Mandatum (MANTA) Q2 2024 earnings summary

Executive summary

• Profit before tax rose 57% year-over-year in Q2 to EUR 75.8 million, with all result areas contributing to growth.

• Fee result increased 18% to EUR 14.7 million, supported by 16% growth in client assets under management (AuM) to EUR 13 billion.

• Net flow reached EUR 232 million in Q2, annualized at 8% of AuM, exceeding the 5% target.

• Solvency II ratio improved to 224% (adjusted for dividend accrual), reflecting a robust capital position.

• Mandatum joined the Net Zero Asset Managers initiative, committing to net zero emissions by 2050.

Financial highlights

• Q2 profit before tax: EUR 75.8 million (+57% year-over-year); H1 profit before tax: EUR 122.7 million (+53%).

• Q2 fee result: EUR 14.7 million (+18%); H1 fee result: EUR 29.9 million (+13%).

• Q2 net finance result: EUR 55.1 million (+28%), including a EUR 12 million dividend from Saxo Bank.

• Earnings per share for H1: EUR 0.19 (+51% year-over-year).

• Cost/income ratio related to client AuM improved to 64% (from 71% a year ago).

Outlook and guidance

• Fee result is expected to increase in 2024 if market conditions remain stable, but is subject to client behavior, competition, and capital market conditions.

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

• Solvency remains strong, supporting operations in various market conditions.

• Dividend target: EUR 500 million cumulative during 2024–2026; H1 2024 dividend of EUR 166 million approved.

• Institutional wealth management and international expansion, especially in Sweden and Denmark, remain strategic priorities.