The Mortgage Society of Finland: Hypo Group’s January–December 2021

_{The Mortgage Society of Finland: Hypo Group’s January–December 2021}

_{The Mortgage Society of Finland}

_{Financial Statement Release}

_{February 1 2022 Helsinki 6:00 p.m.}

Hypo Group’s January–December 2021

The home finance specialist Hypo Group’s operating profit grew 19 percent

CEO Ari Pauna:

“Focusing on low risk housing collateralized lending in urbanising Finland has brought security throughout the whole corona crisis. Hypo Group’s net interest income and net fee and commission income continued to grow, and CET 1 Capital adequacy and liquidity remained strong. Impairment losses remained at low level.”

• Operating profit grew to EUR 8.1 million (EUR 8.0 million 1–12/2020)
• Net interest income increased to EUR 17.3 million (EUR 14.6 million 1–12/2020)
• Non-performing loans remained low at 0.14% of loan book (0.11% 31 December 2020)
• Expected credit losses were 0.01% of the loan book
• Net fee and commission income grew to EUR 4.1 million (EUR 3.7 million 1–12/2020)
• Other income grew to EUR 4.7 million (EUR 4.2 million 1–12/2020) including valuation originated net income from securities trading EUR 1.7 million (EUR 0.8 million 1–12/2020)
• Total costs grew to EUR 18.0 million (EUR 14.4 million 1–12/2020) including EUR 1.9 million contribution to the Resolution Fund for the year 2021 (EUR 1.7 million 1–12/2020) and EUR 3.7 million in IT costs related to the renewal project of the core banking system (EUR 2.1 million 1–12/2020)
• Common Equity Tier 1 (CET1) ratio, calculated with standard and basic methods, was 13.6% (13.9% on 31 December 2020).
• Liquidity Coverage Ratio (LCR) was 179.9 % (194.5% on 31 December 2020).

GROUP'S KEY FIGURES
(1000 €)	1-12/2021	1-12/2020	10-12/2021	10-12/2020
Net interest income	17 276	14 562	4 440	3 787
Net fee and commission income	4 077	3 675	961	921
Total other income	4 734	4 236	1 306	1 617
Total expenses	-18 023	-14 429	-5 787	-3 418
Operating profit	8 064	8 044	920	2 906
Receivables from the public and public sector entities	2 636 986	2 510 910	2 636 986	2 510 910
Deposits	1 660 288	1 562 234	1 660 288	1 562 234
Balance sheet total	3 324 839	3 213 082	3 324 839	3 213 082
Return on equity % (ROE)	4,7	4,9	2,2	7,1
Common Equity Tier 1 (CET1) ratio	13,6	13,9	13,6	13,9
Cost-to-income ratio, %	69,0	63,9	86,2	53,6
Non-performing assets, % of the loan portfolio	0,14	0,11	0,14	0,11
LTV-ratio, % / Loan to Value, average, %	33,1	33,8	33,1	33,8
Loans  / deposits, %	158,8	160,7	158,8	160,7
Liquidity Coverage Ratio (LCR), %	179,9	194,5	179,9	194,5
Net Stable Funding Ratio (NSFR), %	114,1	107,0	114,1	107,0
Leverage Ratio (LR), %	3,8	3,8	3,8	3,8

Hypo Group's Financial Statement Release can be accessed at https://www.hypo.fi/en/financial-information/

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