Evli Bank Plc's Financial Statements 1-12/2016

Evli Bank Plc's Financial Statements 1-12/2016

EVLI BANK PLC STOCK EXCHANGE RELEASE JANUARY 24, 2017, AT 10.30 AM

EVLI BANK PLC'S FINANCIAL STATEMENTS 1-12/2016:
Stable result despite weaknesses in the brokerage business

January-December 2016

• The Group's net revenue was EUR 60.0 million (1-12/2015: EUR 64.2 million).
• The Group's operating profit was EUR 11.1 million (EUR 13.3 million).
• The Group's profit was EUR 9.7 million (EUR 12.3 million).
• Evli's diluted earnings per share were EUR 0.40 (EUR 0.53).
• A dividend of EUR 0.40 per share is proposed (EUR 0.31 per share).
• Net assets under management grew year on year and totaled a record EUR 10.6 billion (EUR 9.4 billion) at the end of December.

October-December 2016

• The Group's net revenue was EUR 15.9 million (EUR 18.0 million).
• The Group's operating profit for the review period was EUR 3.3 million (EUR 4.0 million).
• The Group's profit was EUR 1.8 million (EUR 5.4 million). The profit for the comparison period was positively affected by a divestment of business carried out by the associated company Northern Horizon Capital where Evli's share of the sales profit was EUR 2 million.
• Earnings per share amounted to EUR 0.07 (EUR 0.25).

Outlook for 2017

The stable performance of Evli's Wealth Management unit is expected to continue. As a result, the proportion of recurring revenue to operating expenses is expected to reach the long-term target level of 100 percent. The Corporate Finance unit's mandate base is good. Substantial fluctuations in annual profits are possible for the unit. We believe that the result for 2017 will be clearly positive.

**2016 Board proposal for dividend
**Series A shares are valued at the closing value of the series B shares.

Maunu Lehtimäki, CEO

"In financial terms 2016 was a challenging year for Evli. Our revenue declined in 2016 by about seven percent and profit before taxes 16 percent from the previous year. This was because of a considerable decline, of about 20 percent, in brokerage commissions and because performance-based fees were lower than they were in 2015.

The strong performance in Wealth Management continued and we reached a significant milestone as the Group's client assets under management exceeded EUR 10 billion. There were record net subscriptions to our funds of over EUR 1 billion, which increased our fund capital to EUR 6.5 billion and our market share to six percent. We are very pleased with this development, which again proves that the strategic alignment that we carried out over a decade ago to increase the share of asset management in our operations was an excellent decision.

The Corporate Finance-units development was stable and the unit participated in several transactions in Finland and Sweden. Evli has been able to gain a steady foothold in the M&A market, especially in Sweden. The unit has further strengthened its operations by increasing its senior advisor network during the year.

The decline in brokerage commissions has been a long-term trend throughout the sector, but in Finland this trend became much steeper in 2016. For a long time now we have been adjusting our Markets business according to the declining commissions. In 2016 we continued our adjustment measures by reducing the cost structure and setting up two new areas of operation with which we aim to acquire entirely new business and clientele.

In our first full year as a listed company we achieved a stable financial result in an uncertain market environment. We also received plenty of recognition for our expertise from various parties and we built a strong foundation for our future success. Our outlook for 2017 has remained unchanged and we anticipate that the result for 2017 will be clearly positive."

EVLI BANK PLC

For additional information, please contact:

Maunu Lehtimäki, CEO, 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 preliminary result to investors and analysts in Finnish on Tuesday, January 24, 2016 at 1.00 p.m. at Evli Bank, address 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's Financial Review 2016 will be published on week 7

Evli Bank Plc in brief

Evli is a genuine private bank specializing in investment that helps private persons and institutions increase their wealth. The company offers asset management services, capital markets related services, such as brokerage of equities and other instruments, market making, investment research and a full range of Corporate Finance services.

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