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 (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 million | 4-6/2025 | 4-6/2024 | Change, % | 1-6/2025 | 1-6/2024 | Change, % | 1-12/2024 |
Fee result | 18.5 | 14.7 | 26 % | 37.3 | 29.9 | 25 % | 66.6 |
Net finance result | 21.6 | 55.1 | -61 % | 73.4 | 85.0 | -14 % | 135.6 |
Result related to risk policies | 2.0 | 11.9 | -83 % | 4.3 | 14.1 | -69 % | 25.4 |
Other result | -8.0 | -5.9 | -36 % | -18.9 | -6.3 | n.m. | -24.7 |
Profit before taxes for the period | 34.2 | 75.8 | -55 % | 96.1 | 122.7 | -22 % | 202.9 |
Capital-light profit before taxes | 20.6 | 25.4 | -19 % | 40.6 | 41.5 | -2 % | 87.8 |
Net flow | 164 | 232 | -29 % | 420 | 478 | -12 % | 983 |
Earnings per share, EUR | 0.06 | 0.12 | -51 % | 0.16 | 0.19 | -18 % | 0.33 |
Equity per share, EUR | - | - | - | 2.68 | 3.05 | -36 % | 3.19 |
Organic capital generation per share, EUR | 0.17 | 0.10 | 73 % | 0.34 | 0.24 | 44 % | 0.44 |
Return on equity-%1 | 7.6 % | 14.6 % | -7.0 p.p. | 10.7 % | 12.2 % | -1.6 p.p. | 10.3 % |
Cost/Income ratio related to client AuM, %2 | - | - | - | 53 % | 64 % | -11 p.p. | 58 % |
EUR million | 30 Jun 2025 | 30 Jun 2024 | Change, % | 31 Dec 2024 |
Client assets under management (AuM) | 14,413 | 12,965 | 11 % | 13,957 |
Solvency ratio, adjusted for dividend accrual, % | 209 % | 224 % | -15 p.p. | 210 % |
Solvency ratio, adjusted for dividend accrual and w/o transitional measure, % | 193 % | 206 % | -13 p.p. | 193 % |
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.
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.
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
Distribution:
Nasdaq Helsinki
Key media
Financial Supervisory Authority
www.mandatum.fi
