Evli Pankki Oyj - Interim report (Q1 and Q3)

Evli Bank Plc's Interim Report 1-3/2017

EVLI BANK PLC STOCK EXCHANGE RELEASE APRIL 24, 2017, AT 12.15 PM

Evli Bank Plc's Interim Report 1-3/2017

Strong result for the year's first quarter

  * Operating profit grew considerably in the Wealth Management and Investor
    Clients segment
  * Earnings growth fell short of the target in the Advisory and Corporate
    Clients segment
  * The income from trading activities increased more than anticipated in the
    Group Operations segment.
January-March 2017

  * The Group's net revenue was EUR 16.1 million (1-3/2016: EUR 15.4 million)
  * The Group's operating profit was EUR 4.6 million (EUR 3.1 million)
  * The Group's profit was EUR 3.3 million (EUR 4.3 million). The profit in the
    comparison period was positively affected by Evli's share of the exit fees
    received by the associated company Northern Horizon Capital (EUR 1.9
    million)
  * Evli's diluted earnings per share were EUR 0.15 (EUR 0.17)
  * Net assets under management grew year on year and totaled a record EUR 11.3
    billion (EUR 9.5 billion) at the end of March.

Maunu Lehtimäki, CEO

During the first quarter, we launched a renewal of our organizational structure.
The target of this renewal is to make Evli better suited to meet the evolving
trends in the operating environment, the needs of clients and the changing
regulation. As a consequence of the organizational change, Evli will have two
business areas: Wealth Management and Investor Clients and Advisory and
Corporate Clients. The business areas are supported by shared Group Operations,
which consist of the bank operations and the investment activities through
Evli's own balance sheet.

In the first quarter, our revenue increased four percent and our operating
profit by 47 percent on the previous year. This earnings growth is mainly a
result of the growth in client assets under management and an improvement in
cost effectiveness. The ratio of our recurring revenues in relation to the
Group's total costs continued to improve and reached a level of 112 percent. The
expense/income ratio went down and was 0.72. The Group's return on equity was
20 percent.

The Wealth Management and Investor Client segment's revenue and operating result
clearly improved on the previous year and client assets under management rose to
EUR 11.3 billion. Net subscriptions to Evli's funds grew by close to EUR 500
million, and Evli Fund Management Company's market share increased to 6.4
percent of fund capital registered in Finland. The trend in our international
fund sales was positive and foreign investors made up 18 percent of Evli's fund
capital. The sales of private asset management services (institutional and
Private Banking clients) also continued to do well, as in previous years, and in
addition to the growth in assets under management the number of clients grew.
Gross commissions from brokerage of equities and derivatives declined from the
previous year, but sales revenue from structured investment products increased.

The Advisory and Corporate Clients segment's revenue declined 18 percent and
operating result by 50 percent from the previous year. The decline was mainly
due to a revenue decline in the Corporate Finance unit. Due to the income
recognized in projects, significant fluctuations from one quarter to the next
are typical for the Corporate Finance business. However, there was positive
development in the unit's mandate base, which provides a good base for the
coming quarters. The administration of incentive programs continued its steady
performance. The sale of research services to listed companies that was launched
last year started well and has been well received.

We still estimate that the result for 2017 will be clearly positive. This
outlook is supported by the strong profit performance in the first quarter, the
growth in client assets under management and the resulting improvement in the
ratio of our recurring revenues in relation to the Group's total costs.



                                       1-3/   1-3/   1-12/ 2016
                                       2017   2016
---------------------------------------------------------------
Sales, M€                              16.6   15.9   62.1
---------------------------------------------------------------
Net revenue, M€                        16.1   15.4   60.0
---------------------------------------------------------------
Operating profit/loss, M€              4.6    3.1    11.1
---------------------------------------------------------------
Profit / Loss for financial year, M€   3.3    4.3    9.7
---------------------------------------------------------------
Operating profit/loss % of net revenue 28.3%  20.0%  18.5%
---------------------------------------------------------------
Earnings/share (EPS)                   0.15   0.18   0.42
---------------------------------------------------------------
Diluted earnings/share IFRS            0.15   0.17   0.40
---------------------------------------------------------------
Return on equity % (ROE)*              21.4   25.1   14.3
---------------------------------------------------------------
Recurring revenue ratio, %             112%   89%    94%
---------------------------------------------------------------
Dividend/share**                       -      -      0.40
---------------------------------------------------------------
Shareholders' equity per share         2.55   2.82   2.81
---------------------------------------------------------------
Market value, M€***                    144.55 156.20 157.37
---------------------------------------------------------------
Share price in end of period           6.20   6.70   6.75
---------------------------------------------------------------
Personnel in end of period             244    246    244


* Annualized
**Dividend from 2016 approved by the Annual General Meeting. The dividend was
paid on March 22, 2017.
**Series A shares are valued at the closing value of the series B shares.



Outlook for 2017 updated

The stable performance of Evli's Wealth Management and Investor Clients business
area is anticipated to continue. As a result, the proportion of recurring
revenues to operating costs is expected to exceed the long-term target level of
100 percent. The mandate base of the Advisory and Corporate Clients business
segment is good. However, substantial fluctuations in the annual return of the
advisory business are possible. We estimate that the result for 2017 will be
clearly positive.

Previously, it was estimated that the proportion of recurring revenues to
operating costs would attain the long-term target level of 100 percent.



EVLI BANK PLC



For additional information, please contact:

Maunu Lehtimäki, CEO, tel. +358 (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



Invitation to investor and analyst meeting

Maunu Lehtimäki, CEO, and Juho Mikola, CFO, will present the preliminary result
to investors and analysts in Finnish on Tuesday, April 24, 2017 at 2.00 p.m. at
Evli Bank, address Aleksanterinkatu 19 A, 4 fl, Helsinki. The presentation
material will afterwards be available in English on Evli's website at
www.evli.com > Investors




Evli Bank Plc in brief

Evli Bank Plc is a Finnish private bank specializing in investment. Evli's
clients are present and future high net worth private individuals, companies,
and institutions including insurance companies, pension funds, organizations and
municipal authorities. Evli offers asset management services, various services
related to the capital markets, alternative investment products, investment
research, advisory services related to mergers and acquisitions as well as
administration of incentive programs. The company also offers a comprehensive
selection of funds, and banking services that support clients' investment
activities.

Distribution: Nasdaq Helsinki Ltd, main media, www.evli.com




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Evli Bank Plc Interim Report 1-3_2017.pdf