Evli (EVLI) Q3 2024 earnings summary

Executive summary

• Achieved all-time high assets under management (AUM) of €18.7bn, driven by positive net flows, market impact, and international sales growth, with international clients accounting for 19% of total fund capital.

• Net revenue for Jan–Sep 2024 rose 24% year-over-year to €96.7m, supported by a one-off €13.8m gain from the incentive business transaction and strong fund management fees.

• Operating profit increased 62% year-over-year to €47.7m; excluding the corporate transaction, comparable operating profit was €32.7m, up from €26.9m.

• Private Banking, Institutional Sales, and Wealth Management segments grew, with high client satisfaction and positive alternative fund net sales.

• Evli maintained its top ranking in Finland for asset management and sustainable investing expertise.

Financial highlights

• Q3 2024 net revenue was €24.5m, down 6% year-over-year due to Allshares revenues no longer consolidated; comparable net revenue was €24.5m, up from €23.7m.

• Q3 2024 operating profit was €10.5m, up 3% year-over-year; comparable operating profit was €10.6m.

• Profit for Jan–Sep 2024 was €41.3m, up from €23.5m year-over-year.

• Diluted EPS for Jan–Sep was €1.38, up from €0.80; Q3 diluted EPS was €0.27.

• Net commission income increased 5% year-over-year to €77.7m.

Outlook and guidance

• 2024 business environment expected to remain uncertain due to geopolitical risks and economic growth concerns.

• Operating profit for 2024 estimated to significantly exceed the previous year, supported by a one-off corporate arrangement and strong market position.

• Long-term targets: AUM of €30bn, EBIT margin of 30%, ROE of 25%, recurring revenue ratio above 130%.