During the first quarter of the year, Evli’s comparable net revenue and operating profit increased. Net subscriptions of traditional mutual funds amounted to EUR 262 million, of which fund sales to foreign customers was EUR 94 million during the review period. Despite the challenging market environment, sales of alternative investment funds also performed well. Approximately EUR 70 million in new investment commitments were raised.
Financial performance January-March 2025 (comparison period 1–3/2024)
- Net revenue, after eliminating the impact from the corporate transaction, was EUR 27.7 million (EUR 25.8 million). Unadjusted net revenue was EUR 27.7 million (EUR 42.9 million).
- Operating profit, after eliminating the impact from the corporate transaction, was EUR 11.4 million (EUR 10.0 million). Unadjusted operating profit was EUR 11.4 million (EUR 25.1 million).
- The operating result of the Wealth Management and Investor Clients segment increased to EUR 10.1 million (EUR 9.6 million).
- The operating result of the Advisory and Corporate Clients segment increased to EUR 1.3 million (EUR 1.1 million).
- At the end of March, net assets under management amounted to EUR 19.0 billion (EUR 18.5 billion), including assets managed by associated companies. Assets under management excluding the associated companies amounted to EUR 16.7 billion (EUR 16.2 billion).
- Return on equity was 28.0 percent (35.8%).
- The ratio of recurring revenue to operating costs was 130 percent (125%).
- Earnings per share, fully diluted, were EUR 0.27 (EUR 0.79).
The tariffs imposed by the United States cast dark clouds over the global economy
The year 2025 began under exceptionally uncertain circumstances. Forecasts regarding the impact of the U.S. tariffs, retaliatory tariffs, and other potential trade restrictions on global trade, economic growth, private consumption, and inflation expectations are clearly negative.
“Concerns arose in Europe about the U.S.'s commitment to European defense, prompting decisions between the EU and the United Kingdom to significantly increase defense investments in the coming years. This was reflected in strong share price increases among European defense sector companies. Many investors also revisited their responsibility criteria, as arms manufacturers have traditionally been excluded from investment portfolios,” explains CEO Maunu Lehtimäki.
During the first quarter, returns in the capital markets were strong in Europe, with equities delivering approximately five percent returns as measured by the STOXX 600 index. Returns on euro-denominated fixed-income investments were also slightly positive. European equities performed particularly well compared to U.S. equities.
Evli Group's net revenue increased
Evli Group's net revenue, after eliminating the impact from the corporate transaction, increased by seven percent compared to the comparison period, rising to EUR 27.7 million (EUR 25.8 million).
“The best development was seen in traditional and private equity fund fees, advisory fees, and brokerage revenues, which grew significantly compared to the previous year. Returns from the Group’s own balance sheet items were also higher than in the previous year,” Lehtimäki says.
Unadjusted net revenue decreased by 35 percent in the first quarter compared to the previous year, amounting to EUR 27.7 million (EUR 42.9 million). The comparability of the net revenue is impacted by the corporate transaction completed last year, in which the incentive business became an associated company of the Group and is therefore no longer included in the revenue figures during the review period.
The Group's operating profit for the first quarter, after eliminating the impact from the corporate transaction, increased by 15 percent to EUR 11.4 million (EUR 10.0 million). Unadjusted operating profit decreased by 55 percent to EUR 11.4 million (EUR 25.1 million). The comparability of operating profit is impacted by the corporate transaction completed last year, which included a nearly EUR 14 million valuation gain recorded during the comparison period. Additionally, the comparison period included significantly higher performance fees than the review period.
Assets under management increased, driven by positive market performance and net subscriptions
Evli's return on equity for the quarter was 28.0 percent (38.5%), and the ratio of recurring revenues to operational costs was 130 percent (125%). The Group's solvency and liquidity remained at an excellent level.
“Assets under management increased to EUR 19.0 billion (EUR 18.5 billion), driven by positive market performance and net subscriptions. Evli's strategically important areas, international sales and alternative investment products, developed positively during the quarter,” Lehtimäki says.
Evli published its Corporate Responsibility Report as part of the Annual Report 2024, which for the first time followed the EU Corporate Sustainability Reporting Directive. As part of the Annual Report, Evli also published the first Taskforce on Nature-related Financial Disclosures report, which describes the nature-related risks, opportunities, dependencies and impacts of Evli's investments.
“In 2025, Evli celebrates its 40th anniversary. Our journey has been shaped by innovation, resilience, and a focus on building lasting relationships with our stakeholders. We are committed to providing excellent asset management in the future as well,” Lehtimäki concludes.
Outlook for 2025
The second quarter of the year has had a turbulent start, and the environment is expected to remain uncertain and difficult to predict in 2025, with widening geopolitical risks and concerns about the sustainability of economic growth adding to market uncertainty. Global tariffs imposed by the U.S., followed by counter-tariffs imposed by the rest of the world, have increased fears of a global trade war. If this were to materialize, it would lower growth forecasts across the board and accelerate inflation.
Due to the uncertain market environment, stock market volatility has increased, and market values have fallen. If investor confidence deteriorates further and market values continue to decline, it 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, Evli estimates the operating result to be clearly positive.
