There was stable development in Evli's business already in the first three quarters of the year, but the final quarter was especially strong as the turnover of both of Evli’s business segments grew.
Record profit for the final quarter of the year
- The Wealth Management and Investor Clients segment’s operating profit increased and was EUR 20.8 million (1-12/2018: EUR 17.4 million)
- The Advisory and Corporate Clients segment’s operating profit increased and was EUR 2.8 million (EUR 2.2 million)
- The return from own balance sheet items developed favorably and totaled EUR 3.2 million (EUR 0.7 million) improving operating profit in the Group Operations segment
- According to strategy, Evli's assets under management in alternative investment products increased during the review period and were nearly EUR 870 million (about EUR 350 million).
- Net revenue was EUR 75.8 million (EUR 68.5 million)
- Operating profit was EUR 24.1 million (EUR 18.9 million)
- Profit for the financial year was EUR 18.7 million (EUR 17.3 million). Profit for the financial year includes EUR -0.6 million (EUR 2.1 million) of the share of the associated company
- Evli’s diluted earnings per share were EUR 0.71 (EUR 0.68) and return on equity was 23.4 percent (23.0%)
- Net assets under management grew and totaled record-high EUR 14.3 billion (EUR 11.4 billion) at the end of December
- Proportion of recurring revenue to operating costs was 124 percent (113%)
- A dividend of EUR 0.66 per share is proposed (EUR 0.61 per share).
- Net revenue was EUR 22.7 million (EUR 17.5 million)
- Operating profit was EUR 8.7 million (EUR 3.6 million)
- Evli’s diluted earnings per share amounted to EUR 0.24 (EUR 0.07).
Outlook for 2020
The risks associated with the general trend in the equity and fixed income markets are high due to the prevailing uncertainty on the markets. A possible decline in equity prices or a reduction in investors’ risk appetite would have a negative impact on the company’s profit performance. Evli Group’s assets under management have grown substantially in recent years, which softens the result-impact of any reversal of the market. Sales of alternative investment products, in particular, have brought new, stable revenue. Evli has initiated a series of internal, strategy-based actions and cost savings, which are expected to improve the company's cost efficiency.
There has been positive development in the demand for advisory services, and its outlook for 2020 is stable. Own balance sheet investments share of Evli’s business has decreased during recent years. Nevertheless, it may have a significant impact on the company’s result performance. In the advisory business and in own investment activities, fluctuations in quarterly and annual returns are possible.
As a result of this positive development, we estimate the operating profit for 2020 to be clearly positive.