The Mortgage Society of Finland: Hypo Group’s January–March 2022

The Mortgage Society of Finland: Hypo Group’s January–March 2022
The Mortgage Society of Finland 
Interim Report Q1
Helsinki 2 May 2022 3:00 p.m.

Hypo Group’s January–March 2022

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

CEO Ari Pauna:

“Focusing on low-risk housing collateralized lending in urbanising Finland still provides stability despite the war in Ukraine and the prolonged corona crisis. Hypo Group’s net interest income and total income continued to grow, and CET 1 Capital adequacy and liquidity remained strong. Impairment losses remained at low level.”

• Operating profit was EUR 1.0 million (EUR 1.1 million 1–3/2021)
• Net interest income increased to EUR 4.3 million (EUR 4.0 million 1–3/2021)
• Non-performing loans remained low at 0.20% of loan book (0.14% 31 December 2021)
• Expected credit losses were 0.01% of the loan book
• Net fee and commission income was EUR 0.7 million (EUR 0.9 million 1–3/2021)
• Other income grew to EUR 1.8 million (EUR 1.3 million 1–3/2021) including valuation originated net income from securities trading EUR 1.1 million (EUR 0.4 million 1–3/2021)
• Total costs grew to EUR 5.8 million (EUR 5.1 million 1–3/2021) including an estimated EUR 1.9 million contribution to the Resolution Fund for the year 2022 (EUR 1.7 million 1–3/2021) and EUR 0.9 million in IT costs related to the renewal project of the core banking system (EUR 0.6 million 1–3/2021)
• Common Equity Tier 1 (CET1) ratio, calculated with standard and basic methods, was 13.9% (13.6% on 31 December 2021)
• Liquidity Coverage Ratio (LCR) was 134.1 % (179.9 % on 31 December 2021)

GROUP'S KEY FIGURES
(1000 €)	1-3/2022	1-3/2021	2021
Net interest income	4 270	4 026	17 276
Net fee and commission income	720	869	4 077
Total other income	1 844	1 272	4 734
Total expenses	-5 816	-5 079	-18 023
Operating profit	1 018	1 089	8 064
Receivables from the public and public sector entities	2 641 064	2 586 253	2 636 986
Deposits	1 520 958	1 563 683	1 660 288
Balance sheet total	3 217 483	3 503 477	3 324 839
Return on equity % (ROE)	2.3	2.3	4.7
Common Equity Tier 1 (CET1) ratio, %	13.9	13.5	13.6
Cost-to-income ratio, %	85.4	82.4	69.0
Non-performing assets, % of the loan portfolio	0.20	0.10	0.14
LTV-ratio, % / Loan to Value, average, %	32.0	33.9	33.1
Loans  / deposits, %	173.6	165.4	158.8
Liquidity Coverage Ratio (LCR), %	134.1	213.7	179.9
Net Stable Funding Ratio (NSFR), %	108.6	114.6	114.1
Leverage Ratio (LR), %	4.0	3.5	3.8

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