Evli Bank Plc's Interim Report 1-9/2021

20.10.2021

In the third quarter, Evli's business developed extremely well. Operating income increased by one third versus the comparison period and amounted to EUR 24.8 million. Group operating profit increased by 75 percent and amounted to EUR 12.1 million.

Excellent quarter

Financial performance January-September 2021

  • Operating income was EUR 80.6 million (1-9/2020: EUR 51.6 million)
  • Operating profit was EUR 36.9 million (EUR 15.5 million)
  • Operating result of the Wealth Management and Investor Clients segment increased to EUR 29.7 million (EUR 15.6 million)
  • Operating result of the Advisory and Corporate Clients segment increased to EUR 6.5 million (EUR 1.2 million)
  • Revenue from own balance sheet developed positively and amounted to EUR 2.9 million (EUR 1.0 million)
  • At the end of September, assets under management amounted to EUR 16.8 billion (EUR 13.6 billion) on net basis.
  • Diluted earnings per share were EUR 1.02 (EUR 0.46) and return on equity was 36.7 percent (19.8%)
  • The ratio of recurring revenues to operational costs was 136 percent (128%).
Financial performance July-September 2021
  • The Group's net revenue was EUR 24.8 million (EUR 18.7 million)
  • The Group's operating profit was EUR 12.1 million (EUR 6.9 million)
  • Earnings per share amounted to EUR 0.39 (EUR 0.21).

Outlook for 2021 unchanged

Supported by strong client demand and a favourable stock market performance, business has developed well during the year.

Demand for advisory services has developed positively and its outlook for 2021 is stable. Although investment activities through Evli’s own balance sheet constitute only a limited proportion of Evli’s business, these could still have a substantial impact on the earnings development during sudden market movements. Seasonal and annual fluctuations in income from advisory business and own investments are possible.

However, there are always risks associated with the overall development of the stock and fixed income markets. Any fall in prices or a reduction in investors' risk appetite would have a negative impact on the company's earnings development. The group's assets under management reached a new record level at the end of the third quarter, and the product range has expanded especially to alternative investment products, mitigating the negative impact of a possible market downturn.

Taking into account the above considerations, we estimate that the operating profit in 2021 will clearly exceed the level of the previous year.

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