Mandatum (MANTA) Q3 2024 earnings summary

Executive summary

• Fee result rose 42% year-over-year to €18.1 million, driven by 18% growth in client assets under management and improved cost efficiency.

• Client assets under management increased 18% year-over-year to €13.3 billion, with positive net flows across all segments.

• Profit before tax fell 46% year-over-year to €45.2 million, mainly due to a weaker net finance result from lower discount rates.

• Net flow for the year-to-date was €592 million, representing 7% of AUM, exceeding the annual target.

• Solvency II ratio (dividend-adjusted) improved to 224% from 221% at year-end, supported by strong capital generation and a new Tier 2 loan.

Financial highlights

• Q3 fee result: €18.1 million (+42% y/y); Q3 net finance result: €26.9 million (-60% y/y).

• Q3 profit before taxes: €45.2 million (-46% y/y); EPS: €0.07 in Q3.

• Cost/income ratio improved to 63% (trailing 12 months), down from 67% a year ago.

• Return on equity (annualized) was 9.4% in Q3 2024, down from 16.7% a year earlier.

• Organic capital generation per share at €0.11 for Q3 2024.

Outlook and guidance

• Fee result for 2024 expected to increase from 2023 if market conditions remain stable; dependent on client behavior, asset allocation, competition, and capital markets.

• With-profit portfolio expected to continue decreasing; investment value changes may cause volatility in net finance result.

• Strong solvency provides resilience in varied market conditions.

• Annual net flow target is 5% of client AUM; year-to-date net flow already at 7%.

• Board will decide on dividend, with €500 million cumulative ordinary dividend seen as conservative.