OVB starts the 2020 financial year with significant rise in sales and earnings
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Cologne, 7 May 2020. The European financial advisory group OVB has started its 50th anniversary year with a very good first quarter. Brokerage income reached a total of €66.8 million in the months from January to March 2020, representing a considerable 5.9% upturn on the previous year. All three of the Group’s regional segments posted an increase in sales.
The number of clients advised by OVB across 15 European countries rose by 6.6% year on year to 3.87 million. OVB was also successful when it came to attracting new financial advisors, with numbers across Europe climbing from 4,911 to 5,041 brokers.
Mario Freis, CEO of OVB Holding AG, comments: “In the first quarter of 2020, we made a very good start to our 50th anniversary year. However, it remains to be seen how much the effects of the spread of COVID-19 will influence our future business performance. In the context of these changed conditions and regulations, the financial advisors at the individual national companies are working with great commitment and are taking advantage of possibilities for online communication and consulting.”
In the strongest segment, Central and Eastern Europe, brokerage income rose sharply by 8.3% to €31.4 million. Sales in the Southern and Western Europe segment improved slightly to €19.3 million. In the Germany segment, brokerage income increased significantly by 7.8% to €16.1 million.
With Group operating income of €3.9 million generated in the first three months of the year, OVB exceeded the previous year’s figure by 51.6%. EBIT for Central and Eastern Europe rose substantially by 70.2% to €2.5 million (previous year: €1.5 million). In the Germany segment, operating income also increased significantly by 32.2% from €1.9 million to €2.5 million.
In view of the current uncertainty regarding the impact to be expected from the COVID-19 pandemic, the Executive Board now anticipates – in line with the forecast from 25 March 2020 – a decline in brokerage income and in operating income for the 2020 financial year, despite the good development in the first quarter.
About the OVB Group
The OVB Group, with its holding company headquartered in Cologne, is one of Europe’s leading financial advisory groups. Since being founded in 1970, OVB’s business activities have focused on long-term, comprehensive and above all customer-oriented financial consulting for private households. OVB works with more than 100 high-performance providers and uses competitive products to serve its clients’ individual needs, from subsistence and property/asset insurance to pensions and asset building and growth. OVB currently operates in 15 European countries. 5,041 full-time financial advisors advise 3.87 million clients. In 2019, OVB Holding AG and its subsidiaries generated brokerage income of €257.8 million and EBIT of €14.1 million.
OVB Holding AG has been listed on the Frankfurt Stock Exchange (Prime Standard, ISIN DE0006286560) since July 2006.
Key figures for the OVB Group for the first quarter of 2020
| Unit | 1.1.–31.3.2019 | 1.1.-31.3.2020 | Change | |
|---|---|---|---|---|
| Clients (31 March) | Number | 3.63 m | 3.87 m | + 6.6 % |
| Financial advisors (31 March) | Number | 4,911 | 5,041 | + 2.6 % |
| Brokerage income | € million | 63.1 | 66.8 | + 5.9 % |
Key financial figures
| Unit | 1.1.–31.3.2019 | 1.1.-31.3.2020 | Change | |
|---|---|---|---|---|
| Earnings before interest and taxes (EBIT) | € million | 2.6 | 3.9 | + 51.6 % |
| EBIT margin | % | 4.1 | 5.9 | + 1.8 %-pts |
| Consolidated net income (after non-controlling interests) | € million | 2.4 | 2.4 | - 2.1 % |
| Earnings per share (basic) | € | 0.17 | 0.17 | ± 0.0 % |
Key figures by region for the first quarter of 2020
| Unit | 1.1.–31.3.2019 | 1.1.-31.3.2020 | Change | |
|---|---|---|---|---|
| Central and Eastern Europe | ||||
| Clients (31 Mar.) | Number | 2.42 m | 2.63 m | + 8.9 % |
| Financial advisors (31 Mar.) | Number | 2,779 | 2,976 | + 7.1 % |
| Brokerage income | € million | 29.0 | 31.4 | + 8.3 % |
| EBIT | € million | 1.5 | 2.5 | + 70.2 % |
| EBIT margin | % | 5.1 | 8.0 | + 2.9 %-pts |
| Germany | ||||
| Clients (31 Mar.) | Number | 616,307 | 611,859 | - 0.7 % |
| Financial advisors (31 Mar.) | Number | 1,299 | 1,219 | - 6.2 % |
| Brokerage income | € million | 14.9 | 16.1 | + 7.8 % |
| EBIT | € million | 1.9 | 2.5 | + 32.2 % |
| EBIT margin | % | 12.9 | 15.8 | + 2.9 %-pts |
| Southern and Western Europe | ||||
| Clients (31 Mar.) | Number | 600,534 | 628,643 | + 4.7 % |
| Financial advisors (31 Mar.) | Number | 833 | 846 | + 1.6 % |
| Brokerage income | € million | 19.2 | 19.3 | + 0.9 % |
| EBIT | € million | 1.3 | 1.0 | - 20.6 % |
| EBIT margin | % | 6.6 | 5.2 | - 1.4 %-pts |