evli Bank Plc Half Year Financial report 2017



This announcement is distributed by Nasdaq Corporate Solutions (One Liberty Plaza, 165 Broadway, New York, NY 10006. Tel: +1 212 401 8700. www.nasdaqomx.com) on behalf of NASDAQ OMX Corporate Solutions clients. Source: Evli Pankki Oyj, Aleksanterinkatu 19A, Helsinki 00100, Finland
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