Finnish financial company Sampo reports over 50 percent EPS growth year-over-year

Finnish financial company Sampo reports over 50 percent EPS growth year-over-year

28 November 2017

For the first three quarters 2017 Finnish financial services company Sampo reported an EPS growth of more than 50 percent on a year-over-year basis. According to Sampo, these results were impacted by a change in accounting status of Topdanmark from an associated company to a subsidiary of Sampo.

According to the company, Finnish Sampo Group's business areas are expected to report good operating results for 2017. Nordea's contribution to the Group's profit is expected to be significant and the mark-to-market results are dependent on capital market developments. The low interest rate level makes gaining yield by reinvestments in fixed income products more difficult. A future increase in interest rates in the Euro zone could be a game changer and could increase Sampos profits. However the future development remains to be seen.


Change in corporate structure

In previous financial statements Sampo reported three segments: If P&C Insurance (including Topdanmark), Mandatum Life Insurance and Holding segment (including Sampo's share of Nordea's profit). In the new financial reporting Topdanmark will be a separate segment of now four segments.

Sampo is a financial services holding based in Finland which focuses on insurance services with its subsidiaries. If P&C Insurance is a leading property and casualty insurer in the Nordic region, Mandatum Life provides wealth management, remuneration services and personal risk insurance and Topdanmark provides insurance services in Denmark. On top, Sampo is a major shareholder of Nordea Bank.

Sampo reports high EPS growth and has a high dividend yield

Sampos profit before taxes equaled EUR 2.05 billion in the first three quarters which was an increase of 52 percent year-over-year. Sampo reported a return on equity (RoE) of 21,4 percent. Earnings per share (EPS) equaled EUR 3,35 which was an increase of 58,77 percent on a year-over-year basis. Topdanmark with a profit before taxes of EUR 796 million contributed the largest part before the subsidiaries If P&C Insurance with EUR 491 million and Mandatum Life with EUR 180 million. On top, the stake of Nordea contributed largely to the profit before taxes. Besides these results, future developments are still expected.

At the moment Sampo shares are traded at EUR 44.79 (28.11.2017). The stock reached its annual high at EUR 47.21 (20.07.2017) and its low at EUR 41.68 (20.01.2017). Bloomberg analysts estimate a price-earnings-ratio of 10.59 and a dividend yield of 5.17 percent. 12 analysts rate Sampo on Buy, 10 on Hold and 4 on Sell. Sampos current market capitalization equals EUR 24.93 billion.

The future share performance will depend on various corporate-, industry- and economic factors. Investors should consider the risks before taking any investment decisions. The performance of the underlying might differ from investors’ expectations and lead to a potential capital loss

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26/11/2022 10:27:06


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