January-March 2024 in brief- Profit before taxes increased by 47% to
EUR 46.9 million (1-3/2023: 32.0). The growth was mainly due to the net finance result, but the fee result also increased from the comparison period. -
Fee result increased by 9% to
EUR 15.2 million (14.0). -
Net flow decreased to
EUR 246 million (291). -
Client assets under management increased by 5% from year-end and 16% from last year and amounted to
EUR 12.5 billion . -
Net finance result increased to
EUR 29.9 million (13.4). -
Result related to risk policies was
EUR 2.2 million (2.9). -
Solvency II ratio adjusted for dividend accrual was 216.5% (
31 Dec 2023 : 221.4%).
Outlook 2024 (unchanged)- The fee result is expected to increase from year 2023 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 and 2023, the fee result for year 2024 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 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.
-
The strong solvency gives the company a sound basis to operate in different market conditions.
Key figures
EUR million | 1-3/2024 | 1-3/2023 | Change, % | 10-12/2023 | Change, % | 1-12/2023 |
Profit before taxes for the period | 46.9 | 32.0 | 47% | 46.3 | 1% | 210.4 |
Fee result | 15.2 | 14.0 | 9% | 13.4 | 13% | 52.6 |
Net finance result | 29.9 | 13.4 | 123% | 24.9 | 20% | 148.6 |
Result related to risk policies | 2.2 | 2.9 | -24% | 8.0 | -72% | 17.9 |
Other income | -0.5 | 1.7 |
| 0.0 |
| -8.7 |
Earnings per share, EUR | 0.08 | 0.05 | 60% | 0.06 | 33% | 0.32 |
Equity per share, EUR | 3.26 | 3.06 | 7% | 3.19 | 2% | 3.19 |
Price/earnings ratio (P/E ratio) | 13.7 |
|
|
|
| 12.7 |
Net flow | 246 | 291 | -16% | 210 | 17% | 754 |
Return on equity-% | 9.3% | 5.8% |
| 9.8% |
| 9.8% |
Cost/income ratio related to client AuM, %1 | 65% | 66% |
| 66% |
| 66% |
EUR million | Change, % | Change, % |
| |||
Client AuM | 12,504 | 10,776 | 16% | 11,892 | 5% |
|
Solvency ratio adjusted for dividend accrual, % | 216.5% | 279.5% | -63% | 221.4% | -5% |
|
1) Moving average 12 months.
CEO's review
The year 2024 began according to our expectations for Mandatum. The fee result, key for our growth strategy, increased by 9 per cent from the comparison period, indicating good performance in our capital-light business areas, especially in Institutional & Wealth management. Client assets under management increased by 16 per cent to
Mandatum's profit before taxes increased to
The net flow in the Institutional & Wealth management business area was strong in all client segments during the quarter. Much of the incoming money still came to fixed-income products, such as the
Mandatum committed to the UN Principles for
I am proud and happy that our efforts to manage our company culture with exceptionally good employee understanding earned the well-recognised Siqni Future Workpalces Certification again for the third time in a row. The certification is based on a survey that measures how factors deemed meaningful by employees are fulfilled in the workplace. Our flourishing corporate culture is the factor that leads to not only an excellent employee experience, but also a high level of customer satisfaction, thus creating the foundation for successful business. Mandatum's employee satisfaction has remained at a high level for over a decade and investing in an excellent employee experience is one of our strategic goals.
We committed to the UN Principles for
The start of the year has been strong in the investment markets. The growth of the global stock market has continued from last year, with good returns from high-yield corporate loans and senior loans, to name a few. The general economic outlook, driven by
Thus, it seems that the operating environment will continue to be favourable for Mandatum. Central banks are expected to start lowering their key interest rates during the current year, but the development of long-term interest rates is more important for the shorter-term results development of the company. As a company, Mandatum is highly resilient on several metrics, and we are in a solid position to continue the implementation of our growth strategy going forward.
Chief Executive Officer
Conference call on 8 May at
A conference call in English for analysts and investors is scheduled for
Registration for the event: http://palvelu.flik.fi/teleconference/?id=10012280
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
Investor enquiries:
CFO
Tel. +358 40 575 1978
matti.ahokas(a)mandatum.fi
Lotta Borgström
VP, Investor Relations
Tel. +358 50 022 1027
lotta.borgstrom(a)mandatum.fi
Media enquiries:
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 www.mandatum.fi/en/result.
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
Financial Supervisory Authority
The principal media
www.mandatum.fi
https://news.cision.com/mandatum-oyj/r/mandatum-plc-s-interim-report-1-january-31-march-2024--client-assets-under-management-continued-stea,c3975618
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