Mandatum plc, Stock exchange release, 11 November 2025 at 8:30 a.m. EET
July-September 2025 in brief
· Profit before taxes increased by 23% to EUR 55.7 (30 Sep 2024: 45.2) million
mainly as a result of the increase in fee result and net finance result.
· Capital-light profit before taxes decreased by 3% to EUR 24.5 (25.3)
million. The comparison period included a profit of EUR 3.3 million related to
the insurance portfolio transferred to If.
· Fee result increased by 20% to 21.7 (18.1) million as a result of the
increase in client assets under management (AuM) and lower costs. Net finance
result increased by 47% to EUR 39.4 (26.9) million mainly due to the increase in
the discount rate.
· Client assets under management increased by 12% from the previous year to
EUR 14.9 (13.3) billion supported by good net flow and positive market movement.
Net flow increased by 43% to EUR 163 (114) million.
· Return on equity[1] (ROE) was 13.6 (9.4)%.
January-September 2025 in brief
· Profit before taxes decreased by 10% to EUR 151.8 (167.8) million. Capital
-light profit before taxes was EUR 65.0 (66.8) million.
· Fee result increased by 23% to 59.0 (48.0) million. Net finance result
remained stable at EUR 112.8 (111.9) million.
· Cost/income ratio related to client AuM[2] decreased by 13 p.p. and improved
to 50 (63)% as client assets under management increased and costs decreased.
· Organic capital generation was strong and clearly exceeded the result for
the period. Earnings per share (EPS) was EUR 0.25 (0.26) and organic capital
generation (OCG) per share was EUR 0.48 (0.34).
· The Solvency II ratio adjusted for dividend accrual and without the
transitional measure was 191 (31 Dec 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 7-9/20 7-9/2 Change, 1-9/20 1-9/20 Change, 1-12/2024
million 25 024 % 25 24 %
Fee result 21.7 18.1 20% 59.0 48.0 23% 66.6
Net 39.4 26.9 47% 112.8 111.9 1% 135.6
finance
result
Result 2.6 9.1 -71% 7.0 23.2 -70% 25.4
related to
risk
policies
Other -8.0 -9.0 11% -26.9 -15.3 -76% -24.7
result
Profit 55.7 45.2 23% 151.8 167.8 -10% 202.9
before
taxes
for the
period
Capital 24.5 25.3 -3% 65.0 66.8 -3% 87.8
-light
profit
before
taxes
Net flow 163 114 43% 583 592 -1% 983
Earnings 0.09 0.07 28% 0.25 0.26 -5% 0.33
per share,
EUR
Equity per - - - 2.78 3.12 -34% 3.19
share, EUR
Organic 0.14 0.11 33% 0.48 0.34 41% 0.44
capital
generation
per share,
EUR
Return on 13.6% 9.4% 4.2 11.2% 11.1% 0.0 10.3%
equity-%1 p.p. p.p.
Cost/income - - - 50% 63% -13 58%
ratio p.p.
related to
client
AuM, %2
(1) Annualised
(2) Trailing twelve months
EUR million 30 Sep 30 Sep Change, % 31 Dec 2024
2025 2024
Client assets under management (AuM) 14,913 13,282 12% 13,957
Solvency ratio, adjusted for dividend 206% 224% -18 p.p. 210%
accrual, %
Solvency ratio, adjusted for dividend 191% 207% -16 p.p. 193%
accrual and w/o transitional measure,
%
CEO comment
In the third quarter of 2025, Mandatum achieved strong growth again: profit
before taxes increased by 23 per cent from the previous year. The good earnings
growth was particularly supported by the fee result, which increased by 20 per
cent. Our guidance at the start of the year projected an increase in the fee
result, and we are now clearly ahead of last year in terms of the development of
the fee result. Earnings were also positively influenced by a good net finance
result, which clearly exceeded last year's level.
Since our listing, we have focused particularly on improving our operational
efficiency. One indication of this is the clearly improved cost/income ratio,
which has now dropped to 50 per cent for the first time. This is an improvement
of 13 percentage points year-on-year, which is an excellent result. Thanks to
our scalable business model, we are able to increase returns without
significantly raising costs, which creates excellent opportunities for future
growth.
Mandatum's solvency in the third quarter remained at a good level. Organic
capital generation has also been strong: a total of EUR 0.48 per share since the
beginning of the year. It's good for investors to bear in mind that organic
capital generation is a better indication of Mandatum's ability to pay dividends
than, for example, earnings per share.
Client assets under management again reached a record-high level
Our net flow of EUR 163 million is a particularly strong result, considering the
typical negative impact of the summer holiday season on third-quarter flows.
Client assets under management once again reached a record high and totalled EUR
14.9 billion. In addition to a strong net flow, a robust investment market
increased client assets. The market environment as a whole was significantly
more stable than at the beginning of the year, although political risks were
still present. Rising earnings growth expectations supported stock markets
around the world, and the corporate bond market was stable. The positive market
sentiment was also reflected in client behaviour - client activity was at a good
level across all businesses.
In Institutional and wealth management business area, we are focussing
particularly on expanding our international business and private wealth
management in accordance with our strategy. The work we have done in both of
these areas is yielding clear results, which I am naturally pleased about. In
particular, strong sales in Sweden boosted international institutional sales in
the third quarter, and the assets under management of international clients grew
by 45 per cent compared to last year. Expansion into the Central European market
progressed as planned, with the first employees starting in the new sales unit
in Luxembourg. Assets under management for private wealth management clients
also grew nicely, by 17 per cent year-on-year. Growth was driven especially by
discretionary, i.e. full-mandate wealth management, whereby the client grants us
the authority to manage their investment portfolio according to an agreed
investment strategy.
Determined product development is the foundation of our asset and wealth
management business. In May, we launched the European High Yield Total Return
fund, which mainly invests in European high-yield bonds. The fund has been
positively received by investors. The Mandatum Managed Futures fund, which draws
from systematic investment strategies, received significant new investments
during the quarter.
In our Corporate clients business, sales of both pension insurance and personnel
funds remained at a good level. Although the development of the Finnish economy
has been sluggish in recent years, our clients have generally performed well
even in this operating environment. Our Retail clients business progressed as we
expected during the quarter, supported by the successful start of collaboration
with the Pohjantähti Mutual Insurance Company.
Petri Niemisvirta
Chief Executive Officer
Conference call on 11 November 2025
A conference call in English for analysts and investors is scheduled for 11
November 2025 at 11.00 a.m. (EET, 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/result).
To ask questions, please join the teleconference by registering using the
following link:
https://events.inderes.com/mandatum/q3-2025/dial-in. 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 Interim 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 Financial Statements Release for 2025 on 12
February 2026.
Mandatum in brief
Mandatum is a major financial services provider, combining expertise in asset
and wealth management and life insurance. Clients include institutional
investors, companies and private individuals. Mandatum offers a broad range of
services encompassing asset and wealth management, compensation and rewards,
supplementary pensions and personal risk insurance. Skilled personnel, strong
brand and proven investment track record are at the centre of Mandatum's
success. The company has been listed on Nasdaq Helsinki since 2023.
mandatum.fi/en/group/ (https://www.mandatum.fi/en/group/)
Distribution:
Nasdaq Helsinki
Financial Supervisory Authority
Key media
www.mandatum.fi (https://www.mandatum.fi/en/)