CFO Insight into Q3 2024

The first three quarters of the year have been marked by stable growth. At the end of Q3, the Finnfund portfolio value reached EUR 744 million, with an increase of EUR 22 million (+3%) from the end of last year.

During the first nine months of the year, Finnfund made 15 new investment decisions, worth EUR 123 million.​

In Q3, interest rates remained at a high level, consequently having a positive effect on Finnfund’s interest revenues.

The total gross interest income increased by +14%, compared to Q3/2023 (EUR 27.6 million vs. EUR 24.3 million), whereas the interest expenses increased by +34% compared to Q3/2023 (EUR 12.1 million vs. EUR 9.0 million). The new private placement green bond, issued at the end of 2023, increased the interest expenses compared to last year.​

The year-to-date shows a total net financial income of EUR 15.5 million. The decrease compared to last year (EUR 20.4 million in Q3/2023) is -24%, driven by the decrease of the dividend and fund income, as well as the increase of the interest expenses.​

​The administration, depreciation, and other operational expenses remained at a lower level both compared to the budget (-5%) and last year (-2 %), which is aligned with our goal to increase our efficiency level.​

The profit before reduction in the value of investments and sales gains and losses was EUR 2.1 million (EUR 6.8 million in Q3/2023). ​

Since the beginning of the year, the portfolio’s net value changes and sales have been EUR 11.2 million (EUR -3.7 million in Q3/2023). ​

At the end of Q3, the profit was EUR 6.9 million (EUR 3.1 million in Q3/2023). ​

For the rest of the year, our outlook remains cautiously optimistic. The growing unrest around the world makes our investment environment challenging, and the looming sovereign debt crisis in many of our mandate countries may harm our investees’ businesses and profitability.

However, it is also good to note, that in many developing and emerging markets the situation looks relatively optimistic. And this, on a positive note, also creates opportunities for investors.

Olli Sinnemaa
Chief Financial Officer, Finnfund

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Olli Sinnemaa Chief Financial Officer olli.sinnemaa@finnfund.fi