Mandatum (MANTA) Q1 2025 earnings summary

Executive summary

• Profit before taxes rose 32% year-over-year to EUR 62 million, driven by strong fee and finance results, improved cost efficiency, and growth in capital-light business.

• Fee result increased 23% year-over-year to EUR 18.8 million, supported by 12% growth in client assets under management to EUR 14 billion.

• Net finance result surged 73% year-over-year to EUR 51.8 million, including a positive fair value change from Saxo Bank shares and a higher discount rate reducing insurance contract liabilities.

• Cost/income ratio improved by 10 percentage points to 55%.

• Earnings per share was EUR 0.10, and organic capital generation per share was EUR 0.17, both up year-over-year.

Financial highlights

• Client assets under management reached EUR 14 billion, up 12% year-over-year, with net flow at EUR 256 million.

• Return on equity improved to 12.4% from 9.3% a year ago.

• Solvency II ratio stood at 207% at quarter-end, with a 10 percentage point increase in own funds generation during the quarter.

• Fee margin stable at 1.2% overall.

• Organic capital generation exceeded net profit, with both with-profit and capital-light segments contributing.

Outlook and guidance

• Fee result expected to increase in 2025, though dependent on client behavior, competition, asset allocation, and market conditions.

• With-profit portfolio anticipated to continue decreasing, with potential volatility in net finance result due to market changes.

• Announced sale of Saxo Bank shares is expected to increase the solvency margin by around 35 percentage points when executed.

• Dividend target: cumulative EUR 500 million for 2024–2026; proposed 2024 dividend is EUR 0.66 per share.

• Medium-term solvency target: 170–200%; current ratio above target.