EVLI BANK PLC
ANNUAL REPORT 2021
Sustainable
growth through
responsible
asset
management
Contents
BUSINESS OVERVIEW
Evli in brief ................................................................... 3
CEO’s review ............................................................... 5
Highlights of 2021 ....................................................... 7
Business model ........................................................... 9
Megatrends and strategy ......................................... 10
RESPONSIBILITY
Responsibility at the core of Evli’s strategy ............ 15
Responsible products and services ......................... 18
Responsible governance .......................................... 25
Responsible employer .............................................. 28
Reporting practices .................................................. 32
GRI content index ..................................................... 34
Annex: Task Force on Climate-related
Financial Disclosures ................................................ 39
FINANCIAL REVIEW
Key nancial gures .................................................. 45
Graphs of the nancial development ..................... 46
Board of Director´s report ........................................ 47
Shares and shareholders .......................................... 59
Information for shareholders and investors ............ 62
Capital adequacy ...................................................... 63
Calculation of key ratios ........................................... 64
Financial statement 1.1.-31.12.2021 ........................ 72
Board of Directors’ proposal to the General
Meeting for prot distribution ............................... 141
Auditor’s report ....................................................... 142
GOVERNANCE
Corporate governance statement ......................... 147
Remuneration policy .............................................. 156
Remuneration report .............................................. 159
Board of Directors .................................................. 163
Executive Group ..................................................... 164
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EVLI BANK PLC
ANNUAL REPORT 2021
Business Overview
Finland’s leading asset
manager
Evli is Finland’s leading asset manager that help institutions, corpo-
rations, and private persons increase their wealth. Evli offers a wide
range of investment and asset management services through the fol-
lowing business areas: Wealth Management and Investor Clients, and
Advisory and Corporate Clients. The business areas are supported
by Group operations.
The Wealth Management and Investor Clients segment offers asset
management services, fund products, alternative investment pro-
ducts and various capital market services. The Advisory and Cor-
porate Clients segment provides advisory services related to
M&A transactions, incentive program design and administra-
tion services and investment research for listed companies. In
addition, Due to the comprehensive service package, Evli is
able to offer its clients product and service solutions that meet
their various needs.
Finland accounts for the largest share of the company’s reve-
nue, while the other Nordic and European countries also are
important market areas.
Read more: www.evli.com
1985
Founded in
15
Sales in
countries through its own ofces
and co-operation partners
Listed on the Nasdaq
Helsinki main list since
2015
17.5
Managed
customer assets EUR
billion
Finland’s
4th
largest fund management
company
Personnel
290
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EVLI BANK PLC
ANNUAL REPORT 2021
Business Overview
EVLI IN BRIEF
Sales through Evli Sales through co-operation partners
Evli’s operations are
divided into two
client segments
Wealth Management and Investor Clients
• Product and service offering
- Private Banking and Evli Digital wealth
management services
- Institutional Asset Management
- Public and private market funds
- Capital Markets services
• Finland’s 4th largest Fund Management Company.
Market share 6.7%
• Employs 166 investment specialists in Finland and Sweden
• Multiple times awarded among the best
1)
and most used
2)
institutional asset managers in Finland
Advisory and Corporate Clients
• Product and service offering
- Corporate Finance: Financial advisor in nancial
arrangements for listed and unlisted companies
- Evli Alexander Incentives: Incentive plan design and
administration for listed and unlisted companies
- Evli Research Partners: Research services to small and
mid-sized listed companies
• Employs 74 investment specialists in Finland and Sweden.
1
Kantar Prospera External Asset Management Finland 2015, 2016, 2017, 2018, 2019, 2021
2)
Kantar Prospera External Asset Management Finland 2017, 2018, 2019, 2020, 2021
Branding reects Evli’s competitive
advantage in different markets
Finland and Sweden
Comprehensive Wealth Management and Investment
Banking services.
Internationally
Nordic fund management boutique for institutional investors.
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ANNUAL REPORT 2021
Business Overview
Having achieved top results, Evli strengthens
its asset management and advisory focus
The year 2021 was very favourable for Evli operationally, with clear growth across all
businesses. Our most signicant news of the year was the arrangement to come in spring
2022, in which Evli will be split into a new listed asset management company and a new
banking company, which will be merged with Fellow Finance Plc. The result will be a more
strongly focused asset management and advisory business, Evli.
Despite the persistence of the pandemic, the global eco-
nomic outlook picked up in 2021 after recovering from
the coronavirus shock of the prior year. This past year also
brought challenges, such as the restrictions imposed by
new viral variants, as well as component shortages and
global logistical problems. Gradually, ination concerns
began to rear their heads. Central banks initially reacted
calmly, but as the autumn progressed, monetary policy
stances took on a tighter tone. In December, the US
Federal Reserve announced that it would end its asset
purchase programme earlier than planned and signal-
led interest rate hikes for 2022.
The earnings performance from corporates was
strong last year and, apart from a few small corre-
ctions, stock markets were up, especially in deve-
loped countries. Investors’ behaviour continues
to be driven to a signicant extent by a lack of
alternatives, leading them to choose riskier
asset classes such as equities and alternative
illiquid investments.
CEO’S REVIEW
Successful customer acquisitions at home and abroad
In 2021, Evli’s business developed excellently, with revenue up
45 percent year-on-year to EUR 115.6 million (2020: EUR 79.7
million) and operating prot almost doubling to EUR 53 million
(EUR 29.1 million). In terms of key indicators, our return on equity
was considerably higher last year at 40.3 percent (26.2%), a very
rare gure for a bank. The ratio of recurring income to operating
costs was 130 percent, well above our target. Part of the good
result is explained by the high level of performance-based fee
income from investment activities, which was particularly high
towards the end of the year. On the other hand, the reorganisa-
tion announced in July also led to signicant one-off charges,
such as external advisory fees.
It was particularly pleasing that all of Evli’s businesses (Wealth
Management and Investor Clients and Advisory and Corporate
Clients) grew and performed well. Our client acquisition activity
was strong both at home and abroad, new product launches
were well received and demand for business services increa-
sed. At the end of 2021, our client assets under management
reached a new record of EUR 17.5 billion, thanks to successful
sales efforts and favourable market developments.
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Business Overview
Both of our strategic focus and growth areas, international fund
sales and alternative investment products, developed very
favourably during the past year. Of the EUR 1.2 billion in net
subscriptions to traditional investment funds, EUR 737 million
came from outside Finland, especially from Central Europe. The
market for our alternative investment products is Finland, but
in the future, we will also target international markets for these
products. To be successful, we need a diversied offering of suc-
cessful and innovative products which will enable us to provide
our clients with a truly comprehensive portfolio management
model. The approach is to improve the diversication and return
potential of the client’s portfolio by investing not only in tradi-
tional asset classes but also in alternative sources of return, such
as private equity and private debt, as well as real asset classes
such as real estate, infrastructure, and forestry.
Last year, we expanded our offering with a number of new alter-
native investment funds: Evli Private Debt Fund I, Evli Levera-
ged Loan, Evli Growth Partners Fund II, Evli Residential II and
Evli Private Equity III. These and our other open-ended alter-
native investment funds raised a total of EUR 498 million in net
subscriptions last year, bringing Evli’s client assets under mana-
gement in alternative funds to EUR 1.6 billion at the end of the
year. This is a remarkable achievement, considering that alter-
native asset classes were adopted as our strategic growth area
in 2017. More than 20 experts currently work in the alternative
products team.
From climate targets to a roadmap for climate-friendly
investment
Our third key strategic focus area is responsibility, which we
took decisive steps to further advance last year. In June, we
announced our climate targets to halve carbon emissions from
our investments and our own operations by 2030. By 2050, we
will be fully carbon neutral across all investments. This will align
us with the 2015 Paris Climate Agreement, which aims to limit
global warming to 1.5 degrees Celsius.
At Evli, responsibility factors (climate, social responsibility and
good governance) are integrated into all investment activities,
and responsible investment is a systematic part of portfolio
management in fund and asset management. At the end of the
year, we received signicant recognition for our long-term work
when SFR Scandinavian Financial Research awarded us the best
responsible investment expertise in Finland, based on ratings
from institutional investors. Our aim for the coming years is to
maintain and further strengthen our position as a leading expert
in responsible investment.
Responsibility requires not only quick solutions, but also
far-reaching work, the framework for which is shaped by discus-
sions throughout society and changes in the operating envi-
ronment. This is also very much the case for digitalisation, our
fourth strategic focus area, which has received a further boost
from the prolonged coronavirus pandemic. Our digital efforts
range from customer-focused digital services to support asset
management and investing to the streamlining and simplifying
of our internal processes.
The divestment from banking operations creates new
growth opportunities
Our most signicant company news of the past year was publis-
hed on July 14, when we announced our split into a new listed
asset management company and a continuing banking com-
pany that will merge with Fellow Finance plc. The reorganisation
will create better conditions to grow both our banking and asset
management businesses as independent entities. The result will
be Evli Plc, which will focus more strongly on asset management
and advisory services, and a new Fellow Bank Plc, based on a
scalable digital service concept.
At Evli’s Extraordinary General Meeting held in December, the
shareholders gave their blessing to the arrangement, which is
expected to be completed in the rst half of 2022. Last year, the
reorganisation progressed as originally planned, and early this
year we will continue to engage with the authorities and na-
lise the separation and integration of functions, especially in
terms of IT systems.
In the future, Evli’s goal is to be the leading asset manager in
the Nordic countries, with growth, protability, and responsibi-
lity as its core themes. The company will also seek growth by
expanding its international business. We aim to achieve a return
on equity of more than 25 percent and an operating prot mar-
gin of more than 30 percent over the business cycle, as well as
doubling the assets under management from current levels in
the long term. In addition, we aim to increase the ratio of recur-
ring revenues to operating costs to more than 130 percent. The
new Board of Directors elected for the company will further spe-
cify the nancial targets in spring 2022, following the implemen-
tation of the demerger.
The asset management sector is currently very fragmented, and
consolidation will undoubtedly continue. Smaller players will be
merging or becoming part of a larger entity. It is a way of ght-
ing for survival in an environment that has been characterised
over the last 10 years by the rapid growth of passive investing
and the rapid development of automation and algorithms. Tra-
ditional active asset managers will inevitably have to innovate
and adjust their cost levels.
However, there is demand for high quality expertise and I
strongly believe that asset management is a long-term growth
sector in Finland and the Nordic countries. This is supported by
a number of megatrends in the operating environment, such as
the general prosperity of society, the passing on of inherited
wealth from baby boomers to the next generation, and the gro-
wth in wealth resulting from corporate activity and acquisitions.
Concerns about the functioning of the pension system and the
adequacy of pensions will also put pressure on the future accu-
mulation and responsible management of assets.
I would like to thank our clients and shareholders for their trust
in Evli and I hope that our successful cooperation will continue
also in the future.
Maunu Lehtimäki
CEO
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Business Overview
HIGHLIGHTS FOR 2021
Responsibility at the heart of operations
04/2021
Evli funds won Lipper Fund Awards 2021
The Evli Short Corporate Bond fund and the
Evli Nordic equity fund won the top rankings
across all of Europe. The same funds also won
awards in Germany and the Nordic countries.
The awards are a continuation of the Lipper
awards from previous years.
Read more: www.evli.com
05/2021
Evli launched a new Private Debt fund
- meets growing demand for corporate
finance and provides investors with a
new alternative
The new private equity fund offers
alternatives for experienced investors who
do not have natural access to illiquid debt
markets. The fund invests in target funds with
different investment strategies, focusing on
corporate debt nancing in Europe and North
America.
Read more: www.evli.com
06/2021
The all-new My Evli mobile launched
The aim of the My Evli mobile renewal is
to offer clients a high-quality digital asset
management and investment service
that meets their needs, also as a mobile
application, while also being easy to use,
clear and secure.
Read more: www.evli.com
06/2021
Evli aims to halve the carbon emissions of its
investments by 2030 and targets to be net zero
by 2050 at the latest
Evli’s new climate targets aim to achieve a real impact
in investments, business operations and the industry.
At the same time, Evli strengthened the role of
responsibility by appointing for the rst time a Head
of Sustainability to the Board of its fund management
company.
Read more: www.evli.com
17.5
Assets under
management €
bn
1.6
Investment assets of
alternative investment
products €
bn
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06/2021
The best and most used asset
manager in Finland
Evli was ranked as the best and most used
institutional asset manager in the Kantar
Prospera ”External Asset Management
Finland 2021” -client survey. In November,
Evli was awarded the ”Gold Award” in the
SFR Scandinavian Research client survey on
institutional asset management.
Read more: www.evli.com
08/2021
Evli launched the first Nordic-focused
leveraged loan fixed income fund
The new xed income fund leverages Evli’s
strong knowledge of the Nordic xed income
markets and targets investments in sectors
that are highly resilient to cyclical uctuations.
Evli strongly believes that Nordic leveraged
loans offer a higher return potential with a
better credit risk prole than their European
counterparts in the form of an attractive
oating rate investment instrument.
Read more: www.evli.com
10/2021
Evli and the John Nurminen Foundation
cooperating to benefit the Baltic Sea
Evli started cooperating with the John
Nurminen Foundation. The Foundation is
not only an award-winning communicator
of knowledge and producer of maritime
content, but also a water conservationist
with a focus on making an impact. For Evli,
protecting the Baltic Sea is a natural step
towards becoming a carbon-neutral asset
manager.
Read more: www.evli.com
11/2021
Evli again among the most inspiring
workplaces in Finland
Evli achieved excellent results in the 2021
survey conducted by Eezy Spirit. The most
inspiring workplaces in Finland award is
only given to the Finnish organisations that
perform among the best in the survey.
Read more: www.evli.com
11/2021
Evli Finland’s best in responsible
investing
Evli was awarded the ”Responsible Investment
Award” for the best responsible investment
expertise in Finland in the SFR Scandinavian
Research client survey on institutional asset
management.
Read more: www.evli.com
12/2021
A new solution for residential
investment
Evli launched a new residential development
fund, the Evli Residential II fund. Its
investment strategy is based on own real
estate target development and independent
management of the entire value chain.
Read more: www.evli.com
12/2021
Evli’s Extraordinary General Meeting
approved the demerger
The demerger will result in the separation of
Evli, an asset management group focused on
investment services. The remaining banking
business will be merged with Fellow Finance
Plc. The arrangement will enable both
companies to focus more strongly on value
creation in their respective business areas.
Read more: www.evli.com
4th
Finland’s
largest fund
management company
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ANNUAL REPORT 2021
Business Overview
BUSINESS MODEL
Business ProcessesBusiness Areas
Added value and impactsResources
Strategy
More information on pages 10-13.
Values
Entrepreneurship, valuable relationships,
learning, integrity
Wealth Management and Investor Clients
Wealth management services, mutual funds, various
capital market services and alternative investment
products to private persons, corporations and
institutions.
Advisory and Corporate Clients
Corporate advisory services, incentive plan design
and administration as well as investment research
for companies of different sizes.
Self-developed
products and services
Perseverance and
goal orientation
Comprehensive support functions and controls
including IT, nancial administration, back-ofce,
marketing & communication, law and compliance
Individual service
combining traditional
and digital service
models and channels
Stewardship thinking
and responsible
operations
Institutions and
private persons
Corporations
Added value with stable earnings development
Clients
• Products and services that correspond
to clients’ needs and goals
• Opportunity to tailor service solutions
• Professional and competent service
• Responsible investments.
Personnel
• 290 investment specialists
• Salary and bonuses EUR 29.5 million
• Pension expenses EUR 4.8 million
• Personnel training EUR 143,000.
Owners and investors
• Dividend proposal EUR 1.06/share
• Equity/share EUR 4.73
• Stable development
• Responsible investment.
Society
• Investments EUR 0.9 million
• Paid taxes EUR 10.5 million
• Collaboration, support and sponsorship
with universities, entrepreneurs as well as
sports, culture and protection of the Bal-
tic Sea.
Personnel
• 290 investment specialists
Ofces and distribution network
• 3 ofces;
Helsinki, Turku and Stockholm
• 7 tied agents
• Distribution through partners and own
ofces in 15 countries.
Intangible assets
• Products and services
• Brand
• Client relationships
• Social network:
partners, distribution network
and community relations.
Financial resources
• Balance sheet EUR 757.7 million
• Equity EUR 118.2 million
• Assets under Management
EUR 17.5 billion
• Net revenue EUR 115.6 million.
Processes
• Product development
• Sales processes
• Utilization of automation,
articial intelligence and robotization
• Personnel management.
Mission
Increasing clients’ wealth
sustainably according to their
individual targets.
Vision
Clients perceive Evli Simply
Unique by offering high
quality services and unique
customer experience 24/7.
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Business Overview
Strategy - preserve and grow
clients´ wealth in a sustainable way
Megatrends create opportunities for Evli
The nancial sector is in the midst of an enormous transforma-
tion, driven foremost by globalisation, digitalisation, increased
regulation, societal developments and responsibility.
Regulatory and reporting requirements in the nancial industry
have increased greatly over the past decade, and this trend still
continues. Tighter regulation improves consumer protection
and makes the service providers’ operating models more tran-
sparent to clients. At the same time, meeting the requirements
of tightening regulation requires service providers to develop
their information systems and educate the personnel.
The development of information systems and digital services
enables both the provision of services in a wider geographical
area and also generates competition across sectorial bounda-
ries. Clients can be served in more cost-effective and persona-
lised ways, and increasingly by the use of articial intelligence
and robotics. Clients want to invest regardless of time and place,
and they demand smoother and more personalised service solu-
tions that seamlessly integrate the ease and speed of techno-
logy and the individuality brought by personal service.
At the same time, the nancial sector is challenged in developed
markets by an ageing population and their limited ability to take
advantage of digital services. Securing the standard of living
and well-being at retirement is of interest to an ever-increasing
client segment. These clients need and require investment ser-
MEGATRENDS AND STRATEGY
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ANNUAL REPORT 2021
Business Overview
vices that take individual preferences into account in order to
achieve this.
As megatrends increase the demands of society, customers,
and the environment for sustainable development, service pro-
viders need to develop responsible and long-term product and
service solutions. In the nancial industry, clients increasingly
demand that responsibility is taken into account in investment
operations and seek investment and asset management soluti-
ons that integrate environmental, social and corporate gover-
nance issues (ESG).
Evli’s goal is to be a growing and protable, leading Nordic asset
manager.. The cornerstones of growth are the development of
new products and services, as well as the creation of unique cus-
tomer experiences, the utilisation of digitalisation and the inte-
gration of responsibility in day-to-day operations.
Creating a superior customer experience
Evli’s Vision is to be perceived by clients as Simply Unique by
offering high-quality services and a unique customer expe-
rience. The aim of the development of product and service con-
cepts is to offer clients more exible products and services that
take responsibility as well as individual needs and requirements
into account. The key products and services consist of innova-
tive institutional-level products and services and a sound cor-
porate culture which is based on Evli’s values: entrepreneurship,
valuable relationships, integrity and learning. These values and
Evli’s Ethical Code of Conduct serve as the guiding principles
in the management of client relationships.
International growth with carefully selected fund
products
Evli has successfully established itself as a leading asset mana-
ger among Finnish afuent private individuals and institutions
and one of the biggest fund houses in the country. The aim is
to further strengthen its position as a leading asset manager.
Given its substantial share of the domestic market and the small
size of the market, international growth is a natural objective for
Evli. Evli is excellently placed where international sales are con-
cerned, and the image of a high-quality Nordic fund manage-
ment boutique is of interest to foreign investors. Particularly in
Central Europe, Evli benets from the image of reliability and
transparency that is associated with the Nordic countries. Com-
pared with large international fund houses, Evli’s relatively smal-
ler size enables agility and more personalised service. Evli leve-
rages its competitive advantage by focusing on increasing the
international sales of selected funds to institutional investors
through carefully selected partners.
Alternative investment products at the heart of
product development
In addition to international growth, an important strategic prio-
rity is the expansion of the product and service offering to pri-
vate individuals and institutions. The cornerstone of expanding
the product and service portfolio is the continued development
of alternative investment funds. Evli offers Finnish investors,
and in the future also international clients, several alternative
investment funds. The aim is to turn the asset class into a con-
siderable source of revenue.
In addition, Evli is constantly further developing the service con-
cept to corporations based on the creation of a unique system
geared to increasing shareholder value. Companies are offered
both corporate advice and services related to M&A activity, as
well as the design and management of incentive plans and cor-
porate analyses. The aim is to increase the sales of these ser-
vices in Finland and Sweden.
Responsibility at the core of all business operations
Responsibility has been a part of Evli’s investment activities for
a long time. Evli’s ability to integrate responsibility into its entire
business is essential for creating added value. Responsibility fac-
tors have been integrated into investment operations in Evli’s
most significant business area, Wealth Management, which
means that responsible investment is a systematic part of port-
folio management. Investments made by Evli’s mutual funds are
also monitored for possible norm violations, and Wealth Mana-
gement engages with companies independently and together
with other investors.
Evli is constantly looking for new ways to further improve the
responsibility of its products and services. More about Evli’s res-
ponsibility and responsible investing is found on pages 18-43.
Added value through digitalisation
Evli’s business environment is increasingly becoming digital, and
as part of this change, clients are increasingly seeking digital
investment service solutions. Customers expect investment ser-
vices to be available anywhere, anytime, which is why Evli has
invested in digital service solutions. Process automation, data
analytics and articial intelligence have an increasingly impor-
tant role in the daily activities of the investment services industry.
They also have a direct impact on the client experience in the
form of the smooth performance of the services.
To maintain its competitiveness, Evli invests strongly in the deve-
lopment of digital services alongside traditional service models.
In addition, Evli invests in the automation of its practices, since
improving efciency is critical for the company’s success in a
digitalised business environment.
Evli’s ability to integrate
responsibility into
its entire business is
essential for creating
added value.
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Business Overview
Net Fee IncomeReturn on Equity
Assets under ManagementRecurring Revenue to Operational Costs
Digitalization
Articial Intelligence
Robotization
Big data
Cyber risks
Globalization
Increased competition
Empowerment of customer
Blurring industry boundaries
Business
environment
Consolidation
Increased regulation and control
Societal
transitions
Aging of the population
Digital natives
Responsibility
Ethical business
Sustainability
Transparency
Climate change
Responsibility
Responsible products
and services
Positive inuence on society
and the environment
Digitalization
New digital investment solutions
and service models
Utilization of process automation,
software robotics and articial intelligence
Offering
Alternative investment products
to private clients and institutions
Development of the integrated corporate
service model to corporate clients
Clients
Increasing the client base
in Finland and internationally
Perceived as ”Simply Unique”
by clients
MEGATRENDS
STRATEGY FOCUS AREAS
GROWTH TARGETS
LEADING NORDIC WEALTH MANAGER
Increasing clients’ wealth
sustainably
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STRATEGY IN ACTION
Cornerstones of the strategy
Clients
• Increasing the client base in Finland and internationally
• Perceived as ”Simply Unique” by clients.
Offering
• Alternative investment products to private clients
and institutions
• Development of the integrated corporate service model
to corporate clients.
Responsibility
• Responsible products and services
• Positive inuence on society and the environment.
Digitalisation
• New digital investment solutions and service models
• Utilisation of process automation, software robotics and
articial intelligence.
2021 Outcomes
Clients
• Fund net subscriptions of EUR 1.2 billion (2020: EUR -1.1 bil-
lion)
• Total Assets under Management of EUR 17.5 billion
(2020: EUR 14.1 billion)
• International Assets under Management increased 43 percent
to EUR 3.3 billion (2020: EUR 2.3 billion)
• Evli is ranked as the best
1)
and most used
2)
institutional asset
manager in Finland
• Evli has Finland’s best expertise in responsible investment.
3)
Offering
• Assets under management in alternative investment
products EUR 1.6 billion (2020: EUR 1.1 billion)
• New alternative investment funds, Evli Private Debt Fund I,
Evli Growth Partners Fund II, Evli Private Equity Fund III and
Evli Residential Fund II
• New Evli Leveraged Loan Fund (AIF).
Responsibility
• Setting climate targets
• Systematic engaging with companies independently and
together with other investors
• Business operations developed favourably and dividend
increased by 45%.
Digitalisation
• Launch of the new My Evli mobile
• New platform for fund publications.
International growth
• Deepen the presence in current markets
• Stronger presence in Sweden
• Expand the customer base
• The best and most used asset manager in Finland.
Offering
• Expand the product offering by introducing 2-3 new
alternative investment funds
• Launch 1-2 new traditional mutual funds.
Responsibility
• Deepen ESG integration in portfolio management
• Launch new responsibility and impact funds
• Further improving the diversity of personnel
• Increasing transparency in investor communications.
Digitalisation
• Development of internal processes
• Process developments to support the strategic focus areas.
• Renewed process for becoming a client.
Targets 2022
1)
Kantar Prospera External Asset Management Finland 2015, 2016, 2017, 2018, 2019, 2021
2)
Kantar Prospera External Asset Management Finland 2017, 2018, 2019, 2020, 2021
3)
SFR Scandinavian Financial Research Institutional Investment Services Finland 2021
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Business Overview
Responsibility
Responsibility has been an integral part of Evli’s business for many years.
Responsibility is one of Evli’s strategic focus areas and the company
is actively developing its procedures. During the year, the company
published climate targets and related milestones, new client-specic
ESG reports and new responsibility-focused investment products. In
addition, Evli implemented the EU Sustainable Finance Disclosure
Regulation (SFDR) requirements for the provision of sustainability
information at the company and the nancial products level. Evli
was also actively involved in the debate on the EU legislation and
monitored the development of the taxonomy. There was also an
increased focus on effective and safe working conditions, both
remotely and in the ofce, due to the coronavirus.
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Responsibility
Responsibility is based on Evli’s values:
entrepreneurship, valuable relationships, integrity and
continuous learning.
Responsibility at the core of strategy
Responsibility built on Evli’s values and transparency
Evli’s business starts with clients and understanding their needs.
The company’s primary responsibility is to grow clients’ wealth
responsibly, according to their individual goals. Evli’s client rela-
tionships are long-term and based on mutual trust and ethical
business practices. Evli’s development and business opportuni-
ties depend not only on the trust of its clients, but also on the
trust of its employees, owners, investors, partners and society.
To maintain and strengthen this trust, Evli must be proactive,
transparent, highly ethical and responsible in all aspects. Res-
ponsibility is based on Evli’s values: entrepreneurship, valuable
relationships, integrity and continuous learning. These values
also form the foundation for the ethical principles which direct
the actions of Evli and its employees and which guide the com-
pany’s relationship with its clients and other stakeholders.
Evli seeks to be a responsible member of society and is com-
mitted to taking into account both the direct and indirect envi-
ronmental impacts of its operations. Because corporate respon-
sibility is part of Evli’s everyday business operations, its annual
report includes a corporate responsibility report. The respon-
sibility section includes detailed information on how responsi-
bility has been integrated into business operations and what
indicators have been deemed essential for measuring Evli’s res-
ponsibility.
Responsibility report based on stakeholders’
expectations
(GRI 102-46: Dening the content of the report, GRI 102-47: Material consi-
derations, GRI 103-1: Material issues and their threshold)
At Evli, sustainability is broadly dened as nancial, social and
environmental responsibility. Ongoing dialogue with stakehol-
Responsible business supports the company’s value creation
Responsible products
and services
• Responsible marketing
• Customer privacy protection
and data security
• Responsible investing
Responsible employer
• Fairness: equality,
non-discrimination and diversity
• Work well-being and health
• Education and development
• Attractive employer
Responsible governance
• Prot performance
• Taxes and tax footprint
• Corruption, bribes and
money laundering
• Direct environmental impacts
RESPONSIBILITY
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Responsibility
Grouping of material topics based on the materiality analysis
ders is very important for Evli, as it helps to develop respon-
sible ways of working and doing business. In 2018, for the rst
time, Evli conducted a materiality analysis for its key stakehol-
ders to ensure that its responsibility report and responsibility
priorities for the coming years reect stakeholders’ expectations
and focus on issues that are material to the company. In 2021,
the material topics were reassessed to ensure that these remain
relevant and properly grouped. On the basis of the re-evalua-
tion, the material topics remained unchanged, but the grouping
was changed by dividing the material topics into three main
groups: base, development areas, and focus areas, covering
a total of eleven most relevant topics. No changes were made
for the 2021 analysis.
The materiality analysis has taken into account the importance
of the issues raised for stakeholders and for Evli’s business. A
more detailed grouping also took into account the opportunity
for Evli to develop areas to make its business more responsible.
The base of the grouping are topics that create the foundation
for banking operations and are directly related to stakeholders’
condence in Evli and its business. At the middle of the grou-
ping are the development areas, which are relevant to Evli and
its stakeholders, enabling more responsible business, and are
partly determined by laws and regulations. At the top of the
grouping are the focus areas of Evli’s responsibility work. These
are the topics that Evli has identied as signicant to ensure its
future competitiveness and create added value for its stakehol-
ders in the long term.
As a result of the materiality analysis, Evli has recognised, among
others, that in improving responsibility and with regard to envi-
ronmental impacts, the single most important factor in Evli’s
operations is the responsibility of the company’s investment
operations and taking this into account in the product and ser-
vice range.
Continuous dialogue with stakeholders
(GRI 102-40: List of stakeholder groups, GRI 102-43: Approach to stakeholder
engagement, GRI 102-44: Key topics and concerns raised)
Evli’s principal stakeholders are its clients, personnel, sharehol-
ders, investors, the authorities, partners and media. An active
and open dialogue with these principal stakeholders helps Evli
to identify the areas of its operations that should be prioriti-
sed and developed. Regular discussions with different stakehol-
ders form a foundation for understanding their views and needs.
Correspondingly, it is important to tell stakeholders about the
company’s goals, execution policies, values and changes in the
operating environment. This helps create a common unders-
tanding and trust concerning business operations and factors
that inuence it.
FOCUS AREAS
Prioritized areas of responsibility work at Evli. These have
been identied as important to ensure Evli’s future
competitiveness and create added value for its stakeholders
in the long term.
• Responsible marketing
• Work well-being and health
• Education and development
• Direct environmental impacts
Issues relevant to Evli and its stakeholders that enable more
responsible business operations. Determined in part by laws
and regulations. However, Evli itself determines how much it
develops these areas of responsibility in order to be a more
responsible company and to meet stakeholder expectations
now and in the future.
• Customer privacy protection
and data security
• Taxes and tax footprint
• Corruption, bribes and money
laundering
Areas that are fundamental to trust in the banking industry
and are directly related to stakeholder condence in Evli and
its business. These are always handled in accordance with
current legislation and regulatory requirements.
• Responsible investing
• Prot performance
• Fairness: equality,
non-discrimination and diversity
• Attractive employer
DEVELOPMENT AREAS
BASE
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Responsibility
STAKEHOLDERS STAKEHOLDER’S EXPECTATIONS CHANNELS EVLI’S ACTIONS IN 2021
Clients
• Competitive products and services
• Useful auxiliary and advisory services
• Reliability, data protection
• Service channels that meet needs
• Responsible operations
• Questionnaires and client feedback
• Websites and social media channels
• Client meetings, events and webinars
• Emails, newsletters and phone calls
• 1 new mutual fund and 3 new alternative investment funds were
launched
• Climate targets and related milestones published
• New client-specic ESG reports published
• Information in accordance with the Sustainable Finance Disclosure
Regulation (SFDR) were given from funds and asset management
strategies
• Internal processes were developed to improve operational
efciency and improve customer service
Personnel
• Fair treatment and open interaction
• Job stability and competitive pay
• Opportunities for professional development
• Occupational health and well-being
• Intranet and HR personnel system
• Occupational healthcare
• Performance reviews and training events
• Personnel satisfaction survey and other internal surveys
• Personnel events
• The expertise and knowledge of the employees were developed
• Team leaders were offered support in developing managerial work
• Operations were developed based on personnel surveys
• Self-management webinars were organised
• The recruitment process and trainee program were developed
Shareholders
and investors
• Creating long-term value
• Prot performance
• Dividend and good return on equity
• Capital adequacy
• Responsible operations
• Interim and half-year reports, nancial statements bulletins
and annual report
• Corporate Governance Statement
• Remuneration policy and report
• Stock exchange and press releases
• Annual General Meeting, Investor and analyst meetings
• www.evli.com
• Evli continued to implement its strategy from 2017
• Operations were developed to create long-term stable
nancial performance
• Economic, social and environmental aspects were taken into
account in operations
Partners
(including agents
and distributors)
• Fair and equal treatment
• Competitive products and services
• Reliability and capital adequacy
• Two-way communications
• www.evli.com
• Meetings and training
• Emails and phone calls
• Information and trainings about new products and services
• Operational development based on feedback received
• Open communication and continuous dialogue
The authorities
• Compliance with laws and regulations, integration
of sustainable development with operations
• Open, transparent and reliable reporting
• Continuous interaction
• Phone calls and emails
• Participation in events and training
• Compliance with new laws, regulations and provisions and
developing business operations to adapt to changes in the
operating environment
• Open communication and continuous dialogue
Media and journalists
• Relevant, reliable and open communications
• Expertise
• Press and stock exchange releases
• Press events and interviews
• www.evli.com and social media channels
• Morning reviews, newsletters, emails and phone calls
• Multi-channel communication on topical matters
• Prompt replies to inquiries and interview requests
from the media
• Regular media meetings
Local communities
• Employment opportunities
• Co-operation with universities
• Support to communities and co-operation
with businesses
• Meetings, events and webinars
• www.evli.com and social media channels
• Activities of the universities were supported
• Summer employments and the trainee program were developed
• Continued co-operation with entrepreneurial organisations
to support entrepreneurship
• Support for sports and cultural activities in Finland as well as prote
-
ction of the Baltic Sea
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Responsibility
Evli’s key principle is to offer products and services that meet its
clients’ needs and goals. In selling products and services, Evli
focuses on ensuring that clients understand the product or ser-
vice they are buying and the associated risks, as well as ensuring
that the product or service suits the clients’ investment goals.
At Evli, responsible investing means that environmental, social,
and good governance factors are an integrated part of portfo-
lio management.
Responsible marketing based on integrity, clarity and
transparency
Evli’s mission is to increase clients’ wealth sustainably according
to their individual targets and its vision is to ensure that it is per-
ceived as “Simply Unique” by offering high-quality services and
a superior client experience 24/7. Trust plays a key role in order
to achieve the company’s mission and vision. To earn and main-
tain trust, the products and services are explained honestly and
in accordance with valid legislation. Responsibility is emphasi-
sed in the communication and marketing of products and ser-
vices by being transparent, professional and clear.
Evli’s operations are based on the Stewardship
1)
philosophy,
which means the client’s best interest always comes rst. In Evli,
Stewardship means that the client’s assets are managed as if
they were Evli’s own. The cornerstone of this kind of operation
is that Evli knows its clients and becomes familiar with their busi-
Responsible products and services
ness and nancial situation as required by the client relationship.
This enables Evli to offer every client products and services that
t their needs and goals and to ensure that clients truly unders-
tand the product or service they are buying.
Transparent products and services that promote clients’ needs
improve client satisfaction. Client feedback in Private Banking
and Institutional asset management is continuously monito-
red. By continuously measuring client satisfaction, Evli wants to
identify issues that clients consider relevant, develop them and
quickly react to problems. Client satisfaction is electronically
measured after a meeting with a Private Banking or an Instituti-
onal client. In the survey, the client and the asset manager assess
the success of the client meeting and the service experience.
Client satisfaction is reported in real time at the unit level and
to the Executive Group. In addition to Evli’s internal client satis-
faction surveys, Evli takes part in annual surveys conducted by
external parties concerning asset management
1)
Stewardship is rooted in the Middle Ages and based on the idea of a
steward managing an owner’s property as if it was his own while the owner
is away.
RESPONSIBILITY
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Responsibility
Results and priorities for 2021
• In Kantar Prospera’s ”External Asset Management 2021
Finland” survey, Evli was the most used institutional asset
manager in Finland for the fth consecutive year and the
best institutional asset manager in Finland for the sixth
time. Evli received special praise for, among others, its por-
tfolio management expertise, product quality, responsible
investment and client responsibility skills. Evli’s brand was
rated the strongest of all in asset management services.
• To improve customer experience, Evli continued to
streamline its operations and reorganise its work. Evli also
invested in system upgrades and the development of new
products and services.
• Due to the restrictions imposed by the coronavirus, Evli
focused on active electronic client communication and the
organisation of webinars.
Customer data protection as a basis for trust
(GRI 418-1: Number of legitimate complaints about customer privacy viola-
tion and customer loss)
In Evli’s operations, particular attention is devoted to data pro-
tection and the safeguarding of the client’s privacy protection in
the processing of personal data. Personal data is used for taking
care of client relationships, offering products and services, direct
marketing and risk management. Evli is committed to proces-
sing personal data in accordance with the laws, appropriately
and transparently. Personal data is processed in compliance with
the EU’s General Data Protection Regulation (GDPR) and speci-
c legislation for the nancial industry.
Evli Group has several person registers for managing personal
data, each of which has a separate data protection notice. Data
security is improved on a continual basis to ensure that it meets
the requirements of the authorities, clients and the changing
operating environment.
Results and priorities for 2021
• New employees were trained in Evli’s data protection and
digital security.
• An electronic security review was sent by email to all emp-
loyees on a regular basis, highlighting current security
issues in Evli’s business operations.
• Evli updated the cookie policies on its website.
Responsible investing
Evli believes that incorporating responsibility considerations
into investment decisions increases the understanding of the
investments and the related risks and opportunities more than
by simply analysing nancial gures.
Responsible investment an integrated part of
investment operations and reporting
At Evli, responsibility factors have been integrated into the
investment operations of Wealth Management, which means
that responsibility is systematically considered in portfolio
management. In practice, this is done through an internal ESG
database based on sustainability data produced by MSCI ESG
Research and ISS ESG, as well as through information published
by companies and attained through company meetings. The
purpose of the ESG
1)
database is to provide portfolio mana-
gers with easy access to ESG data when making equity and
xed-income investments. For instance, portfolio managers can
search for the following information on a company: responsi-
bility assessments (so-called ESG scores), data on controver-
sial activities’ contribution to revenue, and any ESG violations
as well as emission data, information on companies’ emission
reduction targets and how companies are aligned with the Paris
Climate Agreement. In 2021, ISS ESG climate data was added
to the database.
The ESG database is also used for reporting purposes. Evli pub-
lishes public ESG reports on all of its equity and corporate bond
funds. This means that anyone can check the responsibility of
Evli’s investments. In addition to ESG and UN Global Compact
analyses, the ESG reports include development of investments’
ESG scores, reputational risk, carbon footprint and compa-
ny-specic ESG data for the 10 largest holdings. In 2021, Evli
expanded its responsibility reporting to include client-specic
ESG reports.
An investment-specic ESG analysis is part of all investments,
including those in alternative funds. In the Evli Private Equity,
Evli Infrastructure and Evli Private Debt fund, each new fund
is analysed against the same ESG criteria and investments are
only made in funds that meet the criteria. The funds are also
analysed according to the same criteria during the investment
and the ESG analysis data is transparently available to inves-
tors. In the same way, in Evli’s growth company fund, EGP I, the
ESG analysis and value creation are a key part of the investment
process. Examples of portfolio work include the creation of ESG
principles and KPI metrics together with each target company.
For real estate funds, we operate in a socially responsible man-
ner and expect the same from our partners. In addition, we are
able to contribute to the energy efciency of buildings and the
carbon footprint of construction through concrete measures.
Evli’s forest fund, Evli Impact Forest Fund, identies ESG risks
and opportunities for target funds by assessing, among other
things, the environmental performance of forest managers and
ensures sustainable forest management through forest certi-
cation schemes developed over the past 25 years.
1)
ESG=Environmental, Social and Governance
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Responsibility
More responsible practices through engagement
Evli analyses the active selections in its equity and corporate
bond funds and wealth management direct investments every
three months to identify potential non-compliance with the
UN Global Compact, the UN Guiding Principles on Business
and Human Rights and the OECD Guidelines for Multinatio-
nal Enterprises, and to ensure compliance with Evli’s Climate
Change Principles. The UN Global Compact is an international
corporate responsibility standard that requires companies to
respect human rights, ght corruption and take environmen-
tal issues into account. The UN Guiding Principles on Business
and Human Rights set out how states and companies should
implement their obligations and responsibilities. The OECD
Guidelines contain recommendations for multinational enter-
prises made by governments. The recommendations consist of
voluntary principles and standards of corporate responsibility
and the application of law to international business. Informa-
tion on non-compliance is available from the MSCI and ISS ESG
databases and other sources, such as news reports.
Every case of non-compliance with the norms and Climate
Change Principles triggers a pre-determined process at Evli.
The case is rst handled with a portfolio manager, after which
Evli’s Responsible Investment team analyses the company’s
situation. The Responsible Investment team has two options
for further action:
1. Initiate measures for engagement
2. Exclude the investment
Cases of engagement through the quarterly review mostly con-
cern environmental problems, human rights, workers’ rights or
actions to mitigate climate change. Evli does not disclose the
names of the companies that are subject to engagement activi-
ties, as it believes that condentiality with the company is more
effective.
In 2021 Evli also engaged with the companies in
accordance with its Climate targets. In addition, Evli
participates in various collaborative engagements and
initiatives with other investors with the aim of making
the operations of even more companies responsible.
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Responsibility
1. Analysis of factors related to responsibility
and calculation of ESG scores
Active investments are regularly analysed in terms of ESG
factors. Evli has ESG data on 13,900 companies in an internal
database. An ESG score is calculated for each fund and
direct equity investment, which reects how well the
companies as a whole have taken into consideration the risks
and opportunities associated with responsibility. Of Evli’s
funds, 88% have an excellent, very good or good ESG score.
4. Reporting on investments’ responsibility
factors to clients
Evli’s responsible investing is based on transparency and
openness, which is why responsibility factors are reported
comprehensively to clients. The responsibility reporting
consists of the funds’ ESG reports, client-specic portfolio
reports and the responsible investment annual report.
2. Monitoring, active ownership and engagement
Evli monitors its investments regularly and strives to inuence the way
companies operate. If a company violates the principles set out in the
UN Global Compact, the UN Guiding Principles on Business and Human
Rights,the OECD Guidelines for Multinational Enterprises or Evli’s climate
principles, Evli will either seek to inuence the company or exclude it
from its investments. Evli also engages companies related to different
ESG themes and participates in various collaborative engagements and
initiatives with other investors with the aim of making the operations of
even more companies responsible.
3. Exclusion of companies from investments
All of Evli’s equity and xed income funds, as well as direct equity
investments, follow the general exclusion principles. In accordance with
these principles, companies manufacturing controversial weapons,
tobacco manufacturers, adult entertainment producers, companies
engaged in controversial lending and companies producing peat for
energy production are excluded from the funds. In addition, the funds
avoid investing in companies with more than 30 percent of their revenue
coming from coal mining, its use in energy production, or oil sand
extraction. Some funds comply with broader exclusion criteria. In
addition to the industries mentioned above, these funds exclude
companies with more than ve percent of their turnover coming from
gambling, the manufacture of alcohol or weapons, and the extraction,
drilling and mining of fossil fuels or thermal coal. It is also possible for
funds to exclude companies that violate ESG principles and do not show
a willingness to change their practices. In addition to equity and xed
income funds, Evli’s private equity funds also aim to comply with the
same exclusion criteria.
ESG
strategy
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Responsibility
Renewal of the
ESG reports
Launch new
responsibility funds
Set climate
targets
Goals 2020-2021
Deepen ESG integration
in portfolio management
Results and priorities for 2021
• In 2021, systematic work continued on the implementation
of the strategic objectives dened for 2020-2021.
• Evli expanded its ESG reporting by publishing client-spe-
cic ESG reports and an allocation and impact report on
the Evli Green Corporate Bond fund. The allocation and
impact report provides transparent information on the con-
crete impact of the fund’s investments.
• Evli also published a second analysis of its funds under the
TCFD (Task Force on Climate-related Financial Disclosures)
reporting framework. For more information on the TCFD
reporting framework, see pages 39-43.
• In February, Evli launched the new Evli Nordic 2025 Target
Maturity fund, which focuses on Nordic corporate bonds.
The fund is actively managed with ESG considerations.
During 2021, Evli also implemented three new Europe
Green Note Autocall certicates. The funds raised through
the issuance of the certicates will be used to nance pro-
jects supporting sustainable development. In May, Evli
launched a new private debt fund, Evli Private Debt I. Evli
Private Debt I does not invest in funds that do not have an
ESG policy or do not take ESG criteria into account in their
investment process.
• With the entry into force of the Sustainable Finance Disclo-
sure Regulation (SFDR) on March 10, 2021, Evli added the
sustainability disclosures required by the regulation to its
website and provided information on the consideration
of the sustainability factors and risks of its funds and asset
management strategies. Evli’s asset management strate-
gies as well as most of Evli’s funds promote environme-
ntal and/or social factors among other features (so-cal-
led Article 8) and two funds aim to make sustainable
investments (so-called Article 9). During 2021, Evli was also
actively involved in the EU legislative debate and followed
the development of the EU taxonomy.
• Evli announced its climate target in June. Evli’s goal is to be
a net zero asset manager by 2050 at the latest. The target
applies to emissions from both Evli’s own operations and
its investments. Evli set interim targets for emissions from
its own operations (Scope 1 and 2) to be carbon neutral by
2025 at the latest and to halve the carbon emissions from
its investments by 2030, provided the investment environ-
ment allows for it. In addition, Evli set up a working com-
mittee for 2021-2022 to further explore how best to achieve
the investment milestone through real-world emission
reductions and in line with the Paris Climate Agreement.
• Work on the roadmap for climate targets started after the
targets were published. During 2021, work started primarily
on building a snapshot, developing climate risk manage-
ment and engagement.
• During the year, Evli attended 22 company general mee-
tings. Attendance took into account the restrictive measu-
res brought about by the coronavirus pandemic, and
meetings were therefore attended by issuing a power
of attorney with voting instructions. Evli representati-
ves attended the general meetings of companies such
as Musti Group, Admicom, Talenom, QT Group, Valmet,
Alma Media, Terveystalo, Metsä Board, Verkkokauppa.
com, Gofore, Relais Group, Detection Technology, Consti,
Ponsse, Sanoma, Raisio, Eezy, Marimekko, Remedy Enter-
tainment, Kamux and NoHo Partners. The meetings were
selected on the basis of the content of the agenda and the
ability of the fund management company to inuence the
agenda.
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Responsibility
• Systematic engagement with companies continued. Evli
was in contact with 46 companies. The cases of engage-
ment were primarily related to encouraging companies to
set climate targets and/or science-based climate targets
(41 engagements). Other engagements were related to
allegations of corruption, governance methods, human
rights and the issues regarding the supply chain.
• In addition to independent engagement, Evli continued to
be involved in the CDP Investor Letters (climate change,
deforestation, water), Climate Action 100+ and the CDP’s
collaborative engagement to set Science-Based Targets. In
addition, Evli, together with other investors, signed a letter
to governments, the Global Investor Statement to Gover-
nments on the Climate Crisis, encouraging them to set
ambitious targets to achieve the Paris Agreement, establish
roadmaps for carbon-intensive sectors to move to low-car-
bon, increase nancing and policies needed to achieve car-
bon neutrality, and commit to corporate reporting in line
with TCFD recommendations. Evli also continued to be a
member of the Green Building Council, which aims to pro-
mote sustainable practices in the built environment.
• In accordance with the quarterly monitoring Evli excluded
in 2021 one company based on Evli’s climate principles.
• During 2021, Evli also took the ISS ESG Climate Data Bank
into use, updated and expanded the ESG tools available to
portfolio managers, and developed the expertise of port-
folio managers by organising training sessions on climate
data and future legislation.
• At the end of the year, Evli launched two new funds, Evli
Private Equity III, a global private equity fund with a solid
ESG process, and Evli Residential II, a residential develop-
ment fund that is able to take into account demanding sus-
tainability aspects such as energy solutions and building
materials through its own target development.
• Evli’s responsible investment performed well in external
evaluations. Evli was rated the best in responsible inves-
ting both among ”Large” asset managers and among all
asset managers in a client survey by SFR Scandinavian
Financial Research, which evaluated 18 asset managers on
their responsible investing expertise based on the views of
Finland’s largest professional institutional investors. In the
Kantar Prospera survey of institutional investors, Evli’s res-
ponsible investment performance was rated second best in
2021.
It is important for Evli to continuously develop its responsible
investment practices and listen to feedback from clients and
other stakeholders. Over the coming years, the aim is to, among
other things, promote our work in line with climate targets in
concrete ways, launch new responsibility funds and strengthen
our responsibility work in investment through both engagement
and active ownership.
Institutional investors rate Evli as the best in
responsible investment expertise, both among ”Large”
asset managers and among all asset managers in the
SFR institutional asset management client survey.
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Evli aims to be carbon neutral by
2050 at the latest
Evli’s climate targets apply to emissions from both Evli’s own
operations and its investments. We recognise that a credible
long-term net zero target needs to be supported by sufciently
ambitious interim targets, based on the latest knowledge on cli-
mate change and the measures required to reduce emissions.
We set the following milestones for our activities:
1) Evli aims to achieve carbon neutrality for emissions from its
own operations (Scope 1 and 2) by 2025 at the latest, and
2) Evli sets an interim target of a 50% reduction in indirect emis-
sions from investments by 2030, provided that the investment
environment allows for it. We will be using 2019 as the base year.
3) Evli will establish a Working Committee for the years 2021-
2022 in order to assess how the investment-related interim target
can be reached through real world carbon emission reductions
and to ensure that it will be in line with the Paris Agreement. In
this assessment work, we will use, among others, a Science-Ba-
sed Targets (SBT) framework.
More information Evli’s Climate Targets
Roadmap to becoming a net zero asset manager
1. Building
a snapshot
4. Engagement 5. Systematic analysis of the
targets
2. Development
of climate risk
management
3. Updating the
exclusions
Evli´s climate targets
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Responsibility
RESPONSIBILITY
Evli’s operations are always based on good governance, legisla-
tion and ofcial regulations. In addition, integrity and ethical ope-
rations are considered the foundation of sustainable business.
Profit performance forms the core of financial
responsibility
(GRI 201-1: Direct economic value generated and distributed)
Financial responsibility is fundamental to Evli’s operations.
Financial responsibility means maintaining competitiveness,
strong performance and good prot performance. These fac-
tors enable protable growth and thus add value in the long-
term to all Evli’s key stakeholders: clients, society, personnel,
and shareholders. Evli aims to improve prot performance by
enhancing operating efciency, innovating new products and
service solutions and developing its core processes. A nancially
solid company can shoulder its responsibility for the environ-
ment, look after its personnel, meet its clients’ needs and serve
society. Evli’s goal is to increase the sales of its existing wealth
management services, mutual funds and alternative investment
products in Finland and to increase the international sales of
selected mutual funds. The goal is also to bring new products
and service solutions to the market, which will help to achieve a
positive result development. In addition, Evli’s aim is to enhance
its operations in order to ensure the competitiveness of services
and continuity of operations in the future.
Evli aims to be an interesting investment, both from the pers-
pective of dividend income and the increase in share value. Evli
avoids unnecessary risks and concentrates on moderate, long-
term growth and development. With responsible operations,
Evli creates long-term value for the owners and improves the
ability to react to the opportunities and risks arising from eco-
nomic, social and environmental megatrends.
Responsible governance
25 | 165
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Governance
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ANNUAL REPORT 2021
Responsibility
Results and priorities for 2021
• Evli Group’s operating income increased by 45% to EUR
115.6 million. Growth in international sales and sales of
alternative investment products as well as strong sales of
wealth management products and services contributed
positively to the performance.
• Sales of alternative investment products more than
doubled from the previous year and assets under manage-
ment reached EUR 1.6 million at the end of the year.
• International sales continued to grow. At the end of 2021,
EUR 3.3 billion of Evli’s EUR 10.6 billion in fund capital
came from clients outside Finland.
• Evli continued its IT investments with the aim of streamli-
ning processes and improving service to clients. During the
year, Evli launched a new My Evli mobile application. Due
to the remote working recommendations of the corona-
virus epidemic, all Evli staff worked mostly remotely, but
partial ofce work was also possible given the coronavirus
situation. Despite the remote working, all tasks could be
carried out and clients could be served according to their
needs. This was possible thanks to IT investments in pre-
vious years.
• Evli paid its shareholders a dividend of EUR 0.73 per share,
which is 11% more than in the previous year.
Taxes are paid in accordance with local legislation in
each country of operation
(GRI 201-1: Direct economic value generated and distributed)
Evli’s head ofce is located in Finland. The company also has
branch ofces and subsidiaries in Sweden and the United Arab
Emirates. In each country, Evli pays its taxes in accordance with
INCOME DISTRIBUTION, M€ 2021 2020 2019 2018
Net interest income 0.1 0.2 0.3 0.7
Commission income and expense, net 111.7 76.8 72.2 67.1
Net income from securities transactions
and foreign exchange dealing 3.5 2.4 3.2 0.7
Other operating income 0.2 0.2 0.1 0.1
Share of prots (losses) of associates 0.5 0.4 -0.6 2.6
Total Income 116.0 80.0 75.2 71.2
Personnel expenses 31.0 25.9 24.8 23.1
Other administrative expenses 18.5 12.5 14.0 15.9
Depreciation, amortisation and write-down 4.8 5.7 3.5 2.1
Other operating expenses 1.8 1.7 3.7 3.6
Impairment losses on loans and other receivables 0.1 0.1 0.1 0.0
Society
Taxes 10.5 6.3 4.9 4.2
Social security costs 1.6 1.2 1.4 1.2
Pension expenses 4.8 3.4 4.1 3.7
Equity holders of parent company 36.3 21.3 17.3 16.0
Non-controlling interest 6.7 1.9 1.4 1.3
Distribution of income 116.0 80.0 75.2 71.2
the local legislation. Evli is committed to ensuring that it comp-
lies with all statutory obligations and it discloses all required
information to the relevant tax authorities and engages in an
open discussion with them. Evli considers compliance with tax
legislation as an important part of its corporate responsibility.
Results and priorities for 2021
• Evli paid a total of EUR 10.5 million in taxes (2020: EUR 6.3
million).
26 | 165
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Governance
EVLI BANK PLC
ANNUAL REPORT 2021
Responsibility
Corruption, bribes and money laundering not
acceptable
(GRI 205-2: Communication and training about anti-corruption policies and
procedures, GRI 205-3: Conrmed incidents of corruption and actions taken)
Evli does not accept corruption, bribery or any other illegal
activity under any circumstances. Evli’s ethical principles guide
its personnel in this matter. For example, employees will not
offer, demand or accept inappropriate gifts, trips or payments.
Moreover, there is an internal guideline on hosting in the com-
pany’s name and giving business gifts.
As a bank, Evli plays an important role in preventing money lau-
ndering and the funding of terrorism. For this purpose, Evli has
clear operating instructions that apply to the entire personnel.
In addition to statutory obligations, preventing money launde-
ring is part of Evli’s risk management and an important part of
its business operations. Knowing the client is an integral part of
the prevention of money laundering. Therefore, before a new
client relationship is formed, the client’s information is always
analysed as required by guidelines based on the law. All person-
nel who have direct contact with clients must take part in annual
training events on money laundering and knowing the customer.
Evli has also adopted an active role in developing the regulation
and good operating practices in the industry.
Evli provides an opportunity to report violations through the
whistleblowing procedure. If an employee suspects that une-
thical activities have occurred or that someone has engaged
in activities that violate the law, regulations, the authorities’
instructions, or the Evli Group’s internal guidelines, a separate
procedure is available with dedicated guidelines that the emp-
loyee can follow to report the matter.
Results and priorities for 2021
• No cases of corruption, bribery or money laundering in the
Evli’s operations were reported.
• Training events were mainly concerned with the prevention
of money laundering and the funding of terrorism.
Own operations help promote positive environmental
action
(GRI 302-1: Energy consumption within the organisation, GRI 302-4: Reduc-
tion of energy consumption)
Evli’s own operations do not have any signicant immediate
environmental impacts. The company’s principal environme-
ntal impacts are related to its investment activities. However,
the company is aware that it can promote positive environmen-
tal impacts through its own operations by reducing paper con-
sumption, developing and improving digital services, and redu-
cing air travel and the consumption of electricity
It is also important for Evli to increase environmental aware-
ness among its clients and employees and offer products and
services that help to mitigate harmful environmental impacts.
With the continuous development of digital transaction chan-
nels and utilising the opportunities given by technology, Evli
offers new forms of services that have a smaller environmental
impact than before.
In all purchases, Evli seeks to ensure the responsibility of the
suppliers. The supplier’s environmental responsibility is always
a consideration in internal procurement concerning personnel
needs, client premises, business gifts, ofce supplies and furni-
ture. This means, among others, that business gifts are mainly
procured by suppliers that manufacture products from recycled
materials, and that durability is an important factor in choosing
ofce furniture. The food offered in client meetings and events
is prepared when possible using local and organic products and
food wastage is minimised.
Evli’s head ofce in Helsinki has been awarded the LEED * Gold
certication, one of the world’s best-known green building cer-
ticates. Evli is committed to reducing the energy consump-
tion and CO2 emissions of its ofces and paying attention to
the environmental impacts of waste and consumption of paper.
Unnecessary travel is avoided by favouring telephone and video
conferences. Employees continuously strive to reduce their eco-
logical footprint in their everyday work.
Results and priorities for 2021
• Evli continued the development of its website www.evli.com
and the My Evli online service in order to, among others,
reduce the amount of paper reporting.
• Evli’s energy consumption decreased by 18.8 percent. A
main factor contributing to the decreased energy consump-
tion was the extensive remote working recommendations
during the year and the reduced ofce space in the Helsinki
ofce. Air travel decreased even further from the previous
years due to the coronavirus pandemic.
3)
LEED=Leadership in Energy and Environmental Design
27 | 165
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Governance
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ANNUAL REPORT 2021
Responsibility
RESPONSIBILITY
Evli’s success is based on the professional skills of its emplo-
yees and their ability to create new solutions, added value for
the benet of the clients and to serve them professionally. Evli
believes that employee commitment and thriving at work is rein-
forced by creating a exible, efcient and balanced work com-
munity, which is characterised by innovativeness and the capa-
city to change and bring about change.
To ensure that the best experts in the business will serve clients
also in the future, Evli pays particular attention to employee
development and motivation. In addition to competitive pay,
personnel benets include expert level occupational healthcare
services and varied opportunities for developing skills.
Most of the personnel work in Finland
(GRI 102-8: Information on employees and other workers, GRI 401-1: New
employee hires and employee turnover)
At the end of 2021, the Evli Group had 290 employees, up by 11
percent on the previous year. Of the total personnel, 91 percent
worked in Finland, eigth percent in Sweden and almost one per-
cent in the United Arab Emirates.
The total number of new hires in 2021 was 32. The number of
new employees does not include summer workers and trainees.
The average personnel turnover was 10 percent.
Responsible employer
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ANNUAL REPORT 2021
Responsibility
PERSONNEL DATA 2021 2020 2019 2018
Personnel 290 261 249 254
Permanent 251 233 224 226
Temporary
1)
39 24 25 24
On study or parental leave 7 4 3 4
Full time
2)
244 240 237 243
Part time
3)
39 21 12 11
Women/men (%) 38/62 39/61 36/64 38/62
Average age 40.3 41.4 41.1 40.5
Average period of service 9.3 10.5 9.9 9.1
Average personnel turnover (%)
4)
10.0 8.0 8.5 8.3
New hires 32 20 16 15
Sickness absences, days/person 1.8 1.2 2.2 2.9
Occupational accidents at work 0 0 0 0
Training days/person 1.3 1.0 2.1 3.7
Personnel covered by performance reviews (%) 100 100 100 100
1)
Includes both trainees and summer workers
2)
Includes both permanent and temporary employees with full-time contracts.
3)
Includes both permanent and temporary employees with part-time contracts
4)
Personnel turnover was calculated using the following formula: ((Number of new persons employed Jan 1-Dec 31 + number of
employees leaving Jan 1-Dec 31)/2)/number of employees on Dec 31.
A diverse work environment and equal opportunities
(GRI 405-1: Diversity of governance bodies and employees)
Fairness, including equality, non-discrimination and diversity
are a material part of Evli’s responsibility. Work in this was furt-
her organised in 2018 as Evli Bank’s Board of Directors appro-
ved Evli Group’s diversity policy and goals for 2022. The diver-
sity policy denes the company’s principles concerning equality,
non-discrimination and diversity. Under the principles, Evli com-
mits to creating a workplace that is non-discriminatory, open
and positive and in which all employees are treated equally,
irrespective of gender, age, ethnic or national background,
nationality, language or faith. In addition, a material factor of
diversity is that all employees feel they have the same opportu-
nities to develop and advance in their careers.
Good management of diversity and work for non-discrimina-
tion can improve personnel well-being and commitment and
enable employees to perform to their full potential. In addition,
diversity promotes innovations, productivity and the company’s
competitiveness. At Evli, diversity applies to all business areas
and diversity is taken into account in all personnel management
from hiring to career progress and development.
In addition to Evli Group’s diversity policy, the goal of the Board
of Directors’ diversity policy is to ensure that the Board is as
diverse as possible. Diversity emphasises the Board members’
expertise regarding different industry sectors and training and
skills that complement those of other members. In addition,
factors that are relevant regarding the diversity of the Board
include age and gender distribution and the length of term.
The goal is for both genders to be represented on the Board.
Additional information about the Board of Directors diversity is
found on page 151.
Results and priorities for 2021
• Evli’s recruitment process was further improved and recruit-
ment increasingly focused on diversity, including through
collaboration with different stakeholders. For example,
efforts are being made to make the investment industry more
attractive to women.
Diversity goals for 2022
• There are at least 40 percent of each gender represented
in expert positions in all business areas
• There are at least 30 percent of each gender represented
in team leader positions in business areas and
administration
• Both genders are sufciently represented on the Board
of Directors and in the Executive Group. In planning
the composition of the Board, important factors include
members’ skills, experience and expertise to ensure
effective performance.
• In recruitment, the most suitable person for the position
is always selected. The annual equality and equal treat-
ment review developed policies to ensure equal oppor-
tunities for all applicants in recruitment and to achieve
the greatest possible diversity in the organisation.
• Both genders must be represented in the group of
people selected for the trainee program.
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EVLI BANK PLC
ANNUAL REPORT 2021
Responsibility
• Systematic work continued to improve the image of Evli as
an employer and the awareness of Evli. Evli feels that by imp-
roving its image as an employer, it is easier both to attract
new promising employees and to retain staff. Efforts to imp-
rove the employer image continued, including more syste-
matic use of social media and improving the content of Evli’s
own website.
Evli looks after the well-being of its employees
(GRI 403-2: Types of injury and rates of injury, occupational diseases, lost days,
and absenteeism, and number of work-related fatalities, GRI 401-3: Paren-
tal leave)
Motivated and committed employees whose well-being are at a
high level are vital to Evli’s operations, development and prota-
bility. Evli’s goal is to develop and promote the comprehensive
well-being of its employees and to focus on proactive measures
on workplace well-being. One of the key prerequisites for both
mental and physical well-being is a work-life balance. This is sup-
ported by offering a exible work culture, which means, among
others, the possibility of exible working hours, remote working
and a shortened workweek. In addition, Evli uses a so-called age
management model that takes into account and supports emp-
loyees at different stages of their careers and lives.
Evli’s employees have access to expert level occupational
healthcare including, among others, access to specialist-level
doctors, physiotherapy, ultrasounds, MRIs and x-rays. In addi-
tion, the mental and physical well-being are supported by offe-
ring employees opportunities to take part in exercise classes
and lectures. Evli’s policy also includes preventing long-term
sick leave through an early support model.
Job satisfaction and well-being at work are measured by means
of an employee survey and smaller in-house surveys. The results
drive the further development of workplace well-being and
practices.
Results and priorities for 2021
• About three percent of the employees worked a shorter
week and were, for example, on part-time childcare leave.
• In the wake of the coronavirus pandemic, most staff wor-
ked mainly remotely during the spring and the year end. A
hybrid model combining teleworking and ofce work was int-
roduced in the autumn. To promote well-being at work, Evli
organised various webinars during the year and instructed
managers on remote management.
• Every month, staff responded to a so-called ’well-being at
work’ questionnaire. The survey and its results and feedback
were a tool for managers to manage and strategically deve-
lop well-being at work.
Personnel development helps increase competitiveness
(GRI 404-1: Average hours of training per year per employee, GRI 404-2: Pro-
grams for upgrading employee skills and transition assistance programs)
The skills of motivated and committed employees support the
execution of the company’s strategy and targets. Evli constantly
develops its employees’ professional expertise, as this enables it
to keep up with the changes in the environment and offer inno-
vative solutions that meet the market demand. Evli Academy,
established in 2006, organises both internal and external trai-
EVLI’S DIVERSITY 2021
Gender diversity entire personnel Gender diversity team leaders Gender diversity Executive Group Gender diversity Board of Directors
290 persons 37 persons 7 persons 5 persons
Men
62%
Men
84%
Men
86%
Men
80%
Women
38%
Women
16%
Women
14%
Women
20%
30 | 165
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Governance
EVLI BANK PLC
ANNUAL REPORT 2021
Responsibility
ning events to improve the employees’ skills and to enhance
occupational health and well-being.
In addition to training opportunities, Evli encourages learning
on the job and job rotation. Job rotation is encouraged by, for
example, publishing all open positions on Evli’s Intranet.
The work of Team Leaders is considered an important part of
personnel development and work satisfaction. Team Leaders
are trained on a continuous basis to enable them to support
their team members as well as possible and to develop the
teams’ practices. The work of Team Leaders is evaluated regu-
larly based on external surveys.
Results and priorities for 2021
• The number of training days per person was 1.3. Training
days includes internally organised training. A total of three
persons transferred to new job tasks as part of job rotation.
• With the coronavirus pandemic and the widespread remote
work recommendation, managerial work has taken on a more
important role. Coaching and guidance on leadership, and in
particular on remote leadership, was provided to managers
in the form of management information sessions (8 in total)
and in the Evli Academy’s four-module online workshops on
the theme of courageous interaction.
• The entire staff was offered a series of online workshops on
self-management in four modules of the Evli Academy. The
personnel reverse mentoring programme, launched in 2020,
continued in 2021.
• An Eezy Spirit People Power survey was sent to all person-
nel, to which around 80.9% of the employees responded.
The survey measures leadership fullment, performance and
staff engagement. The results show that Evli employees have
condence in management’s decision-making ability and feel
that the company is heading in the right direction and that
the future is bright. They feel they have the opportunity to
Based on the employee satisfaction survey
results, Evli was once again awarded as one of
the most inspiring workplaces in Finland.
participate and express their own opinions. There is also a
convergence of values between staff and Evli. The results
showed that there was a need for development and support
in clarifying the meaning of one’s own work and in balancing
work and leisure time. Based on the employee satisfaction
results, Evli was again recognised as one of Finland’s most
inspiring workplaces.
An attractive employer
Competition for the best talent is very severe in the finance
sector. Finding the right people and keeping them is vital for a
company that offers expert services. Evli believes that by offe-
ring its employees good learning and development opportuni-
ties, and by investing in their well-being and work-life balance,
it can attract new employees and commit them to the company.
Evli’s recruitment activities emphasise nding the right people
who match Evli’s corporate culture and are prepared to deve-
lop to become future top experts at Evli. Fresh graduates or stu-
dents close to graduation are attracted to work at Evli by offe-
ring, for example, a trainee program. The goal of the trainee
program is to nd motivated young talents that can become
future top experts at Evli and bring innovations and ideas to
the company.
In addition to the trainee program, Evli supports schools and
subject organizations, visits schools and introduces students to
the eld and Evli as a company and participates in various rec-
ruitment events. The purpose of these events is to increase awa-
reness of Evli among students.
Results and priorities for 2021
• Systematic work to improve employer branding continued.
Evli feels that by improving the image of the company as an
employer, it will be easier to attract promising new emplo-
yees and to retain current employees. In order to improve
the employer image, more systematic use of social media
and the improvement of the content of Evli’s own website
continued aa well as the co-operation with schools and sub-
ject organizations.
• The trainee program was carried out around the year des-
pite the coronavirus. During the year around 800 persons
applied for the trainee-program and from these 10 persons
were hired to Evli as trainees.
• Evli partnered with the Women’s Career Society in order to
support female students’ career paths.
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ANNUAL REPORT 2021
Responsibility
Reporting practice
GRI 102-47: List of material topics
The economic, social and environmental impact of Evli’s busi-
ness comes both directly through its own operations and indi-
rectly through its investment activities. The topics and priorities
relevant to Evli’s responsibility are presented on pages 14-31.
GRI 102-48: Restatements of information
No material changes have been made to previously reported
data.
GRI 102-49: Changes in reporting
Evli conducted its rst GRI Corporate Responsibility Report in
2018. In the 2021 report, the scope and boundaries of the report
have remained the same and the content matches that of the
2019 and 2020 reports.
GRI 102-50: Reporting period
The reporting period is from January 1 to December 31, 2021.
GRI 102-51: Date of most recent report
Evli’s Annual Report 2020 including the Responsibility Report
was published on February 11, 2021.
GRI 102-52: Reporting cycle
Evli’s Annual Report is published yearly, by calendar year. The
Annual Report consists of a Business Overview, Responsibility
Report, Financial Statement and Corporate Governance State-
ment as well as the Remuneration Policy and Report.
GRI 102-53: Contact point for questions regarding
the report
The contact point for questions is Evli’s Responsible Investment
team as well as the Marketing, communications and IR team.
Contact details are available at www.evli.com.
GRI 102-54: Claims of reporting in accordance with the
GRI standards
The corporate responsibility report includes a GRI report which
has been drawn up in accordance with the GRI standards, where
applicable. The report also includes information that concerns
Evli’s own relevant responsibility matters in accordance with
the reporting principles of the GRI standard. The GRI content
comparison on pages 34-38 lists the GRI indicators used and
where more information is available. The corporate responsi-
bility report, including the GRI report, supplements Evli’s nan-
cial reporting and concerns the operations of the Group as a
whole unless otherwise indicated. The GRI report includes infor-
mation and indicators that have been identied through mate-
riality analysis that are relevant to stakeholders and Evli’s busi-
ness operations.
GRI 102-56: External assurance
The responsibility report, which includes a GRI report, is not
externally audited.
8)
Global Reporting Initiative.
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ANNUAL REPORT 2021
Responsibility
GRI 103-1: Explanation of the material topic and its boundary GRI 103-2: The management approach and its
components
All business areas at Evli are part of ensuring that res-
ponsibility is integrated into everyday work. Every emp-
loyee is responsible for observing it in practice. Evli’s
Responsible Investments team supports the business
areas in matters concerning responsibility and espe-
cially the coordination of responsible investment. Evli
believes that through responsible investment activities
the company can have the most impact on responsibi-
lity. This is why Evli has invested most in the develop-
ment of responsible investment in recent years. Evli has
a Responsible Investment team that carries out respon-
sible investment under the Head of Sustainability.
Compliance with the principles of responsible
investment at Evli is supervised by the Responsible
Investment Executive Group. The members of the
Executive Group include the CEO, executives from
the legal and risk management department, instituti-
onal and private clients’ departments, portfolio mana-
gement and the responsible investment team. The Res-
ponsible Investment Executive Group decides on Evli’s
Principles for Responsible Investment and related prac-
tices and reports to Evli’s Executive Group.
RESPONSIBILITY
THEMES
RELEVANT
RESPONSIBILITY SUBJECTS
SIGNIFICANCE TO BUSINESS
OPERATIONS AND STAKEHOLDERS
CALCULATION
PARAMETERS
Responsible products
and services
Responsible marketing Development area Own operations
Customer privacy protection and data security Base Own operations
Responsible investing Focus area
Own operations -
Responsibility of wealth
management investment
Responsible
governance
Prot performance Focus area Own operations
Taxes and tax footprint Base Own operations
Corruption, bribes and money laundering Base Own operations
Direct environmental impacts Development area
Own operations
(Helsinki ofce)
Responsible
employer
Fairness: equality, non-discrimination
and diversity
Focus area Own operations
Work well-being and health Development area
Own operations
(Helsinki ofce)
Education and development Development area
Own operations
(Helsinki ofce)
Attractive employer Focus area Own operations
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GRI content index
DISCLOSURE INDEX DISCLOSURE TITLE PAGE ADDITIONAL INFORMATION
GENERAL DISCLOSURE
Organizational Prole
102-1 Name of the organization Financial Statements, p. 77
102-2 Activities, brands, products and services Evli in brief, p. 3-4
102-3 Location of headquarters Financial Statements, p. 77 Aleksanterinkatu 19 A, 00101 Helsinki
102-4 Location of operations Evli in brief, p. 3-4
102-5 Ownership and legal form Shares and Shareholders, p. 59-60, Financial Statements, p. 120-123
102-6 Markets served Evli in brief, p. 3-4
102-7 Scale of the organization Evli in brief, p. 3-4, Financial gures, p. 45
102-8 Information on employees and other workers Responsibility, p. 28-31
102-10 Signicant changes to the organization and its supply chain Financial Statements, p. 124
102-11 Precautionary Principle or approach Risk management and internal control, p. 83-87
102-12 External initiatives Responsibility, p. 22-23
Strategy and analysis
102-14 Statement from senior decision-maker CEO’s review, p. 5-6
102-15 Key impacts, risks, and opportunities Megatrends & Strategy, p. 10-11
Ethics and integrity
102-16 Values, principles, standards, and norms of behavior Business model, p. 9
102-17 Mechanisms for advice and concerns about ethics Responsibility, p. 27
Governance
102-18 Governance structure Corporate Governance Statement, p. 147
102-19 Delegating authority Responsibility, p. 33
102-20 Executive-level responsibility for economic, environmental,
and social topics
Responsibility, p. 323
102-22 Composition of the highest governance body and its
committees
Corporate Governance Statement, p. 148
102-23 Chair of the highest governance body Corporate Governance Statement, p. 148-149
102-24 Nominating and selecting the highest governance body Corporate Governance Statement, p. 148
102-26 Role of highest governance body in setting purpose, values,
and strategy
Corporate Governance Statement, p. 147
102-27 Collective knowledge of highest governance body Corporate Governance Statement, p. 148-149
102-28 Evaluating the highest governance body’s performance Corporate Governance Statement, p. 147
102-30 Effectiveness of risk management processes Risk management and internal control, p. 83-87
102-35 Remuneration policies Remuneration policy, p. 156-158
102-36 Process for determining remuneration Remuneration policy, p. 156-158
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Responsibility
DISCLOSURE INDEX DISCLOSURE TITLE PAGE ADDITIONAL INFORMATION
GENERAL DISCLOSURE
Stakeholder engagement
102-40 List of stakeholder groups Responsibility, p. 17
102-43 Approach to stakeholder engagement Responsibility, p. 16-17
102-44 Key topics and concerns raised Responsibility, p. 17
Reporting practice
102-45 Entities included in the consolidated nancial statements Financial Statements, p. 77
102-46 Dening report content and topic boundaries Responsibility, p. 15-16
102-47 List of material topics Responsibility, p. 15-16
102-48 Restatements of information Responsibility, p. 32
102-49 Changes in reporting Responsibility, p. 32
102-50 Reporting period Responsibility, p. 32
102-51 Date of most recent report Responsibility, p. 32
102-52 Reporting cycle Responsibility, p. 32
102-53 Contact point for questions regarding the report Responsibility, p. 32
102-54 Claims of reporting in accordance with the GRI Standards Responsibility, p. 32
102-55 GRI content index GRI content index, p. 34-38
102-56 External assurance Responsibility, p. 32 The report has not been externally assured
35 | 165
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EVLI BANK PLC
ANNUAL REPORT 2021
Responsibility
DISCLOSURE INDEX DISCLOSURE TITLE PAGE ADDITIONAL INFORMATION
MATERIAL TOPICS
Management approach
103-1 Explanation of the material topic and its boundary Responsibility, p. 16
103-2 The management approach and its components Responsibility, p. 33
Economic topics
Economic performance
201-1 Direct economic value generated and distributed
ECONOMIC VALUE GENERATED AND DISTRIBUTED
Income distribution, M€ 2021 2020 2019
Net interest income 0.1 0.2 0.3
Commission income and expense, net 111.7 76.8 72.2
Net income from securities transactions and foreign exchange
dealing 3.5 2.4 3.2
Other operating income 0.2 0.2 0.1
Share of prots (losses) of associates 0.5 0.4 -0.6
Total Income 116.0 80.0 75.2
Personnel expenses 31.0 25.9 24.8
Other administrative expenses 18.5 12.5 14.0
Depreciation, amortization and write-down 4.8 5.7 3.5
Other operating expenses 1.8 1.7 3.7
Impairment losses on loans and other receivables 0.1 0.1 0.1
Society
Taxes 10.5 6.3 4.9
Social security costs 1.6 1.2 1.4
Pension expenses 4.8 3.4 4.1
Equity holders of parent company 36.3 21.3 17.3
Non-controlling interest 6.7 1.9 1.4
Distribution of income 116.0 80.0 75.2
Anti-corruption and anti-bribery
205-2 Communication and training about anti-corruption policies and
procedures
Responsibility, p. 27
205-3 Conrmed incidents of corruption and actions taken Responsibility, p. 27
Environmental topics
Energy
302-1 Energy consumption within the organization Responsibility, p. 27
302-4 Reduction of energy consumption Responsibility, p. 27
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Responsibility
DISCLOSURE INDEX DISCLOSURE TITLE PAGE ADDITIONAL INFORMATION
MATERIAL TOPICS
Social responsibility
Employment
401-1 New employee hires and employee turnover Responsibility, p. 29
401-2 Full-time staff benets not provided to xed-term or part-time staff All employee benets are offered throughout
the personnel, regardless of employment.
401-3 Parental leave Employees are provided with an opportunity
of shortened working hours and depending on
work tasks, the possibility of exible working
hours.
Occupational health and safety
403-2 Types of injury and rates of injury, occupational diseases, lost days,
and absenteeism, and number of work-related fatalities
Responsibility, p. 29
Training and education
404-1 Average hours of training per year per employee Responsibility, p. 29
404-2 Programs for upgrading employee skills and transition assistance
programs
Responsibility, p. 30-31
404-3 Percentage of employees receiving regular performance and career
development reviews
Responsibility, p. 29 Evli’s development discussion process covers all
permanent employees who are not absent due to,
for example, parental leave or study leave.
Developmental discussion needs for temporary
employees are assessed case-by-case.
Diversity and equal opportunity
405-1 Diversity of governance bodies and employee Responsibility, p. 29-30, Board of Director’s Diversity; Corporate
Governance Statement, p. 151
Customer privacy protection
418-1 Number of legitimate complaints about customer privacy violation
and customer loss
Responsibility, p. 19
37 | 165
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Responsibility
DISCLOSURE INDEX DISCLOSURE TITLE PAGE ADDITIONAL INFORMATION
MATERIAL TOPICS
Social responsibility
Evli’s own material CSR topics
Responsible investments
Engaging with investment objects on environmental, social and
governance matters
Responsibility, p. 22-23
Customer satisfaction
Customer satisfaction Responsibility, p. 19
Taxes and tax footprint
Total tax Responsibility, p. 26
Direct impacts of own operations
Decreasing amount of air travel Responsibility, p. 27
38 | 165
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Introduction
In August 2019, Evli became a public supporter of the TCFD
with the goal of developing Evli’s own climate risk reporting.
The TCFD is an international climate risk reporting framework
designed to improve reporting on the economic impact of cli-
mate change by making it clearer, more comparable and more
consistent.
It is important for asset managers and other investors to be able
to identify and assess the economic impact of climate change
on both their own operations and those of investment compa-
nies. The transition to a low-carbon economy is changing the
business environment and companies are also exposed to the
physical effects of climate change. On the other hand, climate
change also creates opportunities for companies that offer pro-
ducts or services that contribute to climate change adaptation
and mitigation.
Reports based on TCFD’s recommendations provide stakehol-
ders of the company information on:
1. the management of climate-related risks and opportunities
(role of the Board of Directors and the management)
2. the actual and potential impact of climate-related risks and
opportunities on the company’s business, strategy and
nancial planning
3. the company’s processes for identifying, assessing and
managing climate risks
4. the indicators and targets for assessing and managing
climate-related risks and opportunities.
Management
As part of the broader debate on responsibility, Evli’s Board
and Executive Group regularly address climate-related issues.
Evli’s Head of Sustainability regularly attends Board and Execu-
tive Group meetings. In addition to the work of the Board and
Executive Group, Evli has a Responsible Investment Executive
Group, which decides on the principles and practical procedu-
res of responsible investment at Evli. In addition to the CEO,
the Responsible Investment Executive Group includes mana-
gers from Legal and Risk Management, Private and Institutional
Clients, Portfolio Management and the Responsible Investment
team.
The Responsible Investment team, under the supervision of
the Head of Sustainability, is responsible for coordinating and
developing ESG issues in the funds and discretionary portfolio
management, as well as for engaging with companies. The Res-
ponsible Investment team monitors implementation of the UN
Global Compact, the UN Guiding Principles on Business and
Human Rights, the OECD Guidelines for Multinational Enterpri-
ses and the Evli Principles for Climate Change and has the right
to exclude individual companies from investment.
When analysing potential investments and making investment
decisions, Evli’s portfolio managers also take ESG matters into
account, including climate issues. Portfolio managers are res-
ponsible for implementing the Principles for Responsible
Investment and ESG integration in portfolio management.
Reporting framework of the TCFD report
Task Force on Climate-related Financial Disclosures report
ANNEX
Evli has committed to supporting the Task Force on Climate-related Financial Disclosures (TCFD) reporting framework
and published its rst TCFD report in 2020 based on the situation in 2019. This annex provides updated information
on Evli’s climate risks and opportunities and compiles information on Evli’s climate work progress in 2021.
1.
Management
2.
Strategy
3.
Risk management
4.
Indicators
and targets
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Responsibility
The investment activities of Wealth Management are guided
by the Evli Principles for Responsible Investment, which dene
Evli’s responsible investment practices. In addition, Wealth
Management is governed by the Evli Principles for Climate
Change, which describe Evli’s approach to taking climate
change and its related impacts on its investments into account.
In 2021, Evli published separate climate targets. In line with the
climate targets, Evli aims to achieve carbon neutrality by 2050
at the latest. The target applies to emissions from both Evli’s
own operations and its investments. The targets include sepa-
rate milestones. A separate roadmap has also been dened for
the climate targets and a separate working committee has been
set up to further clarify how the investment milestone can best
be achieved through real-world emission reductions and in line
with the Paris Agreement.
Strategy
At Evli, responsibility has been an integral part of portfolio
management for many years. In January 2020, Evli made res-
ponsibility one of its strategic focus areas for the coming years,
and in June 2021, Evli set Evli’s climate targets and related
milestones in line with its strategic objectives. Climate change
mitigation has always been an important issue for Evli and Evli
wants to contribute to creating products that address climate
change challenges and set concrete targets for Evli’s opera-
tions.
As an asset manager, the most significant climate risks and
opportunities for Evli are related to its investment activities, as
Evli’s own operations do not cause signicant direct environ-
mental impacts. Evli has committed to reducing energy con-
sumption and carbon emissions from its premises and to avoi-
ding unnecessary travel. As part of its climate targets, Evli also
set separate milestones for emissions from its own operations
(Scope 1 and 2). However, Evli’s strategy focuses on the integra-
tion of climate-related risks and opportunities and their impacts
into Evli’s products and investment strategies, and this is also
reected in the 2021 climate targets.
The TCFD divides climate change risks into risks from the tran-
sition to a low-carbon economy and physical risks from climate
change. Transition risks are the nancial risks arising from the
transition to a low-carbon economy. These include risks arising
from changes in policy, regulation, technology, and markets,
which, if they materialise, could affect the market value and
returns on investments. As clients’ climate strategies evolve, Evli
must also be able to ensure that its products and services meet
their changing needs. Investing in companies that are perceived
to contribute to climate change also increases the reputational
risk associated with investment activities.
Physical risks, on the other hand, are the economic risks ari-
sing from the physical impacts of climate change, which can
be the result of single events or long-term changes in the cli-
mate. In Evli’s investment activities, physical risk may materia-
lise, for example, in real estate investments, which may be inc-
reasingly exposed to extreme weather events, sea-level rise or
ooding damage, for example, as a result of climate change.
However, the physical impacts of climate change are not limited
to real estate investments, but also extend to other asset classes
such as equity and corporate bond investments. Within these
asset classes, industries dependent on foreign raw materials,
for example, may be vulnerable to increasing extreme weat-
her conditions.
Climate change also brings opportunities for investors. These
include investing in companies that take advantage of oppor-
tunities to mitigate and adapt to climate change. In addi-
tion, climate change will increase the market for sustainable
investments, such as green bonds, providing opportunities for
the development of new products. For example, in autumn
2019, Evli organised the rst issuance of Green Note autocall
The responsible investments governance model
Responsible Investment Executive Group
• Decides on the principles and practical procedures of responsible investing
• Members: CEO, executives from the legal and risk management department,
institutional and private clients’ departments, portfolio management and the
Responsible Investment team
• Regular meetings on a quarterly basis
• Reports to Evli’s Executive Group.
Responsible Investment team
• Monitors the implementation of the UN Global Compact principles and Evli´s
Principles for Climate Change. Has the right to exclude individual companies
from investments
• Responsible for engaging with companies
• Report to the Responsible Investment Executive Group.
Portfolio Managers
• Take ESG matters into consideration when analysing potential investments
and making investment decisions
• Responsible for implementing the Principles for Responsible Investment
and ESG integration
• Reports to the Responsible Investment team on companies that violate
the Principles for Responsible Investment.
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Responsibility
certicates in Finland. The funds raised through the issue will
be used to nance projects supporting sustainable develop-
ment. In 2021, Evli carried out a total of three similar issuances.
In addition to these, new funds launched in 2020, Evli Green
Corporate Bond, an investment fund focusing on green cor-
porate bonds, and Evli Impact Forest Fund I, a forest fund that
aims to mitigate climate change by achieving positive carbon
impacts, are part of Evli’s investment offering. In the case of the
forest fund, which is part of the alternative investment funds,
Evli’s performance fee is dependent on the achievement of the
fund’s decarbonisation target.
Evli has examined the sustainability of its investment strategy
by conducting scenario analyses based on climate data pro-
vided by ISS ESG. The purpose of the scenario analysis is to
assess the potential impact of climate-related risks and oppor-
tunities in global warming scenarios. In addition to the report,
the scenario analysis is included in the tools used by portfolio
managers of the equity and corporate bond funds managed by
Evli before and after investment decisions. The tools also allow
systematic monitoring of the evolution of investment strategy
scenarios. Based on the situation at the end of 2021, 27 percent
of Evli’s equity and corporate bond funds were aligned with the
1.5 degree scenario and 69 percent of funds were aligned with
the 2 degree scenario. In line with its roadmap of climate obje-
ctives, Evli is currently building a more detailed snapshot and
will expand its reporting to include scenario analysis as a result.
Risk Management
Evli’s Principles for Climate Change and climate goals set the
baseline for taking into account and managing climate change
and its impacts in investment activities. The identication and
assessment of climate risks are based on an analysis of the
investment portfolio by portfolio managers and the respon-
sible investment team. Climate risk management measures in
line with the Principles for Climate Change include the analy-
sing and monitoring, engagement and exclusion of greenhouse
gas emissions from investments. Evli uses data from an exter-
nal service provider, which is also used by the company’s por-
tfolio managers for investment decisions, for monitoring the
climate principles and other day-to-day work related to res-
ponsibility.Evli has also set a separate roadmap for its climate
targets, according to which Evli will systematically build on its
climate work.
The emissions of companies in Evli’s equity and corporate bond
funds are monitored by analysing the carbon intensity weighted
by the portfolio weights of the funds, as recommended by the
TCFD, which measures the exposure of the portfolio to car-
bon-intensive companies. Emissions data and other climate
analysis data, along with other ESG data, are integrated into
the portfolio management systems, allowing Evli to monitor
and assess the evolution of climate risks in its investments. Evli
has also excluded companies producing peat for energy pro-
duction, and avoids investing in companies with a signicant
proportion (30% or more) of their turnover coming from coal
mining, its use in energy production or oil sands extraction.
If the company has a credible plan to reduce its use of coal,
the exclusion may be waived by a decision of the Responsible
Investment team. In addition, some funds follow an even broa-
der exclusion for coal and fossil fuels. The information required
by the climate principles, as well as the broader exclusion infor-
mation for the funds, is all included in the portfolio manage-
ment system, which prevents investments in excluded compa-
nies and requires portfolio managers to justify any investment
that exceeds the avoidable limits. Should the avoidable limit for
climate principles be exceeded, this would also be automati-
cally reported to the Responsible Investment team who would
analyse the company.
Evli also sees corporate engagement as a way to manage cli-
mate change risks and aims to inuence companies to report
in accordance with the TCFD. In its advocacy work, Evli also
encourages companies to set climate targets and monitors
company-specic targets. In addition, Evli has committed to a
number of investor initiatives (see pages 22-23 for more infor-
mation), which aim, among other things, to inuence compa-
nies at risk from a climate change perspective and to encou-
rage governments to take more ambitious measures to mitigate
climate change. In addition to these measures, Evli regularly
monitors changes in climate change regulation and has been
actively involved in the EU legislative debate.
Roadmap to becoming a net zero asset manager
1. Building a
snapshot
5. Systematic analysis of the
targets
4. Engagement
2. Development
of climate risk
management
3. Updating the
exclusions
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Responsibility
Indicators and objectives
Evli regularly monitors the development of the carbon footprint
of its equity and corporate bond funds by calculating the car-
bon intensity weighted by the portfolio weights of the funds, i.e.
by analysing the level 1 and 2 emissions
1)
of each investment,
relating them to the company’s turnover and weighting each
investment by its relative share in the portfolio. The carbon
intensity obtained by the fund is compared to the correspon-
ding gure of the fund’s benchmark index. Evli has excluded
emissions from level 3
1)
from the analysis as they are not yet
widely reported by companies and are therefore still largely
based on estimates.
While carbon footprint tracking helps to understand an
investment’s emissions profile, it is not a complete single
measure of the emissions associated with a portfolio, nor does
it help to assess future emissions trends or emission reduction
opportunities. For this reason, Evli also analyses the share of
companies owning fossil fuel reserves and compares it to the
corresponding gure in the fund’s benchmark index. In addition,
Evli also examines the transition of companies to low-carbon
status, dividing companies into different categories according
to the risks and opportunities associated with their energy tran-
sition. This allows Evli to better assess the potential for reducing
the carbon footprint of funds and to identify companies that
are at risk from a climate change perspective. Evli also regu-
larly explores new tools to better measure the actual impact of
investments on stakeholders and the environment, including
the impact on climate change. Evli’s ESG reports for equity and
corporate bond funds are also publicly available to all on Evli’s
website, www.evli.com.
In line with its responsible investment objectives, Evli set sepa-
rate climate targets in June 2021. Evli aims to achieve carbon
neutrality by 2050 at the latest. The target applies to emissions
from both Evli’s own operations and investments. In addition to
the main target, Evli also set three intermediate targets:
1) Evli aims to achieve carbon neutrality for emissions from its
own operations (Scope 1 and 2) by 2025 at the latest.
2) Evli sets an interim target of a 50 percent reduction in indi-
rect emissions from investments by 2030, provided that the
investment environment allows for it. The base year is 2019.
3) Evli will establish a Working Committee for the years 2021-
2022 in order to assess how the investment-related interim target
can be reached through real world carbon emission reductions
and to ensure that it will be in line with the Paris Agreement. In
this assessment work, we will use, among others, a Science-Ba-
sed Targets (SBT) framework.
The milestones and roadmap of climate targets come from
the long-term carbon neutrality target. In line with the climate
targets roadmap, Evli is currently building a snapshot and will
refine the metrics to be monitored as work progresses and
report accordingly.
1)
The calculation of carbon footprint gures is dened by the international standard GHG protocol (Greenhouse Gas Protocol), for example. The GHG
protocol breaks down greenhouse gas emissions into scopes 1-3. Scope 1 greenhouse gas emissions refer to emissions directly occurring from
sources that are owned or controlled by the company. Scope 2 greenhouse gas emissions refer to indirect emissions generated in the production of
electricity purchased by the company. Scope 3 includes indirect emissions related to the company, including those from products, outsourcing, and
business travel.
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Responsibility
Carbon intensity (1)
(t CO
2
e / USD million)
Compared
to benchmark (2)
Weight of companies
owning fossil fuel
reserves (3) (%)
Compared
to benchmark (2) (pp) Coverage / Fund (4)
Coverage /
Benchmark index (4)
Investments in Solutions
category in the MSCI’s Low
Carbon Transition
classication (5)
Equity Funds
Evli Emerging Frontier 264.1 0.0% 38.1% 1.9%
Evli Europe 129.8 7.9% 0.0% -7.7% 96.9% 99.5% 11.4%
Evli GEM 437.7 33.6% 7.9% -2.0% 94.6% 99.4% 4.1%
Evli Japan 73.1 -0.4% 0.0% -5.4% 89.9% 99.9% 3.1%
Evli Global 32.8 -75.0% 0.0% -5.6% 96.2% 99.5% 8.2%
Evli Global X 33.2 -74.7% 0.0% -5.6% 96.4% 99.5% 8.2%
Evli Equity Factor Europe 45.7 -62.0% 0.0% -7.7% 95.7% 99.5% 5.6%
Evli Equity Factor Global 48.8 -62.8% 0.0% -5.6% 94.4% 99.5% 7.2%
Evli Equity Factor USA 50.8 -60.1% 0.0% -4.2% 96.0% 99.5% 8.1%
Evli North America 65.9 -51.2% 0.9% -3.7% 98.7% 99.5% 3.4%
Evli Nordic 30.9 -61.9% 0.0% -2.4% 92.2% 98.5% 7.4%
Evli Sweden Equity Index 22.3 0.0% 0.0% 0.0% 98.1% 100.0% 2.8%
Evli Swedish Small Cap 27.9 -47.7% 0.0% 0.0% 69.6% 82.5% 2.3%
Evli Finland Mix 123.5 0.0% 72.6% 6.2%
Evli Finnish Small Cap 63.7 -29.5% 0.0% 0.0% 50.6% 71.2% 7.8%
Evli Finland Select 122.2 -6.5% 0.0% 0.0% 83.7% 89.9% 3.0%
Fixed Income Funds
Evli Green Corporate Bond 165.6 -44.7 % 1.0% -7.5% 87.3% 94.6% 7.1%
Evli European High Yield 141.2 -24.6 % 0.6% -3.3% 57.4% 77.3% 0.7%
Evli European Investment Grade 108.5 -44.9 % 1.4% -8.7% 91.2% 95.3% 3.4%
Evli Emerging Markets Credit 588.5 -22.0 % 12.7% -5.3% 68.6% 87.4% 3.5%
Evli Euro Liquidity 307.7 2.6% 35.2% 1.3%
Evli Short Corporate Bond 209.2 1.0% 78.2% 1.3%
Evli Nordic Corporate Bond 111.9 -22.8 % 0.0% -7.5% 74.4% 95.7% 7.2%
Evli Nordic 2025 Target Maturity 164.5 0.0% 47.4% 5.0%
Evli Target Maturity Nordic Bond 137.0 0.0% 52.9% 6.3%
Evli Corporate Bond 119.5 -32.2 % 1.5% -6.4% 85.5% 91.9% 4.7%
Sources: Evli, MSCI ESG Research.
1) Evli uses weighted average carbon intensity to measure carbon footprint. A fund’s weighted average carbon intensity is calculated by dividing the company-specic scope 1 and scope 2 greenhouse gas emissions by the company’s revenues. After that, company-specic
carbon intensity is multiplied by the company’s portfolio weight. The fund-specic carbon footprint is a sum of company-specic carbon intensities apportioned based on portfolio weights. Scope 1 greenhouse gas emissions refer to emissions directly occurring from sources
that are owned or controlled by the company. Scope 2 greenhouse gas emissions refer to indirect emissions generated in the production of electricity purchased by the company.
2) Compared to benchmark gure shows how the fund compares to corresponding gures for the benchmark index. As it is not possible to calculate this gure to all benchmark indeces, some sections are left blank.
3) Weight of companies owning fossil fuel reserves shows the share of companies owning coal, gas or oil reserves in the fund. In this report coal reserves refer to use of coal in energy production (thermal coal).
4) Coverage indicates the share of fund’s/index’s holdings (measured by market value) for which emissions data is available. The emissions data is based on emissions reported by the companies or other publicly available emissions data (e.g. CDP) and the data provider’s
estimate of emissions.
5) Shows the share of companies which have been classied in MSCI’s Low Carbon Transition Classication to Solutions category. The Solutions category means that, according to MSCI’s analysis, the companies in this category have the potential to benet through the growth
of low-carbon products and services.
43 | 165
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ANNUAL REPORT 2021
Responsibility
44 | 165
Financial review
In nancial terms, 2021 was the best year in Evli’s operating history. Des-
pite the pandemic, Evli’s two business segments, Wealth Management
and Investor Clients, as well as Advisory and Corporate Clients, grew
signicantly. With the positive development the Evli Group achie-
ved a turnover of more than EUR 115 million and a record operating
prot of EUR 53 million. With a strong result the Group’s operating
prot margin rose to almost 46 percent and its return on equity
exceeded 40 percent.
.
Business Overview
Responsibility
Governance
EVLI BANK PLC
ANNUAL REPORT 2021
Financial review
TO THE FINANCIAL STATEMENTS CONTENTS
2021 2020 2019 2018 2017
Income statement key gures
Operating income, M€ 115.6 79.7 75.8 68.5 71.4
Operating prot/loss, M€ 53.0 29.1 24.1 18.9 21.3
Operating prot margin, % 45.9 36.5 31.8 27.6 29.8
Prot for the nancial year, M€ 43.0 23.2 18.7 17.3 17.5
Protability key gures
Return on equity (ROE), % 40.3 26.2 23.4 23.0 25.5
Return on assets (ROA), % 5.6 2.7 2.1 1.9 2.0
Balance sheet key gures
Equity-to-assets ratio, % 15.6 12.3 8.9 9.5 7.6
Group´s capital adequacy ratio, % 15.4 15.2 15.1 16.2 15.0
Key gures per share
Earnings per Share (EPS), fully diluted, € 1.47 0.87 0.71 0.68 0.69
Comprehensive Earnings per Share (EPS), fully diluted, € 1.48 0.88 0.71 0.67 0.69
Dividend/share, € 1.06 0.73* 0.66 0.61 0.52
Equity per share, € 4.73 3.86 3.40 3.27 3.12
Share price at the end of the period, € 26.20 12.20 10.40 7.28 9.60
Other key gures
Expense ratio (operating costs to net revenue) 0.54 0.63 0.68 0.7 0.7
Recurring revenue ratio, % 130 124 124 113.0 113.0
Personnel at the end of the period 290 261 249 254 240
Market value, M€ 631.7 294.1 248.6 172.5 224.9
*Board of Directors’ proposal
(2020: 0.73)
Dividend/share (EUR)
1.06
(2020: 124)
Recurring revenue ratio (%)
130
(2020: 26.2)
Return on equity (%)
40.3
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EVLI BANK PLC
ANNUAL REPORT 2021
Financial review
TO THE FINANCIAL STATEMENTS CONTENTS
Evli Bank Plc
Northern Horizon Capital A/S
Evli Alexander Incentives Oy
*Diluted IFRS
**Board of Directors’ proposal
Net Revenue
(M€)
71.4
68.5
75.8
79.7
115.6
2020 20212017 2018 2019
2020 20212017 2018 2019
21.3
18.9
24.1
29.1
29.8 %
27.6 %
31.8 %
36.5 %
45.9 %
53.0
Operating prot (M€)
& prot margin
(%)
Net prot
(M€)
2020 20212017 2018 2019
18.7
23.2
17.5 17.3
43.0
Return to equity (%)
23.4
26.2
23.0
40.3
2020 20212018 2019
Net commission income
(M€)
72.2
76.8
65.2
67.1
111.7
2020 20212017 2018 2019
Net Assets Under
Management
(mrd. €)
11.2
11.4
14.3
14.1
17.5
2020 20212017 2018 2019
100%
128
124
94
113
130
2020 20212017 2018 2019
Proportion of recurring revenue
to operating expenses
(%)
0.69
0.52
0.68
0.71
0.88
1.47
0.61
0.73
1.06**
0.66
2020 20212017 2018 2019
Earnings/share* (€)
and dividend/share (€)
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Financial review
TO THE FINANCIAL STATEMENTS CONTENTS
1.1.–31.12.2021
Market performance
For investors, 2021 was an excellent year as
stock markets around the world performed
well. The positive performance was driven by
both the long-lasting expansionary monetary
policy from central banks and the economic
recovery from the slump in 2020. The unwin-
ding of coronavirus restrictions and stronger
expectations for the manufacturing sector
boosted confidence as the spring progres-
sed. Consumer condence developed positi-
vely and the prospects for corporate earnings
improved. Towards the end of the year, howe-
ver, coronavirus restrictions were reintroduced
along with new virus variants, which negatively
reected on future expectations.
In the wake of the coronavirus pandemic, mar-
kets have experienced unprecedented stimu-
lus measures. In the US, a USD 1,900 billion
support package for American households
and entrepreneurs was approved in the spring,
followed in the autumn by a programme of
around USD 1,200 billion for infrastructure
development. Europe also saw support measu-
res, but not quite on the same scale.
With the strong recovery, rapid growth and,
on the other hand, production challenges in
certain sectors, fears of accelerating ination
increased during the remainder of the year.
The situation was further exacerbated by sig-
nicant increases in raw material and energy
prices over the past year. However, central
banks have so far remained calm and have
assessed the rapid price increases as only
temporary. However, central banks in both the
US and Europe have indicated that they will
ease their stimulus measures; in December, the
US Federal Reserve announced that it would
accelerate the tapering of stimulus measures
and indicated interest rate hikes are on tap for
2022. Meanwhile, the European Central Bank
announced that it would ease its bond market
support programme from the previous level of
EUR 80 billion in monthly purchases to a new
level of EUR 40 billion in early 2022.
In stock markets, US equities (S&P 500) rose by
28.7 percent and European shares (Stoxx 600)
by 25.3 percent in the rst nine months of the
year. Over the same period, Finnish equities
(OMX Helsinki Cap) rose by 25.3 percent.
Developments in the fixed income markets
were mixed in January-December. Higher-rated
corporate bonds fell by 1.1 percent in value
and euro area government bonds dropped by
3.4 percent. In contrast, high yield bonds with a
lower rating rose by 3.2 percent. The euro dep-
reciated by seven percent against the dollar.
Financial performance
Development of revenue and result
In 2021, Evli Group’s net commission income
increased by 45 percent from the correspon-
ding period of the previous year and amounted
to EUR 111.7 million (EUR 76.8 million). The
positive development of fee and commission
income was mainly due to a signicant increase
in fund fees and advisory fees from the com-
parison period. The increase in fund fees has
been driven by, among others, the growth of
assets under management through successful
new sales and positive development in valua-
tion. With excellent investment activities the
performance-related fees for the period con-
sidered have also contributed to the positive
development. During the period under review,
performance-related fees amounted to EUR
15.9 million (EUR 6.7 million). With regard to
advisory fees, the increase is explained by the
completion of an exceptional number of tran-
sactions during the period under review. The
development of commission income was also
positive for incentive plans, asset management
and brokerage commissions.
Net income from securities trading and foreign
exchange operations increased from the cor-
responding period of the previous year and
amounted to EUR 3.5 million (EUR 2.4 million).
Overall, during the review period Evli Group’s
operating income increased by 45 percent from
the corresponding period of the previous year
and amounted to EUR 115.6 million (EUR 79.7
million).
Overall costs for January-December, inclu-
ding depreciation amounted to EUR 62.5 mil-
lion (EUR 50.6 million). The Group’s personnel
expenses amounted to EUR 37.4 million (EUR
30.5 million), including an estimate of perfor-
mance bonuses for the personnel. The Group’s
administrative expenses amounted to EUR
18.5 million (EUR 12.5 million). Administrative
expenses include non-recurring costs related
to, among other things, the partial demerger
of the company and a disagreement regarding
the termination of an individual distribution
agreement in Central Europe. In total, 3.7 mil-
lion non-recurring costs were incurred during
the period under review. The Group’s deprecia-
tion and impairment amounted to EUR 4.8 mil-
lion (EUR 5.7 million). Other operating expen-
ses were EUR 1.8 million (EUR 1.7 million). Evli’s
expense/income ratio was 0.54 (0.63).
The Group’s operating prot grew 82 percent
from the corresponding period of the previous
year and was EUR 53.0 million (EUR 29.1 mil-
lion). Operating prot margin was 45.9 percent
(36.5%). The result for the review period was
EUR 43.0 million (EUR 23.2 million). As a result
47 | 165
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Responsibility
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ANNUAL REPORT 2021
Financial review
TO THE FINANCIAL STATEMENTS CONTENTS
of the prot improvement, the Group’s annuali-
sed return on equity also increased to 40.3 per-
cent (26.2%).
Balance sheet and funding
Evli Group’s balance sheet total was EUR
757.7 million (EUR 772.6 million) at the end of
December 2021. Due to daily changes in client
activity, signicant uctuations in the size of the
balance sheet total are possible from one quar-
ter and from one year to the next. At the end of
the review period, the Evli Group’s equity was
EUR 118.1 million (EUR 95.4 million).
Evli Bank’s Extraordinary General Meeting held
on December 22, 2021 conrmed the partial
demerger of Evli Bank Plc, where the current
Evli Group’s asset management business will
be transferred to a new company that will be
established in the demerger, Evli Plc. In addi-
tion to the partial demerger, the Extraordinary
General Meeting approved the merger of Evli
Bank Plc, which continues banking business
after demerger, and Fellow Finance Plc. Under
the arrangement, the shareholders of the cur-
rent Evli Bank Plc will receive shares in Evli Plc
as a result of the partial demerger.
The interpretation of IFRIC 17 as a part of IFRS
standards has been taken into account when
preparing the balance sheet of the consoli-
dated IFRS nancial statements for the nan-
cial year ended December 31, 2021. In accor-
dance with this interpretation, the business
transferred in the partial demerger has been
recognized in the consolidated balance sheet
as a distribution liability. The purpose of the
asset distribution liability in the balance sheet
The Group’s funding from the public and cre-
dit institutions increased by 6.6 percent com-
pared to the comparison period. The compa-
ny’s loan portfolio decreased by 10.6 percent
compared to the comparison period and was
EUR 98.0 million (EUR 109.6 million). The ratio
of loans granted by the Group to Evli Bank Plc’s
deposits from the public was 24 percent. The
Group’s liquidity is good.
The probability of credit losses has not chan-
ged signicantly during the fourth quarter of
the year. When the Corona crisis started, Evli
estimated that credit loss risks had increased
and at that time increased its credit loss provi-
sions and tightened the calculation model for
credit loss provisions. During the period under
review, the company did not detect substan-
tial changes in client’s credit worthiness, which
has slightly reduced credit loss provisions. This
has not had a substantial effect on the result.
The total effect of the reduction of credit loss
provisions was EUR 0.1 million. Evli’s loan por-
tfolio consists mainly of secured investment
loans, the collateral values of which are moni-
tored on a daily basis. No credit losses were
realised during the review period.
Business areas
Wealth Management and Investor
Clients
The Wealth Management and Investor Clients
segment offers services to present and future
high net worth private individuals and institu-
tions. The comprehensive product and service
selection includes asset management services,
is to illustrate the value of Evli Plc shares being
distributed to shareholders of Evli Bank Plc,
i.e. a calculated value for the business being
transferred to Evli Plc. Distribution liability is
presented in the consolidated IFRS nancial
statements as a separate line, on one hand
reducing equity and on the other increasing
the company’s liabilities towards shareholders
accordingly. Asset distribution liability is an
accounting presentation technique based on
IFRS standards, in which the asset distribution
liability is discharged upon completion of the
arrangement.
Asset distribution liability based on IFRS stan-
dards has no effect on the company’s finan-
cial position, solvency, key gures or potential
distribution of dividends. Given that this is only
an accounting presentation issue, the nancial
position of the company should be conside-
red without the liability to distribute funds in
accordance with IFRIC 17. In order to provide
investors with relevant information, the com-
pany presents the balance sheet without the
asset distribution liability in accordance with
the interpretation of IFRIC 17 in addition to
the consolidated balance sheet based on IFRS
standards.
Evli applies the standardised approach (capital
requirement for credit risk) and the basic indi-
cator approach (capital requirement for opera-
tional risk) in its capital adequacy calculation.
The Group’s capital adequacy ratio of 15.4 per-
cent clearly exceeds the regulator’s require-
ment of 10.5 percent including the extra capital
requirement. The Group’s own minimum target
for capital adequacy is 13.0 percent.
Net sales per fund classes 1-12/2021
(MEUR)
-200
0
200
400
600
800
1000
250
939
498
-22
Equity funds
Fixed income funds
Alternative investment
funds
Other
Assets under Management in
alternative investment products
1.1
1.2
1.3
1.4
1.6
Q4/2020 Q1/2021 Q2/2021 Q3/2021 Q4/2021
Real estate
Private equity
Infrastructure and real-assets
Alternative debt funds
48 | 165
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Responsibility
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Split of Wealth Management fees 2021
Traditional funds
Alternative funds
Fund performance fees
Brokerage
Asset Management
Other fees
fund products offered by Evli and its partners,
various capital market services and alternative
investment products. The segment also inclu-
des execution and operations activities that
directly support these core activities.
Wealth Management
Assets under asset management developed
positively in the fourth quarter, especially sup-
ported by the market development. At the end
of the review period, Evli had EUR 6.0 billion
(EUR 5.2 billion) in discretionary asset mana-
gement assets, which includes both traditional
and digital services.
Traditional mutual funds
Fund sales during the period under review
developed excellently. According to the
Mutual Fund Report carried out by Investment
Research Finland, net subscriptions to Evli’s
mutual funds in cumulative terms were EUR
1,183 million (EUR -1071 million). Most of the
net subscriptions were to xed income funds,
but sales of Evli’s equity funds also developed
positively due to increased client demand.
Most net subscriptions were made to Evli Euro
Liquidity (EUR 491 million), Evli Short Corporate
Bond (EUR 471 million), and Evli Nordic Cor-
porate Bond (EUR 307 million). According to
Evli’s strategy, the goal is to increase the inter-
national sales of its investment products. In the
review period, net subscriptions from foreign
investors amounted to EUR 737 million (EUR
-471 million).
According to the Mutual Fund Report carried
out by Investment Research Finland, Evli Fund
Management Company’s market share grew
by 0.1 percentage points on the previous year
and was 6.7 percent at the end of December.
The combined capital of traditional investment
funds managed by the Evli Fund Management
Company was EUR 10.6 billion (EUR 8.7 bil-
lion). Of this, approximately EUR 3.4 billion was
invested in equity funds (EUR 2.4 billion), EUR
7.0 billion in xed income funds (EUR 6.0 bil-
lion) and EUR 0.1 billion in balanced funds (EUR
0.1 billion). At the end of December, EUR 3.3
billion of Evli’s fund capital came from clients
outside of Finland (EUR 2.3 billion).
Alternative investment products
Sales of strategically important alternative
investment products proceeded as expected.
Subscriptions and investment commitments
for alternative investment products totalled
around EUR 500 million during the year. Of the
subscriptions and investment commitments,
almost EUR 57 million went to the newly lau-
nched Evli Private Equity Fund III, which is a
continuation of the very successful Evli Private
Equity Fund II. Also the Evli Residential Fund II
had a good start and raised EUR 35 million in
the last quarter of the year. In addition, appro-
ximately EUR 62 million of the subscriptions
and investment commitments were made to
the Evli Growth Partners Fund II, around EUR
53 million to the Evli Impact Forest Fund and
almost EUR 76 million to the Evli Private Debt
Fund. The non-UCITS fund Evli Rental Yield
collected subscriptions of EUR 25 million and
Evli Leverage Loan EUR 83 million. Evli Private
Equity I fund raised EUR 67 million and Evli Inf-
KEY FIGURES - WEALTH MANAGEMENT AND INVESTOR CLIENTS SEGMENT
M€ 2021 2020 Change, %
Net revenue 91.4 67.1 36
Operating prot/loss before Group allocations 53.8 33.5 61
Operating prot/loss 44.8 27.7 62
Number of personnel 166 160 4
Market share, %* 6.7 6.6 -
Net subscriptions** 1183 -1.071 -
*Evli Fund Management Company. Source: fund report by Investment Research Finland
**Net subscription to Evli’s traditional mutual funds. Source: fund report by Investment Research Finland
48 %
13 %
9 %
13 %
16 %
1 %
Development of Investor client commission
(M€)
0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
67.2
8.4
6.2
2.6
- 0.5
4.3 91.2
0.3
12/2020 level
Traditional funds
Alternative funds
Fund performance fees
Other fees
Brokerage
Asset Management
12/2021 level
49 | 165
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Responsibility
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EVLI BANK PLC
ANNUAL REPORT 2021
Financial review
TO THE FINANCIAL STATEMENTS CONTENTS
rastructure I -fund correspondingly EUR 51 mil-
lion.
Other investment products
Demand for brokerage products increased
compared to the comparison period, especially
for equities and ETF instruments. In contrast,
demand for structured products did not reach
the corresponding level of the comparison
period. Last year’s market turmoil supported
sales of structured products, which were excep-
tionally strong in the comparison period.
Financial performance
In 2021, the prot of the Wealth Management
and Investor Clients segment developed posi-
tively. Net revenue grew by 36 percent from
the previous year and totalled EUR 91.4 million
(EUR 67.1 million). The development of reve-
nue performance was positively inuenced par-
ticularly by the positive development of fund
fees due to successful new sales and perfor-
mance-related fees. During the period under
review, performance-related fees amounted
to EUR 15.9 million from asset management or
funds (EUR 6.7 million).
Development of client assets under
management
Client assets under management consist of
direct investments in mutual funds, discre-
tionary asset management and assets mana-
ged through Evli’s subsidiaries and associated
companies.
Incentive systems
At the end of 2021, Evli managed around 110
incentive programs, mostly for Finnish compa-
nies. The company annually advises more than
130 companies on remuneration-related assig-
nments. Increasing sales of product and ser-
vice offerings related to incentive schemes to
overseas and unlisted companies has progres-
sed well during the rst three quarters, with the
company acquiring several new Nordic listed
companies as well as domestic unlisted com-
panies as its clients.
In the review period, revenues from the incen-
tive systems business were EUR 8.5 million
(EUR 5.9 million). The revenue development
was positively affected by both the increase in
the number of client companies from the com-
parison period and the cross-selling of incen-
tive planning and management solutions. In
addition, interest in incentive schemes for all
employees, such as employee share issue, was
higher than before. In the fourth quarter of the
year, various survey products and analyses were
also realised, such as compensation surveys for
top executives and key personnel.
Financial performance
In 2021, the net revenue in the Advisory and
Corporate Clients segment doubled from the
previous year and amounted to EUR 20.2 mil-
lion (EUR 9.7 million). Revenue growth was
positively impacted by the clear recovery in the
M&A market seen during the rst half of the
year, as well as the well-continued growth of
the incentive business. Signicant uctuations
in revenue from one quarter to the next are
typical of the segment’s M&A activities.
Evli Pankki Oyj Northern Horizon Capital A/S Evli Alexander Incentives Oy
Assets under management developed positi-
vely during the review period, supported by
net sales and market development, reaching a
new record. At the end of December 2021, the
Group’s total net assets under management
amounted to EUR 17.5 billion (EUR 14.1 billion).
At the end of 2021, assets under discretion-
ary management amounted to EUR 6.0 bil-
lion (EUR 5.2 billion). Correspondingly, direct
investments in Evli’s traditional mutual funds
were EUR 7.6 billion (EUR 6.1 billion) at the end
of the review period. The assets under mana-
gement in alternative investment products was
EUR 1.6 billion (EUR 1.1 billion). Assets mana-
ged through subsidiaries and associated com-
panies also increased from the corresponding
level of the previous year.
Advisory and Corporate Clients
The Advisory and Corporate Clients segment
provides advisory services related to M&A tran-
sactions, including corporate acquisitions and
divestments, IPOs and share issues. The seg-
ment also offers incentive program administra-
tion services and investment research for listed
companies.
M&A transactions
Client activity in the advisory business remained
high throughout the whole year. This was ree-
cted, in particular, in the positive development
of the mandate base. During the review period,
Evli acted as an advisor on 30 assignments.
Invoicing in 2021 clearly exceeded the level of
the comparison period.
Development of assets under management
0
2,0
4,0
6,0
8,0
10,0
12,0
14,0
16,0
18,0
20,0
2013
2014
2015
2016
2017
2018
2019
2020
12/2021
(b. EUR)
50 | 165
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Responsibility
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EVLI BANK PLC
ANNUAL REPORT 2021
Financial review
TO THE FINANCIAL STATEMENTS CONTENTS
290 persons
EMPLOYEE FACTS
Employees per country
290 persons
Employees per segment
Wealth Management and Investor Clients 57%
Advisory and Corporate Clients 26%
Group Operations 17%
Finland 91%
Sweden 9%
Group Operations
The Group Operations segment includes sup-
port functions serving the business areas, such
as Information Management, Financial Admi-
nistration, Marketing, Communications and
Investor Relations, Legal Department, Human
Resources, and Internal Services. Banking ser-
vices and the company’s own investment ope-
rations that support the company’s operations,
and the Group’s supervisory functions; Comp-
liance, Risk Management and Internal Audit,
are also part of Group Operations.
Financial performance
In January-December, the net revenue in the
Group Operations segment increased 39 per-
cent compared to the previous year and was
EUR 3.9 million (EUR 2.8 million).
Personnel
At the end of December, the Group had 290
(261) employees. The number grew by 11 per-
cent from the corresponding period of the pre-
vious year. 91 percent of the personnel worked
in Finland and nine percent outside Finland.
KEY FIGURES - ADVISORY AND CORPORATE CLIENTS SEGMENT
M€ 2021 2020 Change, %
Net revenue 20.2 9.7 108
Operating prot/loss before Group allocations 9.6 2.7 255
Operating prot/loss 7.4 1.8 316
Number of personnel 74 53 40
KEY FIGURES – GROUP OPERATIONS SEGMENT
M€ 2021 2020 Change, %
Net revenue 3.9 2.8 39
Operating prot/loss before Group allocations -10.4 -6.7 55
Operating prot/loss 0.9 0.0 4,894
Number of personnel 50 48 4
Split of advisory commissions 1-12/2021
Advisory fees
Incentive management
Other advisory fees
Corporate responsibility
Evli has raised responsibility to one of its stra-
tegic focus areas. Responsibility factors have
been integrated into investment operations
in Evli’s most signicant business area, Wealth
Management, which means that responsible
investment is a systematic part of portfo-
lio management. Investments made by Evli’s
mutual funds are also monitored for possible
breaches of standards, and Wealth Manage-
ment engages with companies independently
and together with other investors.
Evli’s successful work in responsible investment
received again recognition in external evalua-
tions. Evli was rated the best in responsible
investing both among ”Large” asset managers
and among all asset managers in a client sur-
vey by SFR Scandinavian Financial Research,
which evaluated 18 asset managers on their
responsible investing expertise based on the
views of Finland’s largest professional institu-
tional investors.
Find out more about the development of res-
ponsibility and responsible investment at Evli
during 2021 on page 14-24.
56 %
2 %
42 %
Development of advisory commissions
M€
0,0
5,0
10,0
15,0
20,0
25,0
12/2020 level
M&A transactions
Incentive plans
Others
12/2021 level
9.7
7.8
2.7 20.1
0.0
51 | 165
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Responsibility
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ANNUAL REPORT 2021
Financial review
TO THE FINANCIAL STATEMENTS CONTENTS
Share price development and trading volume (series B shares) from 1 January to 31 December 2021
Daily turnover, pcs
Closing price, €
30,0
25,0
20,0
15,0
10,0
5,0
70.000
60.000
50.000
40.000
30.000
20.000
10.000
0
Closing price, € Daily turnover, pcs
4/1/2021 3/2/2021 5/3/2021 4/4/2021 4/5/2021 3/6/2021 3/7/2021 2/8/2021 1/9/2021 1/10/2021 31/10/2021 30/11/2021 20/12/2021
Evli’s shares and share capital
Evli Bank Plc’s total number of shares at the end
of December was 24,109,420 shares, of which
14,507,948 series A shares and 9,601,472 Series
B shares. The company held 251,983 B shares.
At the end of December, the company’s share
capital was EUR 30,194,097.31. There were no
changes in the share capital.
.
TRADING ON NASDAQ HELSINKI
1-12/2021 1-12/2020
Highest price, € 26.90 13.20
Lowest price, € 11.90 6.80
Exchange of shares, € 42,046,006 24,737,199
Exchange of shares, pcs 2,224,929 2,465,545
31.12.2021 31.12.2020
Evlin B shares, pcs 9,601,472 9,474,156
Closing price, € 26.20 12.20
Market value*, M€ 631.7 294.1
*The market value is calculated on the basis of unlisted Series A and listed Series B shares. The A share has been
valued at the closing price of the B share for the period.
Shareholders
Evli Bank Plc’s total number of shareholders
was 5,897 (5,172) at the end of December. Fin-
nish companies owned 54 percent (55%) and
the shareholding of Finnish private indivi-
duals 27 percent (27%). Remaining 19 percent
(18%) the shares were owned by nancial and
insurance corporations, general government,
non-prot-making entities and foreign inves-
tors. The ten largest shareholders are pre-
sented on page 60.
52 | 165
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Evli Bank Plc’s Annual General Meeting, held
in Helsinki on March 9, 2021, decided on the
following matters:
Adoption of the financial statements and
use of the profit shown on the balance
sheet and the payment of dividendn
Evli Bank Plc’s Annual General Meeting
adopted the financial statements. The Mee-
ting approved the Board of Directors’ proposal
authorize the Board of Directors to pay a divi-
dend for the nancial year 2020 and that the
maximum amount of the dividend is EUR 0.73
per share. The Annual General Meeting autho-
rized the Board of Directors to decide on the
payment of the dividend in one or more ins-
talments at a time it deems best, taking into
account the current authority recommenda-
tions. The dividend will be paid to sharehol-
ders who are entered in the shareholder regis-
ter maintained by Euroclear Finland Oy on a
record date determined separately by the
Board of Directors.
The release from liability of the members
of the Board of Directors and the CEO
The Annual General Meeting granted release
from liability to the Members of the Board of
Directors and the CEO for the 2020 nancial
year.
Remuneration policy
The Annual General Meeting approved the
Remuneration Report 2020 of the company’s
governing bodies.
Number of Board members, members
and fees
The Annual General Meeting confirmed five
as the total number of members of the Board
of Directors. Henrik Andersin, Fredrik Hacklin,
Sari Helander, Robert Ingmanand Teuvo Salmi-
nen were re-elected to Evli Bank Plc’s Board of
Directors. The meeting attendance fee payable
to Board members is EUR 5,000.00 per month,
and the attendance fee payable to the Chair-
men of the Committees is EUR 6,000.00 per
month. The meeting attendance fee payable
to the Chairman of the Board is EUR 7,500.00
per month.
Auditors and auditors’ fees
PricewaterhouseCoopers Oy, an auditing rm,
was elected as the auditor, with Jukka Pauno-
nen, Authorized Public Accountant, as the prin-
cipally responsible auditor. The auditor shall be
paid remuneration according to a reasonable
invoice approved by the company.
Board authorizations
The Annual General Meeting authorized the
Board of Directors to decide on the repurchase
of the company’s own series A and series B sha-
res in one or more lots as follows:
The total number of own series A shares to be
repurchased may be a maximum of 1,463,526
shares, and the total number of own series B
shares to be repurchased may be a maximum
of 947,416 shares. The number of shares repre-
sents approximately ten percent of all the sha-
res of the company on the date of the Notice
of the Annual General Meeting.
Based on the authorization, the company’s
own shares may only be repurchased with
unrestricted equity.
The company’s own shares may be repurcha-
sed at the price formed for series B shares in
public trading or at the price otherwise formed
on the market on the purchase day.
The Board of Directors will decide how the
company’s own shares will be repurchased.
Financial instruments such as derivatives may
be used in the purchasing. The company’s own
shares may be repurchased in other propor-
tion than the shareholders’ proportional sha-
reholdings (private purchase). Shares may be
repurchased through public trading at the pre-
vailing market price formed for the B-shares in
public trading on the Nasdaq Helsinki Oy on
the date of repurchase.
The authorization will replace earlier unused
authorizations to repurchase the company’s
own shares. The authorization will be in force
until the next Annual General Meeting but no
later than until June 30, 2022.
The Annual General Meeting authorized the
Board of Directors to decide on the issuance
of shares and special rights entitling to shares
pursuant to chapter 10, section 1, of the Com-
panies Act in one or more lots, for a fee or free
of charge.
Based on the authorization, the number of sha-
res issued or transferred, including shares recei-
ved based on special rights, may total a maxi-
mum of 2,410,942 series B shares. The number
of shares represents approximately ten percent
of all the shares of the company on the date
of the Notice of the Annual General Meeting.
Of the above-mentioned total number, howe-
ver, a maximum of 241,094 shares may be used
as part of the company’s share-based incen-
tive schemes, representing approximately one
percent of all the shares of the company on
the date of the Notice of the Annual General
Meeting.
The authorization will entitle the Board of Dire-
ctors to decide on all the terms and conditions
related to the issuing of shares and special
rights entitling to shares, including the right
to deviate from the shareholders’ pre-emptive
subscription rights. The Board of Directors may
decide to issue either new shares or any own
shares in the possession of the company.
The authorization will replace earlier unused
authorizations concerning the issuance of sha-
res as well as the issuance of options and other
special rights entitling to shares. The authoriza-
tion will be in force until the end of the next
Annual General Meeting but no longer than
until June 30, 2022.
Decisions taken by the Annual General Meeting
53 | 165
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EVLI BANK PLC
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Financial review
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Evli Bank Plc’s Extraordinary General Meeting
held on 22 December 2021 has approved the
arrangement between Evli Bank Plc (“Evli”) and
Fellow Finance Plc (“Fellow Finance”), where
Evli will demerge through a partial demerger
into a new asset management group of com-
panies which will be listed on a stock exchange
and into a company that will carry on Evli’s
banking services and into which Fellow Finance
will merge.
Demerger
In order to complete the demerger, the Gene-
ral Meeting resolved to approve the partial
demerger of Evli Bank in accordance with the
demerger plan dated 30 September 2021 and
approved by the Board of Directors of Evli Bank
and registered with the Trade Register on 1
October 2021 (the “Demerger Plan”) and to
approve the proposals of the Board of Direc-
tors in order to complete the following matters
in relation to the completion of the demerger:
(A) the establishment of Evli Plc and the approval of
the articles of association;
(B) the composition of the Board of Directors of Evli
Plc and on the remuneration paid to the
members of the Board of Directors;
(C) the election and remuneration of the Auditor of
Evli Plc;
(D) the issuance of a shares and b shares in Evli Plc
to the shareholders of Evli Bank as demerger
consideration;
(E) authorisation of the Board of Directors of Evli Plc
to issue shares and special rights entitling to
shares in Evli Plc;
(F) authorisation of the Board of Directors of Evli Plc
to decide on the repurchase of Evli Plc’s own
shares;
(G) authorisation of the Board of Directors of Evli Plc
to decide on a share issue for establishing a
share-based incentive plan with similar terms as
evli’s incentive plan currently in force; and
(H) the decrease of Evli Bank’s share capital and the
dissolution of the share premium reserve.
Resolutions that are conditional on the
completion of the demerger will enter into
force in connection with the registration of
the completion of the demerger. The planned
completion date of the demerger is 2 April
2022. The completion date may change in
accordance with the Demerger Plan.
In accordance with the Demerger Plan, Evli
Bank will demerge so that all assets and
liabilities relating to Evli Bank’s asset manage-
ment services, custody, clearing and settle-
ment, and trading services and their support
services (i.e. the operations falling under the
investment services authorisation) will transfer
without a liquidation procedure to Evli Plc, a
company to be incorporated in the demerger
as set forth in the Demerger Plan, through a
partial demerger in accordance with the
Finnish Companies Act (624/2006, as
amended) and the Act on Commercial Banks
and Other Credit Institutions in the Form of a
Limited Company (1501/2001, as amended).
The demerging company will retain the assets
and liabilities relating to banking services, i.e.
the operations falling under the credit
institution license.
In addition to the other matters described in
the Demerger Plan, the resolution on the
merger included the following key matters
described in more detail in the Demerger
Plan:
(A) The establishment of Evli Plc, and the
approval of the Articles of Association
Evli Plc as the receiving company in the demer-
ger is established in connection with the
registration of the completion of the demer-
ger. It has been proposed that the trade name
of the company be Evli Oyj (in English: Evli Plc),
and the company’s Articles of Association are
included in full as an appendix to the Demer-
ger Plan.
(B) The number of the members of the
Board of Directors of Evli Plc, election of
the members of the Board of Directors and
remuneration to be paid to the members
of the Board of Directors
In accordance with the proposal of the Board
of Directors of Evli Bank, the General Meeting
resolved to elect ve (5) members to the Board
of Directors of Evli Plc. Henrik Andersin, Fred-
rik Hacklin, Sari Helander, Robert Ingman and
Teuvo Salminen were elected as members of
the Board of Directors for a term starting on
the registration date of the completion of the
demerger and ending at the end of the first
Annual General Meeting following the registra-
tion date.
The General Meeting resolved that the mem-
bers of the Board of Directors of Evli Plc shall
be paid the following remuneration for the
term ending at the end of the next Annual
General Meeting:
• Chairperson of the Board, EUR 7,500.00 per
month,
• Committee Chairpersons EUR 6,000.00 per
month, and
• Each member of the Board, EUR 5,000.00
per month.
(C) Election of the Auditor of Evli Plc and
the remuneration paid to the Auditor
PricewaterhouseCoopers Oy was elected as
the auditor of Evli Plc, with Jukka Paunonen
acting as the responsible auditor. The auditor
will be reimbursed in accordance with the audi-
tors’ reasonable invoice approved by the Board
of Directors of Evli Plc.
(D) Demerger consideration
In accordance with the Demerger Plan, the sha-
reholders of Evli Bank shall receive as demerger
consideration one (1) new A share of Evli Plc for
each A share owned in Evli Bank and one (1) B
share of Evli Plc for each B share owned in Evli
Bank, that is, the demerger consideration shall
be issued to the shareholders of Evli Bank in
proportion to their existing shareholding with
a ratio of 1:1.
Evli Plc has two (2) share classes (A shares and
B shares). The shares of Evli Plc do not have a
nominal value.
No other consideration shall be issued to the
shareholders of Evli Bank in addition to the afo-
rementioned demerger consideration to be
issued in the form of shares in Evli Plc.
(E) Authorisation to issue shares and
special rights entitling to shares in Evli Plc
In accordance with the proposal of the Board
of Directors of Evli Bank, the General Meeting
Decisions taken by the Extraordinary General Meeting
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resolved to authorise the Board of Directors of
Evli Plc to decide on the issuance of shares and
special rights entitling to shares as referred to
in Chapter 10, section 1 of the Limited Liability
Companies Act in one or more tranches either
against payment or free of charge.
The maximum number of shares to be issued or
transferred based on the authorisation, inclu-
ding the shares received on the basis of the
special rights, is 2,410,942 of Evli Plc’s class B
Shares in total. The proposed number of sha-
res corresponds to approximately 10 percent
of the company’s shares as at the date of this
notice convening the general meeting. Howe-
ver, a maximum of 241,094 of Evli Plc’s class
B shares of the aforementioned maximum
amount can be issued for use as part of Evli
Plc’s share-based incentive plans, which corres-
ponds to approximately 1 percent of the total
number of all shares in the company at the date
of this notice convening the general meeting.
The authorisation entitles the Board of Dire-
ctors of Evli Plc to decide on all terms of the
issuance of shares and special rights entitling
to shares, including the right to deviate from
the shareholders’ pre-emptive subscription
right. The Board of Directors of Evli Plc can
decide to issue either new shares or treasury
shares potentially held by the company.
The authorisation is valid until the end of the
next Annual General Meeting, however, no lon-
ger than until 30 June 2023.
(F) Authorisation to decide on repurchase
of Evli Plc’s own shares
In accordance with the proposal of the Board
of Directors of Evli Bank, the General Meeting
resolved to authorise the Board of Directors of
Evli Plc to decide on the repurchase of Evli Plc’s
own class A Shares and class B shares in one or
more tranches as follows:
The maximum number class A Shares that
can be repurchased is 1,463,526 shares, and
the maximum number of B Shares that can be
repurchased is 947,416 shares. The proposed
number of shares corresponds to approxima-
tely 10 percent of the company’s shares as at
the date of this notice convening the general
meeting.
The company’s own shares can only be
repurchased based on the authorisation using
the company’s unrestricted equity.
The Board of Directors of Evli Plc resolves on
the manner in which shares are to be repurcha-
sed. Shares may be repurchased using, inter
alia, derivatives. The company’s own shares
can be acquired other than in proportion to
the shareholdings of the shareholders (directed
acquisition). Shares can be repurchased at the
price of the class B Share determined in public
trading organised by Nasdaq Helsinki Ltd on
the repurchase date.
The authorisation is valid until the next Annual
General Meeting, however no longer than until
30 June 2023.
(G) Authorisation to decide on a share
issue for establishing a share-based
incentive plan
In accordance with the proposal of the Board
of Directors of Evli Bank, the General Meeting
resolved to authorise the Board of Directors of
Evli Plc to establish incentive plans for Evli Plc
and its employees that correspond Evli’s exis-
ting and registered incentive plans.
The General Meeting authorised the Board of
Directors of Evli Plc to decide on the issuance
of shares and special rights entitling to sha-
res as referred to in Chapter 10, section 1 of
the Limited Liability Companies Act in one or
more tranches either against payment or free
of charge. The authorisation will be used for
carrying out the company’s share-based incen-
tive plans.
The maximum number of shares to be issued or
transferred based on the authorisation, inclu-
ding the shares received on the basis of the
special rights, is 733,338 of Evli Plc’s class B Sha-
res in total.
The authorisation will entitle the Board of Dire-
ctors of Evli Plc to decide on all terms of the
issuance of shares and special rights entitling
to shares, including the right to deviate from
the shareholders’ pre-emptive subscription
right. The Board of Directors of Evli Plc can
decide to issue either new shares or treasury
shares potentially held by the company.
The authorisation is valid until the end of the
next Annual General Meeting, however, no lon-
ger than until 30 June 2023.
(H) Decrease of share capital and
dissolution of share premium reserve
The share capital of Evli Bank is decreased in
connection with the demerger by an amount
equalling Evli Plc’s share capital, i.e. to EUR
6,448,637.65. The amount by which the share
capital of Evli is decreased shall be used to
transfer funds to Evli Plc. The proposed share
capital of Evli Plc is EUR 23,745,459.66. In con-
nection with the demerger, Evli Bank’s share
premium reserve will be dissolved and these
funds will be transferred to Evli Plc’s reserve for
invested unrestricted equity.
The merger
In order to complete the combination, the
General Meeting resolved to approve the
absorption merger of Fellow Finance into Evli
Bank in accordance with the merger plan dated
30 September 2021 and approved by the Board
of Directors of Evli Bank and Fellow Finance,
registered with the Trade Register on 1 Octo-
ber 2021 (the “Merger Plan”) and to approve
the proposals of the Board of Directors in order
to complete the following matters in relation to
the execution of the merger:
(a) the amendment of Evli Bank’s Articles of
Association after the demerger and the
combination of Evli’s class A shares and class B
shares after the demerger into one share class;
(b) the composition of the Board of Directors of Evli
Bank after the demerger and on the remunerati
on paid to the members of the Board of
Directors;
(c) the election and remuneration of the auditor of
Evli Bank after the demerger;
(d) the issuance of shares in Evli Bank to the
shareholders of Fellow Finance as merger
consideration after the demerger; and
(e) the establishment of a Shareholders’ Nomination
Board.
Resolutions that are conditional on the comple-
tion of the merger will enter into force in con-
nection with the registration of the completion
of the merger. The planned completion date
of the merger is 2 April 2022. The completion
date may change in accordance with the Mer-
ger Plan.
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Responsibility
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In accordance with the Merger Plan, Fellow
Finance will merge into Evli Bank through an
absorption merger so that all assets and liabi-
lities of Fellow Finance will be transferred wit-
hout a liquidation procedure to Evli Bank as set
forth in the Merger Plan.
In addition to the other matters described in
the Merger Plan, the resolution on the merger
included the following key matters described
in more detail in the Merger Plan:
(A) Amendment of the Articles of Associa-
tion and combination of share classes
In accordance with the proposal of the Board
of Directors of Evli Bank, the General Meeting
resolved that, in addition to the other amend-
ments, the Articles of Association of Evli Bank
following the demerger shall be amended in
accordance with the Merger Plan as follows:
(I) Article 1 concerning the company’s trade name is
amended so that the company’s new trade name
is Fellow Bank Oyj (in English: Fellow Bank Plc)
(“Fellow Bank”).
(Ii) Article 2 concerning the company’s line of
business is amended so as to better reect the
business of the combined company.
(Iii) The class A shares and class B shares of the
Company will be combined into one share class
by removing Article 4 concerning shares from the
Articles of Association..
Upon the completion of the merger and after
the demerger Evli Bank’s class A and class B
shares shall be converted into one share class
whereby each share confers one vote. The 20
votes conferred by Evli Bank’s class A shares are
converted into one vote conferred by a share of
the combined class so that after the combina-
tion of the share classes each share in Evli Bank
following the demerger confers one (1) vote.
The proposed amended Articles of Associa-
tion are included in full as an appendix to the
Merger Plan.
The amendment will enter into force in conne-
ction with the registration of the completion
of the merger.
(B) The number of the members of the
Board of Directors of Evli Bank after the
demerger, election of the members of the
Board of Directors and remuneration to
be paid to the members of the Board of
Directors
The General Meeting resolved that to elect
six (6) members to the Board of Directors of
Evli Bank. Markku Pohjola, Teuvo Salminen,
Lea Keinänen, Kai Myllyneva, Jorma Pirinen
and Tero Weckroth were elected as members
of the Board of Directors for a term starting
on the registration date of the completion of
the merger and ending at the end of the rst
Annual General Meeting following the registra-
tion date.
The General Meeting resolved that the mem-
bers of the Board of Directors of Evli Bank after
the demerger shall be paid the following remu-
neration for the term ending at the end of the
next Annual General Meeting:
• Chairperson of the Board, EUR 5,000.00 Per
month,
• Committee chairpersons, EUR 4,000.00 Per
month, and
• Other members of the Board, EUR 3,400.00
Per month.
(C) Election of the auditor of Evli Bank after
the demerger and the remuneration paid
to the auditor;
PricewaterhouseCoopers Oy was elected as
the auditor of the company, with Jukka Pau-
nonen acting as the responsible auditor. The
auditor will be reimbursed in accordance with
the auditor’s reasonable invoice approved by
the Board of Directors of Evli.
(D) Merger consideration
In accordance with the Merger Plan, the share-
holders of Fellow Finance shall, after the com-
bination of the share classes of Evli described
above, receive as merger consideration six (6)
new shares in Evli Bank for each share they hold
in Fellow Finance.
(E) Establishment of a Shareholders’
Nomination Board
The General Meeting resolved, conditionally
upon the completion of the merger, to estab-
lish a permanent Shareholders’ Nomination
Board to prepare the election and remunera-
tion of the Board of Directors (the “Nomina-
tion Board”) after the demerger and conrm
the charter for the Nomination.
The main provisions of the charter read as fol-
lows:
• The duties of the Nomination Board are to:
(i) prepare and present a proposal to the
General Meeting for the number of mem-
bers of the Board of Directors, (ii) prepare
and present a proposal to the General
Meeting for the Chairperson, Vice Chair-
person and members of the Board of Dire-
ctors, (iii) prepare and present a proposal
to the General Meeting for the remunera-
tion of the members of the Board of Dire-
ctors (including the Chairperson and the
Vice Chairperson) in accordance with the
remuneration policy for governing bodies,
(iv) respond in the General Meeting to the
shareholders’ questions concerning the pro-
posals prepared by the Shareholders’ Nomi-
nation Board, (v) prepare and see to it that
the Company has up to date principles on
the diversity of the Board of Directors and
(vi) see to the successor planning for the
members of the Board of Directors.
• The Nomination Board has four (4) mem-
bers. The chairperson of the Company’s
Board of Directors may participate in the
work of the Nomination Board as an expert
without the right to participate in the Nomi-
nation Board’s decision making.
• The members of the Nomination Board are
appointed so that the Company’s four (4)
largest shareholders are entitled to appoint
one (1) member each.
• The number of shares owned by the share-
holders is determined on the basis of the
Company’s shareholders’ register in accor-
dance with the situation on the last day of
August each year.
• The Nomination Board must make its deci-
sions unanimously. If unanimity cannot be
reached, the Nomination Board must inform
the Board of Directors of this without delay.
The increase of Fellow Bank’s share
capital proposed in the Merger Plan
immediately after the completion of the
merger
In accordance with the proposal of the Board
of Directors, the General Meeting resolved on
a share issue, which is conditional upon the
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Responsibility
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completion of the merger. The share issue will
be carried out as a directed share issue, i.e. in
deviation from the shareholders’ pre-emptive
subscription right so that shares will be subscri-
bed for by Taaleri Plc, TN Ventures Oy and Evli
Plc in accordance with the undertakings they
have issued.
The directed share issue will be of the amount
of EUR 11,715,469.09 and will be used to
strengthen Fellow Bank’s solvency, i.e. CET1
core Tier 1 capital. Therefore, there is a weighty
nancial reason for deviating from the share-
holders’ pre-emptive subscription right.
The new shares issued in the directed share
issue will be subscribed for and paid immedia-
tely after the completion of the merger. The
issue shares represent approximately 29.9 per-
cent of all shares in Fellow Bank immediately
after the completion of the merger calculated
on the basis of the number of shares in Evli
Bank’s and Fellow Finance issued and outstan-
ding on the date of the notice convening the
General Meeting. After the combination of the
share classes, a total of 20,005,924 new sha-
res will be issued in the directed share issue so
that a total of 4,205,325 shares will be offered
for subscription to Taaleri Plc, 512,296 shares
to TN Ventures Oy and 15,288,303 shares to
Evli Plc. The subscription price of the shares
is EUR 0.5856 per share, and the subscription
price is determined on the basis of the pricing
applied in the Arrangement. The subscription
price of the shares must be paid to the Fellow
Bank on the completion date of the merger,
at the latest.
Changes in the group structure
Evli Bank Plc acquired ve percent and sold 40
percent of its shares in Terra Nova Capital Advi-
sors Ltd to the company’s employees. After the
transactions, Evli Bank’s holding in the com-
pany will be 55 percent.
Alexander Incentives Oy, a fully-owned subsi-
diary of Evli Alexander Incentives Oy, was mer-
ged with Evli Alexander Incentives Oy on 30
April 2021.
Evli Bank Plc sold seven percent of its shares
in Evli Corporate Finance AB to the company’s
employees. After the transactions, Evli’s hol-
ding in the company will be 52 percent.
Evli Bank Plc sold all its shares in Evli Research
Partners Oy, 70 percent of the company’s sha-
res, to its subsidiary Evli Corporate Finance Ab.
Evli Fund Management Company, an Evli
Group company, established Evli Growth Part-
ners II Oy, an alternative investment fund busi-
ness, together with the key persons of the fund.
Evli Fund Management Company owns 70% of
the company.
Evli Private Equity Partners Oy, an Evli Group
company, established Evli Private Equity III GP
Oy, an alternative investment fund business,
together with key members of the fund. Evli
Private Equity Partners Oy owns 92.5% of the
company.
Evli Fund Management Company establis-
hed Evli Residential II GP Oy, an alternative
investment fund business, together with key
members of the fund. Evli Fund Management
Company owns 70% of the company.
Business environment
The year 2022 has started on a challenging
note for markets, with heightened interest rate
and ination fears, increased geopolitical risks
and a drop in the markets.
The excellent performance of traditional invest-
ment products and the growing investment
interest of clients provide good conditions
for growth. Evli already has a strong position
among both institutions and wealthy individu-
als. The prospects for growth in the company’s
domestic market in Finland are good, espe-
cially with the expanded product range.
In line with its strategy, Evli has increasingly
invested in the development of internatio-
nal sales and alternative investment products.
These are seen as signicant sources of growth
for the company and as a way to further diver-
sify the company’s revenue base. Investments
have also been made to achieve greater busi-
ness scalability.
In terms of international growth, the company’s
focus is on the Nordic and European markets.
In addition to product availability, the streamli-
ning and adaptation of administrative proces-
ses and structures to correspond to the stan-
dards that investors are accustomed to in other
markets are critical for the success of interna-
tional growth. Evli is excellently placed where
international sales are concerned, and the
image of a high-quality Nordic fund manage-
ment boutique is of interest to foreign inves-
tors. Thanks to the company’s highly develo-
ped products, the company’s prospects for
growth abroad have further improved.
Evli sees alternative investment products as
another important strategic priority. The com-
pany’s ambition is to be able to offer a comp-
rehensive range of products from typical, very
liquid xed income funds to real and private
equity funds. To achieve this goal, Evli has int-
roduced several new products to the market
over the last few years, and the company’s
product offering currently covers a wide range
of different asset classes. As the investment
period for these products draws to a close,
the company intends to launch new products
in the product categories, such as the Evli Pri-
vate Equity III fund, which was launched in the
fourth quarter. The Finnish market for alterna-
tive investment products is highly competitive.
Despite the challenges posed by the opera-
ting environment, Evli’s aim is to turn alterna-
tive investment products into a major source
of revenue, with the help of a comprehensive
offering and exceptional expertise.
Risk management and business risks
Evli’s most significant near-term risk is the
impact of market performance on the compa-
ny’s business functions. Securities market per-
formance has a direct impact on the wealth
management business. Its revenue is based
on the performance of assets under manage-
ment and is therefore subject to market uctua-
tions. The general performance of the markets
also has an impact on brokerage operations.
In advisory assignments, any changes in the
market condence of investors and corporate
management may result in the lengthening or
termination of projects.
Evli’s most signicant risks associated with its
bank and investment activities are liquidity,
market and interest rate risks. These risks are
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Responsibility
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EVLI BANK PLC
ANNUAL REPORT 2021
Financial review
TO THE FINANCIAL STATEMENTS CONTENTS
controlled with limits set by Evli Bank’s Board
of Directors. The limits are constantly moni-
tored. The basis for investments made by the
company is that they must not endanger Evli’s
result or solvency. Evli’s investments are very
highly diversied, and dependency on a single
company is restricted by limiting the size of
company-specific investments, for example.
Regardless of good monitoring, there is
always a certain degree of risk involved in
investment activities, which means the return
from investment activities can uctuate signi-
cantly from one quarter to the next. A more
detailed description of operational risks is pro-
vided on pages 83-87.
Outlook for 2022
The year 2022 has started on a challenging
note for markets, with heightened interest rate
and ination fears, increased geopolitical risks
and a drop in the markets.
With the demerger planned for 2022, Evli will
be able to better focus on developing both its
wealth management and banking businesses.
Growth prospects for the asset management
business, which includes products and services
for investors and corporates, are stable. Howe-
ver, there are always risks associated with the
general development of the equity and xed
income markets. A possible fall in share prices
or a reduction in investors’ risk appetites would
have a negative impact on the company’s per-
formance. The Group’s assets under manage-
ment reached a new record level at the end of
2021 and the product range has expanded, in
particular in alternative investment products,
which will mitigate the negative impact on
results from a possible market turnaround.
The banking business will be clearly strengt-
hened by the merger of Fellow Finance Plc
with Evli Bank Plc, which will result in positive
growth prospects for this business. However,
there is considerable uncertainty about the
development of the loan and deposit portfo-
lio, which is critical for the business. These will
have a direct impact on the company’s short-
term performance.
In view of the above, the outlook for the ban-
king operations will become clearer once the
demerger and merger are completed. For the
asset management business, we expect the
operating result to be at a good level. The
outlook for asset management will be further
specied after the completion of the demerger
and during the year as the outlook for market
developments becomes clearer.
Helsinki, February 10, 2022
EVLI BANK PLC
Board of Directors
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Shares and Shareholders’ Equity
Evli Bank has two series of shares, the A and B
series. One series A share entitles the holder
to twenty (20) votes and one series B to one (1)
vote at the General Meeting. The two series
of shares have equal rights to dividends and
other forms of prot distribution. The Compa-
ny’s series B share is listed on the ofcial list of
Nasdaq Helsinki with the ticker symbol “EVLI”
and ISIN code FI4000170915.
At the end of December 2021, the aggregate
number of Evli’s shares was 24,109,420, with
the series A shares accounting for 14,507,948
shares and series B shares for 9,601,472 shares.
The company held 251,983 of its own series
B shares. At the end of 2021, the company’s
share capital amounted to 30,194,097.31 euro.
The share capital remained unchanged throug-
hout the year.
Trading in shares
At the end of December 9,601,472 of Evli’s
series B shares were publicly traded in Nas-
daq Helsinki. The share exchange between
January and December totalled 42.0 million
euro while the number of Evli shares exchan-
ged was 2,224,929. During 2021, the highest
trading price of the share was EUR 26.90 while
the lowest price was EUR 11.90. The share’s
closing price on December 31, 2021 was EUR
26.20. Evli’s market capitalisation, calculated
based on both the unlisted series A and the
listed series B shares, was EUR 631.7 million
on December 31, 2021. The series A shares are
valued at the review year closing price of the
series B shares.
Shareholders
At the end of 2021, Evli had 5,897 (5,172) sha-
reholders in the book-entry register. The stake
of Finnish companies was 54 percent (54%) and
that of private Finnish individuals was 27 per-
cent (27%). The remaining 19 percent of the
shares (18%) were owned by Financial and
insurance institutions, public sector organiza-
tions, non-profit institutions serving house-
holds and foreign investors.
(2020: 294.1)
Market capitalisation, M€
631.7
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Responsibility
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EVLI BANK PLC
ANNUAL REPORT 2021
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TO THE FINANCIAL STATEMENTS CONTENTS
LARGEST SHAREHOLDERS 31.21.2021 A Shares B Shares Shares total % of all shares
Number of votes
% of votes
1. Oy Scripo Ab 3,803,280 950,820 4,754,100 19.7 77,016,420 25.7
2. Prandium Oy Ab 3,803,280 950,820 4,754,100 19.7 77,016,420 25.7
3. Oy Fincorp Ab 2,319,780 339,141 2,658,921 11.0 46,734,741 15.6
4. Ingman Group Oy Ab 1,860,000 650,000 2,510,000 10.4 37,850,000 12.6
5. Lehtimäki Maunu 533,728 171,031 704,759 2.9 10,845,591 3.6
6. Moomin Characters Oy Ltd 0 411,235 411,235 1.7 411,235 0.1
7. Hollfast John Erik 328,320 82,080 410,400 1.7 6,648,480 2.2
8. Tallberg Claes 369,756 32,588 402,344 1.7 7,427,708 2.5
9. Evli Pankki Oyj 0 251,983 251,983 1.0 251,983 0.1
10. Svenska Litteratursällskapet i Finland 0 220,336 220,336 0.9 220,336 0.1
BREAKDOWN OF SHAREHOLDINGS
BY OWNER GROUP
Number of
shareholders
Proportion of
shareholders, %
Number
of shares
Proportion
of shares, %
Number
of votes
Proportion
of votes, %
Companies 250 4.2 13,046,471 54.1 192,911,111 64.4
Financial and insurance institutions 26 0.4 3,396,480 14.1 47,855,614 16.0
Public sector organizations 2 0.0 182,288 0.8 182,288 0.1
Households 5,567 94.4 6,478,128 26.9 58,188,680 19.4
Non-prot institutions 24 0.4 374,996 1.6 374,996 0.1
Foreigners 28 0.5 222,031 0.9 247,743 0.1
Total 5,897 100.0 24,109,420 100.0 299,760,432 100.0
of which nominee registered 10 409,026 1.7 409,026 0.1
Number of shares issued 24,109,420 100.0 299,760,432 100.0
BREAKDOWN OF SHAREHOLDINGS
BY SIZE CLASS
Number of
shareholders
Proportion of
shareholders, %
Number
of shares
Proportion
of shares, %
Number
of votes
Proportion
of votes, %
1-100 2,450 41.5 112,683 0.5 112,683 0.0
101-1,000 2,868 48.6 911,816 3.8 911,816 0.3
1,001-10,000 486 8.2 1,363,812 5.7 1,645,012 0.5
10,001-100,000 66 1.1 2,180,352 9.0 10,675,442 3.6
100,001-500,000 22 0.4 4,158,877 17.3 36,952,307 12.3
500,001- 5 0.1 15,381,880 63.8 249,463,172 83.2
Total 5,897 100.0 24,109,420 100.0 299,760,432 100.0
of which nominee registered 10 409,026 1.7 409,026 0.1
Number of shares issued 24,109,420 100.0 299,760,432 100.0
Breakdown of shareholdings
by owner group
Breakdown of votes
by owner group
24,109,420
299,760,432
Companies: 54.1%
Households:26.9%
Financial and insurance institutions: 14.1%
Non-prot institutions: 1.6%
Public sector organizations: 0.8%
Foreigners: 0.9%
Companies: 64.4%
Financial and insurance institutions: 16.0%
Public sector organizations: 0.1%
Households: 19.4%
Non-prot institutions: 0.1%
Foreigners: 0.1%
Nominee registered: 0.1%
60 | 165
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EVLI BANK PLC
ANNUAL REPORT 2021
Financial review
TO THE FINANCIAL STATEMENTS CONTENTS
Authorisations given to the
Board of Directors
The Annual General Meeting on March 9, 2021
authorized the Board of Directors to decide on
the repurchase of the company’s own series A
and series B shares in one or more lots. The
total number of own series A shares to be
repurchased may be a maximum of 1,463,526
shares, and the total number of own series B
shares to be repurchased may be a maximum
of 947,416 shares. The proposed number of
shares represents approximately ten percent
of all the shares of the company’ on the date
of the Notice of the Annual General Meeting.
The authorisation remains in force until the fol-
lowing Annual General Meeting, however, no
longer than until June 30, 2022. In 2021 Evli did
not acquire any own shares.
Evli’s series A shares can be converted into
series B shares under Article 4 of the Articles
of Association. During 2020, the company
converted A shares into B shares as follows:
• 109,716 A shares were converted into B
shares on October 20, 2021 and November
1, 2021. Public trading with the converted
shares began at Nasdaq Helsinki Ltd on
November 9, 2021.
• 10,000 A shares were converted into
B shares on July 14, 2021. Public tra-
ding with the converted shares began at
Nasdaq Helsinki Ltd on July 26, 2021.
• 7,600 A shares were converted into B shares
on January 22, 2021. Public trading with the
converted shares began at Nasdaq Helsinki
Ltd on January 23, 2021.
Option and share-based incentive
programs
Evli’s has ve share-based incentive programs
established in 2017, 2018, 2019, 2021 and
2021-2025. The rewards based on the incentive
program are given in Evli shares. Further infor-
mation on the incentive program on the web
page www.evli.com/investors and Note 1.8.
Employee benets as well as from the remu-
neration report on pages 159-162.
Share ownership of executives
The share ownership of the Board members
of Evli Bank Plc, including the holdings in the
controlled corporations, were 7,341,550 sha-
res in total on December 31, 2021, accounting
for 30.8 percent of the total shares and 38.3
percent of voting rights. The members of the
Board of Directors of Evli Bank Plc held no
stock options.
At year-end, CEO Maunu Lehtimäki owned
704,759 shares which is 2.9 percent of the sha-
res and 3.6 percent of the voting rights. Moreo-
ver, he has been allocated 50,000 Evli shares in
the context of the share-based incentive pro-
gram established in 2019.
At year-end, other members of Evli Group’s Exe-
cutive Group owned 720,233 shares in aggre-
gate, corresponding to 3.0 percent of the total
shares and 2.4 percent of the voting rights. In
addition, the Executive Group was allocated
9,200 Evli shares in the context of the share-ba-
sed incentive program established in 2017 and
14.001 Evli shares in the context of the sha-
re-based incentive program established in
2018 and 140,000 Evli shares in the context of
the share based incentive program establis-
hed in 2019.
CHANGES IN THE SHARE CAPITAL, BOARD AUTHORIZATIONS AND OPTION PROGRAMS
Number of own
shares held
Number of
outstanding
shares
Share capital,
M€
Share premium
fund, M€
Fund of
invested
non-restricted
equity, M€
1.1.2020 375,387 23,526,033 30.2 1.8 18.7
Aquisition of own shares 0 0 0.0 0.0 0.0
Option rights subscription (option program 2014) -46,389 254,389 0.0 0.0 1.5
Aquisition of minority interest 0 0 0.0 0.0 2.7
31.12.2020 328,998 23,780,422 30.2 1.8 22.8
Total number of shares 24,109,420
1.1.2021 328,998 23,780,422 30.2 1.8 22.8
Aquisition of own shares 0 0 0 0 0
Disposal of own shares -77,015 77,015 0 0 0
Other changes 0 0 0 0 2.0
31.12.2021 251,983 23,857,437 30.2 1.8 24.8
Total number of shares 24,109,420
61 | 165
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Financial review
TO THE FINANCIAL STATEMENTS CONTENTS
Annual General Meeting
9.3.2022
Basic share information
Evli Bank has two share series, series A sha-
res and series B shares. A series A share con-
fers twenty (20) votes and a series B share
confers one (1) vote at the General Meeting.
The share series have identical entitlements
to dividends and other profit sharing. The
company’s series B shares are listed on the
ofcial list of Nasdaq Helsinki with the ticker
symbol “EVLI” and ISIN code FI4000170915.
• A shares (December 31, 2021): 14,507,948
• B shares (December 31, 2021): 9,601,472
Investor calendar 2022
• Annual report and nancial statements for
the nancial year 2021: week 7
• Final registration date for voting at the
Annual General Meeting: March 2, 2022 at
4.00 pm.
• Annual General Meeting (AGM), Helsinki:
March 9, 2022
• Dividend record date March 11, 2022
• Proposed dividend payment date March
18, 2022
• Silent period: March 23-April 21, 2022
• The interim report for January-March 2022,
published on April 21, 2022
• Silent period: June 16-July 15, 2022
• The half-year financial report for Janua-
ry-June 2022, published on July 15, 2022
• Silent period: September 21-October 20,
2022
• The interim report for January-September
2022, published on October 20, 2022.
Evli’s nancial reports as well as stock exchange
and press releases are published in Finnish
and in English. Evli’s stock exchange relea-
ses and press releases can be subscribed to at
www.evli.com/investors.
Annual General Meeting of shareholders
The Annual General Meeting (AGM) of Evli
Bank Plc will be held in accordance with the
provisions of the temporary legislation appro-
ved by the Finnish Parliament on September
15, 2020 (677/2020, Act on temporary devia-
tion from the Limited Liability Companies Act)
without the physical presence of shareholders
and their proxy representatives.
The notice to the AGM and the Board’s pro-
posals to the AGM are published as a stock
exchange release and on www.evli.com. The
notice lists the matters to be discussed at the
AGM. A shareholder has the right to request
on the agenda of the annual general meeting
an item that falls within the competence of the
general meeting by virtue of the Limited Lia-
bility Companies Act, provided that the share-
holder demands so in writing from the Board
of Directors, well in advance of the meeting,
so that the item can be added in the notice
of the annual general meeting. In accordance
with the Act on temporary deviation from the
Limited Liability Companies Act a decision
proposal may be included in the AGM agenda
provided that the shareholders having sub-
mitted the proposal hold at least one percent
of all the shares in the company.
Registration and voting
A shareholder wishing exercise the right to
vote on matters to be discussed at the AGM
must register as a participant by March 2, 2022.
Additional information about the registration
at www.evli.com/agm-2022
Proposed distribution of dividends
The Board proposes to the AGM a dividend
of a maximum of EUR 1.06 per share be paid
for series A and B shares, totalling approxima-
tely EUR 25.3 million. The Board of Directors
proposes that the dividend is paid on March
18, 2022.
Evli’s investor communications
The main channel for Evli’s investor commu-
nications is the company’s website, where
the company publishes all its stock exchange
releases and press releases, its interim reports,
nancial statements, annual reports and Gene-
ral Meeting notices. The website also has pre-
sentations related to the reporting of results
for investors and analysts, an investor calendar,
and information intended for shareholders and
analysts about the company’s shares, finan-
cial performance, ownership and Corporate
Governance. www.evli.com/investors.
Contact information
Juho Mikola
CFO
Tel. +358 40 717 8888
62 | 165
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EVLI BANK PLC
ANNUAL REPORT 2021
Financial review
TO THE FINANCIAL STATEMENTS CONTENTS
COMMON EQUITY TIER 1 CAPITAL, M€ 2021 2020
Own funds include share capital, funds and retained earnings. These items
are not subject to special terms.
Common equity tier 1 capital
Share capital 30.2 30.2
Funds total and retained earnings 46.4 40.3
Minority interest 0.0 0.0
Decreases:
Intangible assets 13.8 16.0
Other decreases 0.0 0.0
Total common equity tier 1 capital 62.8 54.5
Based on the capital adequacy disclosure requirements (CRR article 431), the following required additional
disclosures are presented in the nancial statements in the following sections:
• Exposure to counterparty credit risk: Notes on risk position/ Credit Risk (counterparty risk).
• Credit risk adjustments: Notes on risk position/ General information on credit and dilution risk (standard
model) and Techniques to reduce credit risk.
• Use of ECAIs: Notes on risk position/ General information on credit and dilution risk (standard model).
• Exposure to market risk: Notes on risk position/ Market risk.
• Operational risk: Notes on risk position/ Operational risk.
• Exposures in equities not included in the trading book: Notes on risk position/ Shares outside the trading book.
• Risk management objectives and policies: Risk management and internal control.
• Unencumbered assets: Notes to balance sheet/ Assets pledged as collateral and other commitments.
• Exposure to interest rate risk on positions not included in the trading book: Risk management and internal
control.
• Remuneration policy: Governance / Renumeration policy.
• Leverage: Risk management and internal control.
• Capital requirements, adequacy of internal capital: Risk management and internal contro.
MINIMUN REQUIREMENT OF OWN FUNDS, M€
Minimun capital adequacy requirement by asset group.
standard credit risk method
Own funds
min.
requirement
Risk-
weighted
value
Exposure
value after
credit risk
deductions
Claims from the state and central banks 0.0 0.0 384.3
Claims from regional governments and local authorities 0.0 0.0 0.0
Claims from credit institutions and investment rms 2.7 33.9 130.5
Investments in mutual funds 6.0 75.6 74.8
Claims secured with property 0.0 0.2 0.7
Claims from corporate customers 2.0 24.6 27.8
Items with high risk. as dened by the authorities 0.2 2.6 1.8
Other items 7.7 95.8 95.8
Total 18.6 232.7 715.7
Minimum amount of own funds. market risk 0.6 6.9 0.0
Risk-weighted receivables. investments and off-balance
sheet obligations. total 19.2 239.7 715.7
Minimum amount of own funds. operational risk 13.4 166.9 0.0
Total 32.5 406.6 715.7
EVLI GROUP´S CAPITAL ADECUACY 2021 2020 2019 2018 2017
Own assets (common equity Tier 1 capital), M€ 62.8 54.5 48.6 48.8 43.0
Risk-weighted items total for market- and credit risks, M€ 239.7 220.6 188.1 177.3 166.9
Operational risk, capital requirement 13.4 11.1 10.7 9.9 9.6
Capital adequacy ratio, % 15.4 15.2 15.1 16.2 15.0
Evli Bank Plc:s adequacy ratio, % 17.9 18.7 19.1 18.8 20.4
Own funds surplus M€ 30.3 25.8 22.8 24.8 20.0
Own funds in relation to the minimum capital requirement 1.9 1.9 1.9 2.0 1.9
(2020: 15.2)
Capital adequacy ratio, %
15.4
As of January 1, 2014, capital adequacy has
been calculated according to the Basel III stan-
dards. The term Basel III is used in the nancial
statements to mean the EU’s Capital Require-
ments Regulation 575/2013 and the related
additional regulations issued by the European
supervisory authority and international super-
visory authorities.
63 | 165
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a b c d e
(in currency amount)
Unweighted value by residual maturity Weighted value
No maturity < 6 months 6 months to < 1yr ≥ 1yr
Available stable funding (ASF) Items
1 Capital items and instruments 112 936 509 - - - 112 936 509
2 Own funds 112 936 509 - - - 112 936 509
3 Other capital instruments - - -
4 Retail deposits 250 908 479 - - 225 817 632
5 Stable deposits - - - -
6 Less stable deposits 250 908 479 - - 225 817 632
7 Wholesale funding: 111 487 412 - - 25 326 264
8 Operational deposits - - - -
9 Other wholesale funding 111 487 412 - - 25 326 264
10 Interdependent liabilities - - - -
11 Other liabilities: 0 107 089 499 11 565 233 88 237 567 82 702 478
12 NSFR derivative liabilities
13 All other liabilities and capital instruments not included in the above categories 107 089 499 11 565 233 88 237 567 82 702 478
14 Total available stable funding (ASF) 446 782 882
Required stable funding (RSF) Items
15 Total high-quality liquid assets (HQLA) 0
EU-15a Assets encumbered for more than 12m in cover pool - - - -
16 Deposits held at other nancial institutions for operational purposes - - - -
17 Performing loans and securities: - - - 137 257 966
18
Performing securities nancing transactions with nancial customers collateralised by Level 1 HQLA
subject to 0% haircut
- - - -
19
Performing securities nancing transactions with nancial customer collateralised by other assets
and loans and advances to nancial institutions
- - - -
20
Performing loans to non- nancial corporate clients, loans to retail and small business customers,
and loans to sovereigns, and PSEs, of which:
31 874 564 12 635 623 53 421 020 67 662 961
21
With a risk weight of less than or equal to 35% under the Basel II
Standardised Approach for credit risk
709 946 461 465
22 Performing residential mortgages, of which: - - - -
23
With a risk weight of less than or equal to 35% under the Basel II
Standardised Approach for credit risk
- - - -
24
Other loans and securities that are not in default and do not qualify as HQLA, including exchan
-
ge-traded equities and trade nance on-balance sheet products
9 072 017 19 186 305 65 043 891 69 133 540
25 Interdependent assets
26 Other assets: 55 564 429
27 Physical traded commodities
28 Assets posted as initial margin for derivative contracts and contributions to default funds of CCPs 3 063 265 - - 2 603 775
29 NSFR derivative assets - - - -
30 NSFR derivative liabilities before deduction of variation margin posted 4 297 467 - - 214 873
31 All other assets not included in the above categories 64 674 093 - 52 745 780 52 745 780
32 Off-balance sheet items 18 122 824 - - 906 141
33 Total RSF 193 728 536
34 Net Stable Funding Ratio (%) 230,6%
Requirement for permanent funding
In accordance with Article 451a (3) of the Solvency Regulation
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a b c d e f g h
Total unweighted value (average) Total weighted value (average)
EU 1a Quarter ending on (DD Month YYY) 31.12.2021 30.9.2021 30.6.2021 31.3.2021 31.12.2021 30.9.2021 30.6.2021 31.3.2021
EU 1b
Number of data points used in the calculation of
averages
HIGH-QUALITY LIQUID ASSETS
1 Total high-quality liquid assets (HQLA) 379 545 565 306 626 719 318 198 005 346 834 688
CASH - OUTFLOWS
2
Retail deposits and deposits from small business
customers, of which: 250 908 479 229 305 188 239 458 061 234 348 428 30 924 535 28 200 987 29 763 440 28 411 036
3 Stable deposits
4 Less stable deposits 250 908 479 229 305 188 239 458 061 234 348 428 30 924 535 28 200 987 29 763 440 28 411 036
5 Unsecured wholesale funding 113 066 651 97 267 159 90 934 720 102 991 654 81 391 999 75 788 093 68 730 322 85 415 362
6
Operational deposits (all counterparties) and deposits
in networks of cooperative banks
7 Non-operational deposits (all counterparties) 363 975 131 326 572 347 330 392 781 337 340 081 112 316 534 103 989 080 98 493 762 113 826 398
8 Unsecured debt
9 Secured wholesale funding
10 Additional requirements
11
Outows related to derivative exposures and other
collateral requirements 67 236 000 67 236 000 67 236 000 67 236 000 67 236 000 67 236 000 67 236 000 67 236 000
12
Outows related to loss of funding on debt products 937 650 927 675 299 250 696 255 937 650 927 675 299 250 696 255
13 Credit and liquidity facilities 17 882 824 13 088 031 12 614 206 17 282 054 5 859 937 3 536 625 3 324 969 4 322 565
14 Other contractual funding obligations 334 651 18 000 255 1 299 447 1 349 190 334 651 18 000 255 1 299 447 1 349 190
15 Other contingent funding obligations 240 000 253 000 1 065 000 0 240 000 253 000 1 065 000 0
16 TOTAL CASH OUTFLOWS 186 924 772 193 942 634 171 718 428 187 430 407
CASH - INFLOWS
17 Secured lending (e.g. reverse repos) 9 085 236 258 726 249 719 2 649 560 4 542 618 129 363 124 860 1 324 780
18 Inows from fully performing exposures 631 177 2 240 665 4 130 618 7 875 879 631 177 2 240 665 4 130 618 7 875 879
19 Other cash inows 1 059 005 2 712 647 2 946 289 2 193 395 1 059 005 2 712 647 2 946 289 2 193 395
EU-19a
(Difference between total weighted inows and total
weighted outows arising from transactions in third
countries where there are transfer restrictions or which
are denominated in non-convertible currencies)
EU-19b
(Excess inows from a related specialised credit
institution)
20 TOTAL CASH INFLOWS 10 775 418 5 212 038 7 326 626 12 718 834 6 232 800 5 082 675 7 201 766 11 394 054
EU-20a Fully exempt inows
EU-20b Inows subject to 90% cap
EU-20c Inows subject to 75% cap 10 775 418 5 212 038 7 326 626 12 718 834 6 232 800 5 082 675 7 201 766 11 394 054
TOTAL ADJUSTED VALUE
EU-21 LIQUIDITY BUFFER 379 545 565 306 626 719 318 198 005 346 834 688
22 TOTAL NET CASH OUTFLOWS 180 691 971 188 859 960 164 516 662 176 036 354
23 LIQUIDITY COVERAGE RATIO 210% 162% 193% 197%
EU LIQ1 - Quantitative information of LCR
Group
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EU LR1 - LRSum: Reconciliation Summary of Financial Statement Assets and Minimum Solvency Ratio Liabilities
Applicable amount
1 Total assets according to published nancial statements 757 660 162
2 Adjustment for entities consolidated for accounting purposes but not subject to prudential consolidation
3 (Adjustment for securitized exposures that meet operational requirements for risk transfer)
4 (Adjustment to take account of the temporary exemption for central bank liabilities (where applicable))
5
(Adjustment for assets entrusted to the balance sheet in accordance with the applicable accounting rules but excluded from the total amount of liabilities in accordance with
Article 429a (1) (i) of the Solvency Regulation)
6 Adjustment for regular way purchases and sales of nancial assets that are subject to trade date recognition
7 Eligible cash pooling transaction adjustment
8 Adjustment for derivative instruments 49 460 151
9 Adjustment for securities transactions
10 Adjustment for off-balance sheet items (ie conversion of off-balance sheet liabilities into credit equivalent amounts) 5 992 574
11 (Adjustment for prudent value adjustments and special and general provisions which have reduced Common Equity Tier 1 capital (T1))
EU-11a (Adjustment for exposures excluded from the total amount of exposures under Article 429a (1) (c) of the Solvency Regulation)
EU-11b (Adjustment for exposures excluded from the total amount of exposures under Article 429a (1) (j) of the Solvency Regulation)
12 Other adjustments -13 813 954
13 Total liabilities 799 298 933
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EU LR2 - LRCom: Joint publication of the minimum solvency margin
Minimum solvency ratio liabilities under the Solvency
Regulation
a b
31.12.2021 30.9.2021
Liabilities included in the balance sheet (excluding derivatives and nancial transactions in securities)
Balance sheet items (excluding nancial transactions in derivatives and securities but including collateral) 731 255 754 734 246 162
(Amounts deducted in determining Tier 1 capital) -13 813 954 -14 230 239
Total liabilities included in the balance sheet (excluding derivatives and nancial transactions in securities) 717 441 800 720 015 922
Derivative liabilities
Replacement value related to derivative transactions subject to the SA-CCR method (ie less the acceptable margin on cash received) 26 404 407 17 283 800
Increases in potential future counterparty risk (PFE) related to derivative transactions subject to the SA-CCR method 49 460 151 47 867 406
Total derivative liabilities 75 864 558 65 151 206
Liabilities for nancial transactions in securities
Total exposures to nancial transactions in securities 0 0
Other off - balance sheet liabilities
Gross nominal amount of liabilities related to off - balance sheet items 20 701 969 15 801 668
(Adjustments for credit conversion) -14 709 395 -10 631 581
(General provisions deducted in determining Tier 1 capital (T1) and special provisions for off-balance sheet liabilities)
Off - balance sheet liabilities 5 992 574 5 170 087
Liabilities excluded from total liabilities
(Total liabilities excluded from total liabilities) 0 0
Capital and total liabilities
Tier 1 capital (T1) 62 777 221 63 061 875
Total liabilities 799 298 933 790 337 215
Minimum solvency ratio
Minimum solvency ratio (%) 7.854% 7.979%
Minimum capital adequacy ratio (excluding the effect of the exemption for public investment and promotional loans) (%) 7.854% 7.979%
Minimum capital adequacy ratio (excluding the effect of possible temporary exemptions from central bank liabilities) (%) 7.854% 7.979%
Statutory requirement for minimum solvency ratio (%) 3% 3%
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EU LR3 - LRSpl: Breakdown of liabilities included in the balance sheet (excluding derivatives, securities transactions and exempt liabilities)
a
Minimum solvency ratio
liabilities under the Solvency
Regulation
EU-1 Total liabilities included in the balance sheet (excluding derivatives, securities transactions and exempt liabilities), of which: 731 255 754
EU-2 Liabilities included in the trading book 60 788
EU-3 Liabilities not included in trading book, of which:
EU-4 Covered bonds -
EU-5 Liabilities considered to be government liabilities 384 302 461
EU-6
Receivables from regional governments, international development banks, international organizations, and public entities and bodies governed by public law which are not
considered to be government liabilities
EU-7 Institutions 81 635 596
EU-8 Liabilities secured by real estate 709 946
EU-9 Retail liabilities -
EU-10 Companies 25 777 272
EU-11 Liabilities in insolvency -
EU-12 Other liabilities (such as equity liabilities, securitisations and other non-credit-obligation assets) 238 769 691
Form EU LRA: Reporting of qualitative information on the minimum solvency ratio
Row
a Description of the processes used to manage the risk of over-indebtedness
Given the nature and control of Evli Group’s operations, the risk of over-indebtedness is not considered
material. Evli has restricted the cash deposits of major depositors. In addition, Evli’s risk management
committee, Credalco, approves the issuance of structured products. In addition, the number of certicates of
deposit issued is limited.
Given the nature and control of Evli Group’s operations, the risk of over-indebtedness is not considered
material. Evli holds most of its assets with central banks to ensure extreme liquidity. In addition to this, the
company is able to fund all limits simultaneously and still exceed the required regulatory limits.
b
Description of the factors that have contributed to the minimum solvency ratio during
the period to which the published minimum solvency ratio refers
The most signicant changes are due to the development of own funds developed through positive business
operations and the development of the deposit portfolio.
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EU LIQA – Liquidity Risk Management in accordance with Article 451a (4) of the Solvency Regulation
Row
a)
Liquidity risk management strategies and processes, including policies to diversify
planned funding sources and maturities
According to Evli's liquidity strategy, Evli's risk appetite for liquidity risk is low. According to the liquidity policy,
long-term funding must be at least as much as long-term receivables. Evli's long-term funding sources are
equity capital and issued structured products. According to Evli's liquidity policy, Evli must always have
nancing in such a way that it can nance all issued internal and external nancing limits simultaneously.
b)
Structure and organization of the liquidity risk management function (powers, statutes,
other arrangements)
Liquidity risk is managed centrally in Evli Bank's Treasury unit. Liquidity risk monitoring is constant. The Risk
Control Unit generates liquidity risk assessments, analyzes and reports and, if necessary, escalates key risk
gures with risk limits to the Management Group and the Treasury Unit on a daily basis.
c)
Description of the level of concentration of liquidity management and the interaction
between the Group's units
Treasury unit and the Group's cash management unit are related to liquidity management. Evli Group's Treasury
unit is responsible for liquidity management throughout the Group. Any business units in need of liquidity will
contact the Treasury when they need nancing. The Treasury also determines the cost of nancing. Thecash
management unit, in turn, monitors liquidity at the operational level and makes intraday payments.
d) Extent and content of systems for reporting and measuring liquidity risk
Evli uses in-house liquidity reporting, which extensively retrieves information from the company's various
datasets.
e)
Policies to hedge and mitigate liquidity risk and strategies and processes to continuously
monitor the effectiveness of hedging and mitigation techniques
A signicant liquidity buffer is used to hedge against liquidity risk. The starting point for everything is that
long-term nancing must match long-term receivables. In addition, Evli must always have the ability to nance
all granted limits simultaneously.
f) Outline of the Bank's contingency plans
In a scenario where Evli's ordinary funding is not possible, the Group will sell the most liquid assets. These are
typically the company’s investments in traditional UCITS mutual funds. In addition, other measures would be to
reduce the Group's internal credit limits and limit other discretionary use of liquidity.
g) A description of how stress testing is used
The stress test is performed daily. In addition to LCR monitoring, the amount of liquidity buffer left over would
be monitored if all granted limits were used simultaneously. A minimum of three steps is set for that buffer.
Separate measures are planned for each stage if this limit is exceeded.
h)
Approved by the senior management body, the institution’s liquidity risk management
arrangements declaration of adequacy
Evli Bank Plc's Board of Directors conrm that the liquidity control measures in place at Evli Group are sufcient
considering the prole and the strategy of Evli Bak Plc.
i)
Risk statement on the overall liquidity risk prole related to the Group’s business
strategy.
Evli’s maturity classes can be found in the section ”Other notes ” in Table 7.1 ”Maturity breakdown of assets
and liabilities”. Due to the corporate reorganization of Evli Bank Plc and Fellow Finance Plc, Evli Bank Plc is
preparing for the outow of the entire deposit portfolio.
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Table of qualitative information on the EU LIQB liquidity requirement (completes form LIQ1) in accordance with Article 451a (2) of the Solvency
Regulation
Row
a)
An explanation of the main factors affecting the results of the liquidity requirement and
the development of the factors affecting the calculation of the liquidity requirement over
time
b) A statement of changes in the liquidity requirement over time There have been no material changes in the Group's liquidity requirement during the review period.
c) Report on the actual concentration of funding sources
The Group's source of funding is mainly deposits, issued structured bonds and the Group's equity. With regard
to concentration risk, the relevant areas to be examined are the deposit base and structured bonds. There is no
identiable signicant risk of concentration. Both the deposit base and the investor base nancing the
company through structured bonds are highly diversied, taking into account the company's level and need for
liquidity.
d) Top-level description of the composition of the institution's liquidity buffer
Evli's liquidity buffer consists mainly of deposits. In addition, Evli has some investments in UCITS funds that can
be redeemed in the short term if required.
e) Derivative liabilities and possible collateral requirements Evli prepares for possible collateral requirements for derivative liabilities based on stress scenarios.
f) Currency imbalance in the liquidity requirement Evli operates mainly in the euro market, so there is no signicant currency imbalance in Evli's operations.
g)
Other items in the calculation of the liquidity claim that are not covered by the liquidity
claim disclosure form but that the institution considers to be part of its liquidity prole
Evli has no other liquidity requirements outside the disclosure form.
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Sales
Net interest income + commission income + net income from
securities transactions and foreign exchange dealing + other
operating income.
Net revenue
From Income Statement. Includes gross returns, deducted by
interest and commission expenses.
Operating prot/loss From Income Statement.
Prot for the
nancial year
From Income Statement.
Return on equity
(ROE), %
=
Prot / Loss for nancial year
x 100
Equity capital and minority interest (average of the gures
for the beginning and at the end of the year)
Return on assets
(ROA), %
=
Prot / Loss for nancial year
x 100
Average total assets (average of the gures for the beginning
and at the end of the year)
Equity ratio, % =
Equity incl. non-controlling interest’s share of equity
x 100
Average balance total
Expense/income
ratio
=
Administrative expenses + depreciation and impairment
charges + other operating expenses
Net interest income + net commission income + net income
from securities transactions and foreign exchange dealing +
other operating income
Comprehensive
Earnings per Share
(EPS), fully diluted
=
Comprehensive income for the year after taxes attributable
to the shareholders of Evli Bank Plc
Average number of shares outstanding including issued
shares and option rights
Earnings per Share
(EPS), fully diluted
=
Prot for the year after taxes attributable to the
shareholders of Evli Bank Plc
Average number of shares outstanding including issued
shares and option rights
Group´s capital
adecuacy (CET1), %
=
Group assets (common equity Tier 1 capital)
x 100
Risk-weighted items total
Equity per share =
Equity attributable to the shareholders of Evli Bank Plc
Number of shares at the end of the year
Recurring revenue to
operating costs ratio
=
All revenues that are not transaction based but time dependant*
All operative expenses excluding reservation for bonuses from
review period
*Asset management, fund fees, administration of incentive
systems, research, custody and client net interest fees
Earnings per Share
(EPS)
=
Prot for the year after taxes attributable to the shareholders
of Evli Bank Plc
Average number of shares outstanding
Net revenue per
employee
=
Net revenue
Number of personnel during the period, avarage
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Financial statements 1.1.-31.12.2021
Contents
Consolidated comprehensive income statement ................................73
Consolidated balance sheet ..................................................................74
Consolidated statement of cash ow ...................................................75
Consolidated statement of changes in equity .....................................76
Notes to the consolidated nancial statements ..............................77
Risk management and internal control .............................................83
1. Notes to the consolidated income statement ............................88
1.1. Interest income ................................................................................88
1.2. Interest expenses .............................................................................88
1.3. Commission income ........................................................................89
1.4. Commission expenses ....................................................................90
1.5. Net income from securities transactions
and foreign exchange dealing ..............................................................90
1.6. Income from equity investments ....................................................90
1.7. Other operating income .................................................................90
1.8. Personnel expenses .........................................................................90
1.9. Other expenses ...............................................................................94
1.10. Other operating expenses ...........................................................94
1.11. Depreciation, amortization and impairment losses ....................94
1.12. Expected credit losses on loans and other commitments
and impairment losses on other nancial assets .................................94
1.13. Share of prot or loss of associate companies ............................94
1.14. Income taxes ..................................................................................95
1.15. Earnings per share (EPS) ...............................................................95
2. Notes to the consolidated balance sheet ....................................96
2.1. Cash and cash equivalents..............................................................96
2.2. Claims on credit institutions ...........................................................96
2.3. Claims on the public and public sector entities by sector ...........96
2.4. Debt securities .................................................................................96
2.5. Shares and participations ................................................................97
2.6. Derivative contracts .........................................................................98
2.7. Intangible assets and goodwill .......................................................99
2.8. Property, plant and equipment ....................................................102
2.9. Other assets ...................................................................................103
2.10. Accrued income and prepayments ............................................103
2.11. Deferred taxes .............................................................................103
2.12. Liabilities to credit institutions and central banks .....................103
2.13. Liabilities to the public and public sector entities ....................103
2.14. Debt securities issued to the public ..........................................103
2.15. Derivative contracts and other liabilities held for trading ........104
2.16. Other liabilities .............................................................................104
2.17. Accrued expenses and deferred income ..................................104
2.18. Deferred tax liabilities .................................................................104
2.19. Equity capital ...............................................................................104
3. Off-balance-sheet commitments ..................................................105
3.1. Off-balance sheet commitments ..................................................105
4. Segment reporting .........................................................................105
4.1. Segment income statement .........................................................106
4.2. Geographical income statement and balance sheet .................106
5. IFRS 9 ................................................................................................107
5.1. Evaluation of substantial increase in credit risk...........................107
5.2. Calculation model for expected credit losses .............................107
5.3. Items measured according to IFRS 9, excepcted credit losses .108
6. Notes on risk position ...................................................................109
6.1. General information on credit
and dilution risk (standard model) ......................................................109
6.2. Techniques to reduce credit risk ..................................................109
6.3. Credit risk (counterparty risk) ........................................................110
6.4. Market risk ......................................................................................110
6.5. Operational risk .............................................................................111
6.6. Shares outside the trading book ..................................................111
7. Other notes .....................................................................................112
7.1. Maturities of nancial assets and liabilities .................................112
7.2. Assets and liabilities denominated
in domestic and foreign currency ........................................................113
7.3. Value of nancial instruments across the three levels
of the fair value hierarchy .....................................................................114
7.4. Analysis of nancial instruments categorized in level 3 .............116
7.5. Unrealized prot/loss for nancial instruments
categorized in level 3 ...........................................................................117
7.6. Classication of nancial instruments ..........................................117
7.7. Liquidity Coverage Requirement (LCR) .......................................118
7.8. Securities lending ..........................................................................118
7.9. Fair values and book values of nancial
assets and nancial liabilities ...............................................................118
7.10. Assets pledged as collateral .......................................................119
7.11. Asset under Management ..........................................................119
8. Consolidation ..................................................................................120
General concolidation principles ........................................................121
8.1. Corporate structure .......................................................................120
8.2. Shares and participations in associates and joint ventures ........123
8.3. Changes in corporate structure ....................................................124
8.4. Related party disclosures ..............................................................124
8.5 Fees paid to auditors .................................................................... 124
9. Parent company’s nancial statements ......................................125
The gures in the nancial statement are presented in millions
of euros, unless indicated otherwise.
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Net revenue per
employee, K€
398
(2020: 318)
Note 2021 2020
Interest income 1.1. 2.3 2.8
Interest expenses 1.2. -2.1 -2.6
NET INTEREST INCOME 0.1 0.2
Income from equity investments 1.6. 0.0 0.0
Fee and commission income 1.3. 114.5 79.9
Fee and commission expenses 1.4. -2.7 -3.1
Net income from securities transactions 1.5. 3.5 2.4
Other operating income 1.7. 0.2 0.2
NET REVENUE 115.6 79.7
Accounting policies
Operating prot
IAS 1 Presentation of Financial Statements does not dene the concept of operating prot. The Group has
dened it as follows: operating prot is the net sum formed after employee benets expenses, other admi-
nistrative expenses, depreciation, amortization and possible impairment losses, and other operating expenses
are deducted from net revenue. All other items than the ones mentioned above are presented below operating
prot in prot or loss.
Earnings per share
Undiluted earnings per share are calculated by dividing the prot or loss attributable to the parent company’s
shareholders by the weighted average number of shares in circulation during the nancial period, excluding Evli
shares acquired and held by the Group during the period. Diluted earnings per share are calculated by adjus
-
ting the weighted average number of shares by the dilutive effect of the stock options granted under share-ba-
sed incentive programs.
Note 2021 2020
Operating expenses
Personnel expenses 1.8. -37.4 -30.5
Other administrative expenses 1.9. -18.5 -12.5
Impairment charges on goodwill 1.11. 0.0 0.0
Depreciation and amortization on tangibleand intangible assets 1.11. -4.8 -5.7
Other operating expenses 1.10. -1.8 -1.7
Excpected credit losses on loans and other receivables 1.12. 0.1 -0.1
Impairment losses on other nancial assets 1.12. 0.0 0.0
OPERATING PROFIT/LOSS 53.0 29.1
Share of prot or loss of associates 1.13. 0.5 0.4
PROFIT BEFORE INCOME TAX 53.5 29.5
Income taxes 1.14. -10.5 -6.3
PROFIT / LOSS FOR THE FINANCIAL YEAR 43.0 23.2
Attributable to
Minority interest 6.7 1.3
Shareholders of parent company 36.3 21.9
PROFIT / LOSS FOR THE FINANCIAL YEAR 43.0 23.2
OTHER COMPREHENSIVE INCOME / LOSS
Items that are or may be reclassied subsequently to prot
or loss
Foreign currency translation differences - foreign operations 0.1 0.2
Other comprehensive income/loss 0.1 0.2
Other comprehensive income after taxes / loss for the year 0.1 0.2
OTHER COMPREHENSIVE INCOME / LOSS FOR THE YEAR 43.1 23.4
Attributable to
Non-controlling interest 6.7 1.3
Equity holders of parent company 36.5 22.1
Earnings / Share (EPS) 1.15. 1.51 0.90
Earnings / Share (EPS), fully diluted 1.15. 1.47 0.87
Diluted earnings / share IFRS, fully diluted 1.15. 1.48 0.88
Consolidated comprehensive income statement , IFRS
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ASSETS Note 31.12.2021 31.12.2020
CASH AND EQUIVALENTS 2.1. 384.1 331.6
Financial assets measured at amortized cost
Claims on credit institutions 2.2. 48.1 66.8
Claims on the public and public sector entities 2.3. 98.0 109.6
FINANCIAL ASSETS MEASURED AT AMORTIZED COST 146.1 176.4
Leasing 7.4 9.6
Financial assets at fair value through prot or loss
Debt securities eligible for renancing with central banks 2.4. 33.4 37.2
Debt securities 2.4. 0.7 9.8
Shares and participations 2.5. 49.6 57.3
Derivative contracts 2.6. 26.4 52.2
FINANCIAL ASSETS AT FAIR VALUE
THROUGH PROFIT OR LOSS 110.1 156.3
Other than nancial assets
Shares and participations in associates 8.2. 4.0 4.2
Intangible assets and goodwill 2.7. 13.8 16.0
Property, plant and equipment 2.8. 1.4 1.4
Other assets 2.9. 88.0 73.7
Accrued income and prepayments 2.10. 2.6 3.3
Deferred tax assets 2.11. 0.1 0.1
OTHER THAN FINANCIAL ASSETS, TOTAL 110.0 98.8
TOTAL ASSETS 757.7 772.6
LIABILITIES AND EQUITY Liite 31.12.2021 31.12.2020
LIABILITIES
Financial liabilities at amortized cost
Liabilities to credit institutions and central banks 2.12. 8.6 0.7
Liabilities to the public and public sector entities 2.13. 402.9 385.2
Debt securities issued to the public 2.14. 91.0 131.1
FINANCIAL LIABILITIES AT AMORTIZED COST, TOTAL 502.6 517.0
Financial liabilities at fair value through prot or loss
Derivative contracts and other liabilities held for trading 2.15. 26.3 52.5
FINANCIAL LIABILITIES AT FAIR VALUE
THROUGH PROFIT OR LOSS 26.3 52.5
Other than nancial liabilities
Other liabilities 2.16. 75.7 84.4
Accrued expenses and deferred income 2.17. 35.0 23.3
Deferred tax liabilities 2.18. 0.0 0.0
OTHER THAN FINANCIAL LIABILITIES, TOTAL 110.7 107.7
TOTAL LIABILITIES BEFORE IFRIC 17 DISTRIBUTION
LIABILITY 639.5 677.2
IFRIC 17 distribution liability 620.2 0,0
TOTAL LIABILITIES 1259.7 677,2
EQUITY 2.19.
Share capital 30.2 30.2
Share premium fund 1.8 1.8
Fund of invested non-restricted equity 24.8 22.8
Retained earnings 56.1 37.5
Non-controlling interest 5.2 3.0
EQUITY BEFORE IFRIC 17 DISTRIBUTION LIABILITY 118.2 95.4
Equity to holders of parent company 112.9 92.4
Non-controlling interest in capital 5.2 3.0
TOTAL EQUITY INCLUDING IFRIC 17 DISTRIBUTION
LIABILITY -502.0 95.4
TOTAL LIABILITIES AND EQUITY 757.7 772.6
Consolidated balance sheet, IFRS
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2021 2020
Operating activities
Operating prot 53.0 29.1
Adjustment for items not included in cash ow 13.6 8.2
Income taxes paid -7.6 -5.0
Cash ow from operating activities before changes
in operating assets and liabilities 59.1 32.3
Changes in operating asset. total 41.2 170.5
Changes in operating liablities. total -22.4 -158.4
Cash ow from operating activities 77.9 44.5
Investing activities
Change in intangible asset -0.6 -0.6
Change in property. plant and equipment -0.2 -0.2
Cash ow from investing activities -0.7 -0.9
Financing activities
Dividends paid to company´s shareholders -17.4 -15.3
Dividends paid to non-controlling interests in subsidiaries -3.1 -1.0
Payment of nance lease liabilities -1.7 -2.0
Used option rights 0.0 1.5
Cash ow from nancing activities -22.2 -16.8
Cash and cash equivalents at the beginning of period 338.2 311.4
Cash and cash equivalents at the end of year 393.2 338.2
Change 54.9 26.8
Accounting policies
Additional information to the cash ow statement
In the cash ow statement, the ows of cash and cash equivalents during the nancial year are
presented for all operations. The cash ow statement has been prepared in accordance with the
direct method, where cash inows and outows are reported primarily in gross terms. Cash ows
are classied as cash ows from operating activities, cash ows from investing activities and cash
ows from nancing activities.
Operating activities
Operating activities are the principal revenue-producing activities. Cash ows are primarily fees
and interest received, and payments to providers of goods and services and personnel. Changes
in operating assets and liabilities consist of assets and liabilities that are part of normal business
activities, such as loans, deposits and debt securities in issue. Pending transactions and changes
in the trading book are presented in net terms.
Investing activities
Cash ow from investing activities consists of investments in intangible rights such as software
licenses and client agreements, and payments related to mergers and acquisitions.
Financing activities
Financing activities include payments from equity items to shareholders, share issues and pay
-
ments of leasing liabilities.
Cash and cash equivalents
Cash assets consist of cash, and loans to banks payable on demand.
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Share capital
Share premium
fund
Reserve for
invested
unrestricted
equity
Retained
earnings Total
Non-cont
-
rolling
interest
Equity before IFRIC
17 distribution
liability
IFRIC 17
distribution
liability Total equity
Equity 31.12.2019 30.2 1.8 18.7 29.3 80.1 1.7 81.8 81.8
Translation difference 0.4 0.4 0.4 0.4
Prot/loss for the period 21.9 21.3 1.3 23.2 23.2
Dividends -15.3 -15.3 -1.0 -16.3 -16.3
Share options exercised 1.5 1.5 1.5 1.5
Acquisition of own shares 0.0 0.0 0.0
Acquisition of non-controlling interest 0.0 0.0 0.0
Other changes* 2.7 1.2 3.8 1.0 4.8 5.4
Equity 31.12.2020 30.2 1.8 22.8 37.5 92.4 3.0 95.4 0.0 95.4
Translation difference 0.1 0.1 0.1 0.1
Prot/loss for the period 36.3 36.3 6.7 43.0 43.0
Dividends -17.4 -17.4 -3.1 -20.5 -20.5
Share options exercised 0,0 0.0 0.0 0.0
Acquisition of own shares 0.0 0.0 0.0
Acquisition of non-controlling interest 0.0 0.0 0.0 0.0
Other changes** 2.0 -0.5 1.5 -1.3 0.2 0.2
IFRIC 17 distribution liability -620.2 -620.2
Equity 31.12.2021 30.2 1.8 24.8 56.1 113.0 5.2 118.2 -620.2 -502.0
The Group´s equity capital is specied in Note 2.19. Equity Capital.
*Other changes from 2019 include the accrual of expenses arising from granted retention share programs, which is presented as part of the change in the retained earnings column (0.6 M€).
**Other changes from 2020 include the accrual of expenses arising from granted retention share programs, which is presented as part of the change in the retained earnings column (1.2 M€). In addition, the share exchange
between Evli Awards Management Oy and Alexander Incentives Oy and its effect is presented as other changes both in reserve for invested unrestricted equity (2.7 M€) fund and in non-controlling interests (1.0 M€).
***The Group’s distribution liability is based on the application of IFRIC 17. This interpretation based on IFRS standards became applicable with the decision of Evli Bank Plc’s Annual General Meeting held on December 22,
2021, at which the Extraordinary General Meeting decided on the partial demerger of Evli Bank Plc. According to IFRIC 17, the business to be transferred in a partial demerger is presented in Evli’s consolidated nancial
statements as a distribution liability measured at fair value, where the distribution liability is presented as a separate item in among liabilities in the balance sheet and the counterpart as equity.
Consolidated statement of changes in equity, IFRS
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Basic information on the company
Evli Bank Plc is Finland’s leading asset manager
whose clients are institutions, companies and
present or future high net worth individuals. Evli
Bank Plc and its subsidiaries form the Evli Group
(“Evli”). Evli serves its clients in international
groups in two business areas: Wealth Manage-
ment and Investor Clients and Advisory and Cor-
porate Clients. Evli’s product and service selec-
tion include mutual funds, asset management,
capital market services, alternative investment
products, investment research, management of
incentive systems, and M&A services.
Evli’s head ofce is in Finland. In addition, the
company operates in Sweden through a branch
ofce of Evli Fund Management Company and
its subsidiary Evli Corporate Finance AB and in
the United Arab Emirates through its subsidiary
Terra Nova Ltd.
The Group’s parent company is Evli Bank Plc.
The parent company is domiciled in Helsinki and
its registered address is Aleksanterinkatu 19 A,
00100 Helsinki.
A copy of the consolidated nancial statements
can be obtained from www.evli.com or from the
parent company’s head ofce at Aleksanterin-
katu 19 A, 00100 Helsinki.
Basis for preparation of the nancial
statements
The consolidated financial statements have
been prepared in compliance with IFRSs (Inter-
national Financial Reporting Standards), appro-
ved for application in the EU, and IASs (Interna-
tional Accounting Standards) valid at the end of
2021, together with their respective SIC (Stan-
ding Interpretations Committee) and IFRIC
(International Financial Reporting Interpreta-
tions Committee) interpretations. In addition,
Finland’s accounting and limited liability com-
pany legislation and ofcial regulations have
also been considered in preparing the conso-
lidated nancial statements. The gures in the
nancial statements are presented in millions of
euros, unless indicated otherwise. The conso-
lidated nancial statements have been prepa-
red based on historical cost, with the exception
of nancial assets and liabilities recognised at
fair value through prot or loss, and derivative
nancial instruments.
During a financial year, the figures are pre-
sented in interim reports so that the income
statement items are compared with the corres-
ponding period of the previous year while the
comparison of balance sheet items relates to
the end of the previous year, unless specied
otherwise.
The accounting policies apply to 2021. The
accounting policies for comparative figures
are presented in the 2020 Financial Statements.
Read more at www.evli.com/investors.
Translation of items denominated in foreign
currency
The gures showing the prot/loss and nan-
cial position of the Group’s units are measured
in the currency used in each unit’s main func-
tional environment (“functional currency”). The
consolidated nancial statements are presented
in euros, which is the functional and presentation
currency of the Group’s parent company.
Foreign currency transactions are translated into
the functional currency using the exchange rates
prevailing on the date of the transaction. Mone-
tary balance sheet items are translated into the
functional currency at the rate prevailing on the
balance sheet date. Exchange rate differences
arising in connection with the valuation are inclu-
ded in net income from foreign exchange.
The income statements of foreign Group enti-
ties are translated into euros at the weighted
average rates for the period, and the balance
sheets at the rates prevailing on the balance
sheet date. In the consolidated income state-
ment and balance sheet, the translation differen-
ces resulting from the use of different rates for
the translation of Group results for the period is
recognised in income and expenses recognised
directly in equity and presented under equity.
The translation differences arising from the eli-
mination of the acquisition cost of foreign sub-
sidiaries and from post-acquisition cumula-
tive changes in equity items are recognised in
income and expenses recognised directly in
equity and presented under equity. When a sub-
sidiary is disposed of wholly or partly, the cumu-
lative translation differences are recognised in
prot or loss as part of gains or losses from dis-
posal.
Accounting policies
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Financial assets and liabilities
The Group’s nancial assets and liabilities are
classied in accordance with the IFRS 9 Finan-
cial Instruments standard. Under the IFRS 9
standard the classication of nancial assets is
based on the business model and the type of
contractually accrued cash ows. The business
model reects how a group of nancial assets
are managed in a business unit in order to meet
a certain nancial objective. The following are
the classication groups:
• Financial assets measured at amortised cost
• Financial assets measured at fair value
through other comprehensive income
• Financial assets measured at fair value
through prot or loss.
A nancial asset is classied at amortised cost if
the following criteria are met:
• the aim of the business model is to collect
contractual cash ows
• the contractual cash ows only contain pay-
ments of principal and interest (i.e. a debt
instrument).
A nancial asset is classied at fair value through
comprehensive income if the following crite-
ria are met:
• the aim of the business model is both to col-
lect contractual cash ows and to sell them
• the contractual cash ows only contain pay-
ments of principal and interest (i.e. a debt
instrument).
Other financial assets that do not meet the
above criteria are classified as at fair value
through prot or loss.
Financial assets are reclassied only if a busi-
ness unit’s operating model changes substan-
tially. Previously recorded prots and losses are
not changed retrospectively. Financial liabilities
are measured at amortised cost or fair value
through prot or loss.
The classication of nancial assets and liabili-
ties occurs in connection with the initial acqui-
sition of nancial instruments. Financial assets
are initially recognised at fair value, including
transaction costs, in the case of an item that
is not measured at fair value through prot or
loss.
A nancial asset is derecognised when the cont-
ractual rights to the cash ows from the nan-
cial asset expire or the Group has transferred
substantially all the risks and rewards of owner-
ship of the nancial asset to an external party.
Financial assets and liabilities are recognised
according to the trade date. A nancial liability
is derecognised when the obligation specied
in the contract is discharged.
A nancial asset and a nancial liability shall be
offset only when the Group has a legally enfor-
ceable right to offset the recognised amounts
and intends either to settle on a net basis, or
to realise the asset and settle the liability simul-
taneously. There are no substantial offset items
in the consolidated balance sheet.
The Group’s measurement process for nancial
instruments is approved by Evli Bank’s Board
of Directors. The measurements are based on
IFRS 13, and on the Financial Supervisory Aut-
hority’s regulations 1/2013: Financial Sector
Accounting. The bank’s nancial administration
together with risk management administers the
Group’s valuation process which includes the
review and validation of valuation prices, che-
cking the parameters used in valuations, and
the classification of financial instruments in
accordance with the standard. Every quarter,
the bank’s Audit Committee audits and sub-
mits for approval by the Board of Directors the
measurement of equities and units for which no
market value is available (instruments in measu-
rement level 3 and associate companies).
Financial assets
Equity investment and derivatives
Financial assets recognised at fair value
through prot or loss
The Group’s equity investments and derivatives
are all classied at fair value through prot or
loss as a general principle. This category inclu-
des equities and derivatives held in the trading
book, and longer-term mutual fund and equity
investments in the Group’s operations. Unrea-
lized and realized gains and losses arising from
changes in the fair value are recognised in net
income or loss from securities trading in prot
or loss for the period in which they were incur-
red.
Financial assets recognised at fair value
through comprehensive income
There were no equity investments recognised
through comprehensive income in the conso-
lidated balance sheet on the balance sheet
date.
The value of nancial assets at fair value is deter-
mined on the basis of prices quoted on active
markets, i.e. bid quotations and closing prices
on the balance sheet date. In cases where price
quotations are not available from active mar-
kets, the fair value is determined using com-
mon theoretical measurement models.
Common derivatives pricing models are used
in the pricing of unquoted derivatives, or the
price is obtained from the counterparty in the
case of an OTC instrument.
The fair value of unquoted shares is estimated
primarily using the instrument’s net asset value
or using a cash ow analysis based on future
outlook. If the company’s share has been tra-
ded, this price information is used in the asses-
sment. If the acquisition price of an unquoted
investment falls short of the theoretical valua-
tion, in individual cases, the instrument’s acqui-
sition price may be used as the measurement
principle, subject to consideration. The acqui-
sition price may be used if other sufcient or
sufciently accurate information does not exist
for making the measurement.
In measurement of private equity funds and
real estate funds the fund’s management com-
pany’s most recently published valuation price,
which is usually published four times per year,
is used.
Debt instruments
Financial assets recognised at fair value
through prot or loss
The Group’s investments in bonds and money
market instruments are all classied at fair value
through profit or loss as a general principle.
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Evli’s investments in bonds and other inte-
rest-bearing papers are included in this cate-
gory. Unrealised and realised gains and los-
ses on bonds arising from changes in the fair
value are recognised in net income or loss from
securities trading for the period in which they
were incurred. Changes in the value of money
market instruments are recognised as interest
income or expense.
Financial assets recognised at fair value
through other comprehensive income
The Group has not classied bond investments
as financial assets recognised at fair value
through other comprehensive income.
The value of xed income securities measured
at fair value is determined on the basis of prices
quoted on active markets, i.e. bid quotations
on the balance sheet date and closing prices.
The fair value of money market instruments
is calculated by discounting cash flows with
the relevant interest curve, and with the yield
spread that was valid on the day of acquiring
the instrument. For unquoted bonds, a price
quotation issued by an individual bank or bro-
ker is used, or the price of the fixed income
security is calculated by Evli Bank in such a way
that the instrument’s required return corres-
ponds to the required return of similar instru-
ments with the same risk level.
More detailed information on measurement of
nancial assets measured at fair value through
comprehensive income is available in note 7.3.
Financial assets measured at amortised cost
The Group’s lending, including promissory
notes and accounts with credit facility, recei-
vables from credit institutions and other nan-
cial assets are classied under nancial assets
measured at amortised cost.
Financial assets measured at amortised cost
are initially recognised at fair value inclusive
of expenses immediately caused by the acqui-
sition. After initial recognition, the items are
measured at amortised cost using the effe-
ctive interest rate method. This refers to the
interest rate at which the future payments that
are expected to become payable or receivable
during the nancial instrument’s assumed exer-
cise period are discounted to the level of the
financial instrument’s net book value. The
book value is adjusted by a credit loss provi-
sion using the expected credit loss measure-
ment model (see next section Impairment of
nancial assets).
Impairment of nancial assets
Impairment of financial assets is based on
the expected credit loss calculation model, in
which potential credit losses are estimated at
each reporting date. The impairment model
estimates the change in credit quality after
initial recognition using a three-step model.
Financial assets that are subject to the calcu-
lation of expected credit losses are nancial
assets measured at amortised cost, such as
loans granted. Impairment losses also apply
to off-balance sheet commitments, such as
unused credit facilities. Impairment is not
applied to financial assets measured at fair
value unless they are measured at fair value
through prot or loss. A simplied calculation
procedure has been established for trade and
lease receivables.
Expected Credit Loss (ECL) is calculated using
a probability-weighted formula as follows:
Receivable * PD (probability of default) * LGD
(% of loss on receivables including collateral
realisation). The ECL reflects the company’s
own estimate of how much less cash is expe-
cted to be obtained from the loan than what
is contractually required. The probabilities of
loss are assessed using various statistical met-
hods, such as looking at one’s own credit por-
tfolio and its loss history, as well as the broa-
der group in which credit risk is expected to be
similar. Estimates of the future market environ-
ment and its development trends should also
be used in the calculation.
The IFRS 9 standard uses the three-stage
model to measure credit losses. The rst stage
is to assess the likelihood that the borrower will
have payment difculties over the next 12 mon-
ths. Stage 1 includes items where the credit risk
is not estimated to have increased signicantly
since initial recognition, or the credit risk of the
item is estimated to be low. If the borrower’s
credit risk has increased signicantly since the
initial recognition, the expected credit loss for
the entire term of the agreement is estimated
(stage 2). Assets in Stage 3 are impaired assets
that have already been identied as having a
negative effect on future cash ows, such as the
insolvency of a counterparty.
The loss provision is presented on a separate
line in the income statement. Interest income
on nancial assets is presented for the gross
capital of nancial assets of stage 1 and 2, net
of the capital at stage 3, i.e. after provisions.
Factors affecting the assessment of a counter-
party’s credit risk include, for example, late
payments and breaches of contract, negative
changes in the counterparty’s financial posi-
tion and credit rating, and signicant changes
in macroeconomic factors that directly affect
the debtor’s solvency.
A loan is classified as non-performing if the
interest payment or instalment has been due
for more than 90 days or if it is estimated that
the debtor is unlikely to meet its future pay-
ment obligations.
Impairment is recognised as an actual credit
loss when the debtor has been declared insol-
vent in bankruptcy proceedings, has ceased
operations or the receivable has been forgiven
in either a voluntary or statutory debt arran-
gement.
Financial assets
Measured at amortized
cost; expected credit loss
calculation applied
Receivables from credit institutions and central banks
Receivables from the public;
lending
-Promissory notes from individuals and corporate entities
-Credit accounts for individuals and companies
Financial assets measured at fair
value through prot or loss
Financial assets held
for trading
-Shares and participations, quoted
-Derivatives
-Bonds
Other nancial assets
measured at fair value
through prot or loss
-Shares and participations, quoted and unquoted
-Bonds and money market instruments
-Mutual funds
-Private equity and real estate funds
Financial assets measured at fair
value through comprehensive
income
The Group has not classied assets in this group
Distribution of nancial assets IFRS 9:
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ANNUAL REPORT 2021
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Financial liabilities
Financial liabilities measured at amortised
cost
Financial liabilities are initially recognised at
fair value based on the consideration recei-
ved inclusive of expenses immediately attribu-
table to the acquisition. After initial recogni-
tion, nancial liabilities such as bonds issued by
the company, deposits by the public and other
nancial liabilities are measured using the effe-
ctive interest rate method at amortised cost.
Financial liabilities recognised at fair value
through prot or loss
Liabilities recognised at fair value through pro-
t or loss include shorted equities and deriva-
tive liabilities held for trading, such as written
options.
The fair value of liabilities measured at fair
value through profit or loss is determined
principally on the basis of prices quoted on
active markets, i.e. quoted asking prices and
closing prices on the balance sheet date. In
cases where price quotations are not available
from active markets, the fair value is deter-
mined using common theoretical measure-
ment models.
In securities lending occurring in conjunction
with shorting shares, the securities are retained
in the original owner’s balance sheet.
Hedge accounting
The Group does not apply hedge accounting
in accordance with IFRS 9 in the nancial sta-
tements.
IFRS 3 Business combination
Business combinations are always carried
out using the acquisition cost method. The
identiable assets and liabilities to be acqui-
red are measured at fair value at the time of
acquisition, with any limited exceptions. The
Group recognises the non-controlling interest
in the acquiree on an acquisition-by-acquisi-
tion basis, either at fair value or, alternatively,
based on the non-controlling interest’s share of
the acquiree’s identiable net assets. Acquisi-
tion-related costs are expensed as incurred. To
the extent that the acquisition price exceeds
the identiable net assets of the acquiree, the
surplus is recognised as goodwill. If the acqui-
sition price is less than the value of the identi-
able net assets, the difference is recognised in
prot or loss. In the event that part of the pay-
ment of the purchase price is deferred, future
amounts are discounted to their present value
at the time of the transaction. The discount
rate used is based on management’s estimate
of the Group’s cost of debt.
Financial
liabilities
Financial liabilities measured at
fair value through prot or loss
- Derivative contracts
- Shorted shares
Other nancial liabilities, at
amortized cost
- Deposits by nancial institutions
- Deposits by the public
- Issued bonds
- Other nancial liabilities
Distribution of nancial liabilities IFRS 9:
IFRS 15 Revenue from contracts with cus
-
tomers
The IFRS 15 guidance applies to all revenues
collected from clients that are not processed in
accordance with other IFRS standards such as
IFRS 9. Interest and dividend income are also
examples of revenue items that do not come
under IFRS 15. According to IFRS 15, revenue
is recognised when a company transfers control
of goods or services to a customer either over
time or at a point in time.
Key revenue streams that fall under the stan-
dard and are based on client contracts have
been analysed using the ve-step model. The
client contract on which the stream is based
and any performance criteria on which fees are
based have been identied for each revenue
stream. The fee charged has then been allo-
cated to each performance criterion and the
revenue recognition principles have been built
around meeting the criteria. The standard
breakdown of revenue into time-based and
event-based revenue recognition is presented
as part of the segment reporting.
IFRS 16 Leases
Leases
In accordance with IFRS 16, in principle all leases
are recognised in the balance sheet as property,
plant and equipment and lease liabilities, except
for short-term leases and agreements for low-va-
lue assets. The lease liability under these agree-
ments is determined as the present value of the
remaining lease payments. The future cash ows
from the leases have been discounted at the time
of review using the interest rate according to the
company’s nancing cost. Rents payable are allo-
cated to capital and nancial expenses. Finance
costs are recognised in the income statement
over the lease term so that the interest rate on the
outstanding liability is the same in each period.
The company has not estimated a separate inte-
rest component for the funds needed to nance
the lease liability in 2021 due to the company’s
low funding cost and excess liquidity.
Based on the analysis of its contract portfolio,
IFRS 16 primarily affects leases for business pre-
mises. Typically, leases are for a period of two to
ve years and may include a possible option to
extend the lease term. Individual agreements
have been negotiated for different premises,
where the terms may differ. Possible extension
options included in the leases have not been
taken into account as part of the calculation due
to the related uncertainties.
Leases in which the risks and rewards of owner-
ship are retained by the lessor are classied as
operating leases. Rents paid under operating lea-
ses are expensed in the income statement on a
straight-line basis over the lease term.
The effect of the standard on the Group’s other
assets and other liabilities was EUR 7.4 million
at the end of the review period. Possible furt-
her options included in the leases have not been
taken into account as part of the calculation due
to the related uncertainties.
Matters requiring management judgement
The drawing up of nancial statements in accor-
dance with IFRS standards requires that certain
accounting assessments are made. In addition,
management must use its judgement. Judge-
ment affects the choice of accounting policies
and their application, the amount of assets, lia-
bilities, revenues and expenses to be reported
and the notes that must be presented. The
management will exercise its judgement on
the basis of estimates and assumptions that
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Responsibility
Governance
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TO THE FINANCIAL STATEMENTS CONTENTS
are based on earlier experience and the best
view available to it on the balance sheet date
especially concerning the future performance
of the investment services market. Estimates
and decisions based on judgement are cons-
tantly monitored and they are based on actual
performance and certain other factors such as
expected future events that are reasonably anti-
cipated to occur considering prevailing circum-
stances. Actual performance may deviate from
estimates.
At Evli, the most signicant estimates concern
the impairment testing of goodwill and the
measurement principles of theoretically measu-
red nancial instruments. Further information on
them is provided in the note in question, under
the title Management judgement.
Provisions
A provision is recognised when the Group has
a legal or constructive obligation as a result of
a past event, and it is probable that an outow
of economic benets will be required to settle
the obligation and the Group can reliably esti-
mate the amount of the obligation.
Adoption of new and amended standards
and interpretations applicable in future
nancial years
New standards are not expected for the next
financial year that would have a significant
impact on Evli Group´s accounting policies.
IFRIC 17 Distributions of Non-Cash Assets to
Owners application in consolidated nancial
statements 2021
This IFRIC interpretation became applicable fol-
lowing the decision of the Extraordinary Gene-
ral Meeting of Evli Bank Plc held on December
22, 2021, in which the meeting decided on the
partial demerger of Evli. IFRIC 17 requires an
entity to recognise a liability for the distribu-
tion of assets to reect the partial demerger at
the time the entity makes the decision to distri-
bute the assets and has an obligation to distri-
bute those assets to its owners if uncertainties
beyond the entity’s control are eliminated. In
other words, the company must recognise a lia-
bility when the distribution of assets has been
appropriately approved by shareholders and is
no longer at the company’s discretion. The lia-
bility to distribute assets is measured at the fair
value of the business to be transferred in the
partial demerger. In Evli’s consolidated nan-
cial statements, the liability to distribute assets
is presented as a separate line item within lia-
bilities on the balance sheet and the counter-
part is presented within consolidated equity.
The technical accounting items in accordance
with this interpretation are included in the con-
solidated balance sheet and in the statement
of changes in equity. In order to provide quality
information to investors, the company also pre-
sents these calculations without the liability to
distribute assets under the interpretation.
When the demerger is implemented, esti-
mated to occur by April 2, 2022, Evli Bank will
derecognise the assets and liabilities to be
transferred to Evli Plc as well as the liability to
distribute assets, and the difference between
the net assets to be transferred and the liabi-
lity to distribute assets will be recognised in
prot or loss.
The fair value of the liability to distribute assets
has been calculated inversely by deducting the
value of the remaining banking operations in
the distribution from the market value of Evli
Bank Plc on December 31, 2021. The value of
the remaining banking operations is based on
the value calculated through the merger con-
sideration under the merger plan. The liability
to distribute assets under IFRS has no impact
on the company’s nancial position, solvency,
ratios or distribution of assets. To ensure that
investors are provided with relevant informa-
tion, the company presents, in addition to
the consolidated balance sheet under IFRS, a
separate balance sheet excluding the liability
to distribute assets under IFRIC 17.
Application of IFRS 5 Non-current Assets Held
for Sale and Discontinued Operations in the
Consolidated Financial Statements 2021
In accordance with IFRS 5, a company shall
classify the assets and liabilities that are tran-
sferred in a partial demerger as distributable
to owners when the entity to be transferred is
immediately transferable in its present condi-
tion at the balance sheet date and its transfer
is highly probable.
Assessment of the facts concerning the
immediate transferability of the entity
Based on management discretion, the assets
and liabilities transferred in the partial demer-
ger on 31 December 2021, Evli Group’s
investment services operations, were not
immediately transferable in their current form
for several reasons beyond the company’s
control. The partial demerger is conditional
on the completion of the overall combination
agreement, in which Evli Bank Plc will be par-
tially demerged into Evli Plc, which engages in
investment services and requires an investment
MEASUREMENT OF LEASE LIABILITIES 2021
Commitments related to leases on 31.12.2020 9.6
Less (-) short-term leases not recognized as a liability 0.0
Less (-) leases of low-value assets 0.0
Add/less (-): contracts reassessed as lease contracts 0.0
Add/less (-): adjustments as a result of a different treatment of extension
and termination options 0.0
Add/less (-): adjustments relating to changes in the index
or rate affecting variable payments 0.0
Lease liability recognized on 1.1.2021 9.6
Additions 0.0
Deductions 0.0
Depreciation -2.2
Lease liability according to balance sheet on 31.12.2020 7.4
Of which are:
Current lease liabilities 1.7
Non-current lease liabilities 5.7
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services license, and Evli Bank Plc, which will
continue to merge with Fellow Finance Plc and
change its name to Fellow Bank Plc.
The condition of immediate divestiture was
not met, inter alia, because the divested busi-
ness did not have the required license to con-
duct business. With regards to applying for a
license, the company has initiated the regula-
tory process by the balance sheet date. Mana-
gements view is that there is always uncertainty
associated with obtaining a new license, and
the company did not have any visibility at the
balance sheet date regarding the progress of
the regulatory process. The new investment
services company Evli Plc, which will be created
in the partial demerger, will need an investment
services license from the Financial Supervisory
Authority. Correspondingly, the company con-
tinuing the banking operations, to which Fel-
low Finance Plc will merge as part of the overall
arrangement, will require the passing of owner-
ship control by the European Central Bank,
which in the company’s understanding corres-
ponds to the new bank’s license process in this
case. At the balance sheet date, the company
had not received conrmation from either aut-
hority regarding the licenses. Obtaining licen-
ses is not solely dependent on the company’s
own measures but is also dependent on the
measures taken by Fellow Finance Plc to meet
the license requirements. Evli Bank Plc has no
control over Fellow Finance Plc’s operations.
In addition, in order to enable the transfer of
operations, the company will be required to
make arrangements, inter alia, to reduce its
loan portfolio in order to ensure sufcient liqui-
dity for the operations to be transferred in the
partial demerger. This matter does not depend
solely on the company’s decision-making but is
dependent on other banks with which the com-
pany negotiates co-operation arrangements as
well as customer actions. At the balance sheet
date, this was associated with uncertainty.
The business was also not immediately trans-
ferable at the balance sheet date due to orga-
nizational reasons, as the organizational struc-
tures of the company and Fellow Finance Plc
did not enable the separation of banking and
investment services and the related merger at
that time.
Separation of functions at the balance sheet
date was also not possible for IT reasons.
Evli Bank Plc has historically had a centrali-
zed information system structure. In order to
implement the partial demerger, the company
must build and separate information systems
for investment services and banking. At the
balance sheet date, the investment service
business was also not disposable as such.
Assessment of the facts concerning
the requirement of a highly probable
extradition
When assessing the application of IFRS 5 at
the balance sheet date, in addition to being
immediately transferable, the probability of a
potential transaction occurring, where the tran-
sfer must be highly probable, must be asses-
sed. Based on management discretion, this
has also been associated with uncertainty at
the balance sheet date, because despite the
General Meeting’s decision in favor of the ove-
rall arrangement, the transaction is conditio-
nal on several matters beyond the company’s
control.
First, the demerger is conditional on the appro-
val of creditors for both Fellow Finance Plc and
Evli Bank Plc. At the balance sheet date, there
was uncertainty regarding the approval of cre-
ditors, as the company did not have full visibi-
lity into the situation, especially regarding the
approval of Fellow Finance Plc’s creditors.
Second, the implementation of the arrange-
ment is conditional on the favorable decisions
of the Financial Supervisory Authority and the
European Central Bank regarding the new Evli
Plc’s investment services license, as well as
the ownership control process of Fellow Bank
Plc, which will be created in the arrangement
through merger. Company considers that there
are always uncertainties associated with regu-
latory licenses. In particular, the decision-ma-
king process of the European Central Bank has
been assessed as challenging by the company
and, from the company’s point of view, invol-
ves clear uncertainty regarding the decision in
favor. Fulllment of the licensing conditions is
also dependent on Fellow Finance Corporati-
on’s actions to comply with the permit condi-
tions.
Third, the overall arrangement is conditional on
the maintenance of certain business conditions
in accordance with the Combination Agree-
ment. The conditions are not dependent on
the company, and the company did not have
full assurance that the conditions would be met
at the balance sheet date.
Fourth, the fulllment of the business condi-
tions for information systems has included
uncertainty regarding the functions to be tran-
sferred at the balance sheet date. Uncertainty
applies to international data transmission ser-
vices, which need to be secured for migratory
activities.
In view of the above, management has deter-
mined, after consideration, that the conditions
in IFRS 5 for the entity to be disposed of imme-
diately in its present condition and for the dis-
posal to be highly probable have not been met
together at the balance sheet date. Therefore,
in the Company’s view, the criteria for classi-
cation as distributable to owners at the balance
sheet date were not met for the assets and lia-
bilities to be transferred.
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Responsibility
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Risk management and internal control
Evli operates in a constantly changing market
environment, which subjects the company to
risks caused by changes in the business envi-
ronment or the company’s own operations.
Risk management refers to actions that syste-
matically seek to assess, identify, analyse and
prevent risks. The objective of risk manage-
ment is to:
• ensure the sufciency of own assets in rela-
tion to risk positions
• maintain the nancial result and the varia-
tion in valuations within the set objectives
and limits
• price risks correctly to reach sustainable
protability.
Organisation of the control operations
Evli’s Board of Directors is primarily respon-
sible for Evli Group’s risk management. The
Board conrms the principles and responsibi-
lities of risk management, the Group’s risk li-
mits and other general guidelines according to
which the risk management and internal control
is organised. The Board has also appointed a
credit and asset liability committee (Credalco),
which briefs it on risk-taking matters. Its mem-
bers during the nancial year 2021 were Kristian
Nybergh (Chairman), Juho Mikola, Kim Pessala
and Maunu Lehtimäki; expert members were
Mari Etholén, Bengt Wahlström and Jan-Erik
Eriksson.
Evli Group’s risk management is founded on
the “three lines of defence” model:
1. The rst line of defence consists of the
business units. The managers of the busi-
ness units are responsible for ensuring that risk
management is at a sufcient level in each res-
pective unit.
2. The second line of defence consists of Risk
Control and Compliance functions. The Risk
Control function oversees daily operations
and compliance with the risk limits granted to
the business units, as well as compliance with
risk-taking policies and guidelines. The Risk
Control function reports on findings to Cre-
dalco, the Executive Group and the company’s
Board of Directors.
The Compliance function is responsible for
ensuring compliance with the rules in all of
Evli Group’s operations by supporting ope-
rating management and the business units
in applying the provisions of the law, the of-
cial regulations and internal guidelines, and in
identifying, managing and reporting on any
risks of insufcient compliance with the rules.
3. The third line of defence is Internal Audit.
Internal Audit is a body that is independent of
business operations, supports the Board of Dire-
ctors and the senior management, and is orga-
nised administratively under the CEO. Internal
Audit assesses the functioning of Evli Group’s
internal control system, the appropriateness and
efciency of its operations, and the compliance
with guidelines, through audits that are based
on a plan of action for internal auditing that is
conrmed annually by the Audit Committee of
Evli Bank’s Board of Directors.
Additional information about the organisation
of Evli Bank’s control operations in the Corpo-
rate Governance Statement on pages 147-155.
Risk management and the largest risks
Evli operates in a constantly changing market
environment, which subjects the company to
risks caused by changes in the business envi-
ronment or the company’s own operations.
The risk factors described below might have a
negative impact on the business operations or
nancial situation of the company, and hence
its value. Also, other risks, unknown to Evli at
this time, or risks not considered signicant at
this time, might become signicant in the future.
Evli divides risks into three main categories:
1. Financial risks: market, credit and liquidity
risks
2. Operational risks: legal, compliance and
information security risks
3. Strategic risks: changes in business envi-
ronment and M&A
Financial risks
Financial risk is a risk caused by the operating
environment of the company and any market
changes therein, and the nature of the compa-
ny’s business. Financial risks include market risk
that contains equity, currency and interest rate
risk as well as credit and liquidity risks.
Market risks
Evli is conservative when it comes to direct mar-
ket risk and taking market risk is not considered
as a real source of income for Evli. According
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Responsibility
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EVLI BANK PLC
ANNUAL REPORT 2021
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TO THE FINANCIAL STATEMENTS CONTENTS
to Evli’s market risk strategy, market risk should
not have a significant impact on Evli’s profit
under normal market conditions, and market
risk should not under any circumstances endan-
ger Evli’s continuity or protability.
Equity risk
Equity risk means the sensitivity of Evli’s pro-
tability and the market value of the balance
sheet to changes in the general price level of
the stock market. Evli’s direct equity risks con-
sist of Corporate Finance operations, the tem-
porary position of the brokerage business and
strategic investments. In the Corporate Finance
and brokerage business there were no equity
positions on December 31, 2021.
Most of the strategic investments are private
equity funds, in which Evli has either deve-lo-
ped the product and/or acted as the distribu-
tor, or seed capital investments into Evli Fund
Management Company’s mutual funds, hed-
ges associated with business operations or
difcult-to-sell equities obtained in corporate
transactions. The direct equity risks are pre-
sented in table 1.
Share-based incentive plans administered
under agreement on behalf of clients are imple-
mented by purchasing shares of the client com-
panies in question. Due to contractual arran-
gements made with clients, this arrangement
does not pose an equity market risk to Evli. The
credit risks and counterparty risks generated
by changes in the market prices are monitored
separately. The monitoring procedure is descri-
bed in the paragraph Credit risks.
Of the entire investment portfolio and tra-
ding book, 9.1 percent has been valuated
using theoretical valuation methods, since no
market price has been available. Information
about the methods used in the valuation of
the investment instruments is presented in the
accounting policies in the nancial statements.
Instruments measured by theoretical means
were recognised entirely through prot or loss
during the financial year, because the matu-
rity periods of theoretically measured agree-
ments are short, and the accounting para-
meters used are primarily based on information
from the markets.
Evli’s business involves an indirect equity risk
resulting from the business operations of Evli
Fund Management Company and the Wealth
Management and Investor Clients segment.
The stock market affects the allocation, size
and returns of the capital managed in these
business operations.
Currency risk
Evli’s Treasury manages the currency risk of the
balance sheet. The currency risk limit is dened
by currency and total gross amount. The gross
total currency position may not exceed four
million euros without an authorisation from
Credalco. The maximum total currency posi-
tion is six million euros, subject to Credalco’s
permission. The currency position on Decem-
ber 31, 2021 is described in more detail in the
Notes on risk position section 6.4. Market risk.
Interest risk
Interest risk refers to the sensitivity of the cur-
rent value in the balance sheet to changes in
the general interest rate. Interest risk arises as a
result of xed income investments of the nan-
cial activities, trading book, derivatives mar-
ket-making and strategic investments, which
are seed capital investments into Evli Fund
Management Company’s xed-income funds.
The interest risks are presented in table 2.
The basic scenario, (Scenario A) measures the
effect on the current value of the balance sheet,
if the interest rate changes linearly by one per-
centage point. Another scenario (Scenario B),
which is used for measuring the xed income
investments of the bank’s nancial activities,
measures the effect of the change in the slope
of the interest rate curve to the market value in
the balance sheet. In Scenario B, the short inte-
rest rates change by 0.5 percentage points, and
at the same time, the over one-year interest
rates change in the opposite direction by 0.25
percentage points. The net result from Scena-
rio A and B is added up, and the result indi-
cates the total sensitivity of the nancial acti-
vities to interest rates. The inte-rest rate risk,
taking into account assets and liabilities, was
EUR 1.0 million on December 31, 2021. In the
other operations the interest risks were not sig-
nicant.
Credit risks
According to Evli´s credit risk strategy, ta-
king credit risks is not Evli’s primary source of
income, but a consequence of other busines-
ses, and under no circumstances can credit
risks jeopardise Evli’s continuity. Credit risks
arise from the bank’s financial activities, tra-
ding book and the counterparty risk of trading.
Business operations Market value Scenario A Scenario B Total
Assets – Financial activities 592.1 -1.1 0.1 -1.2
Liabilities – Financial
activities
-542.3 0.3 0.1 0.4
Strategic investments 0.1 0 0
Table 2: Interest risks December 31, 2021, M€
Business operations Market value
Effect of a 20% change in the stock
market to the nancial result
Brokerage 0.1 0.0
Strategic investments 10.3 -2.1
Corporate Finance 0 0
Table 1: Equity risks December 31, 2021, M€
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The credit risk in Evli’s nancial activities con-
sists of client lending, investments of the
financial activities and the counterparty risk
of currency/interest rate hedging. The pur-
pose of lending is not to be the primary
source of income alone, but lending focuses
on the clients of Evli’s Wealth Management,
and loans must have corresponding collate-
ral. Acceptable collateral includes cash, liquid
shares, mutual funds, bonds and structured
pro-ducts. Not all of these products are eli-
gible for deduction in the standard method
used by Evli to assess the credit risk. The con-
centration risk in lending is limited to ve mil-
lion euros per individual client entity. The rest
of Evli´s assets of its banking operations are
invested primarily in securities issued by the
Government and other public-sector bodies
as well as banks and credit institutions ope-
ra-ting in the Nordic countries or with at least
a credit rating A-. Investments in credit institu-
tions focus on credit institutions operating in
the Nordic countries. In addition, the Treasury
unit may invest in capital debt instruments or
funds investing in them, taking into account
the solvency and liquidity ratio. Credalco li-
mits the total amount of direct corporate debt
instruments made by Treasury. At the end of
2021, the limit was EUR 10 million. In addition,
the Treasury may invest in Evli’s xed income
funds, where the maximum investment per
fund is EUR 12 million according to the limits
of the Board of Directors.
Interbank OTC derivatives and counterparty
risk between Evli and the funds are managed
through daily collateral management, using
only cash as collateral. Interbank OTC deri-
vatives are used for hedging purposes, such
as currency and interest rate risk or structu-
red products issued by Evli. Credalco accepts
all counterparties with whom it enters into
non-standardised derivative contracts. The
limits for nancial activities are set taking into
account, among others, the credit rating and
geographical location of the issuer.
During the year, the credit risks in the broke-
rage business were low. Derivatives brokerage
was discontinued in 2021. The collateral requi-
rements from market venues for brokerage ope-
rations totalled EUR 1.6 million as at December
31, 2021, mainly consisting of collateral provided
for equity brokerage. The clearing and settle-
ment risks for stockbroking were low in the year
of operation. There were few outstanding trade
receivables, which are monitored through a
quantitative process. Table 3 summarises the
credit risks. The credit risk position is further
disclosed in paragraphs 6.4 to 6.6 of the Risk
Position notes.
Liquidity risks
As with other financial risks, the risk-taking
regarding liquidity risks is conservative, and
Evli’s liquidity cannot be compromised under
any circumstances. According to the liquidity
risk strategy, there must be an additional buffer
over the regulatory requirements.
Evli Bank Plc’s Board of Directors conrms the
limits for using tied-up capital. Proposals for
these limits are prepared by Credalco. In its
funding operations, Evli must always be pre-
pared to ensure that its liquidity matches the
set limits. The Treasury function is respon-
sible for managing the liquidity risk. The liqui-
dity risk is monitored by, for example, having
the risk management unit of the Group follow
the maturity distribution of assets and liabili-
ties and reporting this to the Executive Group,
Credalco and the Board of the company. The
assets and liabilities of the Group are pre-
sented in the Other notes section 7.1. Maturi-
ties of nancial assets and liabilities.
Most of the expenditure in 2021 consisted of
lending and the Treasury function’s investment
portfolio. Other factors tying up capital were
the collaterals for the clearing and derivatives
operations.
The Liquidity Coverage Ratio (LCR) entered
force on October 1, 2015. The requirement
describes the extent of the bank’s liquid assets
with relation to net outows that take place in
a stressed situation in a 30-day period. The net
outows include outows of savings and other
Market value Collateral Type of collateral
Financial activities
Lending 98.1 346.5
Clients’ portfolios
Investment activities 74.1 0
Finnish municipal paper 0.0 0
Banks (minimum credit rating A-) 33.4 0
Banks (no credit rating) 0 0
Corporate Bonds (direct) 0.7 0
Corporate Bonds (mutual funds) 40.0 0
OTC derivatives between banks -0.8 14.7 Cash
OTC derivatives between Evli and funds -6.1 29.7 Cash
Trading book 0.1 0
Table 3: Credit risks December 31, 2021, M€
funding, and can be offset by inows, such as
receivables falling due in 30 days.
As the LCR entered force, the ratio had to be at
least 100 percent. Evli’s Board of Directors has
set, that the ratio must be at least 110 percent.
The LCR calculation and its results are descri-
bed in more detail in the Other notes in sec-
tion 7.7 Liquidity Coverage Requirement (LCR).
Furthermore, Evli’s internal liquidity adequacy
assessment process (ILAAP) has been deve-lo-
ped to meet the requirements of authorities.
Leverage ratio
Leverage ratio describes the ratio of Tier 1
capital to the total exposures. The total expos-
ure includes the exposure values of all assets
and the amount of off-balance sheet items
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which have not been subject to decreases
when determining the amount of own funds.
Off-balance sheet items are included in the cal-
culation according to the credit counter-value
ratio and derivatives according to the exposure
value. The leverage ratio of Evli Group was 7.85
percent on December 31, 2021.
Operational risks
Operational risks mean a direct or indirect dan-
ger or nancial loss that is caused by insuf-
cient or failed internal processes, systems,
personnel or external factors. Operational
risks also include legal, compliance and data
security risks. Therefore, operational risks are
associated with, for example, the management
system, operative processes, information sys-
tems, individuals and various external factors
or threats. Each unit is responsible for ma-
naging the operational risks of their respective
areas. According to the risk management stra-
tegy, all relevant operational risks must be iden-
tied and mitigated to such a level that Evli’s
continuity or protability is not compromised.
Evli continuously pays special attention to the
identication, monitoring and control of ope-
rational risks. The business units carry out regu-
lar self-assessments of the operational risks
of products, services, individuals, operating
processes and systems. Evli has prepared a se-
parate group-wide standard operating
procedure for identifying, assessing, controlling
and reporting operational risks. Operational
risks increase the requirement for minimum capi-
tal in the capital adequacy calculation. In its ca-
pital adequacy calculation, Evli uses the Basic
Indicator Approach for operational risks, where
the capital requirement of operational risks is
based on the average gross income from the
preceding three years multiplied by the factor
set by the Basel committee (0.15). The calcu-
lation of the solvency requirement is descri-
bed in the Notes on risk position 6.8. Solvency
Supplement.
Legal and compliance risks
Rapid changes in legislation and legal praxis
pose challenges to the implementation of gui-
delines and regulations. Changes often require
a lot of time and effort. The primary respon-
sibility for compliance with specic laws and
governmental regulations applicable to the
different Evli companies always rests with the
line management in charge of the function in
question. Moreover, Evli’s Board of Directors
has appointed a Compliance Ofcer, and the
Executive Group has designated a Compliance
Steering Committee whose members repre-
sent the various business functions.
Information security risks
Evli’s operations are based to large extent on
the utilisation of information technology and
telecommunications. One of the key objecti-
ves of all Evli functions is the efcient, error-
free and secure processing of information in
a variety of formats. Evli handles and stores
substantial amounts of information that is de-
signated as condential under applicable law,
guidelines or contracts or otherwise requires
special security arrangements. The conden-
tiality, accuracy and usability of such informa-
tion must be protected at all times. To manage
information risk, it is necessary to ensure that
information systems function properly and
reliably and to pay particular attention to the
correctness of information updated in databa-
ses and to the management of access rights.
Information asset owners are primarily respon-
sible for protection of the information assets
at Evli. Information protection includes the
correctness, availability and condentiality of
data. The system administrator is the person
who takes care of the technical maintenance
tasks required for the system. Evli’s Information
Management is responsible for organising the
maintenance of Evli’s systems. Technical main-
tenance is planned and executed in collabora-
tion with the information system owner and its
administrator. For this reason, a specic “Infor-
mation Security Policy” that addresses infor-
mation security and related procedures has
been prepared for the management of ope-
rational risks related to information systems
and information security. No financial losses
were sustained in 2020 as a result of misuse
of information systems or disturbances affec-
ting them. In addition to arranging normal
asset protection, Evli has comprehensive insu-
rance coverage for liability and criminal losses.
New products and services
The safe introduction of new products and
services requires that, prior to making the nal
decision on introduction, assurance has been
obtained that all units participating in the deli-
very of the product know their respective duties
and that they have made the function in ques-
tion aware of any operational and other risks
involved in launching it on the market. The
indirect effects of the realisation of risks on the
whole Group need to be assessed with parti-
cular care. Evli uses a standardised procedure
concerning the approval and introduction of
new products and services.
Outsourcing operations
The delegation of business operations to
agents or other outsourcing of operations does
not relieve Evli of its responsibilities or obliga-
tions. Evli has adopted guidelines regarding
the principles that must be complied with when
Evli’s business operations are delegated out-
side the Group. These guidelines ensure that
the management and monitoring of operatio-
nal risks relating to the outsourced functions is
arranged in the manner required by the Finan-
cial Supervisory Authority.
Strategic risks
Changes in the business environment
Negative developments in the Finnish and in
-
ternational economies and uncertainty in the
nancial markets may reduce customer activ
-
ity and make it more difcult for customers to
access funding. In this environment, assets
under management in the Wealth Manage
-
ment and Investor Clients business segment
may decrease, both due to market move
-
ments and client defaults, which will have a
direct negative impact on the level of fee in
-
come received by Evli.
Mergers and acquisitions
Evli may participate in mergers and
acquisitions. Mergers and acquisitions may
result in, among other things, additional or
signicant unnecessary costs, unnecessary
use of resources and reputational damage,
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which, if consummated, could have a delayed
negative impact on future business, nancial
condition, results of operations, prospects
or the value of Evli’s shares. In addition,
the benets of the acquisition may not be
achieved.
Continuity management
Evli’s operations may be threatened by external
or internal crises of a physical or other nature.
In crisis situations, an organisation must:
• be prepared
• have crisis management capability
• have prepared by means of drills.
To ensure operational continuity, each func-
tion has a continuity plan. The purpose of con-
tinuity planning is to ensure that, in the event
of certain threats materialising, it is possib-
le to ensure the safety of Evli’s clients and
employees, to protect tangible and intangib-
le property, to comply with the law and other
regulations, to maintain the targeted level of
customer service and internal operations and
to preserve the trust of stakeholders.
Each continuity plan will include system reco-
very plans, including guidelines on how to get
information systems into operating condition
in situations of severe failure, how to continue
operations and how to return operations to
normal.
Evli has compiled a Recovery Plan that comp-
lies with ofcial requirements. The law states
that each bank must have a Recovery Plan that
describes the measures that will ensure the
continuation of operations if the bank’s nan-
cial position weakens. The coordination of
continuity planning is the responsibility of the
Group’s Risk Control unit.
Risk monitoring and reporting
The Group’s Risk Control unit is responsible for
corporate-wide risk reporting, which consists of
both numerical and written reports. The reports
include at least the following:
1. Daily report to the Executive Group on the
utilisation of corporate limits
2. Monthly numerical and verbal risk mana-
gement report and summary of client
exposure and limit utilisation to Credalco
3. Quarterly numeric and verbal summary of
risks to Evli’s Board of Directors
4. Annual operational risk assessment report
to the Executive Group and the Board of
Directors.
In addition, the Compliance function and the
internal audit report regularly on risk manage-
ment matters to the top management.
Managing capital adequacy
An essential element of the regulations is
compliance with the solvency requirement set
by the regulations and the Internal Capital Ade-
quacy Assessment Process (ICAAP). The ca-
pital adequacy regulation is based on the prin-
ciple that the quantity, quality and allocation
of the bank’s own assets must be continuously
sufcient to cover the material risks applying to
the supervised party. It is not possible, howe-
ver, to use capital to replace deciencies in the
qualitative aspects of risk-bearing capacity.
Broadly speaking, risk-bearing capa-city inclu-
des not only capital and protability, but also
reliable management, well-organised internal
control and risk management.
Evli’s Board of Directors has set a target of
maintaining at least a 13.0 percent BIS capital
adequacy. This target is monitored by means
of the Risk Control unit´s monthly reports to
the Board of Directors, the Executive Group
and Credalco. Evli’s internal capital adequacy
management calculations are updated as dee-
med necessary by the management. However,
this updating takes place at least once a year
as part of strategic planning during the bud-
getary process.
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Accounting policies
Interest income and expenses
Interest income and expenses are calculated using the effective interest rate method. In recognizing an
impairment loss on a contract classied as a nancial asset, the recovery of interest is continued at the lo-
wered accounting balance using the original effective interest rate of the contract. If the receipt of interest is
unlikely, it is recognized as an impairment loss. Interest income obtained from nancial assets is recognized
as interest income.
Borrowing costs
Borrowing costs are recognized as an expense in the period in which they are incurred. The directly attributable
transaction costs of a certain borrowing are included in the original amortized cost of the borrowing and are
amortized as interest expense by using the effective interest method or, if necessary, by following a formula
whose result can be deemed as being sufciently near the sum calculated by using the effective interest method.
1.1. INTEREST INCOME 2021 2020
At fair value through prot or loss
Debt securities 0.3 0.4
Derivative contracts 0.0 0.0
Interest income from other loans and claims
Claims on credit institutions 0.1 0.1
Claims on the public and public sector entities 1.4 1.5
Other interest income 0.5 0.9
Interest income, total 2.3 2.8
1.2. INTEREST EXPENSES 2021 2020
At fair value through prot or loss
Derivative contracts and trading liabilities 0.0 0.0
Interest expenses from other borrowing
Liabilities to the public, public sector entities and credit institutions -2.0 -2.1
Debt securities issued to the public -0.1 -0.4
Other interest expenses 0.0 -0.2
Interest expenses, total -2.1 -2.6
Notes to income statement
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1.3. COMMISSION INCOME 2021 2020
Credit related fees and commissions 0.1 0.0
Income from payment transactions 0.0 0.0
Insurance brokerage 0.3 0.1
Advisory services 21.2 10.1
Securities brokerage 12.5 9.2
Securities issue 0.0 0.0
Mutual funds 64.9 47.6
Asset management 15.0 10.8
Custody services 0.2 0.3
Other operations 0.3 1.7
Commission income, total 114.5 79.9
Accounting policies
Revenue recognition
From the Wealth Management and Investor Clients
segment, Evli receives management fee income from
mutual funds and pays clients fee refunds related to
management fees. Fund fees consisting of manage
-
ment fees and client refunds are recognized on a mon-
thly basis and are mainly invoiced retrospectively in
one, three, six- or twelve-month periods. These fees
are typically calculated based on the market value
or initial investment in the fund as well as on agreed
upon fee percentage over time. Any non-recurring
fees related to the mutual funds, such as acquisition,
subscription or redemption fees, are allocated to the
month in which the right to the fee arises.
With successful investment activities, fee income may
include performance-related fees. These may con
-
sists of performance fees related to mutual and spe-
cial investment funds, carry fees received by the gene-
ral partner of an alternative investment fund as well as
performance fees related to asset management por
-
tfolios. The performance-based fees of mutual funds
are taken into account daily in the values of the funds
and invoiced retrospectively on a monthly basis. The
performance-based fees of special investment funds
are invoiced on a quarterly basis. Performance fees
related to the asset management portfolios are recog-
nized as income only when the final amount of the
fee can be reliably estimated. Evli Group annually
reviews the performance-based fees of alternative
investment funds due to the general partner of the
fund, the so-called carry fees, and models the pro-
babilities related to their realization. The company will
only consider the performance fee for the alternative
funds to the extent that it is probable that the amount
of accrued recognized income will not need to be sig
-
nicantly reversed at a later date.
Evli brokers direct investment instruments such as
equities, ETFs and derivatives for its clients. For the
brokerage service it provides, the company receives a
one-time brokerage fee. The brokerage fee received
is linked to the transaction executed and the return
associated with the brokerage activity is recognised
on a trade date basis. In addition to the above men
-
tioned investment instruments, Evli also brokers equity
linked notes. The commission received on the sale of
the company’s own and other operators’ equity linked
notes is recognised immediately in the income state
-
ment. The full amount of the fee is available on the
date of issue of the note and is attributable to services
related to the issue of the loan. The interest expense
for the notes is calculated by using the effective inte
-
rest method. The notes are recognized in the balance
sheet at the amortized cost, and the interest compo
-
nent of the loan, which is the same as the value of the
option, is recognized as a separate debt item in the
group “Derivative contracts and trading liabilities”.
Evli’s Advisory and Corporate Clients segment recei
-
ves monthly retainer fees and success fees related to
corporate consulting, ie Corporate Finance. Monthly
retainer fees are recognized as income over time whe
-
reas recognition of success fees, which are treated as
variable consideration, is linked to the completion
of projects. Project success fee income is recog-
nized as income in the period when the outcome of
the project can be estimated reliably and when the
performance obligation has been met. Costs incurred
for any project are expensed immediately.
Evli also receives fees related to the design and mana
-
gement of incentive programs. Fees related to the
design of incentive programs are invoiced on a mon
-
thly basis and recognized as income for the period in
which the invoicing has taken place. For the mana
-
gement of incentive programs, fees are billed on a
quarterly, semi-annual or annual basis. Remune-
ration is accrued evenly over the period to which the
work relates. Other consultancy fees, including analy-
tical services, are recognized in the period in which the
work is performed.
Management judgment
The commission income of asset management
and mutual funds is subject to adjustment items
that can in some circumstances include ambiguity
with respect to the date of validity and scope,
among other things. This applies to situations in
which price reductions have been agreed upon
with clients by using “fee reimbursement cont
-
racts”. For this reason, the management has used
its judgment and has strived to make the most
conservative assessment of the fee reimburse
-
ment debt arising from these, or any contracts of
which there is knowledge but have not yet been
entered in the system. The debt is recovered mon
-
thly and is included as an item that reduces fund
and asset management fees.
*Other includes lending, payment transaction, insurance brokerage, securities issuance and other activities.
Commission Income
0
10
20
30
40
50
M€
60
70
21.2
12.5
15.0
0.2
0.6
64.9
Advisory services
Securities brokerage
Mutual funds
Asset management
Custody services
Other operations*
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1.8. PERSONNEL EXPENSES
Accounting policies
The total salaries paid by the Evli Group to its person-
nel consist of xed salaries and remuneration, variable
remuneration under the annually adopted reward sys
-
tem, and long-term incentive systems.
Fixed salaries play an important role in the company.
By aiming to offer its employees a competitive pay
level, the company ensures that it continues to be staf
-
fed by a skilled workforce. A reward system based on
variable salaries applies to all the Group’s employees.
The objective of the reward system is to support the
implementation of the company’s strategy as well as
promote its competitiveness and long-term nancial
success.
In addition to the above remuneration methods, the
company may create separate long-term incentive sys
-
tems. The company has three share-based incentive
program that are currently in effect: Share Program
2018, 2019 and 2021/1 and 2021/2. Under the 2018
program, shares are issued gratuitously during the
next three years in equal instalments to the members
of the program, provided that the person is still emp
-
loyed by the company. After granting, there is still a
three-year evaluation period during which the com
-
pany has the right to recall the shares if there is a valid
reason, such as resignation. Similarly, in the 2019 and
2021/1 schemes, shares are granted free of charge four
years after the start of the scheme, provided that the
individuals are still employed by the company. Under
the 2021/2 share plan, members of the plan have the
opportunity to earn shares for successful performance
in accordance with the terms of the plan. The alloca
-
tion of shares has been decided by the Board of Dire-
ctors. For more information on share-based incentive
schemes, see Remuneration Policy, pages 156-158.
The Evli Group provides a reward fund for its emplo
-
yees. All employees of the Evli Group companies that
are based in Finland are members of the fund. Using
the fund is voluntary. Decisions to enter rewards in the
fund are made one year at a time. Social security costs
are not withheld from assets invested in the fund. The
fund invests its member share capital in accordance
with the Act on Personnel Funds. Capital is invested
in accordance with a strategy prepared jointly by the
fund’s Board of Directors and Wealth Management.
In the payment of benets payable upon termination
of employment, Evli complies with normal agreements
related to termination of employment pursuant to valid
legislation. During the nancial year, the company has
not paid sign-on payments to new employees.
All the Evli Group’s retirement plans are dened cont
-
ribution plans. Payments to dened contribution plans
are reected in prot or loss in the period in which they
are incurred. The Evli Group nances all its retirement
plans as contributions to pension insurance compa
-
nies. The contributions take different countries’ local
regulations and practices into account.
1.4. COMMISSION EXPENSES 2021 2020
Trading fees paid to stock exchanges -0.8 -1.8
Other -2.0 -1.3
Commission expenses, total -2.7 -3.1
1.5. NET INCOME FROM SECURITIES TRANSACTIONS
AND FOREIGN EXCHANGE DEALING 2021 2020
Net income from securities transactions
Financial assets held for trading 0.1 -0.2
Financial assets at fair value through prot or loss 1.4 0.6
Net income from securities transactions, total 1.5 0.4
Gains and
losses on sales
Changes in
fair value
Total
2021
Total
2020
Net income from securities
transactions by instrument
Debt securities -0.1 -0.3 -0.4 -0.9
Shares and derivative contracts 1.5 0.4 1.9 1.3
Net income from securities
transactions, total 1.4 0.1 1.5 0.4
Net income from foreign exchange
operations 2.0 0.0 2.0 2.0
Net income from securities transactions
and foreign exchange operations, total 3.4 0.1 3.5 2.4
1.6. INCOME FROM EQUITY INVESTMENTS 2021 2020
Dividends from nancial assets valued at fair value 0.0 0.0
Dividends from available-for-sales securities 0.0 0.0
Dividends from associated companies 0.0 0.0
Income from equity investments, total 0.0 0.0
1.7. OTHER OPERATING INCOME 2021 2020
Rental income 0.0 0.0
Gain on sale of owner-occupied investment properties 0.0 0.0
Other income 0.2 0.2
Other operating income, total 0.2 0.2
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290 persons
Employees per segment
Advisory and Corporate Clients 57%
Wealth Management and Investor Clients 26%
Group Operations 17%
290 persons
Finland 91%
Sweden 9%
Employees per country
290 persons
Men
62 %
Women
38 %
Employee facts
2021
Board of
Directors CEO Executive group
Salaries and fees 0.4 0.6 1.5
Additional pension arrangements 0.1
Share based incentives, granted during
the period - - -
EMPLOYEE BENEFITS 2021 2020
Wages and salaries
-29,5
-24.6
of which bonuses -7.1 -4.8
Other social security costs -1.6 -1.2
of which relating to bonuses -0.2 -0.1
Pension expenses -4.8 -3.4
of which relating to bonuses -0.6 -0.3
dened contribution plans -4.8 -3.4
Equity-settled share options -1.5 -1.3
Employee benets, total -37.4 -30.5
2021 2019
Number of personnel during the period, average 279 251
Number of personnel at the end of the period 290 261
Employees by business segment at the end of the period
Advisory and Corporate Clients 74 53
Wealth Management and Investor Clients 166 160
Group Operations 50 48
Total 290 261
Employees by geographic market at the end of the period
Finland 265 245
Sweden 23 15
Arab Emirates 2 1
Total 290 261
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SHARE BASED INCENTIVES
Plan
Restricted
Share Plan 2017
Restricted
Share Plan 2018
Restricted
Share Plan 2019
Restricted
Share Plan 2021
Restricted Share
Plan 2021-2025 Total
Type Share Share Share Share
Initial amount, pcs 233,000 233,000 350,000 118,000 120,000 1,054,000
Initial allocation date 30.9.2017 8.6.2018 14.6.2019 12.2.2021 12.2.2021
Vesting date
30.9.2021 / 30.9.2022
/ 30.9.2023
30.6.2022 / 30.6.2023
/ 30.6.2024 30.6.2024 8.2.2026 *
Maximum contractual life, yrs 6 5 5 5.0 - 5.3
Remaining contractual life, yrs 1.7 1.5 2.5 4.1 - 2.0
Number of persons at the end of the reporting year 8 16 15 21 2
Payment method Cash & Equity Cash & Equity Cash & Equity
Cash & Equity Cash & Equity
*The compensation is earned in installments during 2021-2025 based on required performance criteria. Each installment is subject to a 3 year vesting period. The ownership to the share is
transferred to the recipient after the vesting period. The shares are restricted to trading for one year after they are received.
Changes during the period 2021
Restricted
Share Plan 2017
Restricted
Share Plan 2018
Restricted
Share Plan 2019
Restricted
Share Plan 2021
Restricted Share
Plan 2021-2025 Total
1.1.2021
Outstanding at the beginning
of the reporting period, pcs 148,730 137,346 350,000 0 0 636,076
Changes during the period
Granted 0 0 0 118,000 120,000 238,000
Forfeited 15,333 0 0 8,000 0 23,333
Invalidated during the period 0 0 0 0 0 0
Excercised 72,065 68,673 0 0 0 140,738
Weighted average subscription price, € 0 0 0 0 0 0
Weighted average price of shares, €*
Expired
31.12.2021
Excercised at the end of the period 148,735 68,673 0 0 0 217,408
Outstanding at the end of the period 61,332 68,673 350,000 110,000 120,000 710,005
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FAIR VALUE DETERMINATION
The fair value of share based incentives have been determined at grant date and the fair value is expensed
until vesting. The pricing of the share based incentives granted during the period was determined by the
following inputs and had the following effect:
Valuation parameters for instruments granted during period
Share price at grant, € 16.05
Share price at reporting period end, € 26.20
Expected dividends, € 5.25
Fair value December 31, 2021, € 1,824,218
Expected volatility was determined by calculating the historical volatility of the Group`s share using monthly
observations over corresponding maturity.
Effect of Share-based Incentives on the result and nancial position during the period
Expenses for the nancial year, share-based payments, equity-settled 1,511,818
Future cash payment to be paid to the tax authorities from share-based payments,
estimated at the end of the period December 31, 2021 8,593,666
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1.9. OTHER ADMINISTRATIVE EXPENSES 2021 2020
Ofce expenses -1.2 -1.3
IT and infosystems -7.7 -6.8
Business expenses -0.6 -0.5
Travel expenses -0.2 -0.3
Car costs -0.1 -0.1
Other HR related expenses -0.9 -0.5
Marketing expenses -0.9 -0.6
Banking and custodian expenses -0.9 -0.8
External services -6.0 -1.6
Other administrative expenses, total -18.5 -12.4
1.11. DEPRECIATION, AMORTIZATION AND IMPAIRMENT LOSSES 2021 2020
Depreciation and amortization
Applications and software -2.4 -2.3
Other intangible assets -0.3 -0.9
Leasehold improvements 0.0 -0.1
Leasing -0.1 -0.1
Assets acquired under nance leases -1.7 -2.0
Equipment and furniture -0.2 -0.2
Depreciation, amortization and impaiment losses, total -4.8 -5.7
Write-downs
Impairment of goodwill 0.0 0.0
1.10. OTHER OPERATING EXPENSES 2021 2020
Supervision expenses -0.8 -0.7
Rental expenses -0.2 -0.5
Other expenses -0.9 -0.6
Other operating expenses, total -1.8 -1.7
1.12. EXPECTED CREDIT LOSSES ON LOANS AND OTHER COMMIT-
MENTS AND IMPAIRMENT LOSSES ON OTHER FINANCIAL ASSETS 2021 2020
Claims on the public and public sector entities
Expected credit losses on group level 0.1 -0.1
Expected credit losses individual 0.0 0.0
Guarantees and other off-balance sheet commitments 0.0 0.0
Sales receivables 0.0 0.0
Realised loan losses 0.0 -0.1
Impairment losses on other nancial assets 0.0 0.0
Impairment losses, total 0.1 -0.1
1.13. SHARE OF PROFIT OR LOSS OF ASSOCIATE COMPANIES 2021 2020
Northern Horizon Capital A/S 0.5 0.4
Depreciation breakdown by asset class
Applications and software 30%
Other intangible assets 61%
Leasehold improvements 1%
Assets acquired under nance leases 1%
Equipment and furniture 7%
Management judgment
Evli does not participate in daily management of associated companies’ business operations, and instead focu-
ses on inuencing strategic decisions at the board level. At the time of preparing Evli’s consolidated nancial
statements, the income statement and balance sheet of associated companies are not yet known, which is why
Evli’s management must use judgment in estimating the share of associated companies’ prot for the nancial
year. The estimate is based on the most recent known prot performance, prior experience of possible last-mi
-
nute changes, and other possible factors that indicate changes.
15,2 M€
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Earnings per share (EPS), fully diluted,
Five-year development
0.69 0.68
0.71
0.87
1.47
0.42
0
0.20
0.40
0.60
1.00
1.20
2016 2017 2018 2019
0.80
1.40
2020 2021
1.14. INCOME TAXES
Accounting policies
The prot and loss account’s tax expenses comprise current and deferred tax. Current tax is calculated on the
taxable prot for the period determined on the basis of the enacted tax rate of each country, adjusted by any
taxes related to previous periods.
Deferred tax is generally calculated on all temporary differences between the carrying amount of an asset or lia
-
bility in the balance sheet and its tax base. The largest temporary differences arise from the depreciation of xed
assets and tax losses. No deferred tax is recognized on the undistributed prots of subsidiaries to the extent it
is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax is measured
by using the tax rates enacted by the balance sheet date.
As both A and B series shares entitle holders to equal amounts of the company’s prot, these are not shown
separately.
INCOME TAXES 2021 2020
Current tax expense -10.5 -5.9
Taxes from previous years -0.1 -0.4
Deferred taxes 0.0 0.1
Other taxes 0.0 0.0
Income taxes, total -10.5 -6.3
Reconciliation between the income tax expense recognized in the
income statement and the taxes calculated using the parent company’s
domestic tax rate.
Prot/loss before taxes, Finland 42.7 28.2
Prot/loss before taxes, other countries 10.8 1.3
Prot/loss before taxes, total 53.5 29.5
Tax at domestic tax rate 10.6 -5.9
Effect of foreign subsidiaries' differing tax rates -0.1 -0.2
Income not subject to tax -0.3 0.0
Expenses not deductible for tax purposes 0.0 0.0
Taxes from previous years 0.0 -0.4
Change in other deferred tax assets 0.0 0.1
Other taxes 0.3 0.0
Income tax charge in the consolidated income statement 10.5 -6.5
1.15. EARNINGS PER SHARE 2021 2020
Prot for the year attributable to shareholders in Evli Bank Plc 36.35 21.31
Avarage number of A-shares 14,595,235 14,898,070
Avarage number of B-shares 9,514,185 9,107,351
Earnings / Share (EPS) 1.51 0.90
Share and option rights for share-based incentive programs 710,005 636,076
Earnings per Share (EPS), fully diluted, € 1.47 0.87
Comprehensive income attributable to shareholders in Evli Bank Plc 36.46 21.48
Comprehensive Earnings per Share (EPS), fully diluted, € 1.48 0.88
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Notes to balance sheet
Debt securities by country 2021 2020
Finland 21.7 30.6
Sweden 5.3 11.0
France 0.0 0.0
Denmark 7.1 5.3
2.1. CASH AND CASH EQUIVALENTS 2021 2020
Balances with central banks 384.1 331.5
Other 0.0 0.1
Cash and cash equivalents total 384.1 331.6
2.2. CLAIMS ON CREDIT INSTITUTIONS 2021 2019
Repayable on demand
Domestic credit institutions 3.9 5.5
Foreign credit institutions 5.1 1.2
Repayable on demand, total 9.1 6.7
Other than repayable on demand
Domestic credit institutions 28.2 24.0
Foreign credit institutions 10.8 36.1
Other than repayable on demand, total 39.0 60.1
Claims on credit institutions, total 48.1 66.8
2.3. CLAIMS ON THE PUBLIC AND PUBLIC SECTOR ENTITIES BY SECTOR 2021 2020
Repayable on demand
Financial and insurance corporations 0.0 0.0
Repayable on demand, total 0.0 0.0
Other than repayable on demand
Enterprises and housing associations 22.6 27.0
Financial and insurance corporations 1.2 0.9
Households 66.9 71.8
Foreign countries 7.3 9.9
Other than repayable on demand, total 98.0 109.6
Claims on the public and public sector entities by sector, total 98.0 109.6
2.4. DEBT SECURITIES 2021 2020
Issued by public corporations
Publicly
quoted Other Total Total
Local government notes 0.0 0.0 0.0 8.0
Issued by other than public corporations 0.0 0.0 0.0 8.0
Issued by other than public corporations
Fair valued
Bonds issued by banks 33.4 0.1 33.4 37.5
Other debt securities 0.0 0.7 0.7 1.4
Issued by other than public corporations 33.4 0.7 34.1 38.9
Debt securities, total 33.4 0.7 34.1 46.9
2021 2020
Debt securities by balance sheet category
Debt securities eligible for renancing with central banks
On public sector entities 0.0 0.0
Other 33.4 37.2
Debt securities
On public sector entities 0.0 8.0
Other 0.7 1.8
Total 34.1 46.9
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2.5. SHARES AND PARTICIPATIONS
2021
Balance sheet category Publicly quoted Other Total
Shares and participations
Valued at fair value through prot or loss
Held for trading 0.0 0.0 0.0
Other 42.1 7.5 49.6
Shares and participations, total 42.1 7.5 49.6
2020
Balance sheet category Publicly quoted Other Total
Shares and participations
Available for sale
Valued at fair value through prot or loss
Held for trading 0.1 0.0 0.1
Other 49.9 7.2 57.0
Shares and participations, total 50.0 7.2 57.1
Net risk position is described in section Market Risk, Notes on Risk Position.
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Accounting policies
Derivative nancial instruments are initially recognized at
cost, which corresponds to their fair value. Subsequently
derivative nancial instruments are measured at fair value.
Resulting gains and losses are treated in accordance with
the purpose of the derivative instrument.
The company does not apply hedge accounting, and deri
-
vative nancial instruments are classied as held for tra-
ding. Changes in the value of derivatives in this category
during the year and the realized gains/losses are presented
in the income statement under net income from securi
-
ties trading.
Equity derivatives in the banking book hedge the equity
risk in equity-linked bonds issued to the public.
The interest rate derivatives hedge the interest rate risk in
liabilities in the balance sheet.
Currency derivatives comprise commitments made against
clients and the associated hedges, and contracts made to
hedge currency risk in the balance sheet. The net open risk
position of the total amount is small. The largest part of
the contracts are in SEK (2,763 M€), and in NOK (662 M€).
2.6. DERIVATIVE CONTRACTS
Overall effect of risks associated with derivative contracts
Nominal value of underlying , gross 2021 2021
Remaining maturity
Held for trading
Less than
1 year
1-5 years 5-15 years
Fair value
(+/-) ASSETS LIABILITIES
Interest rate derivatives
Interest rate swaps 4.5 70.5 3.2 0.0 2.0 2.0
Equity-linked derivatives
Futures 2.2 1.0 0.0 0.0 0.4 0.4
Options bought 0.0 0.0 0.0 0.0 0.0 0.0
Options sold 0.0 0.0 0.0 0.0 0.0 0.0
Currency-linked derivatives 4,073.2 8.3 0.0 0.1 24.1 24.0
Held for trading, total 4,079.9 79.8 3.2 0.1 26.4 26.3
Derivative contracts, total 4,079.9 79.8 3.2 0.1 26.4 26.3
Overall effect of risks associated with derivative contracts
Nominal value of underlying , gross 2020 2020
Held for trading
Interest rate derivatives
Interest rate swaps 2.1 100.7 2.2 0.0 1.0 1.0
Equity-linked derivatives
Futures 0.7 3.4 0.0 0.0 0.0 0.0
Options bought 0.0 0.0 0.0 0.0 0.0 0.0
Options sold 0.0 0.0 0.0 0.0 0.0 0.0
Currency-linked derivatives 4,555.2 32.1 0.0 0.1 51.1 51.0
Held for trading, total 4,558.0 136.1 2.2 0.1 52.2 52.0
Derivative contracts, total 4,558.0 136.1 2.2 0.1 52.2 52.0
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2021
Administration and
design of incentive
schemes
Fund portfolio
management
Private wealth
management
Alternative
investment
funds
Goodwill, EUR million 5,5 0,5 1,2 2,1
Assumption of growth in
turnover 7% -2% 0% 4%
Assumption of growth in costs 2% 2% 0% 5%
Discount rate 11% 11% 11% 11%
Terminal growth rate 2% 1% 1% 2%
Goodwill
Goodwill represents the excess of the cost of an acqui
-
red entity over the Group’s interest in the fair value of
the identifiable net assets and liabilities acquired at
the acquisition date. Goodwill is measured at historical
cost less cumulative impairment losses. Goodwill is not
amortized. Goodwill arising in connection with acquisi
-
tions is tested annually or whenever events or changes
in circumstances indicate that the carrying amount may
not be recoverable. For this purpose, goodwill is allo
-
cated to cash-generating units, or, in the case of a subsi-
diary, goodwill is included in the subsidiary’s acquisition
cost and the subsidiary forms a cash-generating unit. If
the carrying amount of goodwill for a cash-gene-rating
unit exceeds its recoverable amount, an impairment
loss equal to the difference will be recognized.
For the testing of impairment, the recoverable
amounts of an asset are determined by calculating the
asset’s value in use. The calculations are based on ve-
year cash ow plans approved by the management.
In the cash ow model, items affecting each cash-gene-
rating unit’s operational cash ow – mainly income and
expenses – are examined. Cash ows extending after
the five-year forecast period have been calculated
using the “nal value method”.
The income and expenses of each asset are estimated
based on the management’s understanding of future
development.
In the nal value method growth is determined using
the management’s conservative assessment of the
long-term growth of cash ow. The cash ows used
to measure value in use are discounted to the pre
-
sent value using the discount rate that reects asses-
sments of the time value of money and the risks spe-
cic to the asset.
2.7. GOODWILL
Accounting policies
The table above shows the average annual rates of
change in revenues and expenses, discount rates,
perpetuity growth rate assumptions and the carrying
amounts of goodwill for each year used in the good
-
will test.
In conjunction with goodwill testing, the sensitivity of
the testing to changes in the variable affecting each
result is also assessed. Sensitivity analyses are per
-
formed on goodwill impairment testing calculations
using worst-case scenario forecasts. These scenarios
were used to examine the change in value in use by
changing the basic assumptions in the denition of
value. Future income and expense cash flows, the
discount rate and nal value growth rate were chan
-
ged in the sensitivity analyses. Among others, the fol-
lowing tests were performed:
• income expectations for the ve-year period under
review were stressed using 20 percent lower return
assumptions than originally assumed;
• The cost trend was stressed using 30 percent hig
-
her cost-development than originally assumed
• The terminal value was set at 0 percent
• The discount rate was increased by 3 percent
On the basis of the sensitivity analyses carried out,
the change in the recoverable amount for the units
tested does not lead to a situation in which the car-
rying amount is greater than the value in use.
Management judgment
Impairment testing of goodwill is based on the esti-
mated future recoverable net cash ows of the cash
generating units to which goodwill has been allo
-
cated, which is then compared to this units’ carrying
amounts. The testing requires making of assumpti
-
ons concerning variables such as the growth rate of
returns, costs of operations and the discount rate at
which the incoming cash ows are converted to the
current value.
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Intangible assets
Intangible assets are recognized in the balance sheet
only if their acquisition cost can be reliably measured
and if it is probable that the expected future econo
-
mic benets attributable to the assets will ow to the
company. Intangible assets with denite useful lives
are recognized in the balance sheet at historical cost
and are amortized in the prot and loss account on a
straight-line basis over their known or estimated useful
lives. Intangible assets include software licenses and
other intangible rights whose useful life is 3-5 years.
Impairment of tangible and intangible assets
At each balance sheet date the Group assesses whet
-
her there is any indication that an asset may be impai-
red. If any such indication exists, the recoverable
amount of the asset is estimated. In addition, good
-
will and intangible assets not yet available for use are
tested for impairment annually, regardless of the exis-
tence of indication of impairment. The need for
impairment is assessed for each cash-generating unit.
The recoverable amount is the higher of an asset’s fair
value less costs to sell and its value in use. The value
in use is determined as the future net cash ows expe
-
cted to be derived from the said asset or cash-gene-
rating unit which are discounted to present value. The
discount rate used is a pre-tax discount rate that ree
-
cts current market assessments of the time value of
money and the risks specic to the asset.
An impairment loss is recognized if the carrying
amount of an asset is higher than its recoverable
amount. The useful life of the asset is reviewed when
the impairment loss is recognized. An impairment
loss is reversed if circumstances have changed and
the recoverable amount has changed since the date
of recognizing the impairment loss. Impairment los
-
ses recognized for goodwill are not reversed under
any circumstances.
Management judgment
At each balance sheet date management assesses
whether there is any indication that an asset may be
impaired. If any such indication exists, the recoverable
amount of the asset is estimated
Accounting policies
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INTANGIBLE ASSETS AND GOODWILL 2021 2020
Goodwill
Cost at 1.1. 9.3 5.0
Increases/Decreases 0.0 4.3
Cost at 31.12. 9.2 9.3
Accumulated depreciation at 1.1. 0.0 0.0
Impairment losses for the period
Accumulated depreciation at 31.12. 0.0 0.0
Book value at 31.12. 9.2 9.2
Goodwill allocation
Administration of incentive programs 60%
Fund management 5%
Private Banking 13%
Alternative investment funds 22%
SOFTWARE OR PROJECTS IN PROGRESS 2021 2020
Cost at 1.1. 0.0 0.1
Increases/Decreases - -0.1
Cost at 31.12. 0.0 0.0
Book value at 31.12. 0.0 0.0
Applications and software 2021 2020
Cost at 1.1. 24.1 23.3
Increases/Decreases 0.6 0.7
Cost at 31.12. 24.7 24.1
Accumulated amortisation and impairment losses at 1.1. -17.7 -15.4
Amortisation for the period -2.4 -2.3
Accumulated amortisation and impairment losses at 31.12. -20.1 -17.7
Book value at 31.12. 4.5 6.4
Other intangible assets
Cost at 1.1. 7.1 7.1
Increases/Decreases 0.0 0.0
Cost at 31.12. 7.1 7.1
Accumulated amortisation and impairment losses at 1.1. -6.7 -5.9
Amortisation for the period -0.3 -0.9
Accumulated amortisation and impairment losses at 31.12. -7.1 -6.7
Book value at 31.12. 0.0 0.3
The most signicant “Other intangible assets” are client relationships.
Book value of intangible assets at 31.12. 13.8 16.0
Intangible assets, total at 31.12. 13.8 16.0
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2.8. PROPERTY, PLANT AND EQUIPMENT
Accounting policies
Tangible xed assets are measured at historical cost
less accumulated depreciation and impairment losses.
Subsequent costs are included in the carrying amount
of tangible xed assets only if it is probable that the
future economic benefits attributable to the assets
will ow to the Group and that the cost of acquiring
the assets can be reliably measured. Other repair and
maintenance costs are recognized in prot or loss in
the period in which they were incurred.
Assets are depreciated on a straight-line basis over
their estimated useful lives. The estimated useful lives
are as follows:
• Machinery and equipment: 5 years
• IT equipment: 3 years
• Assets under nance leases: 3-5 years
• Renovations of leased premises: term of lease
The residual values and useful lives of assets are
reviewed at each reporting date and, if necessary, are
adjusted to reect changes occurring in expectations
of useful life.
The depreciation of an item of property, plant and
equipment will cease when the tangible xed asset
is classied as held for sale under IFRS 5 Non-current
assets held for sale and discontinued operations.
Gains and losses from the sales or disposals of tan
-
gible fixed assets are included in other operating
income and expenses.
Property, plant and equipment 2021 2020
Equipment and furniture
Cost at 1.1. 1.9 1.7
Increases/Decreases 0.2 0.2
Cost at 31.12. 2.1 1.9
Accumulated depreciation at 1.1. -1.4 -1.2
Depreciation for the period -0.2 -0.3
Accumulated depreciation at 31.12. -1.7 -1.4
Book value at 31.12. 0.4 0.5
Property, plant and equipment 2021 2020
Assets acquired under nance leases
Cost at 1.1. 3.7 3.7
Increases/Decreases 0.2 0.1
Cost at 31.12. 3.9 3.7
Accumulated depreciation at 1.1. -3.6 -3.5
Depreciation for the period -0.1 -0.1
Accumulated depreciation at 31.12. -3.7 -3.6
Book value at 31.12. 0.2 0.2
Property, plant, and equipment, total 31.12. 0.6 0.7
Leasehold improvements
Cost at 1.1. 1.4 1.4
Cost at 31.12. 1.4 1.4
Accumulated depreciation at 1.1. -1.3 -1.1
Depreciation for the period 0.0 -0.1
Accumulated depreciation at 31.12. -1.3 -1.3
Book value at 31.12. 0.1 0.1
Other tangible assets
Cost at 1.1. 0.6 0.6
Cost at 31.12. 0.6 0.6
Book value at 31.12. 0.6 0.6
Property, plant and equipment, total at 31.12. 1.4 1.4
Book value of tangible assets at 31.12. 1.4 1.4
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2.9. OTHER ASSETS 2021 2020
Securities sale receivables 1.5 0.2
Commission receivables 23.3 19.9
Securities broking receivables 55.7 52.9
Other receivables 7.5 0.7
Other assets total 88.0 73.7
2.10. ACCRUED INCOME AND PREPAYMENTS 2021 2020
Interest 0.3 0.4
Taxes 0.1 0.5
Staff-related 0.0 0.1
Other items 2.1 2.4
Accrued income and prepayments total 2.6 3.3
2.11. DEFERRED TAXES
Management judgment
The entry of deferred tax assets in the balance sheet calls for judgment. Deferred tax assets are recognized to
the extent that future taxable income is likely to be generated, against which the conrmed losses can be used.
The impairment of deferred tax assets may be necessary if the future taxable income does not correspond with
the estimate. Deferred tax assets are assessed annually in relation to the Group’s ability to generate sufcient
taxable income in the future.
DEFERRED TAXES 2021 2020
Tax assets
Due to timing differences* 0.0 0.0
Other temporary differences
From tax losses carried forward 0.1 0.1
Deferred taxes total 0.1 0.1
*Deferred tax assets result from timing differences in xed asset depreciation.
2.12. LIABILITIES TO CREDIT INSTITUTIONS AND CENTRAL BANKS 2021 2020
Credit institutions
Repayable on demand 0.0 0.0
Other than repayable on demand 8.6 0.7
Liabilities to credit institutions and central banks, total 8.6 0.7
2.13. LIABILITIES TO THE PUBLIC AND PUBLIC SECTOR ENTITIES 2021 2020
Deposits
Repayable on demand 402.9 385.1
Other than repayable on demand 0.0 0.1
Other liabilities
Repayable on demand 0.0 0.0
Other than repayable on demand 0.0 0.0
Liabilities to the public and public sector entities, total 402.9 385.2
2.14. DEBT SECURITIES ISSUED TO THE PUBLIC 2021 2020
Certicate of deposits 0.0 10.0
Bonds 91.0 121.1
Debt securities issued to the public, total 91.0 131.1
Changes in bonds issued to the public
Issues 4,2 31.7
Repurchases 34,3 34.4
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2.15. DERIVATIVE CONTRACTS AND OTHER LIABILITIES
HELD FOR TRADING 2021 2020
Derivative contracts 26.3 52.0
Due to short selling of shares 0.0 0.4
Derivative contracts and other liabilities held for trading, total 26.3 52.5
2.16. OTHER LIABILITIES 2021 2020
Securities broking liabilities 61.6 54.7
Securities purchase liabilities 0.8 0.0
Finance lease payables 0.2 0.2
Income tax payable 0.1 0.0
Personnel related 0.8 0.7
Other short-term liabilities 9.4 3.4
Lease liability 7.4 9.6
Current lease liabilities 1.7 2.2
Non-current lease liabilities 5.7 7.3
Prepayments of cash customers 0.3 14.0
VAT payable 2.5 1.8
Other liabilities, total 75.7 84.4
2.17. ACCRUED EXPENSES AND DEFERRED INCOME 2021 2020
Interest 0.0 0.1
Tax payables 5.5 1.8
Personnel related 15.6 11.6
Other accrued expenses 13.7 9.8
Accrued expenses and deferred income, total 35.0 23.3
2.18. DEFERRED TAX LIABILITIES 2021 2020
Due to timing differences 0.0 0.0
Deferred tax liability, total 0.0 0.0
2.19. EQUITY CAPITAL
Accounting policies
Equity capital
The cost of treasury shares acquired by the parent company is deducted from equity. When such shares are
sold later, all consideration received is included in equity.
Share premium fund
The share premium fund comprises the following items: the amount exceeding the counter-book value of the
share paid for shares prior to September 1, 2006 in a new issue.
Fund of invested non-restricted equity
The fund of invested non-restricted equity includes the proceeds from the disposals of own shares received
after September 1, 2006, the amount paid for a subscription right based on an option right and redemptions
of own shares.
Own shares held by the credit institution
The company has not acquired own shares during the review period. On December 31, 2021 the company held
a total of 251,983 own shares.
EQUITY CAPITAL 2021 2020
Share capital 30.2 30.2
Share premium fund 1.8 1.8
Restricted equity 32.0 32.0
Reserve for invested unrestricted equity 24.8 22.8
Retained earnings 1.1. 37.5 29.3
Dividends -17.4 -15.3
Translation difference and other changes in retained earnings -0.3 1.6
Retained earnings 31.12. 19.7 15.6
Prot for the period 36.3 21.9
Unrestricted equity for shareholders 80.9 60.4
Non-controlling interest in capital 5.2 3.0
Equity before IFRIC 17 distribution liability 118.2 95.4
IFRIC 17 distribution liability -620.2 0.0
Equity including IFRIC 17 distribution liability -502.0 95.4
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commitments
Accounting policies
Segment reporting
Segment information is reported in accordance with
the Group’s division of business and geographical
segments. The business segments consist of business
units whose products and services and earnings logic
and protability differ from one another. The business
risks related to the business segments are also diffe-
rent. Evli’s operations are divided by client type and
services into two segments: The Wealth Management
and Investor Clients segment and the Advisory and
Corporate Clients segment. Operations not inclu
-
ded above are classied as Group Operations, and
the business segments mentioned above make use
of these operations.
The Wealth Management and Investor Clients seg
-
ment offers personal asset management services
to present and future high net worth private indivi
-
duals and institutions. The comprehensive product
and service selection includes wealth management
services, fund products offered by Evli and its part
-
ners, and various capital market services and alterna-
tive investment products. The segment also includes
production and implementation activities that directly
support core activities.
The Advisory and Corporate Clients segment provi
-
des services related to M&A transactions, including
corporate acquisitions and divestments, and advisory
services related to IPOs and share issues. The segment
also offers incentive plan design and administration as
well as corporate analysis for listed companies.
The Group Operations segment includes support
functions serving the business areas, such as Informa
-
tion Management, Financial Administration, Marke-
ting, Communications and Investor Relations, Legal
Department, Human Resources and Internal Services.
Banking services and the company’s own investment
operations that support the company’s operations,
and the Group’s supervisory functions; Compliance,
Risk Management and Internal Audit, are also part of
Group Operations.
Inter-segment pricing occurs in arm’s length transa
-
ctions at fair value. The revenue and expenses that
are deemed as directly attributable to or can be allo
-
cated on a reasonable basis to a particular business
area are allocated to that business area. The revenue
and expenses that are not allocated to a particular
business area, and the inter-business-area eliminations
in the Group, are reported under Group Operations.
The distribution of the Group’s assets and liabilities
among the business areas is not monitored on a regu-
lar basis and is therefore not reported in connection
with the segment reporting.
In addition to business segments, the Group uses geo
-
graphical areas in monitoring revenue: Finland, Swe-
den and other countries.
Segment reporting
3.1. RENTAL OBLIGATIONS 2021 2020
Rental obligations, under one year 1.7 2.2
Rental obligations, between one and ve years 5.6 6.0
Rental obligations, over ve years 0.1 1.4
Leasing obligations, under one year 0.0 0.1
Leasing obligations, between one and ve years 0.0 0.3
3.2. BREAKDOWN OF OFF-BALANCE SHEET COMMITMENTS 2021 2020
Commitments given to a third party on behalf of a customer* 0,4 5,4
Irrevocable commitments given in favour of a customer 2,6 2,3
Guarantees on behalf of others 0,0 0,0
Unused credit facilities, given to clients 18,1 9,6
*Commitments given to a third party on behalf of a customer include collaterals for derivatives positions given on
behalf of customers. The customers have covered their derivatives collateral to Evli in full. Other irrevocable com
-
mitments given on behalf of a customer comprise subscription commitments guaranteed on behalf of customers.
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4.1. SEGMENT INCOME STATEMENT 2021 2020
Investor
Clients
Corporate
clients
Group
Operations Unallocated
Cost Center
Group
Investor
Clients
Corporate
clients
Group
Operations Unallocated
Cost Center
Group
REVENUE
Net Interest Income -0.1 0.0 0.2 0.0 0.1 0.0 0.0 0.2 0.0 0.2
Commission income and expense, net 91.5 20.2 0.0 0.0 111.7 67.2 9.7 0.0 0.0 76.8
Net income from securities transactions and foreign exchange
dealing 0.0 0.0 3.6 0.0 3.5 -0.1 0.0 2.5 0.0 2.4
Other operating income 0.0 0.0 0.2 0.0 0.2 0.0 0.1 0.2 0.0 0.2
External sales 91.4 20.2 3.9 0.0 115.6 67.1 9.7 2.8 0.0 79.7
Inter-segment sales 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Total revenue 91.4 20.2 3.9 0.0 115.6 67.1 9.7 2.8 0.0 79.7
Timing of revenue recognition
Over time 64.3 6.5 0.0 0.0 70.8 52.0 5.4 0.0 0.0 57.4
At a point of time 27.2 13.7 0.0 0.0 40.9 15.2 4.3 0.0 0.0 19.4
RESULT
Segment operating expenses -35.5 -10.2 -12.2 0.0 -57.8 -30.3 -6.6 -8.9 1.1 -44.7
Business units operating prot before depreciations
and Group allocations 56.0 10.1 -8.2 0.0 57.8 36.9 3.1 -6.1 1.1 35.0
Depreciation, amortisation and write-down -2.2 -0.4 -2.2 0.0 -4.8 -3.4 -0.4 -0.5 -1.5 -5.7
Impairment losses on loans and other receivables 0.0 0.0 0.1 0.0 0.1 0.0 0.0 -0.1 0.0 -0.1
Business units operating prot before Group allocations 53.8 9.6 -10.4 0.0 53.0 33.5 2.7 -6.7 -0.4 29.1
Allocated corporate expenses -9.0 -2.3 11.3 0.0 0.0 -5.8 -0.9 6.7 0.0 0.0
Operating prot including Group allocations 44.8 7.4 0.9 0.0 53.0 27.7 1.8 0.0 -0.4 29.1
Share of prots (losses) of associates 0.0 0.0 0.5 0.0 0.5 0.0 0.0 0.0 0.4 0.4
Income taxes* -4.8 -2.0 -3.6 -0.1 -10.5 -3.6 -0.7 -2.0 0.1 -6.3
Segment prot/loss after taxes 39.9 5.3 -2.2 -0.1 43.0 24.1 1.1 -2.0 0.1 23.2
Regular reporting to top management does not include breakdown of assets and liabilities of Evli Group to different business segments. Because of this, the breakdown of assets and liabilities to segments is not included in the
ofcial segment report. Allocated corporate expenses includes cost items relating to general administration of Evli Group and banking business that are allocated to business units using allocation drivers in place at each time
of review. Group Operations comprise support functions serving the business areas, such as Information Management, Financial Administration, Marketing, Communication and Investor Relations, Legal Department, Human
Resources and Internal Services. Banking services and the company´s own investment operations, and the Group´s supervisory functions; Compliance, Risk Management and Internal Audit, are also part of Group Operations.
4.2. GEOGRAPHICAL INCOME STATEMENT
AND BALANCE SHEET 1.1.–31.12.2021 1.1.–31.12.2020
Finland Sweden Other countries Group Finland Sweden Other countries Group
Income statement
Net revenue 98.9 12.1 4.5 115.6 73.7 4.6 1.4 79.7
Balance sheet
Assets 744.0 13.3 0.3 757.7 754.0 7.7 1.2 763.0
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Expected credit losses
The key elements of IFRS 9, based on expected los-
ses, are the assessment of a signicant increase in cre-
dit risk and the calculation model for expected credit
losses, including the grouping of loans for the pur
-
pose of the calculation. The model includes a num-
ber of discretionary inputs that may materially affect
the nal results of the calculation model. The results
of the calculation model produced by Evli are regularly
reported to Credalco, the Group’s Risk Control. The
Group Financial Administration, in cooperation with
Group Risk Control and Treasury, assesses credit risks
and maintains the calculation model.
Evaluation of substantial increase in credit risk
The credit risks of nancial assets are under constant
monitoring by the company. The company monitors
various factors, both quantitative and qualitative, that
are considered to be relevant in assessing credit risk.
Estimates of future economic developments are also
taken into account. The assessment takes into account
factors that are available without unreasonable cost
or labour input. If the credit risk of a receivable has
increased materially since origination and the credit
risk has not been assessed as low, the risk level of the
receivable shall be increased to Stage 2, which esti
-
mates the expected credit loss associated with the
exposure over the entire term. The risk level shall also
be assessed separately for entire credit groups. The
following criteria are an indication that credit risk has
increased signicantly:
• Payments of the receivable are overdue by more than
30 days, for reasons other than a technical reason
• Changes in the nancial situation of the counterparty,
such as a material deterioration in creditworthiness
and nancial standing, and payment defaults. Infor
-
mation on changes in the nancial situation of the
counterparty is automatically obtained through the
credit reporting services
• Signicant deterioration in the value of collateral;
the counterparty is unable to make good the col
-
lateral shortfall
• Restructuring of the payment plan and terms of the
credit as a result of an increase in credit risk
• There has been a signicant change for the worse in
macroeconomic factors affecting the nancial posi
-
tion of the counterparty
• Other factors that have a signicant impact on credit
risk or the value of collateral.
Factors that cause a loan to be classied as Stage 3
Stage 3 includes individual loans for which there is
evidence of impairment. The counterparty has expe
-
rienced one or more events that will have a negative
impact on future cash ows. These may include, for
example, one of the following:
• bankruptcy or liquidation of the company, or other
signicant nancial difculties
• payment of instalments (principal or interest) more
than 90 days overdue
• the counterparty has been declared insolvent.
Credit risk reduced after reclassication
If, on the basis of all available information, it is asses
-
sed that the credit risk has been signicantly reduced
after the credit’s risk level has been increased to Stage
2, and the risk is at the same level as at the time the
credit was granted, the risk level of the credit may be
returned to Stage 1.
At the balance sheet date, the Group had a total of
EUR 0.8 million (four exposures) of Stage 2 lending
assets.
Calculation model for expected credit losses (ECL)
Expected credit loss is a probability-weighted esti
-
mate of the difference between the following cash
ows: cash ows under the receivable contract - cash
ows that the bank expects to receive from the cont
-
ract.
Expected credit loss = PD (probability of default) *
LGD (loss given default, i.e., the total loss after taking
into account the realisation of collateral) * the amount
of the receivable.
The probability of default (PD) is estimated for the next
12 months or for the whole maturity (Stage 2 and 3
nancial assets).
The capital items included in the calculation are assets
measured at amortised cost:
• debt securities and credit accounts (receivables
from the public)
• receivables from credit institutions; fixed-term
deposits
• undrawn credit facilities and committed lines, and
guarantees
• trade receivables
Grouping of credit for calculation
As it is not appropriate and cost-effective to consi
-
der the counterparties to a credit risk assessment on
an individual basis, the credit portfolio is divided into
different groups of similar credit risk, counterparties,
product type, collateral type and maturity. The grou
-
ping shall be reviewed periodically to ensure that no
error of assessment is introduced in the event that the
group is no longer homogeneous in terms of credit
risk. At the balance sheet date, the Group has six dif
-
ferent categories in its lending calculation model, the
largest of which is secured investment loans to asset
management clients (73% of total loans).
Determining the probability of default
Probability of Default (PD) refers to the probability that
a borrower will default on its future obligations, eit
-
her over the next 12 months or for the remainder of
the term.
Probabilities of default are determined in Stage 1,
in principle at the group level, unless the PD of an
individual loan is materially different from the PD of
the group and it is not appropriate to dene a sepa
-
rate group for the loan. A simplied model for trade
receivables has been developed, where PD is dened
according to the number of days past due and whet
-
her the counterparty belongs to the normal or high risk
group. When determining the PD for a counterparty,
the counterparty’s collateral is not taken into account.
The starting point for the Group-level PD percentage
is dened as the company’s share of non-performing
loans in the total loan portfolio in Finland for house
-
hold and corporate loans. As the company does not
have a sufciently comprehensive own credit loss his
-
tory available, a broader peer group is also used,
where the credit risk is expected to be similar. This
model is justied by the fact that the majority of the
company’s credit portfolio consists of domestic house
-
hold and corporate loans. The majority of the Group’s
credit portfolio is estimated to be low risk, which is also
reected in the average PDs. Lending is targeted at
own wealth management clients or own funds, which
have a very low historical credit risk.
Accounting policies
*ECL=Expected credit losses
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For household and corporate clients, the PD percen-
tages of loans at the balance sheet date ranged from
0.25% to 1.54% for Stage 1 assets.
If a loan is moved to Stage 2, the PD is always rede
-
fined on an individual basis. In this case, the future
cash ows of the credit are estimated over the life of
the credit and discounted to present value, giving an
estimate of the total loss on the credit before realisa
-
tion of the collateral. Stage 2 PD estimates also draw
on estimates from credit reference agencies. At the
onset of the coronavirus crisis, Evli estimated an inc
-
rease in its exposure to credit losses and at that time
increased its loan loss provisions and tightened its
loan loss provisioning calculation model. During the
period under review, the company did not observe any
material changes in the creditworthiness of its clients,
resulting in a slight easing of the loan loss provisions.
The PD percentage for other corporate receivables,
high risk exposures and credit institution receivables
is determined by the statistical risk of loss, available by
credit rating. The statistical data are obtained from the
credit rating agencies.
The PD percentage is also determined for off-balance
sheet exposures. The utilisation rate for open unused
credit lines is estimated at 50%, so that the credit line
is included in the calculation with a 50% weighting
compared to the drawn credit lines. The guarantee
granted is treated in the same way as a normal drawn
credit.
If there is signicant uncertainty about the future in
terms of sharply lower security prices, gross domes
-
tic product (GDP) gures, increased unemployment or
other general economic factors, the group PD gures
may be increased in Stage 1.
The group PDs are updated quarterly and the indivi
-
dual PDs are updated immediately when it is assessed
that the credit risk of an individual exposure has inc
-
reased materially or when the credit risk of an expos-
ure is assessed to be different from that of its group.
Denition of loss given default (LGD)
LGD (Loss Given Default) determines the total loss
when the realisation of collateral is taken into account
in the event of default. The bank’s ECL calculation esti
-
mates what the loss would be in a realisation scenario
if the worst-case scenario were to occur with the esti
-
mated probability. In that case, do the assets cover
the remaining capital of the collateral receivable. The
worst-case scenario in Evli’s calculation is a severe fall
in the price of securities or real estate, such as the
stock market crash of 2008. The calculation takes into
account the average collateral value, the type of colla
-
teral and the liquidity of the collateral associated with
the group’s receivables. The collateral values assigned
to the collateral are so conservative within the Group
that losses are not realised on debt securities except
in the event of a sharp fall in share prices. LGD is gene
-
rally determined for receivables at a group level. The
one-year level of LGD is obtained by estimating the
probability of a worst-case scenario occurring in the
next 12 months. For individual exposures, an indivi
-
dual LGD may be determined if the amount or quality
of collateral for the receivable differs materially from
the average collateral of the group.
LGD values at the balance sheet date for lending were,
depending on the group, between 5-30% for assets
valued according to Stage 1.
The main variables affecting the LGD calculation
model are actual and projected changes in security
prices and the estimated probability of a scenario in
which client collateral is no longer sufcient to cover
the value of the receivable.
.
5.3. ITEMS MEASURED ACCORDING TO IFRS 9, EXCEPCTED CREDIT LOSSES
Financial assets and sales receivables measured at amortised cost
Asset Total amount Level 1 assets Level 2 assets Level 3 assets
Expected
credit loss
Opening saldo,
credit loss
allowance 1.1.
Cash and Central Bank receivables 384.1 384.1 0.0 0.0 0.0 0.0
Claims on credit institutions 48.1 48.1 0.0 0.0 0.0 0.0
Claims on the public and public sector entities 98.0 97.3 0.7 0.0 0.1 0.2
Claims on corporations 25.0 24.8 0.3 0.0 0.0 0.1
Claims on private persons 72.9 72.5 0.4 0.0 0.0 0.1
Claims on other 0.0 0.0 0.0 0.0 0.0 0.0
Sales receivables 4.2 4.2 0.0 0.0 0.0 0.0
Total assets 534.4 533.7 0.7 0.0 0.1 0.2
Unused credit facilities, given to clients 17.9 17.8 0.1 0.0 0.0 0.0
Credit loss reserve total 0.1 0.0 0.1 0.0 0.1 0.2
Expected Credit Loss (ECL) is a probability weighted mathematical formula, in which the parameters Probability of default (PD) and Loss Given Default (LGD) are estimated. The parameters are assessed on group levels and the loans
are grouped based on similar risk prole and collateral. Counterparty PD is mainly assessed using statistical data on a national level. For sales receivables a simplied method is used. The group has no investments that are fair valued
through other comprehensive income or recognised as amortised cost. During the year three loan receivables have been transferred from level 2 to level 1, totally EUR 1.3 million. The bank has no credit payment receivables past due by
at least 90 days.
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Notes on risk position
Credit value adjustment 1.2 0.0 1.2 1.2
Total 746.4 -20.2 715.7 232.7
The credit rating institutions used in the standard method are Standard & Poor’s, Moody’s and Fitch. Their
credit ratings are used to assign risk weights for credit institutions and corporations. If a credit rating is not
available, the risk weight is assigned in accordance with the credit quality group of the home country of the
institution.
The Treasury function’s investments in debt instruments are focused at Nordic bank bonds, whose credit rating
is at minimum A, at corporate bonds and at short term investments like local government notes and
commercial papers. In the capital adequacy calculations, 47 percent a risk weight of 20 percent, 51 percent a
risk weight of 50 percent, and 2 percent had a risk weight of 100 percent. Total investments in debt instruments
was at year-end EUR 34 million, additionally treasury has invested EUR 40 million in interest rate mutual funds.
6.2. TECHNIQUES TO REDUCE CREDIT RISK
The valuation of collateral uses the credit and asset liability committee, Credalco’s approved collateral factors
that are based on the collateral’s realizability and susceptibility to changes in value.
The goal is to receive liquid collateral, which can also be used as risk-reducing collateral in the capital
adequacy calculations. Credalco decides the maximum amount of illiquid collateral which can be accepted per
customer. Only in certain special cases, can the Bank deviate from the normal process for accepting collateral.
Principal real collateral types used in capital adequacy calculation:
• Residential property collateral
• Cash deposits
• Bonds issued by Evli
Evli does not use master netting agreements or similar agreements in capital adequacy calculation.
Exposures hedged with approved collateral
in capital adequacy calculation 2021 2020
Mortgages 0.7 3.1
Other credits 20.2 26.4
Counterparty exposure of OTC derivatives hedged with collateral 38.3 51.6
6.1. GENERAL INFORMATION ON CREDIT AND DILUTION RISK (STANDARD MODEL)
Lending, exposure per geographic area and non-performing credits
Exposure and home country Lending stock
Average
remaining
maturity years
Overdue by at
least 90 days Impaired loans
Private Persons Finland 66.9 1.1 0.0 0.0
Corporations Finland 23.8 1.5 0.0 0.0
Other sectors Finland 0.0 0.0 0.0 0.0
Private persons EU countries 2.9 1.3 0.0 0.0
Corporations EU countries 1.3 0.3 0.0 0.0
Private persons other countries 3.1 1.2 0.0 0.0
Total 98.0 1.2 0.0 0.0
Loans are entered as non-performing if payment of interest or instalments are overdue by at least 90 days, or if
it is estimated that the debtor is propably not going to be able to manage the loan commitments. There were
no non-performing loans at year-end, and no loan payments overdue by at least 90 days in the loan stock by
31.12.2021.
The goal of the lending is to support customer relations and the Bank’s main businesses. At the same time, the
risk corrected income from lending has to be sufcient.
Lending is focused on wealth management customers. Domestic private customer’s share of the loan stock
was 68 percent and foreign private customer’s share was 6 percent.
Exposure by risk weight, credit risk standard model
Risk weight -%
Original exposu
-
re value
Credit risk
reducing
collateral
Exposure value
after credit risk
deductions
Risk-weighted
value
0 384.4 0.0 384.4 0.0
20 111.5 0.0 111.5 22.3
35 0.7 0.0 0.7 0.2
50 24.4 0.0 24.4 12.2
76 13.7 0.0 13.7 10.5
100 197.0 -20.2 166.3 166.3
150 8.0 0.0 8.0 12.0
Other 5.4 0.0 5.4 8.0
Exposure by risk weight, total 745.2 -20.2 714.5 231.5
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6.3. CREDIT RISK (COUNTERPARTY RISK) 2021 2020
Positive fair value of OTC derivatives in the nancial statement 26.4 52.2
The derivatives comprise equity, currency and xed income derivatives
Collateral reducing counterparty risk in capital adequacy calculations 38.3 51.6
After the collateral-reducing effect the credit counter-value
of derivatives totaled 74.9 47.1
Exchange traded derivatives OTC derivatives
2021
Nominal
value
Fair
value
Nominal
value
Fair
value
Derivatives assets 0.0 0.0 2 066.1 26.4
Derivatives liabilities 0.0 0.0 2 096.8 -26.3
Exchange traded derivatives OTC derivatives
2020
Nominal
value
Fair
value
Nominal
value
Fair
value
Derivatives assets 0.0 0.0 2 301.7 52.2
Derivatives liabilities 0.0 0.0 2 394.7 -52.0
6.4. MARKET RISK 2021 2020
Minimun capital adequacy requirement, trading book
Position risk total 0.0 0.1
Position risk equity instruments 0.0 0.1
Position risk debt instruments 0.0 0.0
Settlement risk 0.0 0.0
Minimun requirement for the currency risk of all operations 0.6 0.4
Total 0.6 0.5
Net positions in trading book, equity instruments
Long net positions 0.0 0.1
Short net positions 0.0 -0.4
Net total 0.0 -0.3
Net positions in trading book, debt instruments
Long net positions 0.1 0.4
Short net positions 0.0 0.0
Net total 0.1 0.4
Net positions in currencies
Swedish krona 6.0 4.0
US dollar 0.3 -2.1
Danish krona 0.0 0.0
Pound sterling 0.1 -0.3
Japanese yen 0.0 0.0
Norwegian krone 0.2 -0.1
Swiss franc -0.6 0.0
Other currency position 0.1 0.3
Total net position 6.3 1.8
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6.5. OPERATIONAL RISK
The method applied in the capital adequacy calculations is the basic indicator approach, which is based on
the Group’s revenues for the previous three years. The capital requirement is 15 percent of the average
revenue from the previous three calender years.
6.6. SHARES OUTSIDE THE TRADING BOOK
Shares and participations in the banking book are measured at fair value through prot or loss.
The value of the investments in the nancial statements was EUR 49.6 million, which is the fair value of the
investments.
The listed shares are related to the equity incentive schemes, the shares don’t affect the market risk of the
bank.
Type of investment 2021 2020
Private equity funds 1.8 0.9
Real estate funds 5.4 6.1
Unlisted shares 0.2 0.3
Mutual funds 42.1 49.9
Listed shares 0.0 0.0
Total 49.6 57.2
Private equity funds, real estate funds and mutual funds have been valued by applying the last known fair
value from the funds’ management companies.
The fair value of unlisted shares is estimated primarily by using the share’s net asset value or a cah ow analysis
based on future outlooks. If no better estimate of the fair value is available, the acquisition price can be used
as the fair value.
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Other notes
7.1. MATURITIES OF FINANCIAL ASSETS AND LIABILITIES
Debt securities, loans and other claims, derivatives and nancial liabilities at amortized cost are reported in the maturity class according to the maturity of the instrument. Shares and participations are reported so that quoted
shares in the trading book and quoted mutual funds are in the shortest maturity period. Unquoted shares are reported according to the estimated liquidation period, and venture capital- and real estate funds are reported
according to the expected ending day of the fund.
2021 2020
less than 3
months
3-12
month
1-5
years
5-10
years
over 10
years Total
less than 3
months
3-12
month
1-5
years
5-10
years
over 10
years Total
Assets
Cash and cash equivalents 384.1 0.0 0.0 0.0 0.0 384.1 331.6 0.0 0.0 0.0 0.0 331.6
Financial assets at amortized cost
Claims on credit institutions 48.1 0.0 0.0 0.0 0.0 48.1 66.8 0.0 0.0 0.0 0.0 66.8
Claims on the public and public
sector entities 23.6 21.6 52.7 0.0 0.0 98.0 4.9 22.7 81.2 0.7 0.0 109.6
Financial assets at fair value through
prot or loss
Debt securities eligible for renancing
with central banks 8.0 9.9 15.4 0.0 0.0 33.4 0.0 15.7 21.5 0.0 0.0 37.2
Debt securities 0.0 0.0 0.4 0.4 0.0 0.7 8.3 0.0 1.1 0.4 0.0 9.8
Shares and participations 42.7 3.0 0.5 2.8 0.6 49.6 50.6 0.8 3.3 2.5 0.1 57.3
Derivative contracts 23.9 0.7 1.9 0.0 0.0 26.4 51.1 0.0 1.0 0.0 0.0 52.2
Accrued interest 0.3 0.1 0.0 0.0 0.0 0.3 0.3 0.1 0.0 0.0 0.0 0.4
Liabilities
Financial liabilities at amortized cost
Liabilities to credit institutions 8.6 0.0 0.0 0.0 0.0 8.6 0.7 0.0 0.0 0.0 0.0 0.7
Liabilities to the public and public s
ector entities 402.9 0.0 0.0 0.0 0.0 402.9 385.1 0.1 0.0 0.0 0.0 385.2
Debt securities issued to the public 0.9 10.7 75.2 4.2 0.0 91.0 1.0 11.8 116.0 2.2 0.0 131.1
Financial liabilities at fair value through
prot or loss 23.7 0.7 1.9 0.0 0.0 26.3 51.4 0.0 1.0 0.0 0.0 52.5
Accrued interest, debt 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.0 0.0 0.0 0.0 0.1
Off-balance sheet commitments 12.0 6.0 3.1 0.0 0.0 21.1 5.4 3.3 6.3 0.0 0.0 15.1
Leasing 0.4 1.3 5.6 0.1 0.0 7.4 0.6 1.7 6.0 1.4 0.0 9.6
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7.2. ASSETS AND LIABILITIES DENOMINATED IN DOMESTIC AND FOREIGN CURRENCY
2021 2020
Assets Domestic currency Foreign currency Total Domestic currency Foreign currency Total
Financial assets at amortized cost
Cash and cash equivalents 384.1 0.0 384.1 331.6 0.0 331.6
Claims on credit institutions 42.6 5.6 48.1 61.3 5.5 66.8
Claims on the public and public sector entities 98.0 0.0 98.0 109.6 0.0 109.6
Financial assets at fair value through prot or loss
Debt securities eligible for renancing with central banks 34.1 0.0 34.1 0.0 0.0 0.0
Debt securities 0.0 0.0 0.0 46.6 0.4 46.9
Shares and participations 48.4 1.1 49.6 57.1 0.2 57.3
Derivative contracts 26.1 0.3 26.4 51.9 0.2 52.2
Other asset items 115.6 1.8 117.4 85.9 22.5 108.3
Total 748.9 8.8 757.7 743.9 28.7 772.6
Financial liabilities at amortized cost
Liabilities to credit institutions 8.6 0.0 8.6 0.7 0.0 0.7
Liabilities to the public and public sector entities 392.9 10.1 402.9 369.8 15.5 385.2
Debt securities issued to the public 91.0 0.0 91.0 131.1 0.0 131.1
Financial liabilities at fair value through prot or loss 26.0 0.3 26.3 51.8 0.7 52.5
Other liabilities items 107.9 2.8 110.7 85.4 22.3 107.7
Total 626.3 13.2 639.5 638.7 38.5 677.2
The largest foreign currency assets and liabilities are in SEK (assets 7.7 M€, liabilities 5.9 M€) and USD (assets 0.6 M€, liabilities 6.4 M€).
Derivatives positions which hedge the foreign exchange risk are not included in these gures.
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Management judgment
In situations where no external market price is available for
individual nancial instruments when valuing unquoted secu
-
rities or derivatives at their fair value, a price which is calcu-
lated based on the generally approved valuation models
used on the market is generally used. Alternatively, valuation
based on net asset value is employed.
Level 1 Level 2 Level 3
Financial assets: 2021 2021 2021 Total
Shares and participations classied as held for trading 0.0 0.0 0.0 0.0
Shares and participations, other 42.1 0.0 7.4 49.6
Debt securities eligible for renancing with central banks 33.4 0.0 0.0 33.4
Debt securities 0.0 0.4 0.4 0.7
Positive market values from derivatives 0.0 24.1 2.3 26.4
Total nancial assets held at fair value 75.5 24.4 10.1 110.1
Financial liabilities:
Shares and participations classied as held for trading 0.0 0.0 0.0 0.0
Negative market values from derivatives 0.0 24.0 2.3 26.3
Total nancial liabilities held at fair value 75.5 24.4 10.1 110.1
Financial assets: 2020 2020 2020 Total
Shares and participations classied as held for trading 0.1 0.0 0.0 0.1
Shares and participations, other 49.9 0.0 7.2 57.2
Debt securities eligible for renancing with central banks 37.2 0.0 0.0 37.2
Debt securities 0.3 8.3 1.2 9.8
Positive market values from derivatives 0.0 51.1 1.1 52.2
Total nancial assets held at fair value 87.5 59.4 9.5 156.3
Financial liabilities:
Shares and participations classied as held for trading 0.4 0.0 0.0 0.4
Negative market values from derivatives 0.0 50.9 1.1 52.0
Total nancial liabilities held at fair value 0.4 50.9 1.1 52.5
7.3. VALUE OF FINANCIAL INSTRUMENTS ACROSS THE THREE LEVELS OF THE FAIR VALUE HIERARCHY
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Explanation of fair value hierarchies:
Level 1
Fair values measured using quoted prices in active markets for identical instruments.
Level 2
Fair values measured using directly or indirectly observable inputs, other than those included in
level 1.
Level 3
Fair values measured using inputs that are not based on observable market data.
Level 1 of the hierarchy includes listed shares, mutual funds and derivatives listed on exchanges,
and debt securities that are traded in active OTC- and public markets.
Shares and participations classied in level 3 are usually instruments which are not publicly
traded, like venture capital funds, real estate funds, equities and equity rights.
Derivatives in level 2 are forwards whose values are calculated with inputs like quoted interest
rates and currency rates.
Derivative valuations for level 3 instruments contain inputs (volatility and dividend estimate)
which are not directly observable in the market. The values are calculated with pricing models
widely in use, like Black-Scholes. Valuations received from the counterparty of the OTC trade are
classied as level 3 valuations.
Debt securities valuations that are obtained from markets that are not fully active, have a fair value
level hierarchy of 2. Level 3 valuations for debt securities are valuations for illiquid securities that are
received directly from the arranger of the issue, or the valuation is calculated by Evli Bank.
The fair values of nancial instruments are dened in accordance to IFRS13. In principle,
valuation of nancial instruments is based on public market quotations. For unquoted nancial
instruments, Evli Bank’s Financial Administration together with the Risk Control function evaluate
and classify instruments.
Level 2 valuation methods, detailed description:
Financial instrument Valuation method/ inputs
Money market instrument, not quoted Interest rate spread to Euribor-curve, acquisition date spread
is used if no signicant change has occured in the credit risk
of the instrument.
Bond instrument, no active market Bid quote (price source Bloomberg)
Derivative instruments: OTC forwards Price calculated by using the market price of the underlying
instrument, and quoted interest and currency rates.
Level 3 valuation methods, detailed description:
Financial instrument Valuation method/ inputs
Bond instrument, illiquid/not quoted Price received from arranger of issue or price calculated by
Evli Bank.
Shares, unlisted Estimate of company value calculated by using the book
value of the share, or by an estimated future cash-ow
analysis. If the share has been traded, the price level can be
used in the valuation. If no better estimate of the fair value is
available, the acquisition price can be used as the fair value.
Unlisted options, warrants and equity rights The values are calculated at Evli Bank with pricing models
widely in use. Calculation inputs which are estimated are the
volatility of the underlying instrument, and dividend estimate.
Venture capital and real estate funds Last known fair value from the funds’ management compa
-
nies, valuation received four times a year. The valuation is
corrected if after the valuation date, such information has
been received of an ownership in the portfolio that
signicantly will affect the value of the fund.
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7.4. ANALYSIS OF FINANCIAL INSTRUMENTS CATEGORIZED IN LEVEL 3 2021 2020
Financial assets:
Shares and participations classied as held for trading 0.0 0.0
Unlisted shares and participations 0.2 0.3
Venture capital funds and real estate funds 7.2 7.0
Debt securities 0.4 1.2
Quoted equity derivatives 0.0 0.0
OTC equity derivatives 2.3 1.1
Total nancial assets held at fair value 10.1 9.5
Financial liabilities:
Shares and participations classied as held for trading 0.0 0.0
Quoted equity derivatives 0.0 0.0
OTC equity derivatives 2.3 1.1
Total nancial liabilities held at fair value 2.3 1.1
Changes during the year. considering level 3 categorized instruments:
Financial assets 2021 2020
Shares and participations classied as held for trading-Initial Balance
31.12.2020 0.0 0.0
Purchases 0.0 0.0
Sales 0.0 0.0
Valuation changes 0.0 0.0
Shares and participations classied as held for trading 31.12.2021 0.0 0.0
Unlisted shares and participations-Initial Balance 31.12.2020 0.3 0.4
Purchases 0.0 0.0
Sales 0.0 0.0
Valuation changes 0.0 -0.1
Unlisted shares and participations 31.12.2021 0.2 0.3
Venture capital funds and real estate funds-Initial Balance 31.12.2020 7.0 6.1
Purchases 0.9 0.3
Sales -1.3 0.0
Valuation changes 0.6 0.6
Venture capital funds and real estate funds 31.12.2021 7.2 7.0
2021 2020
Debt securities-Initial Balance 31.12.2020 1.2 3.6
Purchases 0.0 0.1
Sales -0.6 -2.0
Valuation changes -0.2 -0.6
Debt securities 31.12.2021 0.4 1.2
OTC equity derivatives-Initial Balance 31.12.2020 1.1 4.5
Purchases 0.0 0.0
Sales -0.1 -0.5
Valuation changes 1.3 -2.9
OTC equity derivatives 31.12.2021 2.3 1.1
Financial liabilities 2021 2020
Shares and participations classied as held for trading-Initial Balance
31.12.2020 0.0 0.0
Purchases 0.0 0.0
Sales 0.0 0.0
Valuation changes 0.0 0.0
Shares and participations classied as held for trading 31.12.2021 0.0 0.0
OTC equity derivatives-Initial Balance 31.12.2020 1.1 4.5
Purchases 0.0 0.0
Sales -0.1 -0.5
Valuation changes 1.3 -2.9
OTC equity derivatives 31.12.2021 2.3 1.1
Sensitivity analysis for level 3 instruments; effect of measurements to fair values
Derivative contracts
If the volatility estimate in the options pricing model for level 3 categorized options, is changed to a publicly available historical
volatility (3 months), the options market value would change by net EUR 0.0 million. Volatility is the standard deviation or variability of
the price of the underlying instrument for a given time period.
Shares and participations
When determining the fair value of unquoted instruments Evli uses estimates of the company’s future cash ows and trends. The
estimates are based on conservative estimates, and the use of other realistic alternative scenarios would not change the fair value
estimates signicantly. For real estate funds, there are uncertainty factors related to the valuation of real estate that have an impact on
the fund’s NAV. The total impact on fair value in the share and participations group is under EUR -0.9 million.
Debt securities
The return requirements used in the pricing of unquoted bonds correspond to the returns of instruments with similar risk levels and
characteristics. If the discount rate used is raised by 1 percentage unit, the fair value will decline in total by less than EUR 0.1 million.
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7.5. UNREALIZED PROFIT/LOSS FOR FINANCIAL
INSTRUMENTS CATEGORIZED IN LEVEL 3
Unrealised prot/loss
2021 2020
Financial assets
Shares in trading book 0.0 0.0
Other shares 1.0 0.9
Debt securities -1.4 -1.2
Derivatives 2.3 1.0
Unrealized P/L at year-end,
nancial assets 1.9 0.6
Financial liabilities
Shares in trading book
liabilities 0.0 0.0
Derivatives liabilities -2.3 -1.0
Unrealized P/L at year-end,
nancial liabilities -2.3 -1.0
Unrealised prot/loss total*,
level 3 instruments -0.4 -0.4
*Total unrealized prot is recorded in net income from securities
transactions.
7.6. CLASSIFICATION OF FINANCIAL INSTRUMENTS
2021
Assets
Financial assets
measured at
amortized cost
Fair value through
prot and loss
Fair valued through
comprehensive
income Other assets Total
Cash and cash equivalents 384.1 384.1
Claims on credit institutions 48.1 48.1
Claims on the public
and public sector entities 98.0 98.0
Debt securities eligible for renancing with
central banks 33.4 33.4
Debt securities 0.7 0.7
Shares and participations 49.6 49.6
Derivative contracts 26.4 26.4
Shares and participations in associates 4.0 4.0
Intangible assets and goodwill 13.8 13.8
Property, plant and equipment 1.4 1.4
Other assets 88.0 88.0
Leasing 7.4 7.4
Accrued income and prepayments 2.6 2.6
Deferred tax assets 0.1 0.1
Total 530.2 110.1 0.0 117.4 757.7
Liabilities
Valued at
amortized cost
Fair valued through
prot and loss Other debt Total
Liabilities to credit institutions and central banks 8.6 8.6
Liabilities to the public and public sector entities 402.9 402.9
Debt securities issued to the public 91.0 91.0
Financial liabilities at fair value through prot or loss 26.3 26.3
Other liabilities 75.7 75.7
Accrued expenses and deferred income 35.0 35.0
Deferred tax liabilities 0.0 0.0
Total 502.6 26.3 110.7 639.5
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7.7. LIQUIDITY COVERAGE REQUIREMENT (LCR)
2021
Items included in the liquidity coverage ratio
Requirement 100%
Amount/
market value Weighted value
Liquidity buffer
Central Bank deposits, withdrawable 379.5 379.5
Local government notes 0.0 0.0
Liquidity buffer total 379.5 379.5
Amount/
market value Inow
Inows over the next 30 days
Maturing loans, retail customers 9.1 4.5
Monies due from nancial customers 1.7 1.7
Inow Total 10.8 6.2
Amount/
market value Outow
Outows over the next 30 days
Retail deposits 250.9 30.9
Deposits by nancial customers 62.4 62.4
Deposits by other customers 50.7 19.0
Impact of an adverse market scenario on derivatives,
nancing transactions and other contracts 67.2 67.2
Credit facilities 17.9 5.9
Planned derivatives payables 0.0 0.0
Other debt 0.2 0.2
Other off-balance sheet and contingent funding obliga
-
tions 0.3 0.3
Issued debt securities 0.9 0.9
Outow total 450.6 186.9
Net liquidity outow 180.7
LCR % = Liquidity buffer / Net liquidity outow 210.1%
7.8. SECURITIES LENDING 2021 2020
Market value of securities lending at 31.12., lent in 2.3 2.8
Market value of securities lending at 31.12., lent out 0.0 0.0
7.9. FAIR VALUES AND BOOK VALUES OF FINANCIAL ASSETS
AND FINANCIAL LIABILITIES 2021 2021
Book value Fair Value
Financial assets
Liquid assets 384.1 384.1
Debt securities eligible for renancing with central banks 33.4 33.4
Claims on credit institutions 48.1 48.1
Claims on the public and public sector entities 98.0 98.0
Debt securities 0.7 0.7
Shares and participations 49.6 49.6
Derivative contracts 26.4 26.4
Financial liabilities
Liabilities to credit institutions and central banks 8.6 8.6
Liabilities to the public and public sector entities 402.9 402.9
Debt securities issued to the public 91.0 90.2
Derivative contracts and other liabilities held for trading 26.3 26.3
The lending rate is tied to the Euribor rates, and so the carrying amount of loans is not considered to differ
signicantly from the fair value.
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7.11. ASSETS UNDER MANAGEMENT 2021 2020
Assets under management at Evli Group
as of 31 December
Gross 18,170.0 15,059.0
Net 15,190.0 12,395.0
Assets under management on the basis of
power of attorney
Discretionary asset management 5,870.0 5,024.0
Consultative asset management 100.0 162.0
Total 5,970.0 5,186.0
7.10 ASSETS PLEDGED AS COLLATERAL
Fair value of
encumbered assets
Fair value of
unencumbered assets
of which usable as
collateral
ASSETS 2021 2021 2021
Liquid assets and Central Bank deposits 0.0 384.1 379.5
Debt securities eligible for renancing with central banks 33.4 0.0 0.0
Claims on credit institutions 39.0 9.1 9.1
Claims on the public and public sector entities 0.0 98.0 0.0
Debt securities 0.0 0.7 0.0
Shares and participations 0.0 49.6 0.0
72.4 541.4 388.6
Usage of collateral
Markeplace collateral, stock- and derivatives trades 1.6
Collateral for OTC derivatives trades 34.7
Collateral for securities lending 2.7
Bank Of Finland, collateral for daily limit account 33.4
72.4
Received collateral
Fair value of
collateral recieved
LIABILITIES
Received cash 38.3
ASSETS 2020 2020 2020
Liquid assets and Central Bank deposits 0.0 331.6 326.7
Debt securities eligible for renancing with central banks 33.8 3.4 3.4
Claims on credit institutions 60.1 6.7 6.7
Claims on the public and public sector entities 0.0 109.6 0.0
Debt securities 0.0 9.8 0.0
Shares and participations 0.0 57.3 0.0
93.9 518.2 336.7
Usage of collateral
Markeplace collateral, stock- and derivatives trades 10.0
Collateral for OTC derivatives trades 47.3
Collateral for securities lending 2.8
Bank Of Finland, collateral for daily limit account 33.8
93.9
Received collateral
Fair value of
collateral recieved
LIABILITIES
Received cash 53.3
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8.1. GROUP STRUCTURE
Evli Bank´s afliated company
Northern Horizon Capital A/S, 50%
Denmark
Associated companies
Ahti Ivest Oy (30%)
Evli Bank Plc
Finland
Terra Nova Capital
Advisors Ltd
(55%)
United Arab Emirates
Evli Life Ltd
(100%)
Finland
Evli Investment
Solutions Oy
(85%)
Finland
Evli Fund Management
Company Ltd
(100%)
Finland
Aurator
Asset Management Ltd
(100%)
Finland
Evli
Corporate Finance AB
(52,1%)
Finland
Evli Fund Management Ltd (Finland), Stockholm Branch, Sweden
Evli Private Debt I GP Oy (85%)
Evli Impact Forest I GP Oy (100%), Finland
EGP General Partner II Oy (70%), Finland
EGP General Partner Oy (70%), Finland
Evli HC I GP Oy (82%), Finland
Evli Private Equity II GP Oy (100%), Finland
Evli Private Equity I GP Oy (100%), Finland
Consolidation
Evli Infrastructure Partners Oy (82%), Finland
Evli Infrastructure I GP Oy (100%), Finland
EAI Feeder GP Oy (100%), Finland
Evli Private Equity Partners Oy (80%), Finland
EAI Residential Partners Oy (75%), Finland
Evli Alexander
Incentives Ltd
(65%)
Finland
Evli Research Partners Ltd (70%)
Evli Private Equity III GP Oy (92.5%),Finland
GROUP STRUCTURE
Group company
Branch ofce
Associated companies
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Country
Ownership,
%
Share of voting
rights, %
Minority share
Evli Corporate Finance AB Sweden 47.9 47.9
Terra Nova Capital Adv United Arab Emirates 45 45
Evli Research Partners Ltd Finland 30 30
Evli Investment Solutions Oy Finland 15 15
Evli Alexander Incentives Ltd Finland 35 35
EAI Residential Partners Ltd Finland 25 25
Evli Residential II GP Oy Finland 30 30
Evli Private Equity Partners Oy Finland 20 20
Evli Private Equity III GP Oy Finland 7.5 7.5
Evli HC I GP Oy Finland 18 18
EGP General Partner Oy Finland 30 30
EGP General Partner II Oy Finland 30 30
Evli Infrastructure Partners Oy Finland 18 18
Evli Private Debt I GP Oy FInland 15 15
Evli Bank Plc holds 50 percent of the share capital of Northern Horizon Capital A/S, which confers 45 percent of
the votes in the company as agreed upon in the partnership agreement. Considering that Evli Bank Plc does
not have control in the company, Northern Horizon Capital A/S is consolidated as an associated company by
using equity method of accounting.
Evli Bank Plc owns 30 percent of Ahti Invest Oy. The holding was acquired in December 2021. Company is
treated as an associated company in the nancial statement of 2021.
Accounting policies
General consolidation principles
Subsidiaries
The consolidated nancial statements comprise the
nancial statements of Evli Bank Plc and all the subsi
-
diaries in which the parent company has control. The
Group controls an entity when the Group is exposed
to, or has rights to, variable returns from its involve
-
ment with the entity and has the ability to affect those
returns through its power over the entity. Subsidia-
ries are consolidated from the date on which control
is transferred to the Group. They are deconsolidated
from the date that control ceases.
The Group’s internal shareholdings are eliminated
using the acquisition method of accounting. The
assets, liabilities, contingent assets and contingent lia
-
bilities of a company acquired according to the acqui-
sition method are assessed at fair value at the time of
acquisition. Intangible assets, such as trademarks, pa-
tents or client relationships, that are not included in the
acquired company’s balance sheet are identied and
assessed in connection with the acquisition. Goodwill
is recognized for the amount by which the transferred
consideration, the share of non-controlling interests of
the target of acquisition and the previously held share
of the target of acquisition exceed the Group’s share
of the fair value of acquired net assets and liabilities.
All intra-group transactions, receivables, liabilities,
unrealized gains and internal distribution of profits
are eliminated in preparing the consolidated nan
-
cial statements. Unrealized losses are not eliminated
if the loss is due to impairment of an asset. The pro
-
t for the period attributable to the parent compa-
ny’s equity holders and non-controlling interests is
presented in the income statement. The non-control
-
ling interests’ share of equity is presented separately
in the balance sheet within equity. Comprehensive
income is allocated to the parent company’s owners
and to non-controlling interests even if this would
lead to the non-controlling interests’ share becoming
nega-tive, unless the non-controlling interests have an
exemption not to meet obligations which exceed the
non-controlling interests’ investment in the company.
Associated companies
The consolidated nancial statements encompass those
associates in which the parent company directly or indi
-
rectly owns 20-50 percent of the shares with voting rights
or in which it otherwise exercises signicant inuence,
but not control. Associates are consolidated using the
equity method. The Group’s share of associates’ prot is
presented separately in the income statement.
Companies outside the Group
Subsidiaries and associated companies in which the
Group has a majority holding but in which a third party
has control are not consolidated in the consolidated
nancial statements. In addition, holding companies
owned in connection with the management of custo
-
mer company incentive programs have not been con-
solidated. Evli is not entitled to the variable returns of
these holding companies and Evli does not bear the
risk of the companies’ assets or liabilities.
Mutual funds managed on behalf of clients are also not
consolidated, since the Group has no control over them.
Related party disclosures
The Group’s related parties include the parent company,
subsidiaries, and associates. Related parties also include
the Group management consisting of the members of
the Board of Directors and the Group’s Executive Group,
as well as the board members of the subsidiaries.
Transactions between management and the company are
typical transactions between the bank and the client. The
company’s liabilities to management include the manage
-
ment’s cash assets in their bank accounts in Evli. Similarly,
receivables relate to potential market-priced loans mana-
gement has drawn. There are no other exceptional loan
arrangements compared to other Evli’s clients.
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Financial success in companies with non-controlling owners
Company
Evli
Corporate
Finance AB
Terra Nova
Capital
Advisors Ltd
Evli
Research
Partners Ltd
Evli
Investment
Solutions Oy
EAI Residential
Partners Oy
Evli
Private Equity
Partners Oy
Evli
HC I GP Oy
Domicile Sweden
United Arab
Emirate Finland Finland Finland Finland Finland
Assets 6.7 0.3 0.4 1.2 0.7 0.7 0.5
Liabilities 2.1 0.1 0.2 0.1 0.1 0.0 0.4
Prot/Loss for the nancial year 4.8 4.0 0.0 1.1 0.5 1.7 0.0
Attributable to non-controlling interest 0.0 1.7 0.0 0.2 0.1 0.4 0.0
Dividends paid to non-controlling interest 4.8 4.0 0.0 1.1 0.5 1.5 0.0
Cash ow from operating activities 3.8 4.0 -0.1 1.1 0.5 1.5 0.0
Cash ow from investing activities -0.5 0.0 0.0 0.0 0.0 0.0 0.0
Cash ow from nancing activities 0.0 -3.9 0.0 -1.4 -0.3 -1.8 0.0
Change in cash and cash equivalents 3,3 0,1 -0,1 -0,2 0,0 -0,3 0,0
Attributable to non-controlling interest 1,6 0,0 0,0 0,0 0,1 -0,1 0,0
Company
EGP General
Partner Oy
Evli
Infrastructure
Partners Oy
Evli
Alexander
Incentives Ltd
EGP General
Partner II Oy
Evli
Private Debt
I GP Oy
Evli
Residential II
GP Oy
Evli
Private Equity
III GP Oy
Domicile Finland Finland Finland Finland Finland Finland Finland
Assets 0.6 0.0 7.3 0.4 0.0 0.1 0.0
Liabilities 0.1 0.0 3.1 0.1 0.0 0.0 0.0
Prot/Loss for the nancial year 0.5 0.4 2.4 0.2 -0.1 0.0 0.0
Attributable to non-controlling interest 0.2 0.0 0.4 0.0 0.0 0.0 0.0
Dividends paid to non-controlling interest 0.4 0.4 3.1 0.3 -0.1 0.0 0.0
Cash ow from operating activities 0.4 0.4 4.6 0.0 0.2 0.1 0.0
Cash ow from investing activities 0.0 0.0 -0.4 0.0 0.0 0.0 0.0
Cash ow from nancing activities -0.6 -0.3 -1.2 0.0 -0.2 -0.1 0.0
Change in cash and cash equivalents -0.3 -0.2 3.1 0.0 0.0 0.1 0.0
Attributable to non-controlling interest -0.1 0.0 1.1 0.0 0.0 0.0 0.0
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Management judgment
An impairment is recognized in an associate’s value if the company’s nancial position has deteriorated subs-
tantially or if the company’s future outlook is deemed to contain substantial risk factors that, if realized, would
weaken the associated company’s nancial position. The valuation is calculated using theoretical methods, and
the impairment is reported in the income statement under “share of associated companies’ prot”.
8.2. SHARES AND PARTICIPATIONS IN ASSOCIATES AND JOINT VENTURES
Shares and participations in associates and joint ventures 2021 2020
At the beginning of the period 4.2 3.8
Share of prot/loss 0.5 0.0
Additions 1.0 0.3
Disposals -1.7 0.0
At the end of the period 4.0 4.2
Holdings in consolidated associated companies
Company name Northern Horizon Capital A/S
Domicile Denmark
Assets 6.7
Liabilities 1.3
Revenue 6.4
Prot/Loss 1.0
Evli’s share of prot/loss 0.5
Ownership (%) 50.0
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8.3. CHANGES IN CORPORATE STRUCTURE
Evli Bank Plc bought a ve percent stake and sold 40 percent of its Terra Nova shares to the company’s
employees in the rst quarter. Following the transaction, Evli’s holding in Terra Nova is 55 percent.
Alexander Incentives Oy, a subsidiary of Evli Alexander Incentives Oy, merged with its parent company on April
30, 2021.
Evli Bank Plc sold seven percent of Evli Corporate Finance Ab’s shares to the company’s employees in June.
Following the transaction, Evli’s holding in the company is 52 percent.
Evli Bank Plc sold its entire holding in Evli Research Partners Oy, 70 percent, to its subsidiary Evli Corporate
Finance Ab. At the same time, Evli Reserarch Partners Oy bought from its employee 10 percent of the
company’s shares.
Evli Group company, Evli Fund Management Company, established Evli Growth Partners II Oy together with
key business personnel. Evli Management Company owns 70 percent of the company.
Evli Private Equity Partners Oy, a company belonging to the Evli Group, established a new company together
with key personnel, Evli Private Equity III GP Oy. Evli Private Equity Partners Oy owns 92.5 percent of the
established company.
Evli Management Company established a company called Evli Residential II GP Oy together with key business
personnel in December. Evli Management Company owns 70 percent of the established company. In relation
to this transaction, Evli acquired a 30 percent stake in Ahti Invest Oy.
8.4. RELATED PARTY TRANSACTIONS
Transactions with related parties 2021 Subsidiaries
Associated
companies
Group
management
Sales 30.5 0.0 0.0
Purchases 2.3 0.0 0.0
Receivables 4.8 0.0 0.7
Liabilities 45.8 0.0 0.3
Shares owned by related parties: 14,124,076 pcs
Transactions with related parties 2020
Sales 25.0 0.0 0.0
Purchases 2.8 0.0 0.0
Receivables 4.3 0.0 0.5
Liabilities 23.9 0.0 0.1
Shares owned by related parties: 14,246,829 pcs
Fees payd to auditors 2021 2020
Audit - Group
PricewaterhouseCoopers 0.7 0.2
Other companies 0.0 0.0
Total 0,7 0.2
Audit - Parent Company
PricewaterhouseCoopers 0.5 0.1
Other companies 0.0 0.0
Total 0.5 0.1
Other than auditing fees
Other services - Group
PricewaterhouseCoopers* 0.3 0.1
Other companies 0.0 0.0
Total 0,3 0.1
Other services - Parent company
PricewaterhouseCoopers 0.3 0.0
Other companies 0.0 0.0
Total 0.3 0.0
The advisory services are mainly related to consultation services regarding the partial demerger of Evli Bank
Plc and the subsequent merger with Fellow Finance Plc.
8.5. FEES PAID TO AUDITORS
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Note 2021 2020
Interest income 9.1. 2.4 2.9
Interest expenses 9.2. -2.1 -2.6
NET INTEREST INCOME 0.3 0.3
Income from equity investments 9.3. 12.9 10.2
Fee and commission income 9.4. 46.8 38.8
Fee and commission expenses 9.5. -3.9 -5.5
Net income from securities transactions 9.6. 3.4 2.5
Other operating income 9.7. 4.9 3.5
NET REVENUE 64.4 49.7
Operating expenses
Personnel expenses 9.8. -19.5 -16.1
Other administrative expenses 9.9. -11.5 -8.9
Depreciation and amortization on tangible and intangible assets 9.10. -2.8 -3.2
Other operating expenses 9.11. -2.7 -3.0
Excpected credit losses on loans and other receivables 9.12. 0.1 -0.1
Impairment losses on other nancial assets 9.12. 0.0 0.0
OPERATING PROFIT/LOSS 28.0 18.4
PROFIT BEFORE INCOME TAX 28.0 18.4
Income taxes 9.13. -3.6 -2.0
PROFIT / LOSS FOR THE FINANCIAL YEAR 24.4 16.5
Parent company’s income statement
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Note 31.12.2021 31.12.2020
LIABILITIES AND EQUITY
LIABILITIES
Liabilities to credit institutions and central banks 9.26. 8.6 0.7
Liabilities to the public and public sector entities 9.27. 442.7 407.6
Debt securities issued to the public 9.28. 91.0 131.1
Derivative contracts and other liabilities held for trading 9.29. 26.3 52.5
Other liabilities 9.30. 70.8 73.4
Accrued expenses and deferred income 9.31. 12.0 9.0
Deferred tax liabilities 9.32. 0.0 0.0
TOTAL LIABILITIES 651.5 674.2
EQUITY 9.33.
Share capital 30.2 30.2
Share premium fund 1.8 1.8
Fund of invested non-restricted equity 23.3 23.3
Retained earnings 3.6 4.6
Prot/loss for nancial year 24.4 16.5
TOTAL EQUITY 83.3 76.4
TOTAL LIABILITIES AND EQUITY 734.8 750.5
Note 31.12.2021 31.12.2020
ASSETS
Cash and equivalents 9.14. 384.1 331.6
Debt securities eligible for renancing with central banks 9.17. 33.4 37.2
Claims on credit institutions 9.15. 40.1 61.2
Claims on the public and public sector entities 9.16. 98.1 110.7
Debt securities 9.17. 0.7 9.8
Shares and participations 9.18./9.19. 73.2 79.9
Derivative contracts 9.20. 26.4 52.2
Intangible assets and goodwill 9.21. 4.5 6.9
Property, plant and equipment 9.22. 0.9 1.0
Other assets 9.23. 72.2 59.1
Accrued income and prepayments 9.24. 1.2 1.3
Deferred tax assets 9.25. 0.0
TOTAL ASSETS 734.8 750.5
Parent company’s balance sheet
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2021 2020
Operating activities
Operating prot 28.0 18.4
Adjustment for items not included in cash ow 3.7 3.1
Income taxes paid -1.3 -1.3
Cash ow from operating activities before changes in operating assets and liabilities 30.4 20.2
Changes in operating asset 40.8 187.5
Changes in operating liablities 0.2 -168.5
Cash ow from operating activities 71.3 39.2
Investing activities
Change in intangible asset -0.2 -0.1
Change in property, plant and equipment -1.2 -0.2
Cash ow from investing activities -1.4 -0.3
Financing activities
Dividends paid -17.4 -15.5
Used option rights 0.0 1.5
Cash ow from nancing activities -17.4 -14.1
Cash and cash equivalents at the beginning of period 332.6 307.8
Cash and cash equivalents at the end of year 385.2 332.6
Change 52.5 24.8
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Parent Company´s accounting policies
Basic information on the company
Evli Bank Plc is domiciled in Helsinki and its registe
-
red address is Aleksanterinkatu 19 A, 00100 Helsinki.
Evli Bank Plc’s nancial statements are prepared and
presented in accordance with the regulations of the
Act on Credit Institutions, the Ministry of Finance deci
-
sion regarding credit institutions’ and investment ser-
vices providers’ nancial statements and the Financial
Supervisory Authority’s regulations. The Accounting
Act and the regulations on nancial statements of the
Limited Liability Companies Act are complied with,
with the exceptions stated in Section 30(2) of the Act
on Credit Institutions.
Evli Bank Plc’s notes to the separate financial sta
-
tements correspond to the Evli Group’s principles,
except for the exceptions listed below.
Employee benets
Evli nances all its retirement plans as payments to
employee pension companies.
Income taxes
Deferred tax is generally calculated on all temporary
differences between the carrying amount of an asset
or liability in the balance sheet and its tax base. The
largest temporary differences arise from the deprecia
-
tion of xed assets.
Leases
Leases of property, plant and equipment in which the
company bears a substantial portion of the risks and
rewards of ownership are classied as nance leases.
In the parent company nancial statements, the pay
-
ment made on the basis of such leases are treated as
rental expenses. The assets acquired through nance
leases are also not recognized in the balance sheet.
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9.1. INTEREST INCOME 2021 2020
At fair value through prot or loss 0.3
Debt securities 0.0 0.4
Interest income from other loans and claims
Claims on credit institutions 0.1 0.1
Claims on the public and public sector entities 1.5 1.6
Other interest income 0.5 0.9
Interest income, total 2.4 2.9
9.2. INTEREST EXPENSES 2021 2020
At fair value through prot or loss 0.0
Interest expenses from other borrowing
Liabilities to the public, public sector entities and credit institutions -2.0 -2.1
Debt securities issued to the public -0.1 -0.4
Other interest expenses 0.0 -0.1
Interest expenses, total -2.1 -2.6
9.3. INCOME FROM EQUITY INVESTMENTS 2021 2020
Dividends from associated companies 1.7 0.0
Dividends from group companies 11.2 10.2
Income from equity investments, total 12.9 10.2
9.4. COMMISSION INCOME 2021 2020
Credit related fees and commissions 0.1 0.0
Advisory services 1.7 1.0
Securities brokerage 12.4 9.2
Securities issue 0.0 0.0
Mutual funds 25.9 17.8
Asset management 5.9 5.1
Custody services 0.5 3.9
Other operations 0.2 1.7
Commission income, total 46.8 38.8
9.5. COMMISSION EXPENSES 2021 2020
Trading fees paid to stock exchanges -0.8 -1.8
Other -3.1 -3.7
Commission expenses, total -3.9 -5.5
9.6. NET INCOME FROM SECURITIES TRANSACTIONS
AND FOREIGN EXCHANGE DEALING 2021 2020
Net income from securities transactions
Financial assets held for trading 0.1 -0.2
Financial assets at fair value through prot or loss 1.4 0.6
Net income from securities transactions, total 1.5 0.4
Gains
and losses
on sales
Changes in
fair value Total Total
Net income from securities
transactions by instrument
Debt securities -0.1 -0.3 -0.4 -0.9
Shares and derivative contracts 1.5 0.4 1.9 1.3
Net income from securities
transactions, total 1.4 0.1 1.5 0.4
Net income from foreign
exchange operations 1.9 0.0 1.9 2.0
Net income from securities transactions
and foreign exchange operations, total 3.3 0.1 3.4 2.5
9.7. OTHER OPERATING INCOME 2021 2020
Other income 4.9 3.5
Other operating income, total 4.9 3.5
Parent company’s notes to income statement
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9.8. EMPLOYEE BENEFITS 2021 2020
Wages and salaries -15.7 -13.8
of which bonuses -4.0 -2.7
Other social security costs
-0.5
-0.4
of which relating to bonuses -0.1 0.0
Pension expenses -2.6 -1.8
of which relating to bonuses -0.3 -0.2
dened contribution plans -2.6 -1.8
Employee benets, total -19.5 -16.1
2021 2020
Number of personnel during the period, average 151 146
Number of personnel at the end of the period 152 147
Employees by business segment at the end of the period
Advisory and Corporate Clients 96 5
Wealth Management and Investor Clients 6 95
Group Operations 50 47
Total 152 147
9.9. OTHER OPERATING EXPENSES 2021 2020
Ofce expenses -1.1 -1.1
IT and infosystems -5.9 -5.5
Business expenses -0.3 -0.2
Travel expenses -0.1 -0.1
Other HR related expenses -0.6 -0.3
Marketing expenses -0.7 -0.5
Banking and custodian expenses -0.6 -0.6
External services -2.0 -0.5
Other operating expenses total -11.5 -8.8
9.10. DEPRECIATION, AMORTIZATION AND IMPAIRMENT LOSSES 2021 2020
Depreciation and amortization
From goodwill -0.2 -0.2
Applications and software -2.0 -2.0
Other intangible assets -0.3 -0.8
Equipment and furniture -0.2 -0.2
Depreciation, amortization and impaiment losses, total -2.8 -3.2
9.11. OTHER OPERATING EXPENSES 2021 2020
Supervision expenses -0.5 -0.4
Rental expenses -1.4 -2.1
Other expenses -0.8 -0.6
Other operating expenses total -2.7 -3.0
9.12. EXPECTED CREDIT LOSSES ON LOANS AND OTHER COMMIT-
MENTS AND IMPAIRMENT LOSSES ON OTHER FINANCIAL ASSETS 2021 2020
Claims on the public and public sector entities
Expected credit losses on group level 0.1 -0.1
Expected credit losses individual 0.0 0.0
Realised loan losses 0.0 -0.1
Impairment losses, total 0.1 -0.1
9.13. INCOME TAXES 2021 2020
Current tax expense -3.6 -1.7
Taxes from previous years 0.0 -0.3
Income taxes, total -3.6 -2.0
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Parent company’s notes to balance sheet
9.14. CASH AND EQUIVALENTS 2021 2020
Balances with central banks 384.1 331.5
Other 0.0 0.1
Cash and cash equivalents total 384.1 331.6
9.15. CLAIMS ON CREDIT INSTITUTIONS 2021 2020
Repayable on demand
Domestic credit institutions 1.1 1.1
Foreign credit institutions 0.0 0.0
Repayable on demand, total 1.1 1.1
Other than repayable on demand
Domestic credit institutions 28.2 24.0
Foreign credit institutions 10.8 36.1
Other than repayable on demand, total 39.0 60.1
Claims on credit institutions, total 40.1 61.2
9.16. CLAIMS ON THE PUBLIC AND PUBLIC SECTOR
ENTITIES BY SECTOR 2021 2020
Repayable on demand
Financial and insurance corporations 0.0 0.0
Repayable on demand, total 0.0 0.0
Other than repayable on demand
Enterprises and housing associations 22.6 27.0
Financial and insurance corporations 1.4 0.9
Households 66.9 71.8
Foreign countries 7.3 11.1
Other than repayable on demand, total 98.1 110.7
Claims on the public and public sector entities by sector, total 98.1 110.7
2021 2020
9.17. DEBT SECURITIES
Publicly
quoted Other Total Total
Issued by public corporations
Local government notes 0.0 0.0 0.0 8.0
Issued by other than public
corporations 0.0 0.0 0.0 8.0
Issued by other than public corporations
Bonds issued by banks 33.4 0.1 33.4 37.5
Other debt securities 0.0 0.7 0.7 1.4
Issued by other than public
corporations 33.4 0.7 34.1 38.9
Debt securities, total 33.4 0.7 34.1 46.9
Debt securities by balance sheet category
Debt securities eligible for renancing with central banks
Other 33.4 37.2
Debt securities
On public sector entities 0.0 8.0
Other 0.7 1.8
Total 34.1 46.9
Debt securities by country
Finland 21.7 30.6
Sweden 5.3 11.0
France 0.0 0.0
Denmark 7.1 5.3
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9.18. SHARES AND PARTICIPATIONS
Fair valued through prot or loss
2021
Balance sheet category
Publicly
quoted Other Total
Shares and participations
Valued at fair value through prot or loss
Held for trading 0.0 0.0 0.0
Other 42.1 7.3 49.4
Shares and participations, total 42.1 7.3 49.4
2020
Balance sheet category
Publicly
quoted Other Total
Shares and participations
Valued at fair value through prot or loss
Held for trading 0.1 0.0 0.1
Other 49.9 7.2 57.0
Shares and participations, total 50.0 7.2 57.1
Net risk position is described in section Market Risk, Notes on Risk Position.
9.19. SHARES AND PARTICIPATION IN ASSOCIATES
AND JOINT VENTURES 2021 2020
At the beginning of the period 4.4 4.4
Additions/Disposals 1.0 0.0
At the end of the period 5.4 4.4
Shares and participations in companies
belonging to Group
At the beginning of the period 18.5 21.2
Additions/Impairments 0.0 -2.7
At the end of the period 18.5 18.5
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9.20. DERIVATIVE CONTRACTS
Overall effect of risks associated with derivative contracts 2021 2021
Nominal value of underlying , gross Remaining maturity
Held for trading
Less than 1
year
1-5
years
5-15
years
Fair value
(+/-) ASSETS LIABILITIES
Interest rate derivatives 4.5 70.5 3.2 0.0 2.0 2.0
Interest rate swaps
Equity-linked derivatives
Futures 2.2 1.0 0.0 0.0 0.4 0.4
Options bought 0.0 0.0 0.0 0.0 0.0 0.0
Options sold 0.0 0.0 0.0 0.0 0.0 0.0
Currency-linked derivatives 4073.2 8.3 0.0 0.1 24.1 24.0
Held for trading, total 4 079.9 79.8 3.2 0.1 26.4 26.3
Derivative contracts, total 4 079.9 79.8 3.2 0.1 26.4 26.3
Overall effect of risks associated with derivative contracts 2020 2020
Held for trading
Interest rate derivatives
Interest rate swaps 2.1 100.7 2.2 0.0 1.0 1.0
Equity-linked derivatives
Futures 0.7 3.4 0.0 0.0 0.0 0.0
Options bought 0.0 0.0 0.0 0.0 0.0 0.0
Options sold 0.0 0.0 0.0 0.0 0.0 0.0
Currency-linked derivatives 4 555.2 32.1 0.0 0.1 51.1 51.0
Held for trading, total 4 558.0 136.1 2.2 0.1 52.2 52.0
Derivative contracts, total 4 558.0 136.1 2.2 0.1 52.2 52.0
Equity derivatives in the banking book hedge the
equity risk in equity-linked bonds issued to the
public.
The interest rate derivatives hedge the interest rate
risk in liabilities in the balance sheet.
Currency derivatives comprise commitments made
against clients and the associated hedges, and
contracts made to hedge currency risk in the balance
sheet. The net open risk position of the total amount
is small. The largest part of the contracts are in SEK
(2.763 M€)), and in NOK (662 M€).
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9.21. INTANGIBLE ASSETS AND GOODWILL 2021 2020
Goodwill
Cost at 1.1. 1.2 1.2
Increases/Decreases 0.0 0.0
Cost at 31.12. 1.2 1.2
Accumulated depreciation at 1.1. -0.5 -0.3
Impairment losses for the period 0.0 0.0
Accumulated depreciation at 31.12. -0.8 -0.5
Book value at 31.12. 0.4 0.6
Software or projects in progress
Cost at 1.1. 0.0 0.1
Increases/Decreases 0.0 -0.1
Cost at 31.12. 0.0 0.0
Book value at 31.12. 0.0 0.0
Applications and software
Cost at 1.1. 21.3 21.1
Increases/Decreases 0.2 0.2
Cost at 31.12. 21.5 21.3
Accumulated amortisation and impairment losses at 1.1. -15.7 -13.7
Amortisation for the period -2.0 -2.0
Accumulated amortisation and impairment losses at 31.12. -17.7 -15.7
Book value at 31.12. 3.8 5.6
Leasehold improvements FAS
Cost at 1.1. 1.4 1.4
Cost at 31.12. 1.4 1.4
Accumulated amortisation and impairment losses at 1.1. -1.3 -1.1
Amortisation for the period -0.1 -0.1
Accumulated amortisation and impairment losses at 31.12. -1.4 -1.3
Book value at 31.12. 0.0
0.1
9.22. PROPERTY, PLANT AND EQUIPMENT 2021 2020
Equipment and furniture
Cost at 1.1. 1.5 1.3
Increases/Decreases 0.2 0.2
Cost at 31.12. 1.7 1.5
Accumulated amortisation and impairment losses at 1.1. -1.2 -1.0
Amortisation for the period 0.0 0.0
Accumulated amortisation in respect of decreases -0.2 -0.2
Accumulated amortisation and impairment losses at 31.12. -1.3 -1.2
Book value at 31.12. 0.3 0.4
Property, plant, and equipment, total 31.12. 0.3 0.4
Other tangible assets
Cost at 1.1. 0.6 0.6
Cost at 31.12. 0.6 0.6
Book value at 31.12. 0.6 0.6
Property, plant and equipment, total at 31.12. 0.9 1.0
Book value of tangible assets at 31.12. 0.9 1.0
2021 2020
Other intangible assets
Cost at 1.1. 2.3 2.3
Cost at 31.12. 2.3 2.3
Accumulated amortisation and impairment losses at 1.1. -1.9 -1.2
Amortisation for the period -0.2 -0.7
Accumulated amortisation and impairment losses at 31.12. -2.1 -1.9
Book value at 31.12. 0.2 0.4
Intangible assets, total at 31.12. 4.5 6.9
Book value of intangible assets at 31.12. 4.5 6.9
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9.23. OTHER ASSETS 2021 2020
Securities sale receivables 1.5 0.2
Commission receivables 2.8 2.0
Securities broking receivables 55.7 52.9
Other receivables 12.2 3.9
Other assets total 72.2 59.1
9.24. ACCRUED INCOME AND PREPAYMENTS 2021 2020
Interest 0.3 0.4
Staff-related 0.0 0.0
Other items 0.9 0.8
Accrued income and prepayments total 1.2 1.3
9.25. DEFERRED TAX ASSETS 2021 2020
Due to timing differences* 0.0 0.0
Deferred taxes total 0.0 0.0
*Deferred tax assets result from timing differences in xed asset depreciation.
9.26. LIABILITIES TO CREDIT INSTITUTIONS AND CENTRAL BANKS 2021 2020
Credit institutions
Repayable on demand 0.0 0.0
Other than repayable on demand 8.6 0.7
Liabilities to credit institutions and central banks, total 8.6 0.7
9.27. LIABILITIES TO THE PUBLIC AND PUBLIC SECTOR ENTITIES 2021 2020
Deposits
Repayable on demand 442.7 407.5
Other than repayable on demand 0.0 0.1
Liabilities to the public and public sector entities, total 442.7 407.6
9.28. DEBT SECURITIES ISSUED TO THE PUBLIC 2021 2020
Certicate of deposits 0.0 10.0
Bonds 91.0 121.1
Debt securities issued to the public, total 91.0 131.1
Changes in bonds issued to the public
Issues 4.2 31.7
Repurchases 34.3 34.4
9.29. DERIVATIVE CONTRACTS AND OTHER LIABILITIES
HELD FOR TRADING 2021 2020
Derivative contracts 26.3 52.0
Due to short selling of shares 0.0 0.4
Derivative contracts and other liabilities held for trading, total 26.3 52.5
9.30. OTHER LIABILITIES 2021 2020
Securities broking liabilities 61.6 54.7
Securities purchase liabilities 0.8 0.0
Income tax payable 0.1 0.0
Personnel related 0.4 0.4
Other short-term liabilities 7.3 3.9
Prepayments of cash customers 0.3 14.0
VAT payable 0.4 0.4
Other liabilities, total 70.8 73.4
9.31. ACCRUED EXPENSES AND DEFERRED INCOME 2021 2020
Interest 0.0 0.1
Tax payables 2.3 0.7
Personnel related 8.8 6.9
Other accrued expenses 0.9 1.3
Accrued expenses and deferred income, total 12.0 8.9
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9.32. EQUITY CAPITAL 2021 2020
Share capital
Book value 1.1. 30.2 30.2
Book value 31.12. 30.2 30.2
Share premium
Book value 1.1. 1.8 1.8
Book value 31.12. 1.8 1.8
Fund of invested non-restricted equity
Book value 1.1. 23.3 24.8
Increases/Decreases 0.0 -1.5
Book value 31.12. 23.3 23.3
Retained earnings from previous years
Retained earnings 1.1. 21.1 20.1
Dividends -17.4 -15.5
Translation difference and other changes in retained earnings 0.0 0.0
Retained earnings 31.12. 3.6 4.6
Prot for the period 24.4 16.5
Own shares held by the credit institution
The company has not acquired own shares during 2021. On December 31, 2021 the company held a total of
251.983 own shares.
Share capital, parent company
Evli has two share series: series A and series B.
The A share confers 20 votes in a General Meeting while a B share confers one vote.
Number of shares-A-shares 14,507,948 shares
Number of shares-B-shares 9,601,472 shares
Total number of shares is 24,109,420 shares
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9.33. MATURITIES OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES OF CREDIT INSTITUTION
Debt securities, loans and other claims, derivatives and nancial liabilities at amortized cost are reported in the maturity class according to the maturity of the instrument. Shares and participations are reported so that quoted
shares in the trading book and quoted mutual funds are in the shortest maturity period. Unquoted shares are reported according to the estimated liquidation period, and venture capital- and real estate funds are reported
according to the expected ending day of the fund.
2021 2020
Less than 3
months
3-12
months
1-5
years
5-10
years
over 10
years Total
Less than 3
months
3-12
months
1-5
years
5-10
years
over 10
years Total
Assets
Cash and cash equivalents 384.1 0.0 0.0 0.0 0.0 384.1 331.6 0.0 0.0 0.0 0.0 331.6
Financial assets at amortized cost
Claims on credit institutions 40.1 0.0 0.0 0.0 0.0 40.1 61.2 0.0 0.0 0.0 0.0 61.2
Claims on the public
and public sector entities 23.6 21.8 52.7 0.0 0.0 98.1 4.9 23.9 81.2 0.7 0.0 110.7
Financial assets at fair value
through prot or loss
Debt securities eligible for
renancing with central banks 8.0 9.9 15.4 0.0 0.0 33.4 0.0 15.7 21.5 0.0 0.0 37.2
Debt securities 0.0 0.0 0.4 0.4 0.0 0.7 8.3 0.0 1.1 0.4 0.0 9.8
Shares and participations 42.7 3.0 0.4 2.8 0.6 49.4 50.5 0.8 3.3 2.4 0.1 57.1
Derivative contracts 23.9 0.7 1.9 0.0 0.0 26.4 51.1 0.0 1.0 0.0 0.0 52.2
Accrued interest 0.3 0.1 0.0 0.0 0.0 0.3 0.3 0.1 0.0 0.0 0.0 0.4
Liabilities
Financial liabilities at amortized cost
Liabilities to credit institutions 8.6 0.0 0.0 0.0 0.0 8.6 0.7 0.0 0.0 0.0 0.0 0.7
Liabilities to the public
and public sector entities 442.7 0.0 0.0 0.0 0.0 442.7 407.5 0.1 0.0 0.0 0.0 407.6
Debt securities issued to the public 0.9 10.7 75.2 4.2 0.0 91.0 1.0 11.8 116.0 2.2 0.0 131.1
Financial liabilities at fair value
through prot or loss 23.7 0.7 1.9 0.0 0.0 26.3 51.4 0.0 1.0 0.0 0.0 52.5
Accrued interest, debt 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.0 0.0 0.0 0.0 0.1
Off-balance sheet commitments 12.0 6.0 3.1 0.0 0.0 21.1 5.4 3.3 6.3 0.0 0.0 15.1
137 | 165
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9.34. ASSETS AND LIABILITIES DENOMINATED IN DOMESTIC AND FOREIGN CURRENCY
Assets
Domestic
currency
Foreign
currency
2021
Total
Domestic
currency
Foreign
currency
2020
Total
Financial assets at amortized cost
Cash and cash equivalents 384.1 0.0 384.1 331.6 0.0 331.6
Claims on credit institutions 39.7 0.4 40.1 56.9 4.2 61.2
Claims on the public and public sector entities 98.1 0.0 98.1 109.6 1.2 110.7
Financial assets at fair value through prot or loss
Debt securities eligible for renancing with central banks 34.1 0.0 34.1 0.0 0.0 0.0
Debt securities 0.0 0.0 0.0 46.6 0.4 46.9
Shares and participations 48.3 1.1 49.4 56.9 0.2 57.1
Derivative contracts 26.1 0.3 26.4 51.9 0.2 52.2
Other asset items 102.1 0.5 102.6 69.9 21.0 90.9
Total 732.5 2.3 734.8 723.4 27.1 750.5
Liabilities
Financial liabilities at amortized cost
Liabilities to credit institutions 8.6 0.0 8.6 0.7 0.0 0.7
Liabilities to the public and public sector entities 430.8 11.9 442.7 388.4 19.2 407.6
Debt securities issued to the public 91.0 0.0 91.0 131.1 0.0 131.1
Financial liabilities at fair value through prot or loss 26.0 0.3 26.3 51.8 0.7 52.5
Other liabilities items 82.3 0.5 82.8 60.8 21.5 82.4
Total 638.8 12.7 651.5 632.7 41.4 674.2
The largest foreign currency assets and liabilities are in SEK (assets 1.3 M€, liabilities 5.0 M€) and USD (assets 0.6 M€, liabilities 6.4 M€). Derivatives positions which hedge the
foreign exchange risk are not included in these gures.
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9.35. SECURITIES LENDING 2021 2020
Market value of securities lending at 31.12.,
lent in 2.3 2.8
Market value of securities lending at 31.12.,
lent out 0.0 0.0
9.36. FAIR VALUES AND BOOK VALUES
OF FINANCIAL ASSETS AND FINANCIAL
LIABILITIES
Book value Fair value
2021 2021
Financial assets
Cash and equivalents 384.1 384.1
Debt securities eligible for renancing with
central banks 33.4 33.4
Claims on credit institutions 40.1 40.1
Claims on the public and public sector entities 98.1 98.1
Debt securities 0.7 0.7
Shares and participations 49.4 49.4
Derivative contracts 26.4 26.4
Financial liabilities
Liabilities to credit institutions and central banks 8.6 8.6
Liabilities to the public and public sector entities 442.7 442.7
Debt securities issued to the public 91.0 90.2
Derivative contracts and other liabilities
held for trading 26.3 26.3
9.37. ASSETS PLEDGED AS COLLATERAL
Fair value of
encumbered assets
Fair value of
unencumbered assets
of which usable
as collateral
ASSETS 2021 2021 2021
Cash and cash equivalents 0.0 384.1 379.5
Debt securities eligible for renancing with central banks 33.4 0.0 0.0
Claims on credit institutions 39.0 1.1 1.1
Claims on the public and public sector entities 0.0 98.1 0.0
Debt securities 0.0 0.7 0.0
Shares and participations 0.0 49.4 0.0
72.4 533.4 380.6
Usage of collateral
Markeplace collateral, stock- and derivatives trades 1.6
Collateral for OTC derivatives trades 34.7
Collateral for securities lending 2.7
Bank Of Finland, collateral for daily limit account 33.4
72.4
Received collateral
Fair value of
collateral recieved
LIABILITIES
Received cash 38.3
ASSETS 2021 2021 2021
Cash and cash equivalents 663.1 653.4
Debt securities eligible for renancing with central banks 67.6 6.7 6.7
Claims on credit institutions 120.2 7.7 7.7
Claims on the public and public sector entities 220.3
Debt securities 19.5
Shares and participations 114.4
187.8 1 031.8 667.9
Usage of collateral
Markeplace collateral, stock- and derivatives trades 20.0
Collateral for OTC derivatives trades 94.6
Collateral for securities lending 5.5
Bank Of Finland, collateral for daily limit account 67.6
187.8
Received collateral
Fair value of
collateral recieved
LIABILITIES
Received cash 106.5
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ANNUAL REPORT 2021
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9.38. OTHER RENTAL COMMITMENTS 2021 2020
Rental liabilities up to one year 1.7 2.2
Rental liabilities over one year and less than 5 years 5.6 6.0
Rental liabilities over 5 years 0.1 1.4
Leasing liabilities not later than one year 0.0 0.1
Leasing liabilities over year not later than ve year 0.0 0.3
9.39. BREAKDOWN OF OFF-BALANCE SHEET COMMITMENTS 2021 2020
Commitments given to a third party on behalf of a customer* 0.4 5.4
Irrevocable commitments given in favour of a customer 2.6 2.3
Guarantees on behalf of others 0.0 0.0
Unused credit facilities, given to clients 18.1 9.6
*Commitments given on behalf of a client for a third party include collaterals for derivatives positions given on
behalf of clients. The clients have covered their derivatives collateral to Evli in full. Other irrevocable
commitments given on behalf of a client comprise subscription commitments guaranteed on behalf of clients.
MANDATORY ELEMENTS OF THE ESEF TAXONOMY
Name of reporting entity or other means of identication
Domicile of entity
Legal form of entity
Country of incorporation
Address of entity's registered ofce
Principal place of business
Description of nature of entity's operations
and principal activities
Name of parent entity
Name of ultimate parent of group
The ESEF report has not been assured by the auditors.
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The Board of Directors’ proposal to the General Meeting
Authorised Public Accountant (KHT)
Henrik Andersin Robert Ingman Fredrik Hacklin Sari Helander
Teuvo Salminen Maunu Lehtimäki
Chairman
CEO
The parent company’s distributable assets on December 31, 2021 totaled EUR 51,312,186.20 of which EUR 28,027,140.21 were
retained earnings and EUR 23,285,045.99 were in the reserve for invested unrestricted equity. The Board of Directors proposes to
the Annual General Meeting of Shareholders that a dividend of EUR 1.06 per share be paid. The total proposed dividend calculated
according to the number of shares (excluding own shares held by the company) on the balance sheet date is EUR 25,288,883.20.
There have been no major changes in the company’s nancial position after the end of the nancial year. The proposed distribution
of prot does not endanger the nancial solidity or liquidity of the company.
Helsinki, February 10, 2022
Auditor´s Note
Based on the auditing an audit report has been issued today.
Helsinki, February 10, 2022
PricewaterhouseCoopers Oy
Authorised Public Accountants
Jukka Paunonen
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ANNUAL REPORT 2021
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Auditor’s Report
(Unofcial translation of the Finnish Original)
To the Annual General Meeting of Evli Bank Plc
Report on the Audit of the Financial
Statements
Opinion
In our opinion
• the consolidated nancial statements give
a true and fair view of the group’s nancial
position and financial performance and
cash flows in accordance with Internatio-
nal Financial Reporting Standards (IFRS) as
adopted by the EU
• the financial statements give a true and
fair view of the parent company’s finan-
cial performance and nancial position in
accordance with the laws and regulations
governing the preparation of the nancial
statements in Finland and comply with sta-
tutory requirements.
Our opinion is consistent with the additional
report to the Audit Committee.
What we have audited
We have audited the nancial statements of
Evli Bank Plc (business identity code 0533755-
0) for the nancial year January 1 to December
31, 2021. The nancial statements comprise:
• the consolidated comprehensive income
statement, consolidated balance sheet,
consolidated statement of cash ow, con-
solidated statement of changes in equity
and notes to the nancial statements, inclu-
ding a summary of signicant accoun-ting
policies
• the parent company’s income statement,
parent company’s balance sheet, parent
company’s statement of cash ow and notes
to the nancial statements, including a sum-
mary of signicant accounting policies.
Basis for opinion
We conducted our audit in accordance with
good auditing practice in Finland. Our respon-
sibilities under good auditing practice are furt-
her described in the Auditor’s Responsibilities
for the Audit of the Financial Statements sec-
tion of our report.
We believe that the audit evidence we have
obtained is sufcient and appropriate to pro-
vide a basis for our opinion.
Independence
We are independent of the parent company
and of the group companies in accordance
with the ethical requirements that are appli-
cable in Finland and are relevant to our audit,
and we have fulfilled our other ethical res-
ponsibilities in accordance with these requi-
rements.
To the best of our knowledge and belief, the
non-audit services that we have provided to
the parent company and to the group com-
panies are in accordance with the applicable
law and regulations in Finland and we have not
provided non-audit services that are prohibi-
ted under Article 5(1) of the Regulation (EU)
No 537/2014. The non-audit services that we
have provided are disclosed in note 8.5 to the
Financial Statements.
Our audit approach
Overview
As part of designing our audit, we determined
materiality and assessed the risks of material
misstatement in the financial statements. In
particular, we considered areas where mana-
gement made subjective judgements; for
example, in respect of signicant accounting
estimates that involve assumptions and eva-
luation of future events that are inherently
uncertain.
Materiality
• Overall group materiality: € 3.5 million, which
represents 0.46% of the balance sheet total
Audit Scope
• In addition to the parent company, the group audit
scope included ve signicant companies
Key audit matters
• Recognition of commission income
• Valuation of nancial assets and nancial liabilities
measured at fair value
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Materiality
The scope of our audit was inuenced by our
application of materiality. An audit is designed
to obtain reasonable assurance whether the
financial statements are free from material
misstatement. Misstatements may arise due
to fraud or error. They are considered mate-
rial if individually or in aggregate, they could
reasonably be expected to inuence the eco-
nomic decisions of users taken on the basis of
the nancial statements.
Based on our professional judgement, we
determined certain quantitative thresholds for
materiality, including the overall group mate-
riality for the consolidated nancial statements
as set out in the table below. These, toget-
her with qualitative considerations, helped us
to determine the scope of the audit and the
nature, timing and extent of the audit procedu-
res and to evaluate the effect of misstatements
on the nancial statements as a whole.
How we tailored our group audit scope
We tailored the scope of our audit, taking
into account the structure of Evli Group, the
accounting processes and controls, and the
industry in which the group operates.
We determined the type of work that needed
to be performed at group companies by us,
as the group engagement team. Audits were
performed in group companies which were
considered signicant either because of their
individual nancial signicance or due to their
specic nature, covering the majority of reve-
nue, assets and liabilities of the group. Analy-
tical procedures were performed to cover the
remaining group companies.
Key audit matters
Key audit matters are those matters that, in our
professional judgment, were of most signifi-
cance in our audit of the nancial statements of
the current period. These matters were addres-
sed in the context of our audit of the nancial
statements as a whole, and in forming our opi-
nion thereon, and we do not provide a separate
opinion on these matters.
As in all of our audits, we also addressed the
risk of management override of internal cont-
rols, including among other matters conside-
ration of whether there was evidence of bias
that represented a risk of material misstate-
ment due to fraud.
Overall group materiality EUR 3.5 million (previous year EUR 3.5 million)
How we determined it 0.46% of the balance sheet total
Rationale for the materiality
benchmark applied
We chose the balance sheet total as a benchmark,
because in our view, it is the appropriate benchmark
to assess the group’s performance, and it is a generally
accepted benchmark. We chose 0.46%, which is within
the range of acceptable quantitative materiality thres-
holds in auditing standards.
Key audit matter in the audit
of the group
How our audit addressed
the key audit matter
Recognition of commission income
Note 1.3 in the consolidated nancial state-
ments
The assets managed by Evli Group entitle it to
fee and commission income under the agree-
ments made with customers and coope-
ration parties.
The accuracy of calculation of commission
and fee income inherently involves risk, con-
sidering that the calculation is system-based
and partly manual based on contract data
and other source data.
Commission income in the consolidated
financial statements was EUR 114.5 million
representing a signicant item in the consoli-
dated income statement.
We have determined recognition of commis-
sion and fee income as a key audit matter due
to above mentioned aspects.
We obtained an understanding of business
processes and IT systems related to commis-
sion and fee income and assessed the cont-
rol environment.
Our audit work also included a comparison of
accounting data between sub-ledger systems
and the general ledger. Furthermore, we have
performed substantive testing of commission
and fee income.
We have assessed calculation models for
recognized commission and fee income and
compared the input parameters applied in
the calculations to agreements on a sample
basis.
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ANNUAL REPORT 2021
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TO THE FINANCIAL STATEMENTS CONTENTS
We have no key audit matters to report with
respect to our audit of the parent company
nancial statements.
There are no signicant risks of material missta-
tement referred to in Article 10(2c) of Regu-la-
tion (EU) No 537/2014 with respect to the
consolidated nancial statements or the pa-
rent company nancial statements.
Responsibilities of the Board of
Directors and the Managing Director for
the Financial Statements
The Board of Directors and the Managing Dire-
ctor are responsible for the preparation of the
consolidated nancial statements that give a
true and fair view in accordance with Interna-
tional Financial Reporting Standards (IFRS) as
adopted by the EU, and of nancial statements
that give a true and fair view in accordance
with the laws and regulations governing the
preparation of nancial statements in Finland
and comply with statutory requirements. The
Board of Directors and the Managing Director
are also responsible for such internal control as
they determine is necessary to enable the pre-
paration of nancial statements that are free
from material misstatement, whether due to
fraud or error.
In preparing the financial statements, the
Board of Directors and the Managing Director
are responsible for assessing the parent com-
pany’s and the group’s ability to continue as a
going concern, disclosing, as applicable, mat-
ters relating to going concern and using the
going concern basis of accounting. The nan-
cial statements are prepared using the going
concern basis of accounting unless there is an
intention to liquidate the parent company or
the group or to cease operations, or there is
no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit
of the Financial Statements
Our objectives are to obtain reasonable assu-
rance about whether the nancial statements
as a whole are free from material misstate-
ment, whether due to fraud or error, and to
issue an auditor’s report that includes our opi-
nion. Reasonable assurance is a high level of
assurance but is not a guarantee that an audit
conducted in accordance with good auditing
practice will always detect a material missta-
tement when it exists. Misstatements can arise
from fraud or error and are considered material
if, individually or in the aggregate, they could
reasonably be expected to inuence the eco-
nomic decisions of users taken on the basis of
these nancial statements.
As part of an audit in accordance with good
auditing practice, we exercise professional jud-
gment and maintain professional skepticism
throughout the audit. We also:
• Identify and assess the risks of material
misstatement of the nancial statements,
whether due to fraud or error, design and
perform audit procedures responsive to
those risks, and obtain audit evidence that
is sufcient and appropriate to provide a
basis for our opinion. The risk of not detec-
ting a material misstatement resulting from
fraud is higher than for one resulting from
error, as fraud may involve collusion, for-
gery, intentional omissions, misrepresenta-
tions, or the override of internal control.
• Obtain an understanding of internal cont-
rol relevant to the audit in order to design
audit procedures that are appropriate in
the circumstances, but not for the pur-
pose of expressing an opinion on the effe-
ctiveness of the parent company’s or the
group’s internal control.
• Evaluate the appropriateness of accoun-
ting policies used and the reasonable-
ness of accounting estimates and related
disclosures made by management.
Key audit matter in the audit
of the group
How our audit addressed
the key audit matter
Valuation of nancial assets and nancial liabilities measured at fair value
Notes 2.4, 2.5, 2.6, 7.1, 7.3, 7.4, 7.5 and 7.6 in
the consolidated nancial statements
Determination of fair values is based on va-
luation principles outlined in the accounting
policies of Evli Group’s nancial statements.
A signicant amount of nancial assets and
liabilities valued at fair value (hereafter refe-
rred to as “investments”) is comprised of
investments for which a quoted market price
cannot be obtained, i.e. hierarchy level 2 and
3 investments. Fair values for these are based
on valuation models that involve manage-
ment judgment.
Investments are a material line item in Evli
Group’s financial statements, and we have
therefore determined their valuation as a key
audit matter.
We have evaluated the valuation process,
valuation model and control environment
of investments and the compliance with the
accounting policies in Evli Group.
In connection with our audit, we have compa-
red input parameters applied in the valuation
model to market quotations and other exter-
nal price sources and assessed the results of
the valuation model.
We have also assessed the appropriateness
of the notes in the consolidated nancial sta-
tements regarding investments.
144 | 165
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EVLI BANK PLC
ANNUAL REPORT 2021
Financial review
TO THE FINANCIAL STATEMENTS CONTENTS
• Conclude on the appropriateness of the
Board of Directors’ and the Managing
Director’s ’s use of the going concern basis
of accounting and based on the audit evi-
dence obtained, whether a material uncer-
tainty exists related to events or condi-
tions that may cast signicant doubt on
the parent company’s or the group’s ability
to continue as a going concern. If we con-
clude that a material uncertainty exists, we
are required to draw attention in our audi-
tor’s report to the related disclosures in the
nancial statements or, if such disclosu-
res are inadequate, to modify our opinion.
Our conclusions are based on the audit
evidence obtained up to the date of our
auditor’s report. However, future events
or conditions may cause the parent com-
pany or the group to cease to continue as
a going concern.
• Evaluate the overall presentation, structure
and content of the nancial statements,
including the disclosures, and whether the
nancial statements represent the under-
lying transactions and events so that the
nancial statements give a true and fair
view.
• Obtain sufcient appropriate audit evi-
dence regarding the nancial informa-
tion of the entities or business operations
within the group to express an opinion on
the consolidated nancial statements. We
are responsible for the direction, supervi-
sion and performance of the group audit.
We remain solely responsible for our audit
opinion.
We communicate with those charged with gover-
nance regarding, among other matters, the
planned scope and timing of the audit and sig-
nicant audit ndings, including any signicant
deciencies in internal control that we identify
during our audit.
We also provide those charged with gover-
nance with a statement that we have comp-
lied with relevant ethical requirements regar-
ding independence, and to communicate with
them all relationships and other matters that
may reasonably be thought to bear on our
independence, and where applicable, related
safeguards.
From the matters communicated with those
charged with governance, we determine those
matters that were of most signicance in the
audit of the nancial statements of the current
period and are therefore the key audit mat-
ters. We describe these matters in our audi-
tor’s report unless law or regulation precludes
public disclosure about the matter or when, in
extremely rare circumstances, we determine
that a matter should not be communicated in
our report because the adverse consequences
of doing so would reasonably be expected to
outweigh the public interest benets of such
communication.
Other Reporting Requirements
Appointment
We were first appointed as auditors by the
annual general meeting on March 13, 2017.
We have acted as auditors consecutively for
ve scal years.
Other Information
The Board of Directors and the Managing Dire-
ctor are responsible for the other information.
The other information comprises the report
of the Board of Directors and the information
included in the Annual Report, but does not
include the nancial statements and our audi-
tor’s report thereon.
Our opinion on the nancial statements does
not cover the other information.
In connection with our audit of the nancial sta-
tements, our responsibility is to read the other
information and, in doing so, consider whether
the other information is materially inconsistent
with the nancial statements or our knowledge
obtained in the audit, or otherwise appears to
be materially misstated. With respect to the
report of the Board of Directors, our respon-
sibility also includes considering whether the
report of the Board of Directors has been pre-
pared in accordance with the applicable laws
and regulations.
In our opinion
• the information in the report of the Board of
Directors is consistent with the information
in the nancial statements
• the report of the Board of Directors has
been prepared in accordance with the app-
licable laws and regulations.
If, based on the work we have performed, we
conclude that there is a material misstatement
of the other information, we are required to
report that fact. We have nothing to report in
this regard.
Helsinki, February 10, 2022
PricewaterhouseCoopers Oy
Authorised Public Accountants
Jukka Paunonen
Authorised Public Accountant (KHT)
145 | 165
Business Overview
Responsibility
Governance
EVLI BANK PLC
ANNUAL REPORT 2021
Financial review
TO THE FINANCIAL STATEMENTS CONTENTS
Governance
In addition to the tasks assigned to the Board of Directors by the Rules
of Procedure and the law, Evli Bank Plc’s Board of Directors’ work focu-
sed on an arrangement in which Evli will demerge through a partial
demerger into a new asset management group and a company that
will carry on Evli’s banking services and into which Fellow Finance
Plc will merge.
Business Overview
Financial review
Responsibility
EVLI BANK PLC
ANNUAL REPORT 2021
Governance
146 | 165
Corporate governance statement
The governance of Evli Bank Plc (“Evli” or “company”) is based
on the Articles of Association, the Finnish Limited Liability Com-
panies Act, applicable statutory provisions governing the Fin-
nish securities markets, the Market Abuse Regulation (MAR),
the regulations of the Finnish Financial Supervisory Authority,
the rules and regulations of Nasdaq Helsinki Ltd, and other
statutes and regulations concerning the governance of pub-
lic limited companies. The Articles of Association, the publis-
hed policies and other information on Evli’s corporate gover-
nance can be found at the company’s website www.evli.com/
investors.
Evli also complies with the Finnish Corporate Governance Code
issued by the Securities Market Association. The Code can be
viewed in full on the Securities Market Association’s website at
www.cgnland./en.
This Corporate Governance Statement referred to in Chapter
7, section 7 of the Securities Markets Act (746/2012) has been
compiled in compliance with the Finnish Corporate Gover-
nance Code and it has been prepared as a separate report
from the Board of Directors’ Report.
Discrepancies:
Recommendation 15 - Election of Committee members: cont-
rary to the Recommendation, the Remuneration Committee of
Evli has two members. The reason for this deviation is the low
number of Board members.
Evli’s governance structure
Evli’s management and business operations are the responsi-
bility of the General Meeting, the Board of Directors and the
CEO, whose tasks are determined in the Finnish Limited Lia-
Evli Bank Plc’s Governance Structure
General Meeting of Shareholders
Auditors
Board of Directors
CEO
Executive Group
Audit committee
Compensation Committee
Risk management and Internal audit
Risk management
Compliance
Internal Audit
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Business Overview
Financial review
Responsibility
EVLI BANK PLC
ANNUAL REPORT 2021
Governance
bility Companies Act and in Evli’s Articles of Association. Evli
Group’s Executive Group assists the CEO in the operative mana-
gement of the company. The Executive Group consists of mana-
gers of the business areas and group functions, and it helps the
CEO in the approval and execution of Group-level operating
principles and procedures.
Evli Bank’s Board of Directors is primarily responsible for Evli
Group’s risk management. The Board of Directors confirms
the principles and responsibilities of risk management, the risk
limits of the Group and other general guidelines according to
which the risk management and internal audit are organised.
General Meeting of Shareholders
The ultimate decision-making power in the company is exerci-
sed by shareholders at General Meetings. By participating in
the General Meeting either personally or via a proxy, a share-
holder may exercise his/her right to vote and make inquiries
and participate in decision-making on matters concerning the
company. At the General Meeting, each Series A share of Evli
Bank Plc entitles its holder to twenty (20) votes and each Series
B share to one (1) vote.
General Meetings are held at least once a year. The Annual
General Meeting (AGM) is held upon completion of the com-
pany’s nancial statements, at a place and on a date designated
by the Board of Directors. The date must be no later than the
end of June.
Matters to be discussed at a General Meeting are specified
in the Limited Liability Companies Act and in Evli’s Articles of
Association. The General Meeting normally discusses not only
the matters specied by law and in the Articles of Association
but also items presented to the meeting by the Board of Dire-
ctors. Under the Limited Liability Companies Act, shareholders
are also entitled to bring up for discussion at a General Meeting
any matter that falls within the authority of the meeting.
A notice to the General Meeting is published no earlier than
three (3) months prior the record date of the General Meeting,
and no later than three (3) weeks prior to the General Meeting,
however, no later than nine (9) days before the record date of
the General Meeting. The notice is published on Evli’s website,
www.evli.com and as a stock exchange release. The Board of
Directors may, at their discretion, announce the General Mee-
ting in one or more newspapers.
Documents to be presented in the General Meeting and the
Board’s proposals for decisions to the General Meeting are
made available at Evli’s website (www.evli.com) three (3) weeks
before the General Meeting.
Annual General Meeting (AGM)
At the AGM, information is presented about the company’s acti-
vities. The AGM also decides on the following:
• the adoption of the financial statements of the previous
nancial year
• the company’s prot distribution
• discharging the Board members and the CEO and his/her
deputy from liability
• the election of Board members and their remuneration
• the appointment of auditors and their remuneration.
In 2021, the Annual General Meeting of Evli was held on March
9, 2021, by special arrangement without the presence of share-
holders or their proxies. The Board of Directors of the company
decided on the exceptional procedure for the General Meeting
of Shareholders on the basis of the temporary law approved by
the Parliament on September 15, 2020 (Act No. 677/2020 on the
temporary deviation from the Companies Act (the ”Temporary
Act”)). Shareholders and their proxies could only participate in
the meeting and exercise their rights by voting in advance and
by submitting counter-proposals and questions in advance. In
the advance voting, 37 shareholders representing a total of 55
percent of the company’s shares and 69 percent of all votes
had participated.
Extraordinary General Meeting
The Board of Directors may convene an Extraordinary General
Meeting if it considers this necessary. The auditor and any share-
holder with more than ten percent of the company’s shares also
have the right to demand that an Extraordinary General Mee-
ting be called to discuss a matter to be presented by the auditor
or shareholder. In 2021, an Extraordinary General Meeting was
held on December 22, 2021, by special arrangement without
the presence of shareholders or their proxies to decide on the
partial demerger of Evli Bank Plc and the merger with Fellow
Finance Plc. The Board of Directors of the Company resolved
upon the extraordinary general meeting procedure pursuant to
the Temporary Act (Act No 677/2020 on temporary derogation
from the Limited Liability Companies Act, hereinafter the “Tem-
porary Act”) approved by the Parliament on September 15, 2020.
Board of Directors
The AGM of Evli Bank Plc elects each year a Board of Directors,
which, between General Meetings, exercises the ultimate deci-
sion-making power in Evli Group. The task of Evli’s Board is to
manage the company in accordance with the laws and ofcial
regulations, and in compliance with the Articles of Association
and the decisions of the General Meeting.
Duties of the Board of Directors
The Board has approved a written procedure dening its duties
and meeting practices. The tasks of the Board are:
• taking responsibility for the company’s administration and
appropriate organisation of operations
• ensuring that the company’s accounting and asset manage-
ment are monitored in an appropriate manner
• the handling of all matters that are of extensive and funda-
mental importance for the operation of the company and
the entire Group
• deciding upon the Evli Group’s business strategy and appro-
ving the budget
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Business Overview
Financial review
Responsibility
EVLI BANK PLC
ANNUAL REPORT 2021
Governance
• conrming the principles for the arrangement of Evli Group’s
risk management and internal audit
• appointing the CEO and the members of the Executive
Group and relieving them of their duties
• deciding on the CEO’s salary and other benets
• approving the objectives for the Group’s human resources
planning, and monitoring the implementation of these obje-
ctives
• deciding the basis for the Group’s remuneration system and
other comprehensive matters that concern the personnel.
In accordance with the principles of good governance, the
Board also ensures that the company, in its operations, endor-
ses the corporate values that have been set out for compliance.
The Board conducts an annual review of its activities and wor-
king practices in the form of an internal self-assessment.
Composition of the Board of Directors
At the AGM, four to eight (4-8) members are elected to Evli’s
Board of Directors by representatives of major shareholders and
external independent experts. The major shareholders of the
company prepare a proposal on the composition of the Board
for the AGM. The Board members should be elected so that
the composition of the Board is as diverse as possible and sup-
ports Evli’s business goals and meets the following principles:
• The Board as a whole must have sufcient competence and
experience to be able to carry out its duties diligently and
efciently, taking into consideration the type and scope of
the company’s operations and its strategic goals and the
changes within business and the rest of society.
• The members of the Board should have supplementary edu-
cation and skills and experience in areas that are important
to the company.
• The members of the Board should have experience of Board
work and executive duties in business or other areas of
society.
• The Board should include both men and women as far as
is possible.
• The Board should also be diverse in terms of age distribution
and number of terms.
In addition, in accordance with the Corporate Governance
Code 2020, persons elected to the Board must have the oppor-
tunity to spend sufcient time carrying out their duties. All Board
candidates must submit their own assessment of their indepen-
dence to the Board at least once every year. In addition, the
company also evaluates the independence of all existing mem-
bers on the basis of documents in its possession and, when nee-
ded, using public documents in accordance with the Corporate
Governance Code issued by the Securities Market Association
in 2020 or other applicable regulations.
The Board members are elected for a term of one year, which
starts at the conclusion of the AGM and ends at the conclusion
of the next AGM following the election. The Board elects a
Chairman and a Deputy Chairman among themselves.
Evli Bank Plc’s AGM held on March 9, 2021, conrmed ve (5) as
the number of members of its Board of Directors. Henrik Ander-
sin, Fredrik Hacklin, Sari Helander, Robert Ingman, and Teuvo
Salminen were re-elected to Evli Bank Plc’s Board of Directors.
The Board elected Henrik Andersin as the Chairman and Teuvo
Salminen as the Deputy Chairman.
In 2021, the Board of Directors convened nine times. The ave-
rage attendance rate of Board members at the meetings was
100 percent. The participation of each member in the meetings
is listed in table 1.
Evli’s current Board of Directors consists of industry experts and
the company’s major shareholders. The Board has assessed the
independence of its members and has concluded that all the
members are independent of the company, excluding Henrik
Andersin. With the exception of Henrik Andersin and Robert
Ingman, the other Board members are independent of the com-
pany’s signicant shareholders. Based on the shareholdings of
controlled companies, Henrik Andersin and Robert Ingman are
not independent of the company’s signicant shareholders.
Committees set up by the Board
The Board has established an Audit Committee and a Com-
pensation Committee to prepare matters to be handled by the
Board. The committees have no independent decision-making
power; instead, decisions are made by the Board on the basis
of recommendations and information supplied by the commit-
tees. The committees make regular reports on their activities
to the Board.
Audit Committee
The Audit Committee is responsible for assisting the Board in
ensuring that the company has an adequate internal audit sys-
tem covering all operations and that the company’s risk mana-
gement has been arranged appropriately. It also monitors the
nancial statements reporting process.
The Audit Committee is also responsible for:
• Overseeing the accuracy and correctness of the company’s
nancial reporting and monitoring the statutory auditing of
the financial statements and consolidated financial state-
ments.
• Preparing the proposal on the appointment of auditors and
the auditors’ fees, to be made to the AGM.
• Ensuring that the company’s operations and internal audit
have been arranged in accordance with all applicable laws,
regulations, and good management and governance prac-
tices.
• Monitoring the activity and efciency of the internal audit
function.
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EVLI BANK PLC
ANNUAL REPORT 2021
Governance
• Assessing the independence of the statutory auditor or audi-
ting rm, and especially the provision of ancillary services to
the company.
The Audit Committee consists of at least two members, who
may not be part of the company’s management and must be
independent of the company. In addition to the Committee’s
regular members, the meetings are attended by the auditors,
the CEO, the CFO and the internal auditor. The Committee
meets every quarter.
The Audit Committee’s members are Teuvo Salminen (Chair-
man), Robert Ingman and Fredrik Hacklin. The Committee met
ve times in 2021. The Audit Committee members’ average
attendance rate at meetings was 100 percent. The participation
of each member in the meetings is listed in table 1.
Compensation Committee
The Compensation Committee is responsible for assisting the
Board of Directors in the preparation of matters related to the
company’s employment terms and compensation.
In addition, the Compensation Committee assists the Board in
the following:
• Preparation of matters related to the compensation and
incentive systems for management and personnel.
• Regular assessment of the functioning of and compliance
with the compensation system.
In addition, the Compensation Committee prepares the remu-
neration policy and remuneration report of the company’s
governing bodies.
The Committee consists of at least two members, elected by the
Board from among its members. The Committee Chairman is
chosen from among the Committee members and must be an
independent Board member. The members of Evli’s Compensa-
tion Committee are Sari Helander (chairman) and Henrik Ander-
son. The Committee met four times in 2021. The Compensation
Committee members’ average attendance rate at meetings was
100 percent. The participation of each member in the meetings
is listed in the table 1.
.
Operations of the board in 2021
In addition to the tasks assigned to the Board of Directors by
the Rules of Procedure and the law, Evli Bank Plc’s Board of
Directors’ work in the spring focused on the strategic review
of the future of banking as part of Evli. As a result of the review,
Evli announced in the summer that the Group’s parent com-
pany Evli Bank Plc will be split through a partial demerger into
a new group focusing on asset management and listed on the
Helsinki Stock Exchange, and a company that will continue its
banking activities, into which Fellow Finance Plc will be merged.
As a result, the Board of Directors had a considerable number
of matters related to the arrangement on its agenda during the
autumn, such as facilitating the listing of the new Evli resulting
from the demerger and Fellow Bank resulting from the mer-
Attendance
at board
meetings in
2021
Attendance
in Audit
Committee
meetings
2021
Attendance
in Compen
-
sation
Committee
meetings
2021
Ownership
in the company
1)
,
number of shares
Name Personal data A-shares B-shares
Independent
of the
company
Independent
of the
shareholders
Henrik
Andersin
Board member since 1985.
Chairman of the Board since 2006,
Born 1960, M.Sc. (Econ) Commit
-
tee memberships: Compensation
Committee
9/9 4/4 3,803,280 950,820
Fredrik
Hacklin
Board member since 2019. Born
1978, Ph.D. (Management), M.Sc.
(Engineering) Committee
memberships: Audit Committee
9/9 4/4 1/1 2,150
√ √
Sari
Helander
Board member since 2019. Born
1967, M.Sc. (Econ) Committee
memberships: Compensation
Committee
9/9 1/1 3/3 3,300
√ √
Robert
Ingman
Board member since 2010. Born
1961, M.Sc. (Tech), M.Sc. (Econ.
and Business Administration
Committee memberships: Audit
Committee
9/9 5/5 1,860,000
2)
602,000
2)
√
Teuvo
Salminen
Board member since 2010. Born
1954, M.Sc. (Econ. and business
administration) Committee
memberships: Audit Committee
(Chairman)
9/9 5/5 70,000
√ √
1)
Shareholding on December 31, 2021, including holdings through a controlled company.
2)
Includes holdings of Ingman Group Oy Ab.
Table 1: Evli Bank Plc’s Board of Directors in 2021
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ANNUAL REPORT 2021
Governance
ger. As part of the arrangement, the Board assessed, among
others, the new, preliminary nancial targets for the resulting
asset management group and actively monitored the progress
of the arrangement. In addition to the banking reorganisation
and the listings, the Board meetings focused on topics such as
Evli’s product offering and responsibility. The Board also exa-
mined the activities of the group’s various governance functions,
such as payment transactions, trade execution and reporting.
Diversity of the Board of Directors
The principles concerning the diversity of the Board of Directors
are stated in the Board’s diversity policy, which the Board appro-
ved on December 13, 2017. Diversity strengthens Evli’s goal
of having a Board whose overall competence prole supports
the development of Evli’s business. Diversity is seen as a key
success factor that enables Evli to reach its strategic goals and
continuously improve its client-centric operations. The diversity
of the Board is viewed from different perspectives. For Evli, the
essential factors are the Board members’ versatile and comple-
mentary expertise, experience from various industries and
management, and the personal qualities of the members. The
age and gender distribution of the Board members are taken
into account, which supports the diversity of the Board. The
actualisation and development of diversity towards the goals is
evaluated in the annual self-evaluation discussion of the Board.
At the end of the nancial year 2021, the Board members rep-
resented a wide range of expertise on management and board
tasks in several industries, and their educational backgrounds
and expertise complement each other. Both genders were rep-
resented on the Board. Of the Board members, one was female
and four were male. The median age was 57, and the age dif-
ference between the youngest and the oldest member was 24
years.
Corporate management
Evli’s corporate structure
Evli’s business operations is organised around two client seg-
ments: Wealth Management and Investor Clients, and Advisory
and Corporate Clients. These are supported by common group
functions, which include Information Management, Financial
Administration, Marketing, Communications, Investor Rela-
tions, Legal and Compliance, Human Resources, Internal Ser-
vices, Risk Management and Internal Audit.
Corporate management
Evli’s Board of Directors appoints the company’s CEO and deci-
des the terms and conditions of his or her service relationship.
The CEO is responsible for the company’s day-to-day manage-
ment in compliance with the instructions and decisions provi-
ded by the Board of Directors. Evli Group’s Executive Group
assists the CEO in the operative management of the company.
CEO
The CEO’s duties include the management and supervision of
the Group’s business, preparation of matters to be handled
by the Board, and implementation of the Board’s decisions. In
accordance with the Limited Liability Companies Act, the CEO
ensures that the company’s accounting is lawful, and that the
asset management is arranged reliably.
The CEO’s period of notice is six months, and the severance
compensation payable to the CEO in addition to the salary
for the period of notice corresponds to 12 months’ salary. The
CEO’s retirement age is 63 years. The company’s CEO is Maunu
Lehtimäki, M.Sc. (Econ.), born in 1967. In 2021, the CEO was
Board diversity – age
51-60 years
2 person
41-50 years
1 person
61-70 years
2 person
D.Sc. (Tech.)
1 person
Board diversity – education
M.Sc.
(Econ. and Business
Administration)
4 person
B.Sc. (Econ. and
Business
Administration)
2 person
Board diversity – gender
5 persons
Male
4
Female
1
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ANNUAL REPORT 2021
Governance
paid EUR 417,840 in salary and fringe benets, performance
bonuses amounting to EUR 219,372 and a supplementary pen-
sion of EUR 62,676 totalling EUR 699,888. In addition, the CEO
was granted 50,000 shares in the incentive-program 2019. The
CEO was issued 50,000 Evli shares, which were allocated as part
of the share-based incentive plan established in 2019. The CEO
Maunu Lehtimäki’s share ownership in Evli Bank Plc is shown
in table 2.
Executive Group
The Executive Group consists of the CEO and six members. The
CEO presents a proposal regarding the choice of members
to the Executive Group, and these names are then subject to
conrmation by the Board of Directors. The CEO convenes the
Executive Group as necessary and serves as its Chairman. The
Executive Group normally meets twice a month. The Executive
Group’s task is to support the CEO in preparing and implemen-
ting the strategy and in coordinating the Group’s operations.
The Executive Group’s duties also include preparing and exe-
cuting matters that are signicant or involve fundamental prin-
ciples and ensuring internal co-operation and communication.
Operations of the Executive Group in 2021
In 2021, the Executive Group met twice a month, on average.
The year 2021 was particularly marked by the exploratory work
launched in the spring on the future of banking as part of Evli.
The Executive Group spent the spring exploring different opti-
ons and their implications from a client and operational pers-
pective. Alongside this, the Executive Group monitored the
implementation of the process and information system chan-
ges initiated earlier. During the spring, the company also conti-
nued its efforts to launch new product areas and complete the
so-called Evli Model. The Evli Model is based on the idea of a
comprehensive wealth management solution, where all neces-
sary asset classes are offered to clients by Evli, ensuring the
best possible risk/return ratio for the client’s needs. To achieve
Ownership in the company
1)
,
number of shares
Name Area of responsibility A-share B-share
Maunu Lehtimäki
2)
born in 1967, M.Sc. (Econ.) CEO 533,728 171,031
Mari Etholén
3)
born 1973, LL.M. Legal and Human Resources functions 60,000 19,108
Panu Jousimies
4)
born in 1969, M.Sc. (Econ.) Production and execution of securities transactions 59,691 104,249
Juho Mikola
5)
born in 1981, M.Sc. (Econ.) Financial and Group Administration, Deputy CEO 68,000 39,796
Esa Pensala
6)
born in 1974, M.Sc. (Tech) Private clients 142,000 35,500
Kim Pessala
7)
born in 1969, M.Sc. (Econ.) Institutional clients 12,331 94,558
Mikael Thunved
4)
born in 1965, B.Sc. (Econ.) Corporate Finance business - 85,000
1)
Shareholdings on December 31, 2021, including holdings through controlled entities.
2)
50,000 Evli shares allocated under the share-based incentive scheme established in 2019.
3)
4,667 Evli shares allocated under the share-based incentive scheme established in 2018 and 20,000 Evli shares under the share-based incentive scheme
established in 2019.
4)
20,000 Evli shares allocated under the share-based incentive scheme established in 2019.
5)
9,200 Evli shares allocated under the share-based incentive scheme established in 2017, 4,667 Evli shares under the share-based incentive scheme
established in 2018 and 30,000 Evli shares under the share-based incentive scheme established in 2019.
6)
30,000 Evli shares allocated under the share-based incentive scheme established in 2019.
7)
4,667 Evli shares allocated under the share-based incentive scheme established in 2018 and 20,000 Evli shares under the share-based incentive scheme
established in 2019.
Table 2: Evli’s Executive Group in 2021
Additional information
Board of Directors p. 163
Executive Group p. 164
this goal, the company launched, among other things, a new
alternative debt fund, Evli Private Debt, at the end of the spring.
The strategic review of the future of banking operations was
completed in the summer and the company announced a par-
tial demerger, as a result of which Evli Bank would be split into
Evli, which would focus on asset management, and Evli Bank,
which would continue to operate as a bank. At the same time,
Fellow Finance Plc would be merged into the banking busi-
ness and the company’s name would be changed to Fellow
Bank. The management team was then occupied with tasks
related to the autumn project, including authorisations, listing
prospectuses, operational activities and future products. Work
also continued on the development of the product offering. In
the autumn, Evli launched a couple of new generation funds,
Evli Growth Partners II and Evli Private Equity III. In addition,
the company launched a completely new fund focused on real
estate development, Evli Residential II. The Executive Group
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Governance
also promoted strategic studies to accelerate international gro-
wth and identify new growth opportunities.
Risk management and internal control
Evli’s values and its policy of transparent and appropriate com-
munications support the company’s operational integrity and
high ethical standards. The company’s organisational structure,
clearly established responsibilities and authorisations, and its
competent employees support the planning, execution, control
and monitoring of business operations in a manner that facilita-
tes the achievement of set objectives.
Risk management refers to actions aimed at systematically sur-
veying, identifying, analysing and preventing risks. The objecti-
ves of risk management are to:
• ensure the sufciency of own assets in relation to risk posi-
tions
• ensure that uctuations in nancial results and valuations
remain within the conrmed objectives and limits
• price risks correctly to achieve sustainable protability
• support the uninterrupted implementation of the Group’s
strategy and income generation.
Evli Bank denes risk as an event or series of events that jeopar-
dise the company’s income generation over the short or long
term. Evli Bank’s Board of Directors is primarily responsible for
Evli Group’s risk management.
The Board of Directors conrms the risk management policies,
responsibilities, the Group’s risk limits, and other general gui-
delines governing how risk management and internal control
are to be organised. The Board has also set up a credit and
asset-liability committee (Credalco), which briefs it on risk-ta-
king matters. In addition to the general risk management poli-
cies, Evli Group’s risk management is founded on the “three
lines of defence” model.
Evli Group’s risk management’s three lines of defence
Board of Directors and Executive Group
Credit and asset-liability committee (Credalco)
2nd line
of defence
1st line
of defence
3rd line
of defence
Business processes
Internal audit
Independent of business operations. Supports the Board of Directors
and senior management in assessing internal control
Risk Management and Compliance
Independent of business operations. Develops, maintains
and oversees the general principles of risk management
Business units
Risk management and internal audit in daily operations
and identifying and analyzing risk
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First line of defence – business units
Risk management is a part of internal control, and therefore the
responsibility for executing risk management measures lies rst
with the business units, as the rst line of defence. The mana-
gers of the business units are responsible for ensuring that risk
management is at a sufcient level in each respective unit. The
task of business units is to:
• build the processes and competence for risk management
and internal audit
• identify and analyse risks
• make decisions on risk management by means of various
protection measures.
Second line of defence – Risk Control and Compliance
The second line of defence comprises the independent Risk
Control and Compliance functions, whose primary tasks are to
develop, maintain and oversee the general principles and fra-
mework of risk management.
The Risk Control function oversees daily operations and comp-
liance with the risk limits granted to the business units, as well as
compliance with risk-taking policies and guidelines. Risk Control
reports on Evli Group’s overall risk position to the Board and the
Executive Group each month.
The Compliance function is responsible for ensuring compliance
with the rules in all of Evli Group’s operations by supporting
operating management and the business units in applying the
provisions of the law, the ofcial regulations and internal guide-
lines, and in identifying, managing and reporting on any risks
of insufcient compliance with the rules in accordance with the
separate compliance policy and monitoring plan conrmed by
Evli Bank’s Board of Directors. The Compliance function reports
regularly via the audit committee to Evli Bank’s Board and also
to the operating management.
Third line of defence – Internal Audit
The third line of defence is Internal Audit. The Internal Audit is
a support function for the Board of Directors and senior mana-
gement that is independent of the business functions. It is admi-
nistratively subordinate to the CEO and reports to the CEO
and, via the Audit Committee, to the Board of Evli Bank. The
Internal Audit assesses the functioning of Evli Group’s internal
control system, the appropriateness and efciency of the func-
tions and the compliance with instructions. It does this by means
of inspections that are based on the internal audit action plan
adopted annually by the Audit Committee of the Board of Evli
Bank. Internal Audit follows not only the internal audit guide-
lines, but also the internationally acknowledged framework of
professional practices (The Institute of Internal Auditors) and
corresponding guidelines on information systems audit stan-
dards (The Information Systems Audit and Control Association).
Audit
The shareholders elect the company’s auditors each year at the
AGM. The auditors must be an auditing rm approved by the
Finland Chamber of Commerce. The auditors’ term continues
until the end of the rst AGM that follows the election of the
auditors. The auditors’ duties are to ensure that the nancial sta-
tements have been prepared in accordance with the applicable
statutes and provide a true and fair view of the company’s nan-
cial position and performance and other necessary information
for the company’s stakeholders.
As part of their annual audit duties, the auditors of Evli Bank Plc
audit the accounts and administration of the separate compa-
nies. The internal audit requirements are taken into account in
the auditors’ audit plans. Each year, the auditors submit their
report to the AGM of Evli Bank Plc. The auditors also report
the main points of the annual audit plan to the Board of Direc-
tors and to the Board’s Audit Committee as well as presenting,
in connection with each interim report and the nancial state-
ments, a written audit report covering the entire Group.
The AGM held on March 9, 2021, elected Pricewaterhouse-
Coopers Oy, an auditing rm, as the auditor, with Jukka Pauno-
nen, Authorised Public Accountant, as the principally respon-
sible auditor. PricewaterhouseCoopers Oy generally serves as
the auditor for all of the subsidiaries, with the exception of Terra
Nova Ltd. Terra Nova’s auditor is RSM Dahman Auditors.
In 2021, the auditing rms were paid fees totalling EUR 1.2 mil-
lion. The fees for auditing came to EUR 0.7 million, and the
fees for services unconnected with auditing were EUR 0.3 mil-
lion. Other fees consist mainly of tax and legal advisory services.
Insider management
Evli Bank Plc has a guideline on insider rules and regulations
that is approved by its Board of Directors and is based on the
Market Abuse Regulation (MAR), Nasdaq Helsinki Ltd’s Guide-
lines for Insiders of Listed Companies, as well as other rele-
vant regulations and directives. Evli Group companies that are
registered outside of Finland shall comply not only with these
guidelines, but also with the national legislation and official
regulations of the country where the company is located. The
guideline on insider rules and regulations is distributed to all
persons engaged in an employment or service relationship with
the Group. The persons dened in the guideline on insider rules
and regulations shall comply with the restrictions regarding the
use of insider information and trading, for example the closed
window period. Evli Bank maintains a register of permanent
insiders, which includes members of the Board of Directors and
Executive Group. Evli Bank also maintains registers of proje-
ct-specic and transaction-specic insiders that are required at
any given time.
The insider registers are maintained in the Ticker-system. Evli
publishes in a stock exchange release the transactions in Evli
shares and other nancial instruments carried out by persons
in management positions and their related parties as required
by the Market Abuse Regulation.
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Governance
Evli Bank Plc’s insiders may not trade in securities issued by the
company for 30 days before the publication of an interim report
or the nancial statements bulletin. Evli also applies a similar
30-day trading restriction to Evli Group’s employees who parti-
cipate in the preparation or publication of the interim report and
nancial statements and who become aware of unpublished
nancial information at the Group level. The person in charge
of insider issues at Evli Bank Plc is the company’s Head of Legal
Affairs. Evli evaluates and monitors related party transactions
between the company and its related parties.
Evli maintains a list of related parties. Evli’s related parties comp-
rise its subsidiaries as well as the Board of Directors, the CEO,
and the Executive Group, including any companies controlled
or signicantly inuenced by them. Evli’s nancial management
monitors and reports related party transactions as part of the
company’s normal reporting and control practices. Related party
transactions which are not considered normal business activities
are decided by the Board of Directors. Evli reports relevant and
material related party transactions annually in the notes of the
consolidated nancial statements.
Financial reporting
The Board of Directors is responsible for overseeing Evli Group’s
nancial reporting. The Audit Committee assists the Board in
this work. The CEO’s and CFO’s tasks are to monitor and ensure
that the accounting and the nancial reporting accord with the
law, the Group’s accounting policies and the guidelines and
orders issued by the Group’s Board of Directors. The Group’s
accounting and results reporting are centralised under the res-
ponsibility of the Group’s Financial Administration unit.
The Financial Administration unit is subordinate to the CFO and
is responsible for producing, on a centralised basis, the nan-
cial statements information required for external accounting.
The unit also produces internal accounting analyses and the
results reports for monitoring business activities, the separate
companies and the Group’s protability. Prot performance is
reported monthly both to the Executive Group and the Board
of Directors in the form of specic results reports. The aim is
to identify and demonstrate success factors as well as deve-
lopment areas well in advance, thus making it possible to
react to these. Reporting practices are also used for moni-
toring the implementation of the business plans for the
business units. The Group’s Financial Administration unit is
also responsible for monitoring and reporting on the per-
formance of each business unit. Further responsibilities
include reporting the nancial results, sales and activity
at least monthly, and even daily depending on the unit,
to the Executive Group and other concerned parties.
Evli Group complies with the International Financial
Reporting Standards (IFRS) approved for applica-
tion in the EU. The Group prepares annual finan-
cial statements and also quarterly interim reports
(IAS 34). The instructions on financial reporting
and the accounting principles are applied in all
of the Group companies. The accounting of all
of the Group companies is included in the same
accounting system, with the exception of a
Group company in the United Arab Emirates.
155 | 165
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Governance
Remuneration policy
Introduction
The following Remuneration Policy of Evli Bank Plc (“Evli” or
“company”) describes the general principles and the framework
concerning the remuneration of the Board of Directors and the
CEO. The policies regarding the CEO also apply to a poten-
tial Deputy CEO. Evli also complies with the Finnish Corporate
Governance Code issued by the Securities Market Association.
The objective of Evli Group’s remuneration model is to support
the implementation of the company’s strategy and to promote
the company’s competitiveness and long-term nancial success.
A further aim is to contribute to a positive trend in sharehol-
der value, committing Evli’s Board of Directors and CEO to the
company’s objectives in the long run.
Evli complies with the Securities Market Association’s Corpo-
rate Governance Code. This Remuneration Policy has been
prepared in accordance with the Corporate Governance Code
2020. Evli’s Remuneration Policy is presented at Evli’s Annual
General Meeting (AGM) at least every four years and whenever
signicant changes are proposed. The Remuneration Report is
presented annually, starting from the year 2021, at Evli’s AGM.
In all remuneration, Evli complies with applicable nancial re-
gulations. This Remuneration Policy has been prepared taking
into account the applicable regulations and Evli Group’s ove-
rall remuneration model for all employees. The Remuneration
Policy must comply with the remuneration principles applicable
to all Evli employees.
The Group’s remuneration model consists of the following ele-
ments:
• a competitive xed basic salary constitutes a solid foundation
for maintaining and constantly developing basic functions
• a short-term variable remuneration, in accordance with the
annual remuneration plan approved by the Board of Dire-
ctors, to promote both Evli’s short-term growth objectives
and the attainment of its strategic targets
• long-term variable remuneration to support the company’s
strategic development and to commit key employees to
the company’s business operations.
In accordance with the remuneration principles, the short-term
variable bonus may not exceed 100 percent of the annual xed
salary. Correspondingly, the short-term and long-term variable
remuneration may not exceed 200 percent of the annual xed
salary.
Decision-making relating to remuneration
The Remuneration Policy is prepared by the Board’s Compen-
sation Committee and approved by the Board for presentation
to the General Meeting. Compliance with, and the performance
and outcomes of, the remuneration model are monitored by
the Compensation Committee appointed by the Board of Dire-
ctors, and by the Board of Directors. The company’s internal
audit conducts an annual audit of the remuneration.
The remuneration of members of Evli Group’s bodies is always
decided by the body that has appointed them.
Evli’s AGM decides on the compensations payable to the mem-
bers of the Board of Directors. The company’s major sharehol-
ders are responsible for preparing the remuneration proposal.
The principles and elements of the remuneration of the CEO
and any Deputy CEO are approved by Evli’s Board of Directors
in accordance with this Remuneration Policy. The Compensa-
tion Committee, appointed by the Board of Directors, prepares
proposals on matters related to remuneration for decision-ma-
king by the Board. All changes to the CEO’s salary and remu-
neration or executive contract are made by the Board of Dire-
ctors based on a proposal by the Compensation Committee in
accordance with the Remuneration Policy.
Remuneration of the Board of Directors
In general, the remuneration of the Board of Directors is deci-
ded by the General Meeting based on a proposal by the major
shareholders. The decision on the remuneration of the mem-
bers of the Board of Directors shall be based on the Remunera-
tion Policy presented to the AGM and which is in force.
The remuneration of the members of the Board of Directors
consists of a xed monthly compensation and possible com-
pensation for meeting attendance. The Chairman of the Board
of Directors and the chairmen of the committees appointed by
the Board of Directors may be paid an increased compensation.
156 | 165
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In situations in which a member of the Board of Directors par-
ticipates in project-based activities to develop the company’s
operations outside the work carried out by the Board of Direc-
tors, a separate compensation may be paid for such work at the
Board’s discretion. In addition to the monthly compensation and
compensation for meetings, the members of the Board of Direc-
tors are compensated for their travel expenses. In principle, the
Board of Directors’ compensation and allowance are paid in cash.
Remuneration of the CEO
The Board of Directors of Evli Group adopts the principles and
elements of the CEO’s remuneration on an annual basis in line
with the Remuneration Policy in force. All changes to the CEO’s
salary and remuneration are subject to approval by the Board
of Directors. The CEO’s remuneration is comprised, in principle,
of a xed salary and short-term and long-term variable remune-
ration. In addition, the CEO may be granted a separate, reaso-
nable retirement plan or other benets to ensure that a compe-
tent CEO is committed to the company’s development.
The amount of the CEO’s variable remuneration and the relative
proportion to his xed salary are within the limits set by nan-
cial regulations. The CEO’s short-term variable remuneration
shall not exceed 100 percent of the CEO’s annual xed salary.
Correspondingly, the CEO’s short-term and long-term variable
remuneration and the long-term incentives may not exceed 200
percent of the CEO’s annual xed salary. The variable bonus
is linked to the company’s nancial success and the achieve-
ment of its strategic goals. If deemed pertinent, the company
may, by a decision of the Board of Directors, decide not to pay
the variable bonus, in whole or in part. The Board decides on
the long-term variable renumeration for the CEO on a case-by-
case basis.
In certain circumstances, the company is obliged to defer pay-
ment of the variable bonus. In such case, the company will defer
payment of the variable bonus in accordance with the regula-
tions set by the nancial market. The amount of the bonus pay-
able after the deferral depends on the nancial performance of
the company during the deferral period and may even be zero.
The company expects that the CEO will not hedge with his/
ELEMENTS OF THE
REMUNERATION PURPOSE AND LINK TO STRATEGY DESCRIPTION
Fixed salaries
The aim is to recruit and commit high-
quality experts to implement the
company’s strategy.
The base salary includes taxable fringe benets (for example, a mobile phone). When evaluating the base salary level, a variety of factors
can be taken into account, such as market conditions, competitiveness, past performance and individual skills, as well as experience in the
company and in business management. The base salary is, in principle, reviewed annually.
Short-term
incentives (STI)
The purpose is to encourage and guide
in achieving short-term nancial and
operational goals.
The short-term incentive scheme is based on one-year performance criteria. Rewards are paid in cash after the end of the performance
period, based on the achievement of the targets. The maximum pay-out for the annual incentive is capped. Short-term incentives are tied
to the company’s nancial success, adherence to policies and guidelines, and ensuring solvency. The annual short-term incentive may not
exceed 100 percent of the annual xed salary of the person in question.
Long-term
incentives (LTI)
The purpose is to encourage for long-term
shareholder value growth and commitment
to the company.
The Board of Directors decides on long-term incentives within the limits set by the Annual General Meeting. Long-term incentive
programs generally include a minimum three-year vesting period. The Board of Directors sets the targets, indicators and their weightings
that may be the basis for the incentives. At the end of the vesting period, the Board of Directors can evaluate the payment criteria to
determine the nal payment level. The annual short- and long-term incentives may not exceed 200 percent of the annual xed salary of
the person in question.
Pension
The purpose is to provide a pension in
accordance with local market practices.
The retirement age and any supplementary pension arrangements provided are decided by the Board of Directors in line with market
practices.
Share ownership
The purpose is to ensure strong alignment
between the interests of the CEO and the
shareholders in the longer term.
The Board decides on the long-term target share ownership for the CEO.
157 | 165
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Governance
her personal actions against any risk related to the amount or
timing of future variable remuneration. In certain circumstances,
the company may also reclaim a variable bonus already paid.
The company shall also always have the right to reclaim a va-
riable bonus already paid if, after such payment, it becomes
apparent that the person receiving the bonus has endange-
red the nancial position of the company, violated the compa-
ny’s operating principles and practices, or contributed to such
conduct through neglect. The CEO has a notice period consis-
tent with current market practices. Similarly, in cases where the
CEO’s contract is terminated by the company, he/she is entitled
to severance pay in accordance with prevailing market practices.
The above matters concerning the CEO also apply to a poten-
tial Deputy CEO.
Conditions for temporary deviation
The remuneration of the company’s bodies must, in general, be
based on the Remuneration Policy approved by the Gene-ral
Meeting. Deviations from the policy’s principles can only be
made if the achievement of the company’s long-term goals
and strategy is otherwise judged to be at risk. The option to
temporarily deviate from the Remuneration Policy of the bo-
dies is intended to apply only in exceptional circumstances in
which the core operating circumstances of a listed company
have, after the General Meeting’s consideration of the bodies’
Remuneration Policy, changed as a result of a change of CEO
or a merger or an acquisition proposal, and the existing Remu-
neration Policy is thus no longer appropriate in the changed
circumstances.
If the deviation from the Remuneration Policy is expected to
continue other than on a temporary basis, the company shall
draw up a new Remuneration Policy, which will be discussed at
the next AGM. Because of the provisions regarding the notice
to the AGM and the availability of the meeting materials, there
may be insufcient time to submit a new Remuneration Policy
to the next AGM if the need for deviation arises close to the
time of the meeting. In such a case, the Remuneration Policy
shall be submitted to the General Meeting for which it can be
appropriately prepared. If the temporary deviation from the
Remuneration Policy concerns the remuneration of a new CEO
or is due to a corporate restructuring or similar exceptional cir-
cumstances, the new remuneration terms will apply as agreed
regardless of the duration of the temporary deviation. Devia-
tions from the policies and principles of the policy are docu-
mented and reported to the Board of Directors and as part of
the remuneration report at the AGM.
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ANNUAL REPORT 2021
Governance
Remuneration Report 2021
This Remuneration Report sets out how Evli has implemented
its Remuneration Policy in 2021 and presents the remuneration
and other nancial benets paid to the members of the Board
of Directors (“Board”) and the Group’s CEO during the year.
Remuneration of the company’s governing bodies is based on
the Remuneration Policy that was presented for an advisory
decision at the Annual General Meeting held on March 9, 2020.
The policy will be applied until the Annual General Meeting
2024, unless the Board decides to bring it forward for an advi-
sory decision at an earlier General Meeting.
The Remuneration Report has been reviewed by Evli’s Com-
pensation Committee and approved by the Board. The share-
holders will make an advisory decision on the approval of the
Remuneration Report 2021 at Evli’s Annual General Meeting
2022. The shareholders made an advisory decision on Evli’s
Remuneration Report 2020 at the Annual General Meeting on
March 9, 2021, with 99.99% of the vote.
Overview of remuneration in 2021
The decision-making process on remuneration, as dened in
the Remuneration Policy, has been followed in the remunera-
tion decision-making in 2021. No temporary deviations from
the Remuneration Policy were applied in 2021. Furthermore,
the Board did not observe any circumstances or activities that
would have resulted in a need to apply claw-back clauses appli-
cable to the CEO’s variable remuneration in 2021. Regardless of
the extraordinary business environment caused by the COVID-
19 pandemic, the Board did not deem it necessary to use its
right to adjust the performance criteria applied in 20201
In line with the Remuneration Policy, remuneration in 2021 has
supported Evli’s business strategy with a focus on creating long-
term growth and shareholder value. Although a signicant part
of the CEO’s total remuneration is in the form of fixed pay-
ments, performance-based components are set to encourage
the achievement of targets. Remuneration is balanced to avoid
Net Assets Under
Management
(mrd. €)
11.2
11.4
14.3
14.1
17.5
2020 20212017 2018 2019
Evli Bank Plc
Northern Horizon Capital A/S
Evli Alexander Incentives Oy
excessive risk-taking. The Compensation Committee has eva-
luated the CEO’s remuneration for 2021 to ensure a competi-
tive and fair total remuneration opportunity compared to rele-
vant peers and the market. To encourage share ownership in
the company, shareholding guidelines for the CEO were in
place to further support and align shareholder and top exe-
cutive interests.
Development of financial performance and
remuneration
5-year development of financial performance
Evli’s business has developed positively over the past ve years.
The company has set four key performance indicators that it
considers to be good proxies for its business performance.
These are the development of assets under management, the
recurring revenue ratio, return on equity and net commission
income. From a shareholder perspective, the company has been
100%
128
124
94
113
130
2020 20212017 2018 2019
Proportion of recurring revenue
to operating expenses
(%)
Return to equity
(%)
23.4
26.2
23.0
40.3
2020 20212018 2019
Net commission income
(M€)
72.2
76.8
65.2
67.1
111.7
2020 20212017 2018 2019
*Diluted IFRS
**Board of Directors’ proposal
0.69
0.52
0.68
0.71
0.88
1.47
0.61
0.73
1.06**
0.66
2020 20212017 2018 2019
Earnings/share* (€)
and dividend/share (€)
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ANNUAL REPORT 2021
Governance
2017 2018 2019 2020 2021
Board of Directors
Chairman of the Board of Directors, EUR 72,100 86,500 90,000 84,000 90,000
Development, % 0.1% 20% 4% -7% 7%
Chairmen of the committees (on average), EUR 52,400 70,834 72,000 67,200 70,500
Development, % - 35% 2% -7% 5%
Other members of the Board of Directors (on average), EUR 49,200 60,000 60,000 56,000 60,000
Development, % - 22% - -7% 7%
CEO
CEO, EUR 422,673 440,109 488,116
3)
446,605
4)
699,888
Development, % -2% 4% 11% -9% 57%
Average employee salary
Total salary costs, EUR 23,200,000 22,700,000 24.200,000 24,600,000 29,500,000
Number of employees at the end of the year 240 254 249 261 290
Average salary for the employees, EUR
1)
96,667 89,370 97,189 94,253 101,724
Development, % - -8% 9% -3% 8%
1)
The salary development of the average employee is calculated from personnel expenses by deducting other personnel expenses from the total
and dividing it by the number of employees at the end of the year.
2)
Development of net revenue.
3)
In addition, the CEO subscribed to the 212,500 shares granted to him in the Option-program 2014. The total value of the subscription was
EUR 1,810,500 based on the closing price on the subscription day.
4)
In addition, the CEO subscribed to the 40,000 shares granted to him in the Option-program 2016. The total value of the subscription was
EUR 372,000 based on the closing price on the subscription day.
5-year Development of Remuneration
able to provide stable returns to investors as depicted by divi-
dend per share development.
Remuneration of the Board of Directors in 2021
Evli Bank Plc’s General Meeting decides on the compensations
payable to the Board members. The Annual General Meeting
of March 9, 2021 made the following resolution on the compen-
sation for attendance at meetings payable to the Chairman of
the Board and other members:
• Chairman of the Board EUR 7,500 per month
• Chairmen of the committees EUR 6,000 per month
• Members EUR 5,000 per month
The Board has established and appointed an Audit Commit-
tee and a Compensation Committee to prepare matters to be
handled by the Board. In 2021, the total compensation paid
2021
Henrik Andersin, Chairman of the Board 90,000
Fredrik Hacklin, member of the Board of Directors 60,000
Sari Helander, member of the Board of Directors
Chairman of the Compensation Committee 69,000
Robert Ingman, member of the Board of Directors 60,000
Teuvo Salminen, Chairman of the Audit Committee 72,000
Mikael Lilius (until March 9, 2021) 18,000
Total 369,000
Compensation paid to the members of the board, €
to the Evli Group Board members amounted to EUR 369,000.
This sum is made up of meeting participation fees related to
the work carried out in the Board and its committees. In 2021,
the Board members did not receive any shares or share-based
rights as compensation for their work, nor were they granted
any other benets.
Remuneration of the CEO
The Board of Evli Group adopts the principles and elements of
the remunerations for the CEO on an annual basis. The remu-
neration of the CEO follows Evli’s Remuneration Policy in force.
All changes in the CEO’s salary and remuneration are subject
to the Board’s approval.
Application of performance criteria in 2021
In 2021, Evli had a short-term incentive plan in place for the
CEO. No long-term incentive plans were issued to the CEO du-
ring 2021. The short-term and long-term incentive plan perfor-
mance criteria are evaluated annually by the Board. In accor-
dance with the remuneration principles, the short-term variable
bonus may not exceed 100 percent of the annual xed salary.
Correspondingly, the short-term and long-term variable remu-
neration may not exceed 200 percent of the annual xed salary.
The purpose of the short-term incentive is to incentivise for the
achievement of stretched nancial and non-nancial short-term
targets aligned with the business strategy. The short-term incen-
tive plan remuneration is dependent on the financial perfor-
mance of Evli, as well as reaching strategic targets. The Board
of Directors decided on the performance targets and maximum
amount of the short-term incentive plan for 2021 at the begin-
ning of the nancial year as follows:
Short-term incentive plan criteria 2021 Weight
Evli Group nancial performance 50%
Group level Key Performance Indicator targets 30-50%
Finalising strategic projects 0-20%
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Governance
Although the business environment turned out to be ext-
raordinary during 2021 due to the COVID-19 pandemic, no
adjustments were made to the performance targets, due to
Evli’s excellent performance. The criteria for the 2021 short-term
incentive scheme exceeded the target level. In accordance with
the regulations, the renumeration will be paid in two install-
ments.
During 2021, the company paid the CEO remuneration in accor-
dance with the performance targets set for the nancial year
2020, which were based on the performance targets of the
2020 short-term incentive plan and the delayed 2017 short-term
variable remuneration.
Share-Based Incentives
Evli’s long-term incentive plans have been implemented mainly
as restricted share plan (RSP) schemes. The purpose of the sha-
re-based retention plans is to encourage the executives and the
selected key employees to work on a long-term basis to increase
shareholder value and to commit to the company. The Board deci-
des annually on the issuance of new plans based on the Compen-
sation Committee’s proposal within limits provided by the Gene-
ral Meeting.
The Restricted Share Plan offers an opportunity to earn a prede-
termined number of the company’s shares as a reward for con-
tinuous service and retention. Evli’s Restricted Share Plans con-
sist of one to three, annually commencing periods followed by
vesting periods of a minimum of three years. After the vesting
period, shares in the Restricted Share Plans are usually deli-ve-
red to the participants provided that their employment with the
company has continued uninterrupted throughout the duration
of the plan and until the shares are delivered. The vesting period
is further followed by a one-year waiting period in accordance
Summary of share based incentives paid to the CEO during the reporting period
Granted installments,
number of shares*
Plan - installment Grant date CEO
Deputy
CEO Vesting period
Payment
year
Waiting
period
Restricted share plan 2017 - Installment 2 30.9.2018 9,200 3 years 2021 +1 year
Restricted share plan 2017 - Installment 3 30.9.2019 9,200 3 years 2022 +1 year
Restricted share plan 2018 - Installment 1 8.6.2018 4,667 3 years 2021 +1 year
Restricted share plan 2018 - Installment 2 11.6.2020 4,667 3 years 2023 +1 year
Restricted share plan 2019 - Installment 1 14.6.2019 50,000 30,000 3 years 2023 +1 year
*Gross number of shares before income taxes on the payment of shares.
with the regulation set for the financial sector. The possible
rewards under the Restricted Share Plans are paid as a combi-
nation of shares and cash. The cash component is dedicated to
cover the taxes and tax-related costs related to restricted shares.
Remuneration of the CEO in 2021
Evli’s CEO in 2021 was Maunu Lehtimäki. The CEO was paid
EUR 417,840 in salary and fringe benets, performance bonuses
amounting to EUR 219,372 and a supplementary pension of EUR
62,676, totalling EUR 699,888.
The CEO has no signicant separate fringe benets and is co-
vered by the shared Evli Group reward system. The CEO is co-
vered by a six-month period of notice binding to both parties.
The CEO is entitled to receive a severance pay corresponding
to 12-months’ salary if the CEO´s contract is terminated by the
company.
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Governance
CEO, € Base salary
Additional
pension payment
Paid annual
incentive 2021
Paid long-term
retention
Total paid
compensation
Earned annual
incentive
Earned long-term
retention
Total earned
compensation
CEO, Maunu Lehtimäki 417,840
1)
62,676 219,372
2)
-
3)
699,888 298,000
4)
-*
5)
298,000*
6)
Deputy CEO, € Base salary
Additional
pension payment
Paid annual
incentive
Paid long-term
retention
Total paid
compensation
Earned annual
incentive
Earned long-term
retention
Total earned
compensation
CFO, Deputy CEO,
Juho Mikola 190,920
1)
- 136,228
2)
285,783
3)
612,931 152,800
4)
-*
5)
152,800*
6)
1)
Including fringe benets.
2)
Annual incentives earned in 2020 and annual incentives earned and delayed in 2017.
3)
No installments paid in 2021.
4)
Earned in 2021. In accordance with the regulations, part of the renumeration will be paid in 2022 and part will be
delayed for 3 years and will be paid in 2025.
5)
No long-term compensation program has been introduced for the CEO in 2021.
6)
Total compensation earned in 2021. The base salary will be paid in 2021 and the incentives partly in 2022 and
partly in 2025.
*Actual value depends on Company share price at the reward payment date. For illustration purposes valued here
using share price when plan was introduced.
1)
Including fringe benets.
2)
Annual incentives earned in 2020 and annual incentives earned and delayed in 2017.
3)
Payment of the long-term incentives for 2017 and 2018.
4)
Earned in 2021. In accordance with the regulations, part of the renumeration will be paid in 2022 and part will be
delayed for 3 years and will be paid in 2025.
5)
No long-term compensation program has been introduced for the Deputy CEO in 2021.
6)
Total compensation earned in 2021. The base salary will be paid in 2021 and the incentives partly in 2022 and partly
in 2025.
*Actual value depends on Company share price at the reward payment date. For illustration purposes valued here
using share price when plan was introduced.
Remuneration of the Deputy CEO in 2021
Remuneration of the CEO in 2021
Structure of paid Compensation in 2021
Structure of paid Compensation in 2021
Structure of Earned Compensation in 2021
Structure of Earned Compensation in 2021
Base salary
Additional pension payment
Paid annual incentive
Base salary
Paid annual incentive
Paid long-term retention
Earned annual incentives
Earned long-term incentive
Earned annual incentives
Earned long-term incentive
60 %
31 %
100 %
100 %
0 %
0 %
9 %
22 %
47 %
31 %
162 | 165
Business Overview
Financial review
Responsibility
EVLI BANK PLC
ANNUAL REPORT 2021
Governance
Henrik Andersin, born 1960
M.Sc. (Econ.)
• One of Evli Bank’s founding partners and main
owners
• Chairman of the Board of Directors of Nokian
Panimo Oy and Oy Scripo Ab
• Member of the Board of Directors of Evli Bank
Plc since 1985, CEO of Evli Bank Plc 1994-
2006 and Chairman of the Board since 2006
• Shareholding: Holdings through controlled
company Oy Scripo Ab 3,803,280 A shares
and 950,820 B shares
Fredrik Hacklin, born 1978
Ph.D. (Management), M.Sc. (Engineering)
• Professor, Director and Member of Executive
Committee at ZHAW School of Management and
Law, Zurich. Associate professor at ETH Zurich
• Previous positions at Booz Allen Hamilton,
Harvard University, Ericsson
• Advised multinationals and governments on
entrepreneurship, strategy and technology
management
• Member of the Board of Directors of Evli Bank
Plc since 2019
• Shareholding: 2,150 B shares
Sari Helander, born 1967
M.Sc. (Econ.)
• CFO, Ramirent Group
• Previously served as CEO and Partner, Greens-
tep Oy. Before this Senior Vice President (Logis-
tics Solution) and CFO at Posti Group Corpora-
tion and Vice President, Business Reporting &
Control Nokia Corporation
• Member of the Boards of Directors of Ener-
sense International Plc and Netum Group Plc
• Member of the Board of Directors of Evli Bank
Plc since 2019
• Shareholding: 3,300 B shares
Robert Ingman, born 1961
M.Sc. (Tech.), M.Sc. (Econ. and Business
Administration)
• Chairman of the Boards of Directors of Ingman
Group Oy Ab, Ingman Finance Oy Ab, Ingman
Development Oy Ab, Digia Oyj, Etteplan Oy,
Halti Oy and Qt Group Ltd
• Member of the Board of Directors of Evli Bank
Plc since 2010
• Shareholding: 1,860,000 A shares and 650,000
B shares*
*Includes holdings of Ingman Group Oy Ab
Teuvo Salminen, born 1954
M.Sc. (Econ. and Business
Administration)
• Various supervisory positions in Pöyry Plc
1985-2009
• Chairman of the Board of Directors of Glas-
ton Oyj and T2H Oy, Member of the Boards
of Directors of Cargotec Oyj and 3Step It
Group Oy
• Member of the Board of Directors of Evli Bank
Plc since 2010
• Shareholding: 70,000 B shares
Board of
Directors
The composition of the Board of Directors
was resolved at Evli Bank Plc’s Annual
General Meeting on March 9, 2021.
Shareholdings on December 31, 2021
163 | 165
Business Overview
Financial review
Responsibility
EVLI BANK PLC
ANNUAL REPORT 2021
Governance
Executive Group
Shareholdings on December 31, 2021
Maunu Lehtimäki, born 1967
M.Sc. (Econ.)
• Chief Executive Ofcer
• Joined Evli Bank Plc in 1996
• Shareholding: 533,728 A shares and
171,031 B shares
Mari Etholén, born 1973
LLM
• Legal and human resources functions
• Joined Evli Bank Plc in 2001
• Shareholding: 60,000 A shares and
19,108 B shares
Panu Jousimies, born 1969
M.Sc. (Econ.)
• Execution and Operations unit
• Joined Evli Bank Plc in 1997
• Shareholding: 59,691 A shares and
104,249 B shares
Juho Mikola, born 1981
M.Sc. (Econ.)
• Financial and Group administration, Deputy CEO
• Joined Evli Bank Plc in 2004
• Shareholding: 68,000 A shares and
39,796 B shares
Esa Pensala, born 1974
M.Sc. (Tech.)
• Private clients
• Joined Evli Bank Plc in 2001
• Shareholding: 142,000 A shares and
35,500 B shares
Kim Pessala, born 1969
M.Sc. (Econ.)
• Institutional clients
• Joined Evli Bank Plc in 1995
• Shareholding: 12,331 A shares and
94,558 B shares
Mikael Thunved, born 1965
B.Sc. (Econ.)
• Corporate Finance business area
• Joined Evli Bank Plc in 2002
• Shareholding: Holdings through controlled
company 85,000 B shares
164 | 165
Business Overview
Financial review
Responsibility
EVLI BANK PLC
ANNUAL REPORT 2021
Governance
Evli Bank PlcIAleksanterinkatu 19IP.O. Box 1081IFI-00101 Helsinki, FinlandITel. +358 (0)9 476 690I evli.com
Evli Pankki_WM (in Finnish)
Evli Fund Management Company (in English)
Evli - Sijoittajan Pankki (in Finnish)
Evli Fund Management Company (in English)
Evli Research (in Finnish)
Evli Bank Plc (in Finnish)
Evli Fund Management Company (in English)
evlipankki (in Finnish)
evli.com