Evli Oyj — Interim / Quarterly Report 2018

Jul 13, 2018

Evli Bank Plc's Half Year Financial Report January-June 2018

Evli Bank Plc's Half Year Financial Report January-June 2018

EVLI BANK PLC STOCK EXCHANGE RELEASE JULY 13, 2018, AT 11.00 AM

COMMISSION INCOME AND ASSETS UNDER MANAGEMENT CONTINUED TO GROW

* In the Wealth Management and Investor Clients segment operating profit
increased by almost 26 percent and was EUR 9.1 million (1-6/2017: EUR 7.3
million)
* The operating profit in the Advisory and Corporate Clients segment over
doubled and was EUR 0.8 million (EUR 0.3 million)
* The revenues from the trading activities through the own balance sheet
declined in the Group Operations segment.
January-June 2018

* The Group's net revenue increased to EUR 34.9 million (EUR 34.1 million)
* The Group's operating profit was EUR 10.4 million (EUR 9.8 million)
* Evli's diluted earnings per share were EUR 0.40 (EUR 0.31) and return on
equity was 28.8 percent (22.3%)
* Net assets under management grew year on year and totaled EUR 11.9 billion
(EUR 11.8 billion) at the end of June, which is historically the highest
amount for Evli. Respectively from the beginning of the year, growth was EUR
0.7 billion.
* The proportion of recurring revenue to operating costs improved to 113
percent (110%).
April-June 2018

* The Group's net revenue was EUR 18.0 million (EUR 17.9 million)
* The Group's operating profit was EUR 5.2 million (EUR 5.2 million)
* Earnings per share amounted to EUR 0.16 (EUR 0.16).

Outlook for 2018 unchanged

The risks associated with the general trend in the equity and fixed income
markets are high due to the prevailing uncertainty on the markets. A continued
decline in equity prices or a reduction in investors' risk appetite would have a
negative impact on the company's profit performance. Demand for Evli's products
has remained stable and assets under the Group's management have grown
substantially in recent years, which would soften the result-impact of any
reversal of the market.

There has been positive development in the demand for advisory services, and its
outlook for 2018 is stable. Customer's demand for Evli's products and services
has developed positively, which has also led to a systematic increase in
lending. In the advisory business and in own investment activities, substantial
fluctuations in annual returns are possible.

Due to successful and stable development at the beginning of the year, we
estimate that the result for the 2018 financial year will be clearly positive.

Key Figures
  1-6/2018 1-6/2017 1-12/2017

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Income statement key figures

Operating income, M€ 34.9 34.1 71.4

Operating profit/loss, M€ 10.4 9.8 21.3

Operating profit margin, % 29.8 28.8 29.8

Profit/loss for the financial year, M€ 10.3 7.1 17.5

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Profitability key figures

Return on equity (ROE), % 28.8 22.3 25.5

Return on assets (ROA), % 2.1 1.5 2.0

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Balance sheet key figures

Equity-to-assets ratio, % 7.2 5.6 7.6

Group capital adequacy ratio, % 16.4 14.0 15.0

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Key figures per share

Earnings per Share (EPS), fully diluted, € 0.41 0.32 0.72

Comprehensive Earnings per Share (EPS), fully
diluted, € 0.40 0.31 0.69

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Dividend per share, €*     0.52

Equity per share, € 2.97 2.69 3.10

Share price at the end of the period, € 9.84 6.90 9.60

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Other key figures

Expense ratio (operating costs to net revenue) 0.70 0.71 0.70

Recurring revenue ratio, % 113 110 113

Personnel at the end of the period 268 254 240

Market value, M€ 233.1 160.9 224.9

*Dividend from 2017 approved by the Annual General Meeting. The dividend was
paid on March 21, 2018.

Maunu Lehtimäki, CEO

Second-quarter revenue and operating profit remained at the previous year's
level despite a clear increase in net commission income. A decline in trading
returns weakened the growth in revenue and profit. The growth in commission
income is a result of a particularly positive trend in the client assets under
management, which increased to a record of EUR 11.9 billion during the review
period. Evli's funds collected net subscriptions of about EUR 0.5 billion during
the first half, and, measured with fund subscriptions, Evli collected the
highest amount of assets out of all fund management companies in Finland. The
increase in client assets was boosted by successful customer acquisition
activities and strong sales of asset management mandates, positive net
subscriptions to funds and new product launches during the beginning of the
year, particularly in the strategically important area of alternative investment
products. For the fourth consecutive year, Evli was ranked the best
institutional asset manager in a survey by KANTAR SIFO Prospera.

The development was also positive in the area of corporate clients, apart from a
couple of delays in Corporate Finance orders. Evli managed to grow its business
activities in corporate finance, investment research and incentive systems.

During the second quarter, our revenue and operating profit remained at the
level of the previous year and our operating margin was almost 30 percent. Our
key strategic indicator, the ratio of our recurring revenue in relation to the
Group's operating expenses, reached 113 percent. Including the profit of
associated companies, the Group's return on equity rose to almost 29 percent.

To target growth alongside the promotion of our traditional business, we
continued our efforts in international fund sales, development of alternative
investment products and the creation of a simply unique customer experience. As
was the case in the first quarter, we made progress on each strategic frontier.
In international sales, we continued to expand the distribution of our funds. In
addition to a distribution agreement concerning Germany, which was signed in the
first half of the year, we also signed an agreement regarding fund distribution
in the Gulf region. In alternative investment products, we launched the Evli
Healthcare I Ky fund, which invests in care facilities during the first quarter.
At the establishment phase, we collected over EUR 70 million in investments and
during the second quarter we collected around another EUR 30 million. We also
launched the new non-UCITS fund Evli Rental Yield, which invests in commercial
premises and had assets of about EUR 40 million at the end of June.

Due to our success in the first half, the outlook for 2018 is very promising. We
will continue to focus on our strategic priorities and concentrate on achieving
stable and profitable growth. We expect that on this basis, the result for 2018
will be clearly in the positive.

EVLI BANK PLC

For additional information, please contact:

Maunu Lehtimäki, CEO, Evli Bank Plc, tel. +358 (0)50 553 3000,
maunu.lehtimaki@evli.com
Juho Mikola, CFO, Evli Bank Plc, tel. +358 (0)40 717 8888, juho.mikola@evli.com

Evli Bank Plc

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 11.9 billion in client assets under management (net
6/2018). The Evli Group's equity capital totals EUR 69.4 million and its BIS
capital adequacy ratio is 16.4 percent (June 30, 2018). The company has more
than 250 employees. Evli Bank Plc's B shares are listed on Nasdaq Helsinki Ltd.

*KANTAR SIFO Prospera External Asset Management Finland 2018, SFR Scandinavian
Financial Research Institutional Investment Services, Finland 2017 (shared first
place).

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

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