Mandatum (MANTA) Q2 2024 earnings summary

Executive summary

• Profit before tax rose 57% year-over-year in Q2 to EUR 75.8 million, with all result areas contributing to growth.

• Fee result increased 18% to EUR 14.7 million, supported by 16% growth in client assets under management (AuM).

• Net flow reached EUR 232 million in Q2, annualized at 8% of AuM, surpassing the 5% target.

• Client AuM grew 16% year-over-year to EUR 13 billion, an all-time high.

• Mandatum joined the Net Zero Asset Managers initiative, committing to net zero emissions by 2050.

Financial highlights

• Q2 profit before tax was EUR 75.8 million, up 57% year-over-year; H1 profit before tax was EUR 122.7 million, up 53%.

• Fee result for Q2 was EUR 14.7 million, up 18% year-over-year; net finance result was EUR 55.1 million, including a EUR 12 million dividend from Saxo Bank and a EUR 5 million one-off CSM release.

• Cost/income ratio improved to 64% (from 71% a year ago), as fee growth outpaced cost increases.

• Return on equity for the quarter was 14.6%, with H1 at 12.2%.

• Earnings per share for H1 was EUR 0.19, up 51% year-over-year.

Outlook and guidance

• Fee result is expected to increase in 2024 if market conditions remain stable, but is subject to client behavior, competition, and capital market conditions.

• With-profit portfolio is expected to continue decreasing, with potential volatility in net finance result due to market changes.

• Solvency remains strong, supporting operations in various market conditions.

• Dividend target is EUR 500 million cumulative during 2024–2026; H1 2024 dividend of EUR 166 million approved.

• International expansion, especially in Sweden and Denmark, remains a strategic focus.