The Mortgage Society of Finland: Hypo Group’s January– September 2024

_{The Mortgage Society of Finland: Hypo Group’s January– September 2024}

_{The Mortgage Society of Finland}

_{Interim Report Q3}

_{Helsinki 28 October 2024 1:15 p.m.}

Hypo Group’s January–September 2024

The home finance specialist Hypo Group’s operations and liquidity remained stable

CEO Ari Pauna:

“Focusing on low-risk housing collateralized lending in urbanising Finland still provides stability despite the continuous uncertainty in operating environment. Net interest income, capital adequacy and liquidity remained strong. Non-performing loans and impairment losses remained at low level. 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 5.2 million (EUR 7.3 million 1–9/2023)
• Net interest income was EUR 12.2 million (EUR 13.2 million 1–9/2023)
• Non-performing loans remained low at 0.33% of loan book (0.19% 31 December 2023)
• Expected credit losses were 0.01% of the loan book (0.01% 31 December 2023)
• Net fee and commission income increased to EUR 4.2 million (EUR 3.5 million 1–9/2023)
• Other income was EUR 1.0 million (EUR 2.7 million 1–9/2023)
• Total costs were EUR 12.2 million (EUR 12.0 million 1–9/2023)
• Common Equity Tier 1 (CET1) ratio, calculated with the standardized approach and the
  basic indicator approach, was 14.0% (14.2% on 31 December 2023)
• Liquidity Coverage Ratio (LCR) was 227.7% (326.4% on 31 December 2023)

GROUP'S KEY FIGURES
(1000 €)	1-9/2024	1-9/2023	7-9/2024	7-9/2023	1-12/2023
Net interest income	12,248	13,197	4,577	5,235	18,204
Net fee and commission income	4,158	3,525	1,244	1,015	4,697
Total other income	990	2,665	-204	-516	2,106
Total expenses	-12,215	-12,039	-3,619	-3,836	-16,504
Operating profit	5,181	7,347	1,978	1,899	8,503
Receivables from the public and public sector entities	2,832,560	2,832,974	2,832,560	2,832,974	2,785,973
Deposits	1,613,255	1,514,540	1,613,255	1,514,540	1,562,999
Balance sheet total	3,552,014	3,534,171	3,552,014	3,534,171	3,619,094
Return on equity (ROE) %	3.6	5.2	4.2	4.0	4.5
Common Equity Tier 1 (CET1) ratio %	14.0	14.0	14.0	14.0	14.2
Cost-to-income ratio %	70.0	61.4	64.8	66.1	65.5
Non-performing assets % of the loan portfolio	0.33	0.15	0.33	0.15	0.19
LTV-ratio (Loan to Value, average) %	30.7	30.2	30.7	30.2	30.3
Loans / deposits %	175.6	187.1	175.6	187.1	178.2
Liquidity Coverage Ratio (LCR) %	227.7	209.2	227.7	209.2	326.4
Net Stable Funding Ratio (NSFR) %	115.7	113.3	115.7	113.3	112.0
Leverage Ratio (LR) %	4.2	3.9	4.2	3.9	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