Mandatum plc, Stock exchange release, 8 May 2025 at 8:30 a.m. EEST

January-March 2025 in brief

·          Client assets under management (AuM) increased by 12% from the previous year and amounted to EUR 14.0 (12.5) billion. Net flow increased by 4% to EUR 255.6 (245.5) million.

·          Fee result increased by 23% to 18.8 (15.2) million.

·          Cost/income ratio related to client AuM decreased by 10 p.p. and improved to 55 (65)%.

·          Net finance result increased by 73% to 51.8 (29.9) million.

·          Result related to risk policies increased by 5% to 2.3 (2.2) million.

·          Profit before taxes increased by 32% to EUR 62.0 (46.9) million.

·          Capital-light profit before taxes increased by 24% to EUR 19.9 (16.1) million.

·          Earnings per share (EPS) was EUR 0.10 (0.08) and organic capital generation (OCG) per share was EUR 0.17 (0.14).

·          The Solvency II ratio adjusted for dividend accrual was 207.4 (31 Dec 2024: 210.4)%.

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 from time to time.

Key figures

1)      Annualised

2)      Trailing twelve months

CEO comment

The first quarter of the year in the investment markets was characterised by uncertainty. The hard-to-predict political environment in the United States and the escalation of the trade war have caused significant global economic instability. Unpredictability is poison for the markets, and this has shown up as large movements in the stock market.

For Mandatum, the first quarter of the year was good. Profit before taxes increased 32 per cent from the previous year and amounted to EUR 62 million. Profit before taxes for Mandatum's strategic growth area, i.e. capital-light business (Institutional and wealth management, Corporate client and Retail client businesses) increased 24 per cent to EUR 20 million. The net finance result increased 73 per cent and was EUR 52 million.

The main income item of our capital-light business, i.e. the fee result, increased 23 per cent and was EUR 19 million. The result was driven by the 12 per cent increase in client assets under management from the previous year and improved cost efficiency. The net flow of EUR 256 million in the first quarter was once again strong, an indication of robust client activity. March was a particularly challenging month in the investment markets, and negative market changes weighed on client assets under management, which were EUR 14 billion, at the same level as at the start of the year. The cost/income ratio in client asset under management further improved and was 55 per cent. This shows that a determined focus on cost efficiency is paying off.         

Net flow from the Corporate client business increased significantly in personnel funds in particular, which is an indication of the importance of corporate business to Mandatum's growth story and of the resilience of the capital-light business in various market situations. It is clear, however, that the market situation is challenging for all capital market players, and net cash flow from Institutional and wealth management decreased from last year due to market uncertainty. Nevertheless, we have managed to grow our capital-light business in line with our strategy even in this uncertain environment. We will share more about our strategy and long-term targets at Mandatum's Capital Markets Day on 4 June 2025.     

Growth in international institutional asset management continued

The good momentum outside Finland continued. The client assets under management of Mandatum's international institutional asset management clients increased by 55 per cent year-on-year. Demand for our credit products, especially in Sweden, continued to be very strong, which makes me particularly happy. Sweden is the largest financial market in the Nordics, and we still have plenty of room to grow our foreign client assets. During the quarter, our international flagship product, the Mandatum Nordic High Yield fund, which invests in bonds with a higher return expectation, was again awarded by the LSEG Lipper Fund Awards as the best in Europe over the three-year and five-year review periods. Our long-term work has paid off: the fund has grown at a good pace and its risk-adjusted return has been strong.

In April, we announced that Janne Sarvikivi was appointed as Head of Mandatum's Institutional and wealth management business area. He will start in his new role on 12 May 2025. I am delighted that our management team will be reinforced by such solid management experience in Nordic capital markets. During the first quarter, we also announced that we had agreed to sell our shares in Saxo Bank, which is an important step towards our goal of divesting non-strategic holdings. This allows us to continue to focus on creating profitable growth in capital-light businesses. The transaction is expected to be finalised by the end of 2025.

The economic climate and market situations are constantly changing, and we all have to get used to it - it comes with the territory. Superpower politics and exceptional economic uncertainty are causing major movements in the investment markets, and we are naturally not immune to market volatility. However, as an active asset and wealth manager, we at Mandatum want to support our customers even in the most difficult market situations and remind them that exceptional situations also often mean exceptional opportunities for investors.

Petri Niemisvirta
Chief Executive Officer

Conference call 8 May 2025 at 11:00 EEST, Finnish time

A conference call in English for analysts and investors is scheduled for 8 May 2025 at 11.00 a.m. (EEST, Finnish time). In the conference call CEO Petri Niemisvirta, CFO Matti Ahokas and Vice President, 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=50051452. 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:
 
Investors 
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        
 
Media 
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.

Mandatum plc will publish its Half-year Financial Report on 14 August 2025 and 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