Mandatum (MANTA) Q2 2025 earnings summary

Executive summary

• Fee result increased 26% year-over-year to EUR 18.5 million, driven by 11% growth in client assets under management to a record EUR 14.4 billion and improved cost efficiency.

• Profit before taxes fell 55% year-over-year to EUR 34.2 million, mainly due to a weaker net finance result from lower long-term interest rates and the absence of prior year one-off gains.

• Cost-to-income ratio improved by 11 percentage points to 53% over the trailing 12 months.

• Net flow was EUR 164 million in Q2, down 29% year-over-year, but contributed positively to AUM growth.

• Solvency II ratio (adjusted) remained strong at 193%, with robust organic capital generation and capital release from divestments.

Financial highlights

• Net finance result dropped 61% year-over-year to EUR 21.6 million, impacted by lower discount rates and a strong prior-year comparison.

• Return on equity (annualised) decreased to 7.6% from 14.6% year-over-year.

• Organic capital generation per share rose 73% year-over-year to EUR 0.17.

• EPS was EUR 0.06 in Q2, and organic capital generation per share increased to EUR 0.17.

• Cost/income ratio related to client AUM improved to 53% in Q2 (from 64%).

Outlook and guidance

• New financial targets for 2025-2028: return on equity above 20%, over 10% CAGR in capital-light profit before taxes, solvency margin of 160%-180%, and cumulative shareholder payouts exceeding EUR 1 billion.

• Fee result is expected to increase from 2024, but is subject to client behavior, asset allocation, competition, and market conditions.

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

• Actuarial assumption updates will continue to impact overall results.

• Cost growth is guided at 1% annually, including investments in international expansion.