EVLI BANK PLC STOCK EXCHANGE RELEASE JULY 13, 2016, AT 7:30 PM
Evli Bank Plc's Interim Report for January-June 2016
First half of year was marked by market fluctuation
January-June 2016
- The Group's net revenue was EUR 31.4 million (EUR 32.8 million).
- The Group's operating profit was EUR 5.5 million (EUR 6.5 million).
- The Group's profit increased to EUR 6.1 million (EUR 5.0 million). The profit was positively affected by the exit fees received by the associated company.
- Evli purchased the entire stock of Evli Alexander Management Oy with an agreement signed at the end of May.
- Evli's diluted earnings per share were EUR 0.25 (EUR 0.19).
- Net assets under management grew year on year and totaled EUR 9,4 billion (EUR 8,4 billion) at the end of June, including associated companies.
April-June 2016
- The Group's net revenue decreased by four percent year on year and was EUR 15.9 million (EUR 16.6 million).
- The Group's operating profit for the review period was EUR 2.4 million (EUR 2.8 million).
- Earnings per share amounted to EUR 0.08 (EUR 0.07).
Outlook for 2016 unchanged
Evli's business performance has been strong in recent years, and interest in Evli's services and products is expected to remain stable. In the Corporate Finance business, substantial fluctuations in annual profits are possible. The unit's mandate base is at a healthy level. The ratio of Evli's recurring revenue to expenses has developed as planned. We believe that the result for 2016 will be clearly positive.
| KEY FIGURES | 4-6 /2016 | 4-6 /2015 | 1-6 /2016 | 1-6 /2015 | 1-12 /2015 |
| Sales, M€ | 16.5 | 17.0 | 32.5 | 33.6 | 66.0 |
| Net revenue, M€ | 15.9 | 16.6 | 31.4 | 32.8 | 64.2 |
| Operating profit/loss, M€ | 2.4 | 2.8 | 5.5 | 6.5 | 13.3 |
| Profit / Loss for financial year, M€ | 1.8 | 2.3 | 6.1 | 5.0 | 12.3 |
| Operating profit/loss % of net revenue | 14.9 | 16.9 | 17.4 | 19.9 | 20.6 |
| Earnings/share (EPS) | 0.08 | 0.07 | 0.26 | 0.19 | 0.54 |
| Diluted earnings/share IFRS | 0.08 | 0.07 | 0.25 | 0.19 | 0.53 |
| Return on equity % (ROE)* | - | - | 18.5 | 19.9 | 20.2 |
| Recurring revenue ratio, % | - | - | 86 | 91 | 93 |
| Dividend/share** | - | - | - | - | 0.31 |
| Shareholders' equity per share | - | - | 2.63 | 2.27 | 2.96 |
| Market value, M€*** | - | - | 154.57 | - | 190.94 |
| Share price in end of period | - | - | 6.63 | - | 8.19 |
| Personnel in end of period | - | - | 247 | 244 | 248 |
* Annualized
** Dividend from 2015 approved by the Annual General Meeting. The dividend was paid on March 17, 2016.
*** Series A shares are valued at the closing value of the series B shares.
Share-specific key figures for the comparison period have been calculated using a split-corrected share count in accordance with the decision of the Extraordinary General Meeting of October 1, 2015.
Maunu Lehtimäki, CEO
"The Evli Group's financial performance during the second quarter was similar to that of the first quarter. The trading activity of Markets unit clients and the structure of the Wealth Management unit's return were negatively affected by the uncertainty that prevailed on the markets and by investors focusing their attention on lower-risk investments. As a consequence, the Group's revenue declined four percent from the previous year. The trend in the Corporate Finance unit's return was pretty much as expected. Significant fluctuations from one quarter to the next are typical of the Corporate Finance business. The Group's expense level was raised by the goodwill write-down related to the Russian business function and the non-recurring expenses arising from the reorganization of the Markets unit's equity brokerage operations and equity research.
I am satisfied with the fact that both the earnings per share and Group's client assets under management (excl. associated companies and incentive programs) increased considerably on the previous year. Evli Fund Management Company received almost EUR 0.5 billion in net subscriptions starting from the beginning of the year, making us Finland's second-largest fund management company based on net subscriptions during the review period. On account of the good fund sales, our market share also continued to grow and at the end of the period was 5.7 percent of the fund capital registered in Finland.
The UK's EU referendum and the market shock that resulted from the country voting to leave the EU did not have a significant impact on our result for the review period, but we will have to wait and see how the increased economic uncertainty will be reflected in the securities markets trend for the rest of the year. Despite the market uncertainty we expect our full-year result to be clearly positive."
Invitation to investors and analysts
CEO Maunu Lehtimäki and CFO Juho Mikola will present the Interim Report to investors and analysts at Evli Bank (Aleksanterinkatu 19 A, 4 fl, Helsinki) on Thursday, July 14, 2016 at 9 a.m. The presentation will be held in Finnish. The presentation material will be available in English at the address www.evli.com after the event. Please sign up to the event by email communications@evli.com.
EVLI BANK PLC
Board of Directors
For additional information, please contact:
Maunu Lehtimäki, CEO, Evli Bank Plc, tel. +358 (0)9 4766 9304 or +358 (0)50 553 3000, maunu.lehtimaki@evli.com
Juho Mikola, CFO, Evli Bank Plc, tel. +358 (0)9 4766 9871 or +358 (0)40 717 8888, juho.mikola@evli.com
Evli Bank Plc in brief
Evli is a private bank that specializes in investment and helps private persons and institutions increase their wealth. The Company offers asset management services, various services related to the capital markets, such as brokerage of equity and other investment products, market making and investment research, and Corporate Finance services.
Distribution:
Nasdaq Helsinki Ltd, main media, www.evli.com
Appendix:
Evli Bank Plc's Interim Report for January-June 2016
