EVLI PLC’S STOCK EXCHANGE RELEASE ON
A YEAR OF SIGNIFICANT ARRANGEMENTS WENT FAVORABLY
- Evli carried out a successful partial demerger in the spring. In the arrangement, Evli focused on investment services and the banking business was merged with Fellow Finance. Evli is a significant shareholder in
Fellow Bank Plc, the new company created by the merger. EAB Group Plcmerged with Evli at the beginning of October. The transaction further strengthened Evli’s position as Finland’sleading asset manager.
- The alternative investment funds continued to grow, driven by strong client demand. Over the past two years, Evli has managed to more than double the assets under management in alternative investment funds.
Financial performance January-
- Net revenue was
EUR 96.1 million(Carve-out 1–12/2021: EUR 116.2 million).
- Operating profit was
EUR 30.9 million( EUR 56.6 million). Operating profit excluding non-recurring items related to mergers and acquisitions was EUR 37.1 million.
- Operating result of the Wealth Management and Investor Clients segment decreased to
EUR 27.4 million( EUR 44.8 million).
- Operating result of the Advisory and Corporate Clients segment decreased to
EUR 4.2 million( EUR 7.4 million).
- At the end of December, assets under management amounted to
EUR 16.0 billion( EUR 17.5 billion) on a net basis.
- Return on equity was 20.4 percent (50.4%).
- Earnings per share, fully diluted, was
EUR 0.81( EUR 1.58). The corresponding earnings per share excluding non-recurring items related to the corporate transactions was EUR 1.00.
- The Board of Directors proposes that a total of
EUR 1.15per share be distributed to shareholders for the financial year 2022, of which EUR 0.80per share would be dividends and EUR 0.35per share would be distributed from the reserve for unrestricted equity.
- The ratio of recurring revenues to operational costs was 123 percent (135%).
Financial performance October-
- The Group’s net revenue was
EUR 29.4 million( EUR 35.0 million).
- The Group’s operating profit for the period was
EUR 5.0 million( EUR 17.0 million). Operating profit excluding non-recurring items related to mergers and acquisitions was EUR 9.8 million.
- Earnings per share, fully diluted, amounted to
EUR 0.12( EUR 0.49). The corresponding earnings per share excluding non-recurring items related to the corporate transactions was EUR 0.26. EAB Group Plcmerged into Evli Plcon October 1, 2022. The figures of EAB Group Plcare included for the last quarter of the year in the financial statements bulletin.
Outlook for 2023
The year 2023 will start in an uncertain mood, due to increased interest rate and inflation fears, risen geopolitical risks and a market downturn.
Evli has managed to strengthen its market position as a result of the corporate transactions made during 2022. With synergies from the arrangements and the non-recurring costs allocated to 2022, we expect the operating result to be well above the comparison period (
Key figures describing the Group’s financial performance
|Income statement key figures|
|Net revenue, M€||96.1||116.2|
|Operating profit/loss, M€||30.9||56.6|
|Operating profit margin, %||32.1||48.7|
|Profit/loss excl. non-recurring items related to mergers and acquisitions, M€||37.1||–|
|Profit/loss for the financial year, M€||25.1||45.5|
|Profitability key figures|
|Return on equity (ROE), %||20.4||50.4|
|Return on assets (ROA), %||6.8||11.3|
|Balance sheet key figures|
|Equity-to-assets ratio, %||39.1||27.7|
|Key figures per share|
|Earnings per Share (EPS), fully diluted, €||0.81||1.58|
|Earnings per Share (EPS) excl. non-recurring items related to mergers and acquisitions, fully diluted, €||1.0|
|Dividend per share, €||1.15*||–|
|Equity per share, €||5.28||–|
|Share price at the end of the period, €||15.15||–|
|Other key figures|
|Expense ratio (operating costs to net revenue)||0.67||0.52|
|Recurring revenue ratio, %||123||135|
|Permanent personnel at the end of the period||294||283|
|Market value, M€||398.1||–|
*The Board of Directors proposal to the Annual General Meeting
CEO Maunu Lehtimäki
The year 2022 was historically weak for investments. All major asset classes, equities, government bonds and corporate bonds, fell in value as the war in
The weak market development levelled off in the last quarter of the year as investors saw the first signs of a possible slowdown in inflation. Despite this, the normalisation of the interest rate environment, the weakened purchasing power for consumers, as well as global economic uncertainties and the continuation of the war, are all expected to push
The year 2022 was particularly significant for Evli with two large and successful M&A transactions. In the spring, Evli carried out a partial demerger. In the transaction, Evli focused on providing investment services and merged its banking operations with Fellow Finance to form a new digital bank,
The weakness in the market and operating environment was reflected in Evli’s performance in the fourth quarter. Net turnover decreased by approximately 16 percent to
In January-December, Evli’s return on equity was 20.4 percent (50.4%). The ratio of recurring income to operating expenses, on the other hand, was 123 percent (135%). The Group’s solvency and liquidity were at an excellent level.
Net turnover in the Wealth Management and Investor Clients segment decreased by 17 percent to
Net turnover in the Advisory and Corporate Clients segment decreased by 19 percent to
The key drivers of Evli’s strategy, international sales and alternative investment products, showed a mixed performance during the quarter. International sales, with Evli’s corporate bond funds at its core, suffered in the first half of the year from rising interest rates and general market uncertainty. Redemptions by international clients amounted to almost
In the fourth quarter, sales of alternative investment products reached a total of
Responsibility is one of Evli’s strategic focus areas. In the fourth quarter, as part of its work to support human rights, Evli launched a research project together with UNICEF Finland to explore how investors and asset managers can promote the fulfilment of children’s rights. Evli’s work on responsibility was again praised by clients, who rated Evli as the best asset manager in
I want to thank our clients, shareholders and my colleagues at Evli. Let’s continue our journey together for a better future!
Maunu Lehtimäki, CEO,
We see wealth as an engine to drive progress. We draw on our heritage, broad expertise and Nordic values to grow and manage wealth for institutions, corporations and private persons in a responsible way.
We are the leading asset manager in
** SFR Scandinavian Financial Research Institutional Investment Services Finland 2021, 2022
Distribution: Nasdaq Helsinki, main media, www.evli.com
Attachment: Evli Plc Financial Statements Bulletin 2022
© OMX, source