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Finland's Mandatum Q3 capital-light profit rises on higher client assets

By Reuters News


Overview

  • Finland financial services firm's Q3 capital-light pretax profit rose 18% on higher client assets

  • Group Q3 pretax profit fell 21% as higher rates weighed on net finance result

  • Client assets under management grew 13% yr/yr, but Q3 net flow slowed amid market uncertainty


Outlook

  • Mandatum expects 2026 fee result to increase from 2025

  • Company expects with-profit portfolio to decrease further in 2026

  • Mandatum says 2026 fee result depends on client behaviour, competition and capital market conditions


Result Drivers

  • ASSET GROWTH - Higher client assets under management drove increases in fee result and capital-light profit before taxes

  • NET FINANCE RESULT - Group profit before taxes declined mainly due to lower net finance result, as higher interest rates weighed on fixed-income investments

  • LOWER NET FLOWS - Net flow of client assets slowed, with the company citing delayed investment decisions and increased redemptions amid rising rates and market uncertainty


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 EPS

EUR 0.06

Q3 Assets Under Management

EUR 16.80 bln

Q3 Pretax Profit

EUR 44.10 mln


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and 4 "sell" or "strong sell"

  • The average consensus recommendation for the investment management & fund operators peer group is "buy."

  • Wall Street's median 12-month price target for Mandatum Oyj is €6.00, about 2.7% above its November 9 closing price of €5.84

  • The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 20 three months ago


Reuters Recommended Reads

  • Nov 9 - Affiliated Managers Group posts record AUM

  • Nov 9 - AlTi Global Q3 revenue inches up year over year

  • Nov 9 - KKR's Q3 profit rises on higher fee income, monetization


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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