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 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.