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EAB reported H2 comparable operating income of EUR 11.5m, 7% above our estimate. Adjusted EBIT of EUR 1.7m beat our estimate by 20% due to higher income. H2 costs increased by EUR 1m y/y, driven by EUR 1.4m increase in personnel expenses. Cost/income ratio was 88% in 2021 (99% in 2020). AuM increased to EUR 3,938m from EUR 3,799m at the end of H1 (3,419m a year ago). The company expects 2022 net profit margin to be clearly positive in 2022 (Nordea 13.6%), given that the favourable market environment is retained. Fees from AI funds increased by 36% y/y. Performance fees were EUR 0.6m (1.4m year ago). Continuous operating income was up by 30% y/y to EUR 9.1m in H2 (EUR 8.7m in H1 and EUR 7.0m in H2 2020) and accounted for 76% of group’s operating income in 2021 (71% in 2020). We have a EUR 3.1-3.8 per share fair value for EAB Group.

Source: Finwire News.