Mandatum plc, Stock exchange release, 14 August 2025 at 8:30 a.m. EEST
April-June 2025 in brief
• Client assets under management (AuM) increased by 11% from the
previous year and were record-high at EUR 14.4 (30 Jun 2024: 13.0) billion
although the weakened US dollar continued to weigh on client assets in the
second quarter. Net flow decreased by 29% to EUR 164 (232) million. Sales of
investment products briefly declined in April due to market uncertainty but
rebounded swiftly.
• Fee result increased by 26% to 18.5 (14.7) million as a result of the
increase in client assets under management and improved cost-efficiency.
• Profit before taxes decreased by 55% to EUR 34.2 (75.8) million. The
decline reflected a weaker net financial result, which was primarily driven by
the decline in long-term interest rates used in the discounting of insurance
contract liabilities. Net finance result decreased to 21.6 (55.1) million.
• Capital-light profit before taxes decreased by 19% to EUR 20.6 (25.4)
million. Result of the Institutional and wealth management business improved,
while Corporate and Retail business results declined due to one-off positive
items included in the comparison period.
• Return on equity1 (ROE) was 7.6 (14.6)%.
January-June 2025 in brief
• Fee result increased by 25% to 37.3 (29.9) million. Net finance
result decreased by 14% to 73.4 (85.0) million.
• Profit before taxes decreased by 22% to EUR 96.1 (122.7) million.
Capital-light profit before taxes was EUR 40.6 (41.5) million.
• Cost/income ratio related to client AuM2 decreased by 11 p.p. and
improved to 53 (64)% as client assets under management increased and expenses
decreased.
• Earnings per share (EPS) was EUR 0.16 (0.19) and organic capital
generation (OCG) per share was EUR 0.34 (0.24).
• The Solvency II ratio adjusted for dividend accrual and without the
transitional measure was 193 (31Dec 2024: 193)%.
Outlook for 2025 (unchanged)
• The fee result is expected to increase from year 2024. While Mandatum
has been able to maintain disciplined pricing and stable fee margins within
capital-light customer segments during years 2022, 2023 and 2024, the fee result
for year 2025 is dependent on several factors, such as client behaviour and
client asset allocation, competition and capital market conditions.
• The with-profit portfolio is expected to decrease further. Value
changes of the investments and insurance contract liabilities in the with-profit
portfolio can create relatively high volatility in the net finance result due to
changes in the market environment.
• In addition, and as typical for the industry, the overall results of
Mandatum will be impacted by actuarial assumptions that are updated regularly.
Key figures
EUR 4-6/2 4-6/20 Change, 1-6/20 1-6/20 Change, 1-12/2024
million 025 24 % 25 24 %
Fee result 18.5 14.7 26% 37.3 29.9 25% 66.6
Net 21.6 55.1 -61% 73.4 85.0 -14% 135.6
finance
result
Result 2.0 11.9 -83% 4.3 14.1 -69% 25.4
related to
risk
policies
Other -8.0 -5.9 -36% -18.9 -6.3 n.m. -24.7
result
Profit 34.2 75.8 -55% 96.1 122.7 -22% 202.9
before
taxes
for the
period
Capital 20.6 25.4 -19% 40.6 41.5 -2% 87.8
-light
profit
before
taxes
Net flow 164 232 -29% 420 478 -12% 983
Earnings 0.06 0.12 -51% 0.16 0.19 -18% 0.33
per share,
EUR
Equity per - - - 2.68 3.05 -36% 3.19
share, EUR
Organic 0.17 0.10 73% 0.34 0.24 44% 0.44
capital
generation
per share,
EUR
Return on 7.6% 14.6% -7.0 10.7% 12.2% -1.6 10.3%
equity-%1 p.p. p.p.
Cost/Income - - - 53% 64% -11 58%
ratio p.p.
related to
client
AuM, %2
EUR million 30 Jun 30 Jun Change, % 31 Dec 2024
2025 2024
Client assets under management (AuM) 14,413 12,965 11% 13,957
Solvency ratio, adjusted for dividend 209% 224% -15 p.p. 210%
accrual, %
Solvency ratio, adjusted for dividend 193% 206% -13 p.p. 193%
accrual and w/o transitional measure,
%
1) Annualised
2) Trailing twelve months
CEO comment
The second quarter of 2025 began with investment markets shaken by the USA's
more aggressive trade policy and the threat of a trade war. The announcement of
planned tariffs triggered widespread market uncertainty, particularly in April,
in both equity and fixed income markets, and the US dollar weakened
significantly during the quarter. However, sentiment recovered quickly after a
difficult April: stock markets rebounded and the fixed income market stabilised.
Market jitters were visible in Mandatum's second quarter, particularly in more
cautious client behaviour. There was a clear turn for the better after April,
however, and client activity in May and June was once again at a good level.
Mandatum's key growth strategy metric, fee result, grew 26 per cent during the
quarter compared to the previous year, and client assets under management rose
to a record-high level of EUR 14.4 billion, even though both fee income and
assets under management were weighed down by a weaker US dollar and lower
investment product sales in April. A rapid market turnaround and brisk client
activity, especially in private wealth management and among international
institutional clients, boosted Mandatum's second quarter net cash flow to EUR
164 million.
Excellent momentum in international asset management business continued
The excellent momentum in asset management outside Finland continued. The assets
under management of international institutional clients grew 40 per cent year-on
-year and amounted to EUR 1.7 billion. New client accounts were established in,
among others, France and Norway. We also launched a new European High Yield
Total Return fund, which invests in European high yield bonds. To further
accelerate growth especially in Continental Europe, we are establishing a new
sales unit in Luxembourg, with the aim of bringing us closer to the potential
European customer base.
Our other capital-light businesses also continued to perform well. Sales to
corporate clients remained strong. The unit-linked pension business continued to
grow steadily, while sales of both risk life insurance and personnel funds
remained at a good level. Eight new personnel funds were established. In the
Retail business area, loan insurance sales picked up, and Mandatum initiated co
-operation with Pohjantähti Mutual Pension Insurance Company in distributing
personal insurance products.
Mandatum's profit before taxes in the second quarter decreased year-on-year and
was EUR 34.2 million. The decline was largely attributable to the lower net
finance result, primarily driven by the decline in long-term interest rates used
in the discounting of insurance contract liabilities. Also, the net financial
result was exceptionally strong during the comparison period due to the sharp
rise in long-term interest rates.
It is important to remember that fluctuations in the net financial result are
part of the nature of life and pension insurance business. The development of
the net financial result arising primarily from the with-profit business is, in
fact, better assessed over a longer time period, although its volatility has
decreased significantly in recent years, thanks to successful interest rate
hedging measures.
Mandatum's solvency strengthened in the second quarter of the year, and organic
capital generation - a key factor driving capital generation and our ability to
pay dividends - was very strong. Capital was released in line with our strategy
through the sale of our Enento holdings and other publicly listed shares. In
addition, the divestment of Saxo Bank, expected to be completed by the end of
the year, will further strengthen Mandatum's ability to pay dividends. We have
communicated openly about our aim of divesting non-strategic holdings to fully
focus on implementing our growth strategy.
Mandatum announced new financial targets
On 4 June, we organised a Capital Markets Day, during which we announced our new
financial targets. It was important to set new targets that reflect our ambition
to grow in the capital-light business areas, i.e. in Institutional and wealth
management, Corporate clients and Retail clients, as well as to improve
profitability. Also, we have already reached the financial targets set at the
time of our listing. The updated financial targets for 2025-2028 are:
• Return on equity above 20 per cent;
• Above 10 per cent compound annual growth rate (CAGR) in capital-light
before taxes;
• Solvency margin of 160-180 per cent with cumulative shareholder
payouts exceeding EUR 1 billion.
We want to develop into an even more capital-efficient and increasingly fee
-based company. We are committed to being a good dividend payer also in the
future. Our strategy to grow the capital-light business while scaling down the
capital-heavy with-profit portfolio remains unchanged. Our focus is especially
on strengthening the position of institutional asset management in the Nordics,
accelerating the growth of private wealth management in Finland, leveraging our
leading market position among corporate clients and improving our operational
efficiency. Although our new targets are ambitious, I have every confidence that
we will achieve them by 2028 through determined action and the dedication of all
Mandatum employees.
Petri Niemisvirta
Chief Executive Officer
Conference call 14 August 2025 at 11:00 EEST, Finnish time
A conference call in English for analysts and investors is scheduled for 14
August 2025 at 11.00 a.m. (EEST, Finnish time). In the conference call CEO Petri
Niemisvirta, CFO Matti Ahokas and VP, Investor Relations Lotta Borgström will
present the company's results and answer investors' questions. The conference
call can be followed live at
mandatum.fi/en/result (https://www.mandatum.fi/en/group/investors/quarterly
-reporting-and-presentations/).
To ask questions, please join the teleconference by registering using the
following link:
https://palvelu.flik.fi/teleconference/?id=50051453. After the registration, you
will be provided with phone numbers as well as a conference ID that you can use
to join the conference call. If you wish to ask a question, please dial *5 on
your telephone keypad to enter the queue.
The recording of the conference call will be available on the company's website
after the event.
Additional information:
Matti Ahokas
CFO
Tel. +358 40 575 1978
matti.ahokas(a)mandatum.fi
Lotta Borgström
VP, Investor Relations
Tel. +358 50 0221 027
lotta.borgstrom(a)mandatum.fi
Niina Riihelä
SVP, Communications, Brand and Sustainability
Tel. +358 40 728 1548
niina.riihela(a)mandatum.fi
The Half-Year Financial Report can be found as an attachment to this stock
exchange release. The supplementary presentation material for investors
accompanying the Mandatum interim report is available
at mandatum.fi/en/result (https://www.mandatum.fi/en/group/investors/quarterly
-reporting-and-presentations/).
Mandatum plc will publish its Q3 Interim Report on 11 November 2025.
Mandatum in brief
Mandatum is a major financial services provider that combines expertise in
wealth management and life insurance. Mandatum offers clients a wide array of
services covering asset and wealth management, savings and investment,
compensation and rewards as well as pension plans and personal risk insurance.
Mandatum offers services to corporate, retail, institutional and wealth
management clients. At the centre of Mandatum's success are highly skilled
personnel, a strong brand as well as a proven investment track record.
mandatum.fi/en/group (https://www.mandatum.fi/en/group/)
Distribution:
Nasdaq Helsinki
Key media
Financial Supervisory Authority
www.mandatum.fi