Mandatum's efficiency drive yields record assets, lower costs

Finnish financial services group Mandatum on Tuesday reported a 23% rise in third-quarter pretax profit, as cost-cutting measures boosted its bottom line and client assets reached a new high.

Profit before taxes for the July-to-September period grew to 55.7 million euros from 45.2 million euros a year earlier, driven by a 20% increase in fee income, the company said.

Client assets under management rose 12% year-on-year to a record 14.9 billion euros, supported by positive market movements and a 43% increase in net inflows.

The company highlighted its focus on efficiency, with its cost-to-income ratio for the last twelve months improving to 50% from 63% a year ago.

"Since our listing, we have focused particularly on improving our operational efficiency," Chief Executive Petri Niemisvirta said in a statement.

"One indication of this is the clearly improved cost/income ratio, which has now dropped to 50 per cent for the first time."

The result marks a recovery from the second quarter, when profit fell due to the impact of lower interest rates.

Mandatum maintained its full-year outlook, stating it expects its fee result to increase from 2024.