The Mortgage Society of Finland: Hypo Group’s January–March 2023

_{The Mortgage Society of Finland: Hypo Group’s January–March 2023}

_{The Mortgage Society of Finland} 

_{Interim Report Q1}

_{Helsinki 2 May 2023 4:00 p.m.}

Hypo Group’s January–March 2023

The home finance specialist Hypo Group’s net interest income grew and capital adequacy remained strong

CEO Ari Pauna:

“Focusing on low-risk housing collateralized lending in urbanising Finland still provides stability despite the continuous uncertainty in operating environment. Hypo Group’s net interest income and loan portfolio grew. Capital adequacy and liquidity remained strong. Impairment losses remained at low level. The year 2023 has started promisingly. During uncertain times, the services of a specialist organization are in demand. There is a strong demand for home financing from us and we respond to the demand comprehensively supported by completely renewed banking technology.”

• Operating profit was EUR 0.4 million (EUR 1.0 million 1–3/2022)
• Net interest income was EUR 4.8 million (EUR 4.3 million 1–3/2022)
• Non-performing loans remained low at 0.14% of loan book (0.14% 31 December 2022)
• Expected credit losses were 0.01% of the loan book (0.01 % 31 December 2022)
• Net fee and commission income grew to EUR 1.0 million (EUR 0.7 million 1–3/2022)
• Other income grew to EUR 0.2 million (EUR 1.8 million 1–3/2022)
• Total costs decreased to EUR 5.6 million (EUR 5.8 million 1–3/2022) including EUR 1.8 million contribution to the Resolution Fund for the year 2023 (EUR 1.9 million 1–3/2022)
• Common Equity Tier 1 (CET1) ratio, calculated with standard and basic methods, was 13.6% (13.8% on 31 December 2022)
• Liquidity Coverage Ratio (LCR) was 142.4% (201.6 % on 31 December 2022)

GROUP'S KEY FIGURES
(1000 €)	1-3/2023	1-3/2022	1-12/2022
Net interest income	4 777	4 270	15 264
Net fee and commission income	1 021	720	3 592
Total other income	214	1 844	5 766
Total expenses	-5 598	-5 816	-17 543
Operating profit	414	1 018	7 079
Receivables from the public and public sector entities	2 787 297	2 641 064	2 749 916
Deposits	1 323 573	1 520 958	1 463 261
Balance sheet total	3 626 570	3 217 483	3 461 004
Return on equity % (ROE)	0.4	2.3	4.0
Common Equity Tier 1 (CET1) ratio	13.6	13.9	13.8
Cost-to-income ratio, %	91.5	85.4	71.2
Non-performing assets, % of the loan portfolio	0.14	0.20	0.14
LTV-ratio, % / Loan to Value, average, %	30.5	32.0	30.8
Loans  / deposits, %	210.6	173.6	187.0
Liquidity Coverage Ratio (LCR), %	142.4	134.1	201.6
Net Stable Funding Ratio (NSFR), %	114.0	108.6	106.5
Leverage Ratio (LR), %	3.7	4.0	3.9

Hypo Group's Interim Report can be accessed at http://www.hypo.fi/en/financial-information/

Distribution:  Nasdaq Helsinki Ltd,  Main Media, www.hypo.fi