RECORD RESULT IN AN EXCEPTIONAL MARKET ENVIRONMENT
Financial performance January-December 2020
- Net revenue was
EUR 79.7 million (1-12/2019:EUR 75.8 million ) - Operating profit was
EUR 29.1 million (EUR 24.1 million ) - The Wealth Management and Investor Clients segment’s operating profit increased and was
EUR 27.7 million (EUR 20.8 million ) - The Advisory and Corporate Clients segment’s operating profit declined and was
EUR 1.8 million (EUR 2.8 million ) - The return from own balance sheet items declined during the beginning of the year as a consequence of the market collapse and were
EUR 2.4 million (EUR 3.2 million ), which resulted in a weaker operating profit in the Group Operations segment - Net assets under management amounted to
EUR 14.1 billion (EUR 14.3 billion ) at the end of December - Evli’s diluted earnings per share were
EUR 0.87 (EUR 0.71 ) and return on equity was 26.2 percent (23.4%) - Proportion of recurring revenue to operating costs was 124 percent (124%).
- The Board of Directors dividend proposal to the Annual General Meeting is
EUR 0.73 per share (EUR 0.66 per share). It is proposed that the Annual General Meeting would authorize the Board of Directors to decide on the payment of the dividend in one or more instalments at a time it deems best, taking into account the current authority recommendations.
Financial performance October-December 2020
- The Group's net revenue was
EUR 28.1 million (EUR 22.7 million ) - The Group's operating profit was
EUR 13.6 million (EUR 8.7 million ) - Earnings per share amounted to
EUR 0.42 (EUR 0.24 ).
Outlook for 2021
We estimate that the operating profit for 2021 will be clearly positive.
The view is supported by a high ratio of recurring revenue to operating costs, as well as sales of alternative investment products, which have brought new, stable revenue.
1-12/2020 | 1-12/2019 | |
Income statement key figures | ||
Operating income, M€ | 79.7 | 75.8 |
Operating profit/loss, M€ | 29.1 | 24.1 |
Operating profit margin, % | 36.5 | 31.8 |
Profit/loss for the financial year, M€ | 23.2 | 18.7 |
Profitability key figures | ||
Return on equity (ROE), % | 26.2 | 23.4 |
Return on assets (ROA), % | 2.7 | 2.1 |
Balance sheet key figures | ||
Equity-to-assets ratio, % | 12.3 | 8.9 |
Group capital adequacy ratio, % | 15.2 | 15.1 |
Key figures per share | ||
Earnings per Share (EPS), fully diluted, € | 0.87 | 0.71 |
Comprehensive Earnings per Share (EPS), fully diluted, € | 0.88 | 0.71 |
Dividend per share, € | 0.73* | 0.66 |
Equity per share, € | 3.86 | 3.40 |
Share price at the end of the period, € | 12.20 | 10.40 |
Other key figures | ||
Expense ratio (operating costs to net revenue) | 0.63 | 0.68 |
Recurring revenue ratio, % | 124 | 124 |
Personnel at the end of the period | 261 | 249 |
Market value, M€ | 294.1 | 248.6 |
*Dividend for 2020, proposal by the Board of Directors
Maunu Lehtimäki, CEO
The positive development of the capital markets continued in the final quarter, and equity prices rose globally by around ten percent, ending up at a higher level than in the previous year. Market optimism was supported, as in previous quarters, by the extensive economic and monetary policy support measures undertaken by governments as well as the commencement of Covid-19 vaccinations. Investor confidence was also strengthened by expectations of the acceleration of global economic growth as the coronavirus pandemic gradually would slow down, and inflation expectations and thus interest rates remained at a low level.
Evli's operations continued without disruption in the final quarter and we were able to maintain our client activity almost at the level of previous years despite broad remote working. Our determined efforts to develop our information systems and to renew our processes carried out over recent years have improved our capacity to operate in conditions such as the prolonged exceptional circumstances that we are currently experiencing.
In the final quarter, the return from Evli's operations rose by almost a quarter to
The return from the Wealth Management and Investor Clients segment’s operations increased nine percent and was
The Advisory and Corporate Clients segment’s return declined eleven percent and was almost
Evli’s strategic focus areas – international fund sales and sales of alternative investment products – showed contrasting performance during the year. International sales suffered from market price fluctuations, which was reflected in the form of net redemptions in corporate bond funds. The acquisition of new clients in
Evli added responsibility to its strategic focus areas at the beginning of the year. We believe responsibility will further increase in importance in the future, and therefore we will focus even more on developing it, for example by setting climate targets and deepening ESG integration in portfolio management.
I would like to thank our clients and shareholders for their trust and our employees for their hard and successful work in the exceptional environment
For additional information, please contact:
Maunu Lehtimäki, CEO,
Evli is a bank specialized in investments that helps institutions, corporations and private persons increase their wealth. The product and service offering includes mutual funds, asset management and capital markets services, alternative investment products, equity research, incentive plan design and administration and Corporate Finance services. The company also offers banking services that support clients' investment operations. Evli is the highest ranked and most used institutional asset manager in
Evli has a total of EUR 14.1 billion in client assets under management (net 12/2020).
*KANTAR SIFO Prospera External Asset Management Finland 2015, 2016, 2017, 2018, 2019 and SFR Scandinavian Financial Research Institutional Investment Services,
Distribution:
Attachment
- Evli Bank Plc_Financial Statement Bulletin_1-12_2020
© OMX, source