United Bankers Plc
13 February 2025 at 9:00 EET
United Bankers Plc's Financial Statements Bulletin 2024: Exceptional result in a challenging environment
This stock exchange release is a summary of the United Bankers' Financial Statements Bulletin 1 January - 31 December 2024. The complete Financial Statements Bulletin with tables is attached to this release and is also available on the company's website at www.unitedbankers.fi.
The figures in this release are unaudited.
January-December 2024 in brief
- The Group's revenue (income from operations) in the financial period amounted to EUR 62.1 million (EUR 52.1 million in 1-12/2023), an increase of 19.1%.
- The Group's adjusted EBITDA amounted to EUR 26.4 million (EUR 19.1 million in 1-12/2023), an increase of 38.2% and adjusted operating profit to EUR 23.7 million (EUR 16.9 million in 1-12/2023), an increase 40.0%.
- The Group's operating profit for the financial period amounted to EUR 23.4 million (EUR 17.0 million in 1-12/2023), an increase of 37.8% and the profit for the financial period amounted to EUR 18.4 million (EUR 13.8 million in 1-12/2023), an increase of 33.3%.
- The Group's earnings per share were EUR 1.66 (EUR 1.24 in 1-12/2023).
- Net fee income from wealth management in the financial period amounted to EUR 52.7 million (EUR 43.6 million in 1-12/2023). The sale of the partnership interests in the UB Nordic Forest Fund II significantly increased performance fees earned from the funds. Management fees from the funds remained stable, while fees from discretionary asset management grew substantially.
- Net fee income from capital markets services amounted to EUR 0.6 million (EUR 0.7 million in 1-12/2023). The Group's capital markets services business suffered from low market activity. Only two transactions were completed during the year.
- Assets under management at the end of the financial period amounted to EUR 4.8 billion (EUR 4.6 billion as at 31 December 2023).
- The cost-to-income ratio at the end of the financial period amounted to 0.62 (0.67).
- The Board of Directors proposes that a dividend of EUR 1.10 per share be distributed for the financial year. The dividend will be paid in two instalments (EUR 0.55 and EUR 0.55).
- Guidance for 2025: The company estimates its adjusted operating profit to be significantly below the level of 2024, as performance fees are expected to be lower than in the exceptionally strong comparison period.
July-December 2024 in brief
- The Group's revenue (income from operations) in the latter half of the year amounted to EUR 29.1 million (EUR 27.4 million in 7-12/2023).
- The Group's adjusted EBITDA in the latter half of the year amounted to EUR 11.4 million (EUR 11.1 million in 7-12/2023) and adjusted operating profit to EUR 9.9 million (EUR 9.9 million in 7-12/2023).
- Earnings per share were EUR 0.71 (EUR 0.74 in 7-12/2023).
Key events of the year in brief
United Bankers' full-year result once again reached a new record high. The key factor driving the strong growth in profits was the sale of partnership interests and 33,000 hectares of forest properties of the UB Nordic Forest Fund II LP to the German Munich Re Group's asset management company, MEAG, in March. The forest fund transaction was an excellent demonstration of United Bankers' ability to build profitable forest property portfolios for its investors.
United Bankers' assets under management increased from EUR 4.6 billion to EUR 4.8 billion over the year. The positive performance of asset management and nearly all funds contributed to the development of assets under management. The funds attracted net subscriptions of EUR 128 million during the year, including investment commitments from limited partnership (LP) funds. The market environment was not favorable for United Bankers' real asset funds, and especially the real estate funds suffered from the weak market conditions. However, the demand for discretionary asset management services continued its strong growth, with new capital raised more than twice as much compared to the previous year.
In May, United Bankers organised directed share issues for the Group's employees and management, as well as for the Group's tied agents and certain holding companies of key persons acting as directors of alternative investment funds managed by the company's Group. The issues generated broad interest, and they were subscribed 2.2 times in total. Nearly 70 per cent of those eligible to subscribe participated in the employee issue, and approximately 75 per cent of those eligible subscribed to the tied agent issue. A total of 137 UB employees and agents participating in the issues demonstrates a strong commitment to the long-term strategy and objectives of the company.
The commitment to a well-being-focused and motivated personnel was reflected in the results of the employee survey conducted by Eezy Flow. United Bankers once again received Finland's Most Inspiring Workplace recognition. Additionally, the company was awarded the title of Most Responsible Workplace in Finland in 2024. Good team spirit and positive atmosphere among the personnel were also reflected in the customer experience. According to customer satisfaction surveys, satisfaction has improved among both private and institutional investors.
During the spring, United Bankers' major IT system reform moved into the roll-out phase. The reform replaced the previous systems for portfolio management, custody and settlement of securities and reporting, among others, with one new system. The system project was carried out in cooperation with the Finnish software company Digia Plc. The move to a single, modern master system simplifies and streamlines the Group's internal processes and allows for more flexible development of services such as digital services and client reporting.
In November, the Board of Directors of United Bankers appointed John Ojanperä as the company's new CEO. John Ojanperä, who has been with the United Bankers Group since 2014, previously served as the CEO of UB Fund Management Company Ltd. In addition, he has been a member of United Bankers' management team since 2016. Patrick Anderson, the company's long-time CEO, is nominated to the company's Board of Directors at the 2025 Annual General Meeting. If Anderson is elected to the Board of Directors, the current Board members who are proposed for the Board of Directors, if re-elected, have announced that they will elect Patrick Anderson as Chair of the Board.
Consolidated key figures (The figures are presented in more detail in the appendix of the Financial Statements Bulletin)
| 7-12/2024 | 7-12/2023 | change %* | 1-12/2024 | 1-12/2023 | change %* | |
| Key Income Statement Figures | ||||||
| Revenue, MEUR | 29.1 | 27.4 | 6.1 | 62.1 | 52.1 | 19.1 |
| Adjusted EBITDA, MEUR | 11.4 | 11.1 | 3.0 | 26.4 | 19.1 | 38.2 |
| Adjusted operating profit, MEUR | 9.9 | 9.9 | -0.6 | 23.7 | 16.9 | 40.0 |
| Adjusted operating profit, % of revenue | 33.9 | 36.2 | 38.2 | 32.5 | ||
| Operating profit, MEUR | 9.9 | 10.0 | -1.1 | 23.4 | 17.0 | 37.8 |
| Profit for the period, MEUR | 7.9 | 8.4 | -5.8 | 18.4 | 13.8 | 33.3 |
| Profitability | ||||||
| Return on Equity (ROE), % | 31.9 | 29.2 | 32.6 | 27.8 | ||
| Return on Assets (ROA), % | 21.4 | 19.1 | 22.4 | 18.7 | ||
| Key Balance Sheet Figures | ||||||
| Equity ratio, % | 69.5 | 67.7 | ||||
| Capital adequacy ratio, % | 28.4 | 24.1 | ||||
| Key Figures Per Share | ||||||
| Earnings per share, EUR | 0.71 | 0.74 | -4.0 | 1.66 | 1.24 | 34.3 |
| Earnings per share, EUR (diluted) | 0.70 | 0.73 | -4.1 | 1.64 | 1.23 | 33.4 |
| Equity per share, EUR | 5,60 | 4.75 | ||||
| Distribution of funds per share | 1,10** | 1.00*** | ||||
| Other key figures | ||||||
| Cost-to-income ratio | 0.65 | 0.63 | 0.62 | 0.67 | ||
| Assets under management at the end of the period, bn EUR | 4.8 | 4.6 | 4.8 | |||
| Personnel at the end of the period (FTE)**** | 161 | 160 |
* The percentage change has been calculated using the actual figures, the figures shown in the table have been rounded
** The Board of Directors proposes a dividend of EUR 1.10 per share for the financial year. The dividend will be paid in two instalments (EUR 0.55 and EUR 0.55)
*** Distribution of funds for the 2023 financial period confirmed by the Annual General Meeting of Shareholders on 22 March 2024. A dividend of EUR 0.50 and an equity repayment of EUR 0.50
****The number of personnel stated has been converted to full-time equivalent
As its key financial figures, United Bankers presents adjusted EBITDA and adjusted operating profit, which the company uses to illustrate the profitability and result of the Group's business operations as a going concern. Adjusted key figures are used to improve comparability between reporting periods. The adjusted key figures are adjusted for the impacts of corporate transactions influencing comparability, as well as certain material non-operating items. More information on the calculation of the key figures is available in the tables section of the Financial Statements Bulletin.
Group revenue and profit performance 2024
(comparison figures 1 January - 31 December 2023)
United Bankers' revenue and profit growth remained strong in 2024. During the financial period, the Group's revenue (income from operations) increased to EUR 62.1 million (EUR 52.1 million), increasing by 19.1 per cent from the previous year. The Group's adjusted EBITDA developed strongly, increasing by 38.2 per cent to EUR 26.4 million (EUR 19.1 million). The adjusted operating profit increased by as much as 40.0 per cent to EUR 23.7 million (EUR 16.9 million), and the adjusted operating profit margin increased to 38.2 per cent (32.5 per cent). Earnings per share amounted to EUR 1.66 (EUR 1.24). Return on equity strengthened to 32.6 per cent (27.8 per cent), and the cost-to-income ratio improved to 0.62 (0.67).
The very strong performance and profitability development is mainly explained by the sale of the UB Nordic Forest Fund II to the German Munich Re Group's asset management company MEAG in March.
Overall, the financial year was positive for the Group's wealth management business. The segment's revenue increased to EUR 60.6 million and its EBITDA to EUR 27.2 million. The majority of the performance fees, EUR 19.9 million, were generated by the Group's forest funds, significantly influenced by the fee recorded for the financial year from the aforementioned sale of UB Nordic Forest Fund II. Among the individual funds, the performance fees of the renewable energy fund were also significant.
The development of fund management fees remained stable. A significant portion of the management fees during the financial year was generated from United Bankers' forest funds. Management fees from real estate funds declined slightly but continued to play an important role in the overall fee structure. Strong demand for discretionary asset management services increased assets under management under these services, leading to a clear rise in asset management fees. The interest margin from client assets also had a positive impact on the wealth management segment's results. On the other hand, lower sales volumes of structured investment products compared to previous years put pressure on the fees generated from them.
The market environment for corporate and financial transactions remained subdued in 2024, reflecting on the demand for the Group's capital markets services. The segment's revenue declined from the previous year to EUR 0.7 million (EUR 1.0 million), and EBITDA remained negative at EUR -0.4 million (EUR -0.3 million).
The Group's expenses increased from the previous financial year, but the rate of cost growth was in line with expectations. Administrative expenses, including personnel and other administrative costs, increased by 9.6 per cent to EUR 28.5 million (EUR 26.0 million). Personnel expenses increased by 10.4 per cent to EUR 21.0 million (EUR 19.0 million), while other administrative expenses grew by 7.5 per cent to EUR 7.5 million (EUR 7.0 million). The increase in personnel expenses was partly due to the large-scale but moderate salary increases introduced at the beginning of the year. However, a significant part of the increase in personnel expenses can be explained by one-off items related to employee share issue carried out in the spring, the recruitment of key personnel and the performance bonuses related to the sale of the forest fund. The increase in other administrative expenses was mainly driven by higher IT and systems costs and general cost inflation. Depreciation and impairments increased to EUR 2.7 million (EUR 2.2 million) due to a comprehensive system renewal implemented in the Group.
The number of full-time equivalent employees remained close to the level at the end of the previous year, totaling 161 employees at the end of the year (160 employees). Of these, 9 were temporary employees (10 employees). New key personnel recruitments were focused on areas such as asset management sales.
CEO's review
John Ojanperä
I am John Ojanperä and I now have the pleasure of writing my first CEO's review. In early November, I took the baton from Patrick Anderson, who has led the company for 18 years, and who will be nominated as full-time Chairman of the Board at the AGM in spring 2025. I have started my new role as CEO of United Bankers Plc filled with curiosity and excitement. I have been part of the UB team for ten years. For the last eight years, I have been the CEO of the fund management company and a member of the Group's management team. The company has evolved enormously in that time.
During Patrick's tenure as CEO, which began in 2007, a new growth strategy was created for the company, the company went public and UB has become one of the leading alternative investment management companies in the Nordic region. I have had the pleasure of working closely with Patrick for a long time and I am delighted that our close cooperation will continue in the future.
The year 2024 was one of slowing inflation and falling interest rates. It was a mixed year for the investment markets: global equity, interest rate and forestry markets performed well, while the Finnish real estate and equity markets clearly underperformed the rest of the world.
For the United Bankers Group, 2024 was the strongest year in terms of revenue and operating profit in the company's 38-year history and the sixth consecutive record-breaking year. Revenue increased by 19.1 per cent to EUR 62.1 million. Our adjusted operating profit increased as much as 40.0 per cent to EUR 23.7 million and profit for the financial period rose by 33.3 per cent to EUR 18.4 million. Net subscriptions to our funds fell to EUR 128 million (EUR 187 million), as total sales of asset management products and services increased by 4.7 per cent to EUR 524 million. Our cost-to-income ratio improved to 0.62 (0.67).
While the year was very strong in terms of the figures, in both absolute terms and relative to most of our competitors, it was also a varied year in terms of business. Our forest funds and our wealth management business again delivered excellent returns to our clients and the returns of almost all of our other funds were also positive. The largest net inflows were into our asset management services and, on the fund side, into fixed income and renewable energy.
On the other hand, it was a difficult year for new sales of all our alternative funds, as the positive effects of interest rate cuts have mainly carried over to 2025. Our real estate funds produced slightly negative returns for our clients during the period, but we avoided fund closures and significant redemptions thanks to the excellent diversification of the funds, which are geographically spread across the Nordic countries and broadly across property categories. In capital markets services business, on the other hand, the quiet transaction market and the postponement of projects weighed on the performance, which was lower than both the previous year and the targets. Moreover, once again, we were not spared from the effects of general inflationary pressures on our costs in the financial year just ended.
Despite the slower-than-normal growth in assets under management, we were able to deliver on our strategy with excellent performance. In a nutshell, this meant simplifying our business and focusing on the launch of new core funds and on fundraising. Around Europe, we met more new institutional investors than ever before, and the first housing fund in the company's history was established. The fund aims to take advantage of the above-average expected returns of the Finnish housing market, as many investors are forced to sell their housing stock in illiquid markets at below-average valuation levels. The biggest internal system reform in the company's history was rolled out in spring 2024. This will accelerate our efficiency work in the future, as a single system will speed up and increase the agility of the company's operational processes and their further development. At the same time, we will be able to further improve the client experience.
Through our selection of funds, we want to play a stronger role in addressing global environmental challenges while delivering excellent risk-adjusted returns to our clients. All our core funds are working on global solutions, and through them we can make a difference, which is significantly greater than our size, in terms of the mitigation of climate change, for example. These megatrends that drive international capital flows will increasingly provide us with tailwinds in the coming years.
At the end of 2024, United Bankers received excellent scores in the PRI (Principles for Responsible Investment) assessment of the responsibility of its investment activities. In the asset-specific assessments, we received a full 5/5 stars for all scored assets and improved our scores in the sections on engagement and voting activity compared to the previous assessment in 2023.
We received some of our investor feedback in the form of positive subscriptions and some in the form of new shareholders. The number of our shareholders increased by about 10 per cent during the year and our share is the only one on the Helsinki Stock Exchange that has delivered a positive total return to its shareholders for seven consecutive calendar years. As a result of the positive value development, our company was upgraded to the Mid Cap segment on the Helsinki Stock Exchange at the turn of the year.
The most important asset at United Bankers is the UB team. In 2024, United Bankers received the Most Inspiring Workplaces in Finland recognition for the third year in a row, and the PeoplePower Index, which measures employee engagement, continued to develop positively. Based on the results of the sustainability section of the employee survey, United Bankers also received an award for being the Most Responsible Workplace in Finland. As a strong sign of commitment, we can mention that the share of ownership of United Bankers among its personnel, board members and tied agents totalled approximately 57 per cent of the company at the end of the financial year.
As the new CEO, I look to the future of the company with confidence. The change of leadership will not change the company's strategic direction, but the new division of responsibilities within the top management is expected to enable an even more effective execution of the growth strategy - together with the UB team and with all our stakeholders. As a person and a leader, I am first and foremost a team player, which is why team spirit has always been closest to my heart when it comes to our company's values. I believe that together with the entire UB team we can go a long way. I am surrounded by a top team, our focus is in the right place and our products and services are of the highest quality. We now have every opportunity to take the company to the next level.
Finally, I would like to thank our clients and shareholders for their strong and long-standing trust. I would also like to thank the incredible UB team for their great teamwork in a demanding environment. The work done in 2024 and our record profit provide us with an excellent basis to continue creating value for our clients and other stakeholders. Our focus on generating future growth is even more strongly beyond Finland's borders and our goal is to build our company into a European alternative fund manager. This international growth will not prevent us from improving our operations in Finland and we will not forget our roots. We want to continue being the most trusted asset management partner for our Finnish clients.
Financial guidance for 2025
The company estimates its adjusted operating profit to be significantly below the level of 2024, as performance fees are expected to be lower than in the exceptionally strong comparison period.
Board of Directors' proposal concerning distribution of dividend
United Bankers Plc's result for the financial period 1 January - 31 December 2024 amounted to EUR 25,306,153.19. The company's distributable assets as at 31 December 2024 were EUR 48.8 million, of which the appropriations of retained earnings are EUR 27.9 million and the distributable funds in the reserve of invested unrestricted equity fund are EUR 20.9 million.
The Board of Directors proposes to the Annual General Meeting of Shareholders that based on the balance sheet adopted for the financial period ended on 31 December 2024, a total dividend of EUR 1.10 per share be paid. The total dividend distribution in accordance with the proposal, calculated at the number of shares outstanding at the date of the financial statements, amounts to EUR 12,026,503.50. No dividend shall be payable on treasury shares held by the company.
The Board of Directors proposes that the dividend be distributed in two instalments, with payments made in April and October. The first instalment of the dividend will be paid to a shareholder who is registered in the company's shareholders' register maintained by Euroclear Finland Ltd on the record date for dividend payment, 25 March 2025. The dividend is proposed to be paid out on 1 April 2025. The second instalment of the dividend will be paid to a shareholder who is registered in the company's shareholders' register maintained by Euroclear Finland Ltd on the record date for dividend payment, 26 September 2025. The dividend is proposed to be paid out on 3 October 2025. The Board of Directors proposes it be authorised, if necessary, to decide on a new record date and payment date for the second instalment of the dividend, if the rules of Euroclear Finland Ltd or the regulations concerning the Finnish book-entry system change or otherwise require it.
No material changes have taken place in the company's financial position since the end of the financial year. The proposed dividend distribution and equity repayment do not, according to the Board of Directors, endanger the solvency of the company.
Publication of Financial Statements and the Annual General Meeting 2025
Financial Statements, Operating and Financial Review, Remuneration Report and the Corporate Governance Statement of the United Bankers Group will be published in connection with United Bankers' Annual Report during week 9.
United Bankers Plc's Annual General Meeting will be held on Friday 21 March 2025 at 13.00 EET in Helsinki. The company delivers a notice on the website unitedbankers.fi no later than three weeks prior to the Annual General Meeting. United Bankers Plc's Half-Year Financial Report for the period of 1 January through 30 June 2025 will be published on or about 21 August 2025.
Press conference
United Bankers will present the result to analysts and press at the company headquarters, Aleksanterinkatu 21 A, 4th floor, 00100 Helsinki today, on Thursday 13 February 2025 at 11.30 am in Finnish. It is also possible to participate the press conference virtually. To participate in the event, please sign up in advance to ir@unitedbankers.fi.
For further information, please contact:
John Ojanperä, CEO, United Bankers Plc
Email: john.ojanpera@unitedbankers.fi
Telephone: +358 40 842 3472, +358 9 25 380 356
Katri Nieminen, CFO, United Bankers Plc
Email: katri.nieminen@unitedbankers.fi
Telephone: +358 50 564 4787, +358 9 25 380 349
Investor Relations: ir@unitedbankers.fi
United Bankers in brief:
United Bankers Plc is a Finnish expert on wealth management and investment markets, established in 1986. United Bankers Group's business segments include wealth management and capital markets services. In asset management, the Group specialises in real asset investments. United Bankers Plc is majority-owned by its key personnel and the Group employs 161 employees (FTE) and 25 agents (31 December 2024). In 2024, the United Bankers Group's revenue totalled EUR 62.1 million and its adjusted operating profit amounted to EUR 23.7 million. The Group's assets under management amount to approximately EUR 4.8 billion (31 December 2024). United Bankers Plc's shares are listed on Nasdaq Helsinki Ltd. The Group companies are subject to the Finnish Financial Supervisory Authority's supervision. For further information on United Bankers Group, please visit unitedbankers.fi.
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