Mandatum Oyj (MANDF) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning and thank you for joining Mandatum's Q2 2025 audio cast. My name is Lotta Burström and I lead investor relations here at Mandatum. I am pleased to be joined by our CEO Petri Niemisvirta and CFO Matti Ahokas who will walk you through the highlights of our second quarter after which we'll take the Q&A where you have the possibility to dial in for any questions. Without further ado, I would now like to hand over to our CEO, Petri Niemisvirta, who will take you through Mandatum's key achievements and developments for the second quarter. Petri, the floor is yours. Thank you, Lotta. And now let's move on to the second quarter. The start for the second quarter was somewhat shaky due to planned tariffs and aggressive trade policy in the US, leading to a widespread market uncertainty. However, the sentiment rebounded swiftly after April and the markets stabilized. Fee result grew by 26% year-on-year, reaching 18.5 million euros, reflecting mainly improved cost efficiency and an increase of 11% in client assets under management. Cost efficiency improved significantly, with the cost-to-income ratio dropping by 11%, which points to 53%. The result related to risk policies in the second quarter decreased to 2 million euros. Main reason for this was the high comparison figure that included a profit of 6 million euros related to the insurance portfolio transfer to IF during 2024. Profit before taxes fell to 34.2 million euros during the second quarter, impacted mostly by the decline in net finance result. The net finance result decreased to 21.6 million euros, mainly driven by the decline in long-term interest rates used in the discounting of insurance contracts liabilities. Also, the comparison figure was notably strong due to the sharp rise in the long-term interest ...