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Third party research

EAB: H1 supported by strong performance-fees – EAB will merge into Evli on 30 September - Nordea

EAB Group

This is a third party research report and does not necessarily reflect our views or values

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EAB reported H1 comparable operating income of EUR 14.7m, 27% above our estimate. Adjusted EBIT of EUR 4.2m beat our estimate by 110% due to higher-than-expected performance-fees. H1 costs increased by EUR 1.4m y/y, driven by EUR 1.5m increase in personnel expenses. Cost/income ratio was 73% in H1 (88% in 2021). AuM decreased to EUR 3,547m from EUR 3,938m at the end of H2 (3,799m a year ago). The company expects 2022 net profit margin to be significantly positive in 2022 (Nordea 14.5%) in case the market environment does not significantly worsen during the rest of the year. Fees from AI funds increased by 10% y/y (+36% in H2). Performance fees were EUR 4.4m (0.6m in H2 and EUR 0.3m year ago) and were clearly above our estimate of EUR 0.6m. Continuous operating income was up by 4% y/y to EUR 9.0m in H1 (EUR 9.1m in H2 and EUR 8.7m in H1 2021) and accounted for 61% of group’s operating income in H1 (76% in 2021). We note that the company is merging into Evli on 30 September.
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