Evli Bank Plc’s Financial Statements Bulletin January-December 2020

EVLI BANK PLC STOCK EXCHANGE RELEASE JANUARY 22, 2021, AT 11.00 AM (EET/EEST)

RECORD RESULT IN AN EXCEPTIONAL MARKET ENVIRONMENT

Financial performance January-December 2020

• Net revenue was EUR 79.7 million (1-12/2019: EUR 75.8 million)
• Operating profit was EUR 29.1 million (EUR 24.1 million)
• The Wealth Management and Investor Clients segment’s operating profit increased and was EUR 27.7 million (EUR 20.8 million)
• The Advisory and Corporate Clients segment’s operating profit declined and was EUR 1.8 million (EUR 2.8 million)
• The return from own balance sheet items declined during the beginning of the year as a consequence of the market collapse and were EUR 2.4 million (EUR 3.2 million), which resulted in a weaker operating profit in the Group Operations segment
• Net assets under management amounted to EUR 14.1 billion (EUR 14.3 billion) at the end of December
• Evli’s diluted earnings per share were EUR 0.87 (EUR 0.71) and return on equity was 26.2 percent (23.4%)
• Proportion of recurring revenue to operating costs was 124 percent (124%).
• The Board of Directors dividend proposal to the Annual General Meeting is EUR 0.73 per share (EUR 0.66 per share). It is proposed that the Annual General Meeting would authorize the Board of Directors to decide on the payment of the dividend in one or more instalments at a time it deems best, taking into account the current authority recommendations.  

Financial performance October-December 2020

• The Group's net revenue was EUR 28.1 million (EUR 22.7 million)
• The Group's operating profit was EUR 13.6 million (EUR 8.7 million)
• Earnings per share amounted to EUR 0.42 (EUR 0.24).

Outlook for 2021

We estimate that the operating profit for 2021 will be clearly positive.

The view is supported by a high ratio of recurring revenue to operating costs, as well as sales of alternative investment products, which have brought new, stable revenue.

Key Figures Describing the Group´s Financial Performance

	1-12/2020	1-12/2019
Income statement key figures
Operating income, M€	79.7	75.8
Operating profit/loss, M€	29.1	24.1
Operating profit margin, %	36.5	31.8
Profit/loss for the financial year, M€	23.2	18.7
Profitability key figures
Return on equity (ROE), %	26.2	23.4
Return on assets (ROA), %	2.7	2.1
Balance sheet key figures
Equity-to-assets ratio, %	12.3	8.9
Group capital adequacy ratio, %	15.2	15.1
Key figures per share
Earnings per Share (EPS), fully diluted, €	0.87	0.71
Comprehensive Earnings per Share (EPS), fully diluted, €	0.88	0.71
Dividend per share, €	0.73*	0.66
Equity per share, €	3.86	3.40
Share price at the end of the period, €	12.20	10.40
Other key figures
Expense ratio (operating costs to net revenue)	0.63	0.68
Recurring revenue ratio, %	124	124
Personnel at the end of the period	261	249
Market value, M€	294.1	248.6