Mandatum plc, Stock exchange release, 13 February 2025 at 8:30 a.m. EET
October–December 2024 in brief
• Net flow increased by 86% to EUR 391.5 (10–12/2023: 209.9) million.
• Fee result grew by 39% to 18.6 (13.4) million.
• Net finance result was 23.7 (24.9) million.
• Result related to risk policies decreased to 2.2 (8.0) million.
• Profit before taxes decreased by 24% to EUR 35.1 (46.3) million. The decrease from the comparison period was mainly due to updates in actuarial assumptions and higher interest expenses of Group loans.
• Earnings per share (EPS) was EUR 0.07 (0.06) and organic capital generation (OCG) per share was EUR 0.10.
January–December 2024 in brief
• Client assets under management (AuM) increased by 17% from the previous year and amounted to EUR 14.0 (31 Dec 2023: 11.9) billion. Net flow increased by 30% to EUR 983.1 (753.8) million.
• Fee result increased by 27% to EUR 66.6 (52.6) million.
• Cost/income ratio related to client AuM2 decreased by 8 p.p. and thus improved to 58 (66)%.
• Net finance result was EUR 135.6 (148.6) million.
• Result related to risk policies was EUR 25.4 (17.9) million.
• Profit before taxes decreased by 4% to EUR 202.9 (210.4) million.
• Earnings per share (EPS) was EUR 0.33 (0.32) and organic capital generation (OCG) per share was EUR 0.44 (0.54).
• Solvency II ratio was 210.4 (31 Dec 2023: 221.4)%.
Dividend proposal
The Mandatum Board of Directors proposes to pay a dividend of EUR 0.66 per share for 2024 (2023: 0.33). This consist of a EUR 0.33 dividend per share according to the dividend policy, as well as an extra dividend of EUR 0.33 per share. Mandatum's Annual General Meeting will decide on the dividend distribution on 15 May 2025.
Outlook for 2025
• The fee result is expected to increase from year 2024 provided that the market environment remains stable. 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 from time to time.
Key figures
|
EUR million |
10–12/2024 |
10–12/2023 |
Change, % |
1–12/2024 |
1–12/2023 |
Change, % |
|
Fee result |
18.6 |
13.4 |
39 % |
66.6 |
52.6 |
27 % |
|
Net finance result* |
23.7 |
24.9 |
-5 % |
135.6 |
148.6 |
-9 % |
|
Result related to risk policies |
2.2 |
8.0 |
-73 % |
25.4 |
17.9 |
42 % |
|
Other result |
-9.4 |
0.0 |
n.m. |
-24.7 |
-8.7 |
n.m. |
|
Profit before taxes for the period |
35.1 |
46.3 |
-24 % |
202.9 |
210.4 |
-4 % |
|
|
|
|
|
|
|
|
|
Earnings per share, EUR |
0.07 |
0.06 |
12 % |
0.33 |
0.32 |
3 % |
|
Equity per share, EUR |
– |
– |
– |
3.19 |
3.19 |
0 % |
|
Net flow |
391.5 |
209.9 |
86 % |
983.1 |
753.8 |
30 % |
|
Organic capital generation per share, EUR |
0.10 |
n.a. |
n.a. |
0.44 |
0.54 |
-19 % |
|
Return on equity-%1 |
8.3 % |
7.1 % |
1.2 p.p. |
10.3 % |
9.8 % |
0.5 p.p. |
|
Cost/Income ratio related to client AuM, %2 |
– |
– |
– |
58 % |
66 % |
-8 p.p. |
|
EUR million |
31 Dec 2024 |
31 Dec 2023 |
Change, % |
|
Client assets under management (AuM) |
13,957 |
11,892 |
17 % |
|
Solvency ratio, % |
210.4 % |
221.4 % |
-11.0 p.p. |
1) Annualised
2) Trailing twelve months
* Mandatum has changed the Finnish terminology used in its financial reporting. The Finnish translation of the net finance result will be changed from 'sijoitustoiminnan tulos' to 'nettorahoitustulos'. The corresponding English term remains unchanged. The purpose of this change is to harmonise the term with the English equivalent and to clarify the distinction between the investment return and the net finance result.
CEO's comment
I am pleased with Mandatum’s performance in 2024. Profit before taxes, EUR 203 million, was close to the previous year’s level, while the fee result, which is key to Mandatum’s strategy, rose 27 per cent from the previous year to EUR 67 million. The Group’s client assets under management grew 17 per cent to EUR 14 billion. In addition, we achieved an annual net flow of close to a billion euros. It is an achievement that I am particularly proud of considering the current market situation. We also clearly exceeded our 5 per cent net flow target: the net flow for the year was more than 8 per cent of our assets under management.
Continuous growth in fee income-generating institutional and private wealth management as well as pension, savings and risk insurance products is one of our key goals, and we succeeded in this beyond our expectations last year. The relative share of the Group's result from Institutional and wealth management, Corporate and Retail businesses increased from 30 per cent in 2023 already to 43 per cent. Assets under management grew the most in Institutional and wealth management and particularly among international clients, which testifies not only to huge market potential, but also to the appeal of our investment products abroad. Our award-winning fixed income and credit products, such as the Nordic High Yield Fund, which invests in corporate bonds with higher return expectations, and senior loan and private debt products, are good examples of leading industry expertise, which is in high demand also abroad. International institutional assets under management grew last year by as much as 67 per cent and we succeeded in acquiring the first clients also outside the Nordics, in Central Europe. In private wealth management, net subscriptions to allocation products, in particular, grew in line with our expectations. Also, the income from Mandatum Trader online trading service and number of users continued to grow. We have succeeded in increasing the market share in all of the client segments of the Institutional and wealth management business area.
Also the Corporate and Retail clients businesses performed well last year. We continue to be the clear market leader in corporate supplementary pension products and personnel funds, and we hold a strong position also in risk life insurance. In the big picture, Finns are still underinsured and only just waking up to the current situation: It is wise – if not imperative – to prepare personally for retirement well ahead of time, if you are unwilling to compromise your standard of living when you retire. Remuneration, on the other hand, is an effective means for companies to motivate and show appreciation for key personnel, and a clear advantage in the competition for the best talents. In the Retail clients business, the past year was game changing, as the good collaboration with Danske Bank began to bear fruit. Investment sales grew clearly and more loan insurance policies were sold than in the previous year.
Clear improvement in the cost/income ratio
Mandatum set several longer-term financial targets in connection with its listing. These included disciplined pricing, a declining cost/income ratio, active contraction of the with-profit portfolio and an annual net flow of more than 5 per cent of assets under management. We achieved each of these targets in 2024. Especially our cost/income ratio, which declined by 8 percentage points from the comparison year, is clear proof of the scalability of our business: our income is growing clearly faster than our costs. Furthermore, Mandatum is still a highly capitalised company and our solvency ratio of 210 per cent is above the 170–200 per cent target. Since Mandatum's business developed excellently during 2024, and it soon has been almost two years since the listing, we will re-evaluate our longer-term financial targets in connection with our Capital Markets Day arranged in June.
We wish to be an attractive dividend payer to our more than 200,000 shareholders. A good investment result with moderate risk and profitable growth in capital-light business, together with the capital released from the with-profit business, lay a solid foundation for an attractive dividend flow. As our liquidity position and dividend payment ability developed better than we expected last year, Mandatum’s Board of Directors has decided to propose to the Annual General Meeting an extra dividend of EUR 0.33 per share in addition to the EUR 0.33 per share based on our dividend policy for 2024. This translates to a total dividend payout of EUR 0.66 per share for 2024.
The core of our growth strategy, the Institutional and wealth management business, ranked as the top institutional asset manager in the category of large companies among more than a hundred Finnish institutional investors in SFR Research’s survey at the end of the year. At the same time, the Net Promoter Score (NPS) for all client groups for the past year was 78.5, a figure that stands up to the most demanding comparisons. Mandatum has also performed very well in recent Sustainalytics, MSCI and ISS sustainability ratings. We are now in the low ESG risk category in the latest Sustainalytics ESG rating. Among companies in its own industry, Mandatum’s result ranks among the top two per cent.
Success in the various indicators is proof of our clients’ confidence in us and of Mandatum’s exceptionally competent personnel. I would like to offer my sincerest thanks to both our clients and everyone at Mandatum for another successful year. Our ambitious work has enabled us to make Mandatum a global player, whose strong expertise produces results.
Petri Niemisvirta
Chief Executive Officer
Conference call 13 February 2025 at 11:00 EET, Finnish time
A conference call in English for analysts and investors is scheduled for 13 February 2025 at 11.00 a.m. (EET, Finnish time). You can register for the conference call using the link provided below. The phone numbers for the conference call and the associated code will be provided upon registration.
Registration for the event: https://palvelu.flik.fi/teleconference/?id=50051451.
The conference call can be followed live on the internet at www.mandatum.fi/en/result. A recording of the call will be made available for later access at the same web address.
Additional information:
Investors
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
Media
Niina Riihelä
SVP, Communications, Brand and Sustainability
Tel. +358 40 728 1548
niina.riihela(a)mandatum.fi
The Financial Statement Release can be found as an attachment to this stock exchange release. The supplementary presentation material for investors accompanying the Mandatum Financial Statement Release is available at www.mandatum.fi/en/result.
Mandatum plc will publish its Q1 Interim Report on 8 May 2025, Half-year Financial Report on 14 August 2025 and Q3 Interim Report on 11 November 2025.
Mandatum in brief
Mandatum is a major financial services provider that combines expertise in wealth management and life insurance. Mandatum offers clients a wide array of services covering asset and wealth management, savings and investment, compensation and rewards as well as pension plans and personal risk insurance. Mandatum offers services to corporate, retail, institutional and wealth management clients. At the centre of Mandatum's success are highly skilled personnel, a strong brand as well as a proven investment track record.
mandatum.fi/en/group
Distribution:
Nasdaq Helsinki
Principal media
Financial Supervisory Authority
www.mandatum.fi
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