Evli Pankki Oyj - Interim report (Q1 and Q3)

Evli Bank Plc's Interim Report 1-9/2017

EVLI BANK PLC STOCK EXCHANGE RELEASE OCTOBER 26, 2017, AT 12.00 PM



Evli Bank Plc's Interim Report 1-9/2017

The Operating profit already exceeded last year's total outcome

  * The operating profit of the Wealth Management and Investor Clients segment
    almost tripled from the comparison period as a result of increased recurring
    revenue
  * The operating profit of the Advisory and Corporate Clients segment
    decreased. Demand for all of the segment's products has, however, developed
    favorably
  * The income from trading activities increased from the comparison period in
    the Group Operations segment.
January-September 2017

  * The Group's net revenue was EUR 50.4 million (1-9/2016: EUR 44.1 million)
  * The Group's operating profit was EUR 14.8 million (EUR 7.8 million)
  * Evli's diluted earnings per share were EUR 0.49 (EUR 0.33) and the
    annualized return on equity was 23.9 percent (15.8%)
  * Net assets under management totaled EUR 11.1 billion (EUR 10.0 billion) at
    the end of September
  * The proportion of recurring revenue to operating costs improved to 116
    percent (90%).
July-September 2017

  * The Group's net revenue was EUR 16.3 million (EUR 12.7 million)
  * The Group's operating profit for the review period more than doubled to EUR
    5.0 million (EUR 2.3 million)
  * Earnings per share amounted to EUR 0.18 (EUR 0.07).


Outlook for 2017 updated

The assets under management of Evli's Wealth Management and Investor Clients
segment have grown significantly during the beginning of the year. As a result,
the proportion of recurring revenue to operating expenses has exceeded 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 segment 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 consequence of the success in Wealth Management operations, it is very
possible that performance-based fees will arise in the final quarter of the
year. As a result of this and a successful first half and steady development in
assets under management, we estimate that the result for 2017 will clearly
exceed that of the previous year.

Previously:

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.



KEY FIGURES                             7-9/  7-9/   1-9/   1-9/  1-12/
                                        2017  2016   2017   2016   2016
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Sales, M€                               16.9  13.2   51.7   45.7   62.1
-----------------------------------------------------------------------
Net revenue, M€                         16.3  12.7   50.4   44.1   60.0
-----------------------------------------------------------------------
Operating profit/loss, M€                5.0   2.3   14.8    7.8   11.1
-----------------------------------------------------------------------
Profit / Loss for financial year, M€     4.7   1.8   11.8    7.9    9.7
-----------------------------------------------------------------------
Operating profit/loss % of net revenue 30.4% 18.2%  29.3%  17.6%  18.5%
-----------------------------------------------------------------------
Earnings/share (EPS)                    0.19  0.08   0.51   0.34   0.42
-----------------------------------------------------------------------
Diluted earnings/share IFRS             0.18  0.07   0.49   0.33   0.40
-----------------------------------------------------------------------
Return on equity % (ROE)*                  -     -   23.9   15.8   14.3
-----------------------------------------------------------------------
Recurring revenue ratio, %                 -     -   116%    90%    94%
-----------------------------------------------------------------------
Dividend/share**                           -     -             -   0.40
-----------------------------------------------------------------------
Shareholders' equity per share             -     -   2.87   2.71   2.81
-----------------------------------------------------------------------
Market value, M€***                        -     - 176.07 158.53 157.37
-----------------------------------------------------------------------
Share price in end of period               -     -   7.55   6.80   6.75
-----------------------------------------------------------------------
Personnel in end of period                 -     -    248    242    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 grew considerably during the third quarter.
Our revenue grew 28 percent and our operating profit more than doubled on the
previous year.

Growth was accelerated by the considerable increase in the income of the Wealth
Management and Investor Clients segment compared with the previous year. The
increase in income is mainly a result of the growth in client assets under
management, which increased by over a billion on the previous year, coming to
EUR 11.1 billion at the end of September. Evli's client assets under management
have grown in all target client groups, both in funds and individual asset
management, and with institutional and private clients. The proportion of
recurring revenue to the Group's overall expenses rose to 116 percent and annual
return on equity rose to almost 24 percent. Net subscriptions to Evli's funds
calculated from the start of the year were over EUR 800 million and 45 percent
of this was made up by international investors.

The income of the Advisory and Corporate Clients segment grew by 75 percent in
the third quarter. The income growth was a result of the increase in income from
Corporate Finance on the previous year. During the period, the unit also secured
new orders and its mandate base is at a good level. The incentive program
administration business continued to perform well and there was positive
development in the sale of research services to listed companies, which was
launched in 2016.

There has also been positive development in Group Operations and the return of
the investment portfolio was higher than that of the return year on year.

We have improved our estimate for our full-year result and we now expect it to
clearly exceed that 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 and any performance-
based fees that will be recognized during the final quarter.



EVLI BANK PLC



For additional information, please contact:

Maunu Lehtimäki, CEO, Evli Bank Plc,  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 result to investors
and analysts in Finnish on Thursday, October 26, 2017 at 1.00 p.m. at Evli Bank,
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 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, investment research, administration of
incentive programs 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 Finland*.

Evli has a total of EUR 11.1 billion in client assets under management (net
9/2017). The Evli Group's equity capital totals EUR 66,5 million and its BIS
capital adequacy ratio is 14.1 percent (September 30, 2017). The company has
more than 200 employees. Evli Bank Plc's B shares are listed on Nasdaq Helsinki
Ltd.

 * TNS Sifo Prospera External Asset Management Finland 2017



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




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Attachments:

Evli_Bank_Plc_Interim_report_1-9_2017.pdf