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

^{The Mortgage Society of Finland: Hypo Group’s January–June 2023}

^{The Mortgage Society of Finland}

^{Half Year Financial Report} 

^{Helsinki 31 August 2023 3:30 p.m.}

Hypo Group’s January–June 2023

The home finance specialist Hypo Group’s net operating profit 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 loan portfolio grew more strongly than the markets. Net interest income, capital adequacy and liquidity remained strong. Non-performing loans and impairment losses remained at low level. The year 2023 has continued as expected. 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 5.4 million (EUR 4.0 million 1–6/2022)
• Net interest income was EUR 8.0 million (EUR 8.8 million 1–6/2022)
• Non-performing loans remained low at 0.13% 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 2.5 million (EUR 1.9 million 1–6/2022)
• Other income grew to EUR 3.2 million (EUR 3.8 million 1–6/2022)
• Total costs decreased to EUR 8.2 million (EUR 10.4 million 1–6/2022)
• Common Equity Tier 1 (CET1) ratio, calculated with standard and basic methods, was 13.9% (13.8% on 31 December 2022)
• Liquidity Coverage Ratio (LCR) was 256.1% (201.6 % on 31 December 2022)

GROUP'S KEY FIGURES
(1000 €)	1-6/2023	1-6/2022	4-6/2023	4-6/2022	1-12/2022
Net interest income	7 961	8 755	3 184	4 485	15 264
Net fee and commission income	2 509	1 866	1 489	1 146	3 592
Total other income	3 180	3 812	2 966	1 968	5 766
Total expenses	-8 203	-10 386	-2 604	-4 571	-17 543
Operating profit	5 448	4 047	5 034	3 029	7 079
Receivables from the public and public sector entities	2 805 114	2 689 470	2 805 114	2 689 470	2 749 916
Deposits	1 405 304	1 448 047	1 405 304	1 448 047	1 463 261
Balance sheet total	3 524 581	3 316 229	3 524 581	3 316 229	3 461 004
Return on equity % (ROE)	5,8	4,6	11,2	6,8	4,0
Common Equity Tier 1 (CET1) ratio	13,9	14,0	13,9	14,0	13,8
Cost-to-income ratio, %	59,4	72,2	34,1	60,3	71,2
Non-performing assets, % of the loan portfolio	0,13	0,22	0,13	0,22	0,14
LTV-ratio, % / Loan to Value, average, %	30,4	31,4	30,4	31,4	30,8
Loans  / deposits, %	199,6	185,7	199,6	185,7	187,0
Liquidity Coverage Ratio (LCR), %	256,1	163,0	256,1	163,0	201,6
Net Stable Funding Ratio (NSFR), %	109,9	106,8	109,9	106,8	106,5
Leverage Ratio (LR), %	3,9	4,0	3,9	4,0	3,9

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

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