Evli Pankki Oyj - Half Year financial report

Evli Bank Plc's Half year financial report January-June 2017

EVLI BANK PLC STOCK EXCHANGE RELEASE JULY 14, 2017, AT 10.00 AM

Evli Bank Plc's Half year financial report January-June 2017

The operating profit almost doubled during the review period

  * The operating profit increased in the Wealth Management and Investor Clients
    segment as a result of the growth in assets under management
  * The Advisory and Corporate Clients segment's operating profit was lower than
    the previous year. Investment research and the management of incentive
    programs developed positively, but commission income from Corporate Finance
    activities developed slower than expected.
  * The income from trading activities increased from the comparison period in
    the Group Operations segment.
January-June 2017

  * The Group's net revenue was EUR 34.1 million (1-6/2016: EUR 31.4 million)
  * The Group's operating profit was EUR 9.8 million (EUR 5.5 million)
  * Evli's diluted earnings per share were EUR 0.31 (EUR 0.25) and the
    annualized return on equity was 22.3 percent (18.5%)
  * Net assets under management grew year on year and totaled a record EUR 11.8
    billion (EUR 9.4 billion) at the end of June.
  * The proportion of recurring revenue to operating costs improved to 110
    percent (86%) as a result of increased revenue and lower costs
April-June 2017

  * The Group's net revenue was EUR 17.9 million (EUR 15.9 million).
  * The Group's operating profit for the review period more than doubled to EUR
    5.2 million (EUR 2.4 million).
  * Earnings per share amounted to EUR 0.16 (EUR 0.08).


Outlook for 2017 updated

The assets under management of Evli's Wealth Management and Investor Clients
business area grew significantly during the first half of the year. As a result,
the proportion of recurring revenue to operating expenses is expected to exceed
the long-term target level of 100 percent. The risk related to the development
of general equity and fixed income markets have increased with high valuation
levels and a possible decline in exchange rates would negatively affect the
development of the recurring revenues.

The performance of the Advisory and Corporate Clients business area has
developed positively despite the lower level of activity in corporate advisory
services. The return from investment activities through Evli's own balance sheet
has also grown considerably on the previous year. In the advisory business and
own investment activities, substantial fluctuations in annual returns are,
however, possible.

As a result of a successful first half and steady development in assets under
management, we estimate that the result for 2017 will exceed that of the
previous year.

Previous guidance:
We estimate that the result for 2017 will be clearly positive.



                                        4-6/ 4-6/ 1-6/   1-6/   1-12/
                                        2017 2016 2017   2016   2016
----------------------------------------------------------------------
 Sales, M€                              18.2 16.5  34.8   32.5   62.1
----------------------------------------------------------------------
 Net revenue, M€                        17.9 15.9  34.1   31.4   60.0
----------------------------------------------------------------------
 Operating profit/loss, M€              5.2  2.4   9.8    5.5    11.1
----------------------------------------------------------------------
 Profit/Loss for financial year, M€     3.8  1.8   7.1    6.1    9.7
----------------------------------------------------------------------
 Operating profit/loss % of net revenue 29.2 14.9  28.8   17.4   18.5
----------------------------------------------------------------------
 Earnings/share (EPS)                   0.17 0.08  0.32   0.26   0.42
----------------------------------------------------------------------
 Diluted earnings/share IFRS            0.16 0.08  0.31   0.25   0.40
----------------------------------------------------------------------
 Return on equity % (ROE)*                         22.3   18.5   14.3
----------------------------------------------------------------------
 Recurring revenue ratio, %                        110     86     94
----------------------------------------------------------------------
 Dividend/share**                                                0.40
----------------------------------------------------------------------
 Shareholders' equity per share                    2.69   2.63   2.81
----------------------------------------------------------------------
 Market value, M€***                              160.91 154.57 157.37
----------------------------------------------------------------------
 Share price in end of period                      6.90   6.63   6.75
----------------------------------------------------------------------
 Personnel in end of period                        254    247    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.


Maunu Lehtimäki, CEO

Evli's revenue and operating profit continued to grow during the second quarter.
Our revenue grew 13 percent and our operating profit doubled compared to the
previous year. The operating result also improved considerably on the previous
year.

Growth was accelerated by an increase in the income of the Wealth Management and
Investor Clients segment, which was almost 30 percent higher year on year. The
increase in income is mainly a result of the growth in client assets under
management. The client assets under management reached a record EUR 11.8 billion
during the review period. Net subscriptions to Evli's funds were over EUR 800
million during the first half-year. Evli Fund Management Company's market share
increased to 6.6% of fund capital registered in Finland, which makes Evli Fund
Management Company the fourth largest fund management company in Finland. One of
our strategic focus areas is to increase international fund sales. During the
first six months of 2017, there was a positive trend in our international sales
and the share of foreign investors increased to almost 20 percent of Evli's fund
capital. In addition to the growth in international fund sales, the sales of
Evli's private asset management services (institutional and Private Banking
clients) continued to be favorable, and client numbers as well as client assets
under management continued to grow during the second quarter.

The Advisory and Corporate Clients segment's result was weakened by the fact
that the Corporate Finance unit's commission income accumulated more slowly than
in the previous year. The income declined 20 percent and the operating result
was clearly lower than that of the previous year. The project-based nature of
operations means that even large fluctuations from one quarter to the next are
typical for the Corporate Finance business. There was positive development in
the unit's mandate base, which provides a good starting point for the coming
quarters. The administration of incentive programs continued its steady
performance. The sale of research services to listed companies, which was
launched last year, has started well and we have already signed over a dozen
research service agreements.

In the Group Operations, the development also continued to be positive as the
yield on the portfolio exceeded the revenue of the corresponding period last
year and costs continued to decrease.

We have improved our estimate for our full-year result and we anticipate that it
will exceed the level of the previous year. This outlook is supported by the
strong profit performance in the first half of the year, 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.



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



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 Half Year Financial report 2017.pdf