CFO Insights into Q1 2026

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

The year has begun with strong portfolio growth, reaching a record level. During the first quarter, Finnfund approved three investment decisions totalling EUR 41 million. Over the quarter, the book value of the portfolio increased by EUR 103 million (equal to new investment disbursements) from the end of 2025, reaching EUR 819 million.

We disbursed EUR 105 million to new investments during the quarter.

Interest income declined by 16% compared to the first quarter of 2025 (EUR 6.3 million compared to EUR 7.4 million), while net interest income decreased by 42% year on year to EUR 2.3 million (EUR 4.0 million). This development primarily reflects the timing of portfolio growth. The lending book expanded by more than EUR 85 million during the quarter, which is expected to support higher interest income and net interest income in subsequent quarters.

Net financial income decreased by 39% compared to Q1/2025, amounting to EUR 4.1 million (EUR 6.8 million).

Operational expenses increased by 13% compared to the corresponding period last year but remain below the approved budget.

Profit before reductions in the value of investments and gains and losses from sales amounted to EUR -0.7 million (EUR 2.1 million).

The loss for the first quarter was EUR 2.4 million (profit EUR 3.4 million).

No sales gains or losses were recognised during the quarter. The EUR 2 million write-down was attributable to a single fund investment. The outlook for the financial year 2026 remains uncertain and subject to heightened external risks. Based on experience from last year’s trade‑war‑related developments, the current global instability may have comparable adverse effects. There is a risk that financing supply will exceed demand, and it is too early to assess whether increased market liquidity could lead to loan prepayments in the portfolio earlier than expected. Should market conditions stabilise, the continued growth of the portfolio is expected to support revenue development during 2026 and, under such circumstances, could result in a positive financial outcome for the year.