Mandatum plc's Interim Report 1 January–30 September 2025: Fee result increased, cost/income ratio continued to improve
11 november, 07:30
Mandatum plc's Interim Report 1 January–30 September 2025: Fee result increased, cost/income ratio continued to improve
Mandatum plc, Stock exchange release, 11 November 2025 at 8:30 a.m. EET
July–September 2025 in brief
- Profit before taxes increased by 23% to EUR 55.7 (30 Sep 2024: 45.2) million mainly as a result of the increase in fee result and net finance result.
- Capital-light profit before taxes decreased by 3% to EUR 24.5 (25.3) million. The comparison period included a profit of EUR 3.3 million related to the insurance portfolio transferred to If.
- Fee result increased by 20% to 21.7 (18.1) million as a result of the increase in client assets under management (AuM) and lower costs. Net finance result increased by 47% to EUR 39.4 (26.9) million mainly due to the increase in the discount rate.
- Client assets under management increased by 12% from the previous year to EUR 14.9 (13.3) billion supported by good net flow and positive market movement. Net flow increased by 43% to EUR 163 (114) million.
- Return on equity1 (ROE) was 13.6 (9.4)%.
January–September 2025 in brief
- Profit before taxes decreased by 10% to EUR 151.8 (167.8) million. Capital-light profit before taxes was EUR 65.0 (66.8) million.
- Fee result increased by 23% to 59.0 (48.0) million. Net finance result remained stable at EUR 112.8 (111.9) million.
- Cost/income ratio related to client AuM2 decreased by 13 p.p. and improved to 50 (63)% as client assets under management increased and costs decreased.
- Organic capital generation was strong and clearly exceeded the result for the period. Earnings per share (EPS) was EUR 0.25 (0.26) and organic capital generation (OCG) per share was EUR 0.48 (0.34).
- The Solvency II ratio adjusted for dividend accrual and without the transitional measure was 191 (31 Dec 2024: 193)%.
Outlook for 2025 (unchanged)
- The fee result is expected to increase from year 2024. While Mandatum has been able to maintain disciplined pricing and stable fee margins within capital-light customer segments during years 2022, 2023 and 2024, the fee result for year 2025 is dependent on several factors, such as client behaviour and client asset allocation, competition and capital market conditions.
- The with-profit portfolio is expected to decrease further. 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.
- In addition, and as typical for the industry, the overall results of Mandatum will be impacted by actuarial assumptions that are updated regularly.
Key figures
EUR million | 7–9/2025 | 7–9/2024 | Change, % | 1–9/2025 | 1–9/2024 | Change, % | 1–12/2024 |
Fee result | 21.7 | 18.1 | 20% | 59.0 | 48.0 | 23% | 66.6 |
Net finance result | 39.4 | 26.9 | 47% | 112.8 | 111.9 | 1% | 135.6 |
Result related to risk policies | 2.6 | 9.1 | -71% | 7.0 | 23.2 | -70% | 25.4 |
Other result | -8.0 | -9.0 | 11% | -26.9 | -15.3 | -76% | -24.7 |
Profit before taxes for the period | 55.7 | 45.2 | 23% | 151.8 | 167.8 | -10% | 202.9 |
Capital-light profit before taxes | 24.5 | 25.3 | -3% | 65.0 | 66.8 | -3% | 87.8 |
Net flow | 163 | 114 | 43% | 583 | 592 | -1% | 983 |
Earnings per share, EUR | 0.09 | 0.07 | 28% | 0.25 | 0.26 | -5% | 0.33 |
Equity per share, EUR | – | – | – | 2.78 | 3.12 | -34% | 3.19 |
Organic capital generation per share, EUR | 0.14 | 0.11 | 33% | 0.48 | 0.34 | 41% | 0.44 |
Return on equity-%1 | 13.6% | 9.4% | 4.2 p.p. | 11.2% | 11.1% | 0.0 p.p. | 10.3% |
Cost/income ratio related to client AuM, %2 | – | – | – | 50% | 63% | -13 p.p. | 58% |
(1)Annualised
(2)Trailing twelve months
EUR million | 30 Sep 2025 | 30 Sep 2024 | Change, % | 31 Dec 2024 |
Client assets under management (AuM) | 14,913 | 13,282 | 12% | 13,957 |
Solvency ratio, adjusted for dividend accrual, % | 206% | 224% | -18 p.p. | 210% |
Solvency ratio, adjusted for dividend accrual and w/o transitional measure, % | 191% | 207% | -16 p.p. | 193% |
CEO comment
In the third quarter of 2025, Mandatum achieved strong growth again: profit before taxes increased by 23 per cent from the previous year. The good earnings growth was particularly supported by the fee result, which increased by 20 per cent. Our guidance at the start of the year projected an increase in the fee result, and we are now clearly ahead of last year in terms of the development of the fee result. Earnings were also positively influenced by a good net finance result, which clearly exceeded last year’s level.
Since our listing, we have focused particularly on improving our operational efficiency. One indication of this is the clearly improved cost/income ratio, which has now dropped to 50 per cent for the first time. This is an improvement of 13 percentage points year-on-year, which is an excellent result. Thanks to our scalable business model, we are able to increase returns without significantly raising costs, which creates excellent opportunities for future growth.
Mandatum’s solvency in the third quarter remained at a good level. Organic capital generation has also been strong: a total of EUR 0.48 per share since the beginning of the year. It's good for investors to bear in mind that organic capital generation is a better indication of Mandatum’s ability to pay dividends than, for example, earnings per share.
Client assets under management again reached a record-high level
Our net flow of EUR 163 million is a particularly strong result, considering the typical negative impact of the summer holiday season on third-quarter flows. Client assets under management once again reached a record high and totalled EUR 14.9 billion. In addition to a strong net flow, a robust investment market increased client assets. The market environment as a whole was significantly more stable than at the beginning of the year, although political risks were still present. Rising earnings growth expectations supported stock markets around the world, and the corporate bond market was stable. The positive market sentiment was also reflected in client behaviour – client activity was at a good level across all businesses.
In Institutional and wealth management business area, we are focussing particularly on expanding our international business and private wealth management in accordance with our strategy. The work we have done in both of these areas is yielding clear results, which I am naturally pleased about. In particular, strong sales in Sweden boosted international institutional sales in the third quarter, and the assets under management of international clients grew by 45 per cent compared to last year. Expansion into the Central European market progressed as planned, with the first employees starting in the new sales unit in Luxembourg. Assets under management for private wealth management clients also grew nicely, by 17 per cent year-on-year. Growth was driven especially by discretionary, i.e. full-mandate wealth management, whereby the client grants us the authority to manage their investment portfolio according to an agreed investment strategy.
Determined product development is the foundation of our asset and wealth management business. In May, we launched the European High Yield Total Return fund, which mainly invests in European high-yield bonds. The fund has been positively received by investors. The Mandatum Managed Futures fund, which draws from systematic investment strategies, received significant new investments during the quarter.
In our Corporate clients business, sales of both pension insurance and personnel funds remained at a good level. Although the development of the Finnish economy has been sluggish in recent years, our clients have generally performed well even in this operating environment. Our Retail clients business progressed as we expected during the quarter, supported by the successful start of collaboration with the Pohjantähti Mutual Insurance Company.
Petri Niemisvirta
Chief Executive Officer
Conference call on 11 November 2025
A conference call in English for analysts and investors is scheduled for 11 November 2025 at 11.00 a.m. (EET, Finnish time). In the conference call CEO Petri Niemisvirta, CFO Matti Ahokas and VP, Investor Relations Lotta Borgström will present the company’s results and answer investors’ questions. The conference call can be followed live at mandatum.fi/en/result.
To ask questions, please join the teleconference by registering using the following link:https://events.inderes.com/mandatum/q3-2025/dial-in. After the registration, you will be provided with phone numbers as well as a conference ID that you can use to join the conference call. If you wish to ask a question, please dial #5 on your telephone keypad to enter the queue.
The recording of the conference call will be available on the company’s website after the event.
Additional information:
Matti Ahokas
CFO
Tel. +358 40 575 1978
matti.ahokas(a)mandatum.fi
Lotta Borgström
VP, Investor Relations
Tel. +358 50 0221 027
lotta.borgstrom(a)mandatum.fi
Niina Riihelä
SVP, Communications, Brand and Sustainability
Tel. +358 40 728 1548
niina.riihela(a)mandatum.fi
The Interim Report can be found as an attachment to this stock exchange release. The supplementary presentation material for investors accompanying the Mandatum interim report is available at mandatum.fi/en/result.
Mandatum plc will publish its Financial Statements Release for 2025 on 12 February 2026.
Mandatum in brief
Mandatum is a major financial services provider, combining expertise in asset and wealth management and life insurance. Clients include institutional investors, companies and private individuals. Mandatum offers a broad range of services encompassing asset and wealth management, compensation and rewards, supplementary pensions and personal risk insurance. Skilled personnel, strong brand and proven investment track record are at the centre of Mandatum’s success. The company has been listed on Nasdaq Helsinki since 2023. mandatum.fi/en/group/
Distribution:
Nasdaq Helsinki
Financial Supervisory Authority
Key media
www.mandatum.fi
Ämnen i artikeln
Mandatum plc's Interim Report 1 January–30 September 2025: Fee result increased, cost/income ratio continued to improve
11 november, 07:30
Mandatum plc's Interim Report 1 January–30 September 2025: Fee result increased, cost/income ratio continued to improve
Mandatum plc, Stock exchange release, 11 November 2025 at 8:30 a.m. EET
July–September 2025 in brief
- Profit before taxes increased by 23% to EUR 55.7 (30 Sep 2024: 45.2) million mainly as a result of the increase in fee result and net finance result.
- Capital-light profit before taxes decreased by 3% to EUR 24.5 (25.3) million. The comparison period included a profit of EUR 3.3 million related to the insurance portfolio transferred to If.
- Fee result increased by 20% to 21.7 (18.1) million as a result of the increase in client assets under management (AuM) and lower costs. Net finance result increased by 47% to EUR 39.4 (26.9) million mainly due to the increase in the discount rate.
- Client assets under management increased by 12% from the previous year to EUR 14.9 (13.3) billion supported by good net flow and positive market movement. Net flow increased by 43% to EUR 163 (114) million.
- Return on equity1 (ROE) was 13.6 (9.4)%.
January–September 2025 in brief
- Profit before taxes decreased by 10% to EUR 151.8 (167.8) million. Capital-light profit before taxes was EUR 65.0 (66.8) million.
- Fee result increased by 23% to 59.0 (48.0) million. Net finance result remained stable at EUR 112.8 (111.9) million.
- Cost/income ratio related to client AuM2 decreased by 13 p.p. and improved to 50 (63)% as client assets under management increased and costs decreased.
- Organic capital generation was strong and clearly exceeded the result for the period. Earnings per share (EPS) was EUR 0.25 (0.26) and organic capital generation (OCG) per share was EUR 0.48 (0.34).
- The Solvency II ratio adjusted for dividend accrual and without the transitional measure was 191 (31 Dec 2024: 193)%.
Outlook for 2025 (unchanged)
- The fee result is expected to increase from year 2024. While Mandatum has been able to maintain disciplined pricing and stable fee margins within capital-light customer segments during years 2022, 2023 and 2024, the fee result for year 2025 is dependent on several factors, such as client behaviour and client asset allocation, competition and capital market conditions.
- The with-profit portfolio is expected to decrease further. 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.
- In addition, and as typical for the industry, the overall results of Mandatum will be impacted by actuarial assumptions that are updated regularly.
Key figures
EUR million | 7–9/2025 | 7–9/2024 | Change, % | 1–9/2025 | 1–9/2024 | Change, % | 1–12/2024 |
Fee result | 21.7 | 18.1 | 20% | 59.0 | 48.0 | 23% | 66.6 |
Net finance result | 39.4 | 26.9 | 47% | 112.8 | 111.9 | 1% | 135.6 |
Result related to risk policies | 2.6 | 9.1 | -71% | 7.0 | 23.2 | -70% | 25.4 |
Other result | -8.0 | -9.0 | 11% | -26.9 | -15.3 | -76% | -24.7 |
Profit before taxes for the period | 55.7 | 45.2 | 23% | 151.8 | 167.8 | -10% | 202.9 |
Capital-light profit before taxes | 24.5 | 25.3 | -3% | 65.0 | 66.8 | -3% | 87.8 |
Net flow | 163 | 114 | 43% | 583 | 592 | -1% | 983 |
Earnings per share, EUR | 0.09 | 0.07 | 28% | 0.25 | 0.26 | -5% | 0.33 |
Equity per share, EUR | – | – | – | 2.78 | 3.12 | -34% | 3.19 |
Organic capital generation per share, EUR | 0.14 | 0.11 | 33% | 0.48 | 0.34 | 41% | 0.44 |
Return on equity-%1 | 13.6% | 9.4% | 4.2 p.p. | 11.2% | 11.1% | 0.0 p.p. | 10.3% |
Cost/income ratio related to client AuM, %2 | – | – | – | 50% | 63% | -13 p.p. | 58% |
(1)Annualised
(2)Trailing twelve months
EUR million | 30 Sep 2025 | 30 Sep 2024 | Change, % | 31 Dec 2024 |
Client assets under management (AuM) | 14,913 | 13,282 | 12% | 13,957 |
Solvency ratio, adjusted for dividend accrual, % | 206% | 224% | -18 p.p. | 210% |
Solvency ratio, adjusted for dividend accrual and w/o transitional measure, % | 191% | 207% | -16 p.p. | 193% |
CEO comment
In the third quarter of 2025, Mandatum achieved strong growth again: profit before taxes increased by 23 per cent from the previous year. The good earnings growth was particularly supported by the fee result, which increased by 20 per cent. Our guidance at the start of the year projected an increase in the fee result, and we are now clearly ahead of last year in terms of the development of the fee result. Earnings were also positively influenced by a good net finance result, which clearly exceeded last year’s level.
Since our listing, we have focused particularly on improving our operational efficiency. One indication of this is the clearly improved cost/income ratio, which has now dropped to 50 per cent for the first time. This is an improvement of 13 percentage points year-on-year, which is an excellent result. Thanks to our scalable business model, we are able to increase returns without significantly raising costs, which creates excellent opportunities for future growth.
Mandatum’s solvency in the third quarter remained at a good level. Organic capital generation has also been strong: a total of EUR 0.48 per share since the beginning of the year. It's good for investors to bear in mind that organic capital generation is a better indication of Mandatum’s ability to pay dividends than, for example, earnings per share.
Client assets under management again reached a record-high level
Our net flow of EUR 163 million is a particularly strong result, considering the typical negative impact of the summer holiday season on third-quarter flows. Client assets under management once again reached a record high and totalled EUR 14.9 billion. In addition to a strong net flow, a robust investment market increased client assets. The market environment as a whole was significantly more stable than at the beginning of the year, although political risks were still present. Rising earnings growth expectations supported stock markets around the world, and the corporate bond market was stable. The positive market sentiment was also reflected in client behaviour – client activity was at a good level across all businesses.
In Institutional and wealth management business area, we are focussing particularly on expanding our international business and private wealth management in accordance with our strategy. The work we have done in both of these areas is yielding clear results, which I am naturally pleased about. In particular, strong sales in Sweden boosted international institutional sales in the third quarter, and the assets under management of international clients grew by 45 per cent compared to last year. Expansion into the Central European market progressed as planned, with the first employees starting in the new sales unit in Luxembourg. Assets under management for private wealth management clients also grew nicely, by 17 per cent year-on-year. Growth was driven especially by discretionary, i.e. full-mandate wealth management, whereby the client grants us the authority to manage their investment portfolio according to an agreed investment strategy.
Determined product development is the foundation of our asset and wealth management business. In May, we launched the European High Yield Total Return fund, which mainly invests in European high-yield bonds. The fund has been positively received by investors. The Mandatum Managed Futures fund, which draws from systematic investment strategies, received significant new investments during the quarter.
In our Corporate clients business, sales of both pension insurance and personnel funds remained at a good level. Although the development of the Finnish economy has been sluggish in recent years, our clients have generally performed well even in this operating environment. Our Retail clients business progressed as we expected during the quarter, supported by the successful start of collaboration with the Pohjantähti Mutual Insurance Company.
Petri Niemisvirta
Chief Executive Officer
Conference call on 11 November 2025
A conference call in English for analysts and investors is scheduled for 11 November 2025 at 11.00 a.m. (EET, Finnish time). In the conference call CEO Petri Niemisvirta, CFO Matti Ahokas and VP, Investor Relations Lotta Borgström will present the company’s results and answer investors’ questions. The conference call can be followed live at mandatum.fi/en/result.
To ask questions, please join the teleconference by registering using the following link:https://events.inderes.com/mandatum/q3-2025/dial-in. After the registration, you will be provided with phone numbers as well as a conference ID that you can use to join the conference call. If you wish to ask a question, please dial #5 on your telephone keypad to enter the queue.
The recording of the conference call will be available on the company’s website after the event.
Additional information:
Matti Ahokas
CFO
Tel. +358 40 575 1978
matti.ahokas(a)mandatum.fi
Lotta Borgström
VP, Investor Relations
Tel. +358 50 0221 027
lotta.borgstrom(a)mandatum.fi
Niina Riihelä
SVP, Communications, Brand and Sustainability
Tel. +358 40 728 1548
niina.riihela(a)mandatum.fi
The Interim Report can be found as an attachment to this stock exchange release. The supplementary presentation material for investors accompanying the Mandatum interim report is available at mandatum.fi/en/result.
Mandatum plc will publish its Financial Statements Release for 2025 on 12 February 2026.
Mandatum in brief
Mandatum is a major financial services provider, combining expertise in asset and wealth management and life insurance. Clients include institutional investors, companies and private individuals. Mandatum offers a broad range of services encompassing asset and wealth management, compensation and rewards, supplementary pensions and personal risk insurance. Skilled personnel, strong brand and proven investment track record are at the centre of Mandatum’s success. The company has been listed on Nasdaq Helsinki since 2023. mandatum.fi/en/group/
Distribution:
Nasdaq Helsinki
Financial Supervisory Authority
Key media
www.mandatum.fi
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