CFO Insights into Q1 2025

As stated by Finnfund’s CEO and Managing Director, Jaakko Kangasniemi, 2024 was a year of rethinking and we revisited our strategy while reaffirming our development mission.

Finnfund’s investment portfolio grew from EUR 830 million to EUR 887 million in 2024. At the end of the year, the portfolio, commitments, and investment decisions totalled EUR 1.3 billion, as explained further in the Annual Report and our press release.

Finnfund met its target for new investments, making 26 new investment decisions totalling EUR 226 million. Of this, EUR 124 million were allocated to climate change mitigation and/or adaptation and resilience projects. As such, Finnfund is on track to meet its commitment to make one billion euros worth of new investments in climate finance by 2030.

Profit for the year totalled EUR 10.7 million, and all of it will be used to make new investments.

Focus more on cash-flow-generating investments in 2025

We have started 2025 by adjusting our pipeline to focus more on cash-flow-generating investments. In Q1, Finnfund made only four new investment decisions, with a total value of EUR 10 million. Within the quarter, our portfolio grew by EUR 2 million from the year-end of 2024, reaching EUR 780 million (portfolio after write-offs).

Interest income decreased by 22% compared to Q1/2024 (EUR 7.4 million vs. EUR 9.5 million). Net interest income decreased by 15% from the previous year, landing at EUR 4 million (EUR 5.4 million). 

Net financial income increased by 45% compared to Q1/2024 (EUR 6.8 million vs. EUR 4.7 million). Compared to last year, income from the funds was EUR 4.2 million more.

Operational expenses increased by 2% over the previous year’s Q1 but are clearly below the budget.

In Q1, the profit before reduction in value of investments and sales gains and losses was EUR 2.1 million (EUR 145,000). The profit for Q1 was EUR 3.4 million (EUR 23.2 million).  

The outlook for the financial year 2025 is cautiously optimistic. President Trump’s historic tariff announcement in April and the since then the looming trade war, along with increased uncertainty and turmoil in the financial markets, have cast some dark clouds. We follow the situation and collaborate closely with our investee companies to respond as needed.

Olli Sinnemaa
Chief Financial Officer

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Olli Sinnemaa Chief Financial Officer (CFO) olli.sinnemaa@finnfund.fi