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

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

_{The Mortgage Society of Finland}

_{Interim Report Q3} 

_{Helsinki 1 November 2023 11:00 a.m.}

Hypo Group’s January–September 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. Despite the slowing market growth, the deposits and loan portfolio continued to grow. Net interest income, capital adequacy and liquidity remained strong. Non-performing loans and impairment losses remained at low level. The year 2023 has continued more strongly than 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 7.3 million (EUR 6.7 million 1–9/2022)
• Net interest income was EUR 13.2 million (EUR 13.7 million 1–9/2022)
• Non-performing loans remained low at 0.15% 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 3.5 million (EUR 2.7 million 1–9/2022)
• Other income was EUR 2.7 million (EUR 4.7 million 1–9/2022)
• Total costs decreased to EUR 12.0 million (EUR 14.4 million 1–9/2022)
• Common Equity Tier 1 (CET1) ratio, calculated with standard and basic methods, was 14.0% (13.8% on 31 December 2022)
• Liquidity Coverage Ratio (LCR) was 209.2% (201.6 % on 31 December 2022)

GROUP'S KEY FIGURES
(1,000 €)	1-9/2023	1-9/2022	7-9/2023	7-9/2022	1-12/2022
Net interest income	13,197	13,712	5,235	4,957	15,264
Net fee and commission income	3,525	2,712	1,015	846	3,592
Total other income	2,665	4,699	-516	887	5,766
Total expenses	-12,039	-14,445	-3,836	-4,059	-17,543
Operating profit	7,347	6,677	1,899	2,631	7,079
Receivables from the public and public sector entities	2,832,974	2,721,402	2,832,974	2,721,402	2,749,916
Deposits	1,514,540	1,447,077	1,514,540	1,447,077	1,463,261
Balance sheet total	3,534,171	3,319,607	3,534,171	3,319,607	3,461,004
Return on equity (ROE) %	5.2	5.0	4.0	5.8	4.0
Common Equity Tier 1 (CET1) ratio %	14.0	14.0	14.0	14.0	13.8
Cost-to-income ratio %	61.4	68.3	66.1	59.8	71.2
Non-performing assets % of the loan portfolio	0.15	0.18	0.15	0.18	0.14
LTV-ratio (Loan to Value, average) %	30.2	31.1	30.2	31.1	30.8
Loans  / deposits %	187.1	188.1	187.1	188.1	187.0
Liquidity Coverage Ratio (LCR) %	209.2	150.4	209.2	150.4	201.6
Net Stable Funding Ratio (NSFR) %	113.3	105.5	113.3	105.5	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