During the first half of the year, the growth of assets under management continued steadily. Demand for fixed income funds boosted the sales of traditional mutual funds. The popularity of alternative funds remained strong despite the market situation. New net subscriptions and commitments totaled approximately EUR 187 million, including EUR 47 million in capital returns. Evli received significant recognition for its expertise, as institutional investors once again ranked Evli as the best institutional asset manager in Finland in Kantar Prospera’s annual client survey.
Financial performance January-June 2025 (comparison period 1–6/2024)
- Net revenue was EUR 55.2 million (1–6/2024 net revenue, after eliminating the impact from the corporate transaction, was EUR 55.0 million and unadjusted net revenue EUR 72.2 million).
- Operating profit was EUR 22.5 million (1–6/2024 operating profit, after eliminating the impact from the corporate transaction, was EUR 22.2 million and unadjusted operating profit EUR 37.2 million).
- Operating result of the Wealth Management and Investor Clients segment increased to EUR 20.0 million (EUR 18.2 million).
- Operating result of the Advisory and Corporate Clients segment decreased to EUR 1.3 million (EUR 2.2 million).
- At the end of June, net assets under management amounted to EUR 19.7 billion (EUR 18.7 billion), including assets managed by associated companies. Assets under management excluding the associated companies amounted to EUR 17.2 billion (EUR 16.4 billion).
- Return on equity was 24.2 percent (37.9%).
- The ratio of recurring revenue to operating costs was 132 percent (125%).
- Earnings per share, fully diluted, were EUR 0.60 (EUR 1.10).
Financial performance April-June 2025 (comparison period 4-6/2024)
- Net revenue was EUR 27.5 million (EUR 29,3 million).
- Operating profit was EUR 11.1 million (EUR 12.1 million).
- Diluted earnings per share amounted to EUR 0.33 (EUR 0.31).
New U.S. tariffs met with a strong market reaction
The beginning of the second quarter of 2025 was marked by the so-called reciprocal tariffs announced by the United States and the resulting severe shock to the capital markets. To restore balance in foreign trade, President Donald Trump announced a wide range of reciprocal import tariffs. A minimum level of 10 percent would be imposed on all U.S. imports, on top of which there would be an additional country-specific tariff. The new tariffs were immediately met with a strong market reaction, as a result of which, the United States announced that it would suspend the implementation of the tariffs for 90 days. During this pause, the country-specific additional tariffs would be negotiated separately with each country. By the end of the deadline, new tariff agreements had been reached with only a few countries, mainly with the United Kingdom and China.
The U.S. economy performed better than expected during the first half of the year, which led the U.S. stock markets to once again reach record levels. Investors appeared to be anticipating an easing of the trade war and that the final import tariffs would settle at a level tolerable for global trade and corporate earnings prospects. The risk with Trump’s tariff policy is a weakening of corporate profitability or, if companies pass the tariffs directly onto end-product prices, an increase in consumer prices. Both are negative outcomes from the perspective of the economy and capital markets.
Uncertainty weakened economic growth in the euro area
The United States Federal Reserve refrained from further interest rate cuts and announced that it wants to first see how the tariffs and the new legislative package affect the behavior of businesses and consumers. In the longer term, the new legislative package is expected to increase U.S. government indebtedness, which has accelerated the decline of the dollar against other currencies.
Geopolitical as well as economic and trade policy uncertainty weakened economic growth in the euro area and slowed the recovery. According to forecasts, annual GDP growth this year would be 0.9 percent and would strengthen only slightly in the coming years. Inflation in the euro area is expected to continue slowing and to be close to the European Central Bank’s two percent inflation target next year. This allowed for eight consecutive interest rate cuts to continue up until the June meeting, where the policy rate was set at two percent.
Stock prices rose in the second quarter across all major markets. In the United States, however, stock prices fell by 6.6 percent as measured by the S&P 500 index. In the fixed income markets, high-yield bonds with higher credit risk delivered the best returns. The difficulties in the Finnish real estate market continued, characterized by subdued price development and low transaction volumes. However, with lower interest rates, expectations for a recovery in the real estate market were once again revived.
Evli's client assets under management increased due to positive market development and net subscriptions
Evli Group’s net revenue decreased by six percent year-on-year in the second quarter and amounted to EUR 27.5 million (EUR 29.3 million).
“The best-performing areas were traditional and private equity fund fee income, asset management income, and brokerage income, all of which increased compared to the previous year. In contrast, performance-based fees and advisory fees declined. Returns from the Group’s own balance sheet were also lower than in the previous year,” says CEO Maunu Lehtimäki.
The Group’s operating profit for the second quarter decreased by eight percent and was EUR 11.1 million (EUR 12.1 million). The decline in operating profit was influenced by performance-based fees recognized in the comparison period, which were significantly higher than during the review period. Evli’s return on equity for the first half of the year was 24.2 percent (37.9%), and the ratio of recurring revenue to operating expenses was 132 percent (125%). The Group’s capital adequacy and liquidity were at an excellent level.
“Assets under management increased to EUR 19.7 billion (EUR 18.7 billion) as a result of positive market development and net subscriptions. The key areas of Evli’s strategy, international sales and alternative investment products, developed positively during the quarter. Net subscriptions from international clients were approximately EUR 70 million. Net subscriptions and investment commitments to alternative investment products during the quarter totaled approximately EUR 98 million, including EUR 31 million in capital returns,” Lehtimäki says.
During the second quarter, Evli strengthened the responsibility of its investment activities by participating in 70 general meetings and directly engaging with two companies. The Evli Private Capital fund made a significant investment in the heat pump technology company Calefa, and Evli issued a green Autocall certificate. In addition, Evli started a collaboration with the Global Child Forum, an international children's rights organization. Global Child Forum will start utilizing an AI platform developed by Evli.
“In 2025, we celebrate Evli’s 40-year journey. Over the years, we have grown into a leading Nordic wealth manager and fund house, supporting our clients in building long-term success and directing capital where it creates lasting value. We are committed to building a prosperous tomorrow in the future as well,” Lehtimäki states.
Outlook for 2025
The first half of the year was turbulent in the investment markets, and the operating environment is expected to remain uncertain and difficult to predict for the rest of the year as well. The expansion of geopolitical risks and concerns about the sustainability of economic growth are increasing uncertainty in the markets. If investor confidence deteriorates further and market values decline, this will have a negative impact on Evli’s fee income and the return on its own investment portfolio.
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.
