Evli Pankki Oyj - Interim report (Q1 and Q3)

Evli Bank Plc: Interim Report for January-June 2016

EVLI BANK PLC STOCK EXCHANGE RELEASE JULY 13, 2016, AT 7:30 PM

Evli Bank Plc's Interim Report for January-June 2016


First half of year was marked by market fluctuation



January-June 2016



- The Group's net revenue was EUR 31.4 million (EUR 32.8 million).



- The Group's operating profit was EUR 5.5 million (EUR 6.5 million).

-  The Group's profit increased to EUR 6.1 million (EUR 5.0 million). The profit
was positively affected by the exit fees received by the associated company.

-  Evli  purchased  the  entire  stock  of  Evli Alexander Management Oy with an
agreement signed at the end of May.

- Evli's diluted earnings per share were EUR 0.25 (EUR 0.19).

- Net assets under management grew year on year and totaled EUR 9,4 billion (EUR
8,4 billion) at the end of June, including associated companies.

April-June 2016

-  The Group's net  revenue decreased by  four percent year  on year and was EUR
15.9 million (EUR 16.6 million).

-  The Group's operating profit  for the review period  was EUR 2.4 million (EUR
2.8 million).

- Earnings per share amounted to EUR 0.08 (EUR 0.07).

Outlook for 2016 unchanged

Evli's  business performance  has been  strong in  recent years, and interest in
Evli's  services and  products is  expected to  remain stable.  In the Corporate
Finance  business, substantial fluctuations in  annual profits are possible. The
unit's mandate base is at a healthy level. The ratio of Evli's recurring revenue
to  expenses has developed as planned. We  believe that the result for 2016 will
be clearly positive.



+--------------------------------------+-----+-----+------+-----+------+
|KEY FIGURES                           |4-6  |4-6  |1-6   |1-6  |1-12  |
|                                      |/2016|/2015|/2016 |/2015|/2015 |
+--------------------------------------+-----+-----+------+-----+------+
|Sales, M€                             |16.5 |17.0 |32.5  |33.6 |66.0  |
+--------------------------------------+-----+-----+------+-----+------+
|Net revenue, M€                       |15.9 |16.6 |31.4  |32.8 |64.2  |
+--------------------------------------+-----+-----+------+-----+------+
|Operating profit/loss, M€             |2.4  |2.8  |5.5   |6.5  |13.3  |
+--------------------------------------+-----+-----+------+-----+------+
|Profit / Loss for financial year, M€  |1.8  |2.3  |6.1   |5.0  |12.3  |
+--------------------------------------+-----+-----+------+-----+------+
|Operating profit/loss % of net revenue|14.9 |16.9 |17.4  |19.9 |20.6  |
+--------------------------------------+-----+-----+------+-----+------+
|Earnings/share (EPS)                  |0.08 |0.07 |0.26  |0.19 |0.54  |
+--------------------------------------+-----+-----+------+-----+------+
|Diluted earnings/share IFRS           |0.08 |0.07 |0.25  |0.19 |0.53  |
+--------------------------------------+-----+-----+------+-----+------+
|Return on equity % (ROE)*             |-    |-    |18.5  |19.9 |20.2  |
+--------------------------------------+-----+-----+------+-----+------+
|Recurring revenue ratio, %            |-    |-    |86    |91   |93    |
+--------------------------------------+-----+-----+------+-----+------+
|Dividend/share**                      |-    |-    |-     |-    |0.31  |
+--------------------------------------+-----+-----+------+-----+------+
|Shareholders' equity per share        |-    |-    |2.63  |2.27 |2.96  |
+--------------------------------------+-----+-----+------+-----+------+
|Market value, M€***                   |-    |-    |154.57|-    |190.94|
+--------------------------------------+-----+-----+------+-----+------+
|Share price in end of period          |-    |-    |6.63  |-    |8.19  |
+--------------------------------------+-----+-----+------+-----+------+
|Personnel in end of period            |-    |-    |247   |244  |248   |
+--------------------------------------+-----+-----+------+-----+------+

* Annualized
** Dividend from 2015 approved by the Annual General Meeting. The dividend was
paid on March 17, 2016.
*** Series A shares are valued at the closing value of the series B shares.

Share-specific  key figures for the comparison period have been calculated using
a   split-corrected   share  count  in  accordance  with  the  decision  of  the
Extraordinary General Meeting of October 1, 2015.

Maunu Lehtimäki, CEO

"The Evli Group's financial performance during the second quarter was similar to
that  of the first quarter. The trading activity of Markets unit clients and the
structure of the Wealth Management unit's return were negatively affected by the
uncertainty  that  prevailed  on  the  markets  and  by investors focusing their
attention  on  lower-risk  investments.  As  a  consequence, the Group's revenue
declined four percent from the previous year. The trend in the Corporate Finance
unit's  return was  pretty much  as expected.  Significant fluctuations from one
quarter  to the next are typical of  the Corporate Finance business. The Group's
expense  level  was  raised  by  the  goodwill write-down related to the Russian
business function and the non-recurring expenses arising from the reorganization
of the Markets unit's equity brokerage operations and equity research.

I am satisfied with the fact that both the earnings per share and Group's client
assets  under  management  (excl.  associated  companies and incentive programs)
increased  considerably  on  the  previous  year.  Evli  Fund Management Company
received almost EUR 0.5 billion in net subscriptions starting from the beginning
of the year, making us Finland's second-largest fund management company based on
net  subscriptions during the review period. On  account of the good fund sales,
our  market share also continued to  grow and at the end  of the period was 5.7
percent of the fund capital registered in Finland.

The  UK's EU  referendum and  the market  shock that  resulted from  the country
voting  to leave the EU did not have  a significant impact on our result for the
review  period, but  we will  have to  wait and  see how  the increased economic
uncertainty  will be reflected in  the securities markets trend  for the rest of
the  year. Despite the market  uncertainty we expect our  full-year result to be
clearly positive."

Invitation to investors and analysts

CEO Maunu Lehtimäki and CFO Juho Mikola will present the Interim Report to
investors and analysts at Evli Bank (Aleksanterinkatu 19 A, 4 fl, Helsinki) on
Thursday, July 14, 2016 at 9 a.m. The presentation will be held in Finnish. The
presentation material will be available in English at the address www.evli.com
after the event. Please sign up to the event by email communications@evli.com.

EVLI BANK PLC

Board of Directors

For additional information, please contact:

Maunu Lehtimäki, CEO, Evli Bank Plc, tel. +358 (0)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 is a private bank that specializes in investment and helps private persons
and institutions increase their wealth. The Company offers asset management
services, various services related to the capital markets, such as brokerage of
equity and other investment products, market making and investment research, and
Corporate Finance services.

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

Appendix:
Evli Bank Plc's Interim Report for January-June 2016


[HUG#2028398]

Attachments:

Evli Bank Plc Interim Report 1-6/2016.pdf