Mandatum’s stock advanced 4% in Helsinki trading on Tuesday after the Finnish financial services group reported second-quarter profit that exceeded market expectations and raised its full-year outlook.
The company said net profit rose to €145 million from €118 million a year earlier, driven by higher investment income and improved fee-based revenue. Analysts polled by Reuters had forecast a net profit of €125 million.
Mandatum also upgraded its 2024 earnings guidance, citing resilient demand for its life and pension products and a stronger-than-anticipated performance in its asset management division. The group now expects net profit for the year to be between €500 million and €550 million, up from its prior forecast of €450 million to €500 million.
Chief Executive Officer Vesa Aho attributed the outperformance to disciplined cost management and sustained growth in customer assets under management, which reached €32.4 billion at the end of June, a 6% increase from the prior year.
The company’s shares, which had been trading near multi-year lows in recent months, extended gains to 4.2% by midday, outpacing the broader OMX Helsinki 25 index, which was up 0.8%.
Analysts at Nordea maintained a hold rating on the stock but raised their price target to €18.50 from €16.00, citing the improved earnings trajectory and valuation support. Mandatum’s shares closed at €15.80 on Monday.
The positive momentum follows a challenging 2023, when the group grappled with volatile markets and lower investment returns. The latest results signal a recovery in core earnings and investor confidence in Mandatum’s strategy to diversify revenue streams beyond traditional insurance products.
