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Mandatum Oyj (HEL:MANTA) reported strong first-quarter results on May 8, 2025, with significant growth across key metrics despite operating in what the company described as "an uncertain environment." The Finnish financial services provider saw its profit before taxes jump 32% year-over-year to EUR 62.0 million, while client assets under management grew 12% to EUR 14.0 billion.
Quarterly Performance Highlights
Mandatum’s Q1 2025 results demonstrated robust growth across its business segments. The company’s fee result increased 23% year-over-year to EUR 18.8 million, driven by improved operational leverage and 12% growth in assets under management. Net flow reached EUR 256 million, up 4% compared to the same period last year.
"We’ve had a good start to the year in an uncertain environment," said Mandatum in its investor presentation. The company’s cost-to-income ratio improved significantly, decreasing by 10 percentage points to 55%, reflecting enhanced operational efficiency.
As shown in the following overview of Q1 2025 results:
The net finance result saw particularly strong growth, increasing 73% year-over-year to EUR 51.8 million. This was achieved despite a quarterly investment return on the original portfolio of just 0.8%, which the company noted was "slightly below normal" but "above unwinding rate." A change in discount rate had a EUR 25 million positive P&L impact on the cost of liabilities during the quarter.
Detailed Financial Analysis
Mandatum’s capital-light business segments continued to drive growth, with profit before taxes in these segments increasing 24% year-over-year to EUR 19.9 million. The company’s earnings per share rose 33% to EUR 0.10, while organic capital generation per share grew 21% to EUR 0.17.
The following chart illustrates the continued growth in fee result and profitability:
Breaking down performance by segment, Institutional & Wealth Management (I&WM) contributed EUR 8.4 million to profit before taxes, while Corporate and Retail segments added EUR 6.8 million and EUR 4.8 million respectively. The with-profit segment generated EUR 34.7 million in profit before taxes, benefiting from improved investment returns and reduced liability costs.
Client assets under management showed healthy growth across segments, with the strongest performance in the Institutional & Wealth Management division, which saw an 18% year-over-year increase. This growth was attributed to both positive net flow and favorable market returns over the past 12 months.
The following chart shows the development of client AuM and net flow:
Strategic Initiatives & Segment Performance
Mandatum continues to execute on its strategic priorities, focusing on three key areas: strong and profitable growth of capital-light offerings, managing the with-profit portfolio for capital release, and prudent balance sheet management to enable strong shareholder returns.
The company’s fee income increased 10% year-over-year to EUR 40.4 million, while client AuM-related costs decreased slightly from EUR 23 million to EUR 21 million, demonstrating improved operational leverage. The fee income margin remained stable at 1.2%.
As shown in the following fee income and margin analysis:
In the Institutional & Wealth Management segment, AuM grew 18% year-over-year, with all client segments contributing to the growth. The majority of net flow went to credit products and allocation products, including mandates. Private wealth management AuM reached EUR 2,206 million, while institutional international AuM stood at EUR 2,375 million.
Capital Position & Shareholder Returns
Mandatum maintained a strong solvency position, with a Solvency II ratio of 207% as of March 31, 2025, slightly down from 210% at the end of 2024. The company’s own funds increased by EUR 34 million during Q1, prior to assumed dividend accrual.
The following chart illustrates the organic capital generation:
Mandatum has proposed substantial shareholder returns, with plans to pay a total dividend of EUR 332 million in spring 2025, consisting of a base dividend of EUR 166 million and an additional dividend of EUR 166 million. This follows the EUR 166 million dividend paid in May 2024.
The company’s with-profit portfolio continues to decrease in line with expectations, with with-profit liabilities falling to EUR 2,168 million from EUR 2,349 million a year earlier. This strategic run-off is part of Mandatum’s capital release plan.
Outlook for 2025
Looking ahead, Mandatum expects its fee result to increase from 2024 levels. The company anticipates further decreases in its with-profit portfolio, while noting that "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."
Mandatum’s stock closed at EUR 6.13 on May 8, 2025, down 1.96% for the day, according to provided market data. Despite the daily decline, the stock remains closer to its 52-week high of EUR 6.23 than its 52-week low of EUR 3.96, reflecting overall positive investor sentiment toward the company’s performance and outlook.
The Q1 2025 results build on Mandatum’s strong performance in Q4 2024, when the company reported a 39% increase in quarterly fees and 5% quarter-over-quarter growth in client assets under management. The continued execution of its strategic priorities and focus on operational efficiency position Mandatum well for sustained growth in the remainder of 2025, despite the uncertain market environment.
Full presentation:
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