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

_{The Mortgage Society of Finland: Hypo Group’s January–December 2022}

_{The Mortgage Society of Finland}

_{Financial Statement Release}

_{January 31 2023 Helsinki 5:00 p.m.} 

Hypo Group’s January–December 2022

The home finance specialist Hypo Group’s loan portfolio and capital adequacy grew and Hypo’s banking technology was renewed

CEO Ari Pauna:

“Focusing on low-risk housing collateralized lending in urbanising Finland still provides stability despite the growing uncertainty in operating environment. Hypo Group’s loan portfolio and CET 1 Capital adequacy grew and liquidity remained strong. Impairment losses remained at low level. We succeeded in renewing our entire banking technology without disruptions, and in embracing new processes to daily work ”

• Operating profit was EUR 7.1 million (EUR 8.1 million 1–12/2021)
• Net interest income was EUR 15.3 million (EUR 17.3 million 1–12/2021)

• Non-performing loans remained low at 0.14% of loan book (0.14% 31 December 2021)
• Expected credit losses were 0.01% of the loan book (0.01 % 31 December 2021)
• Net fee and commission income were EUR 3.6 million (EUR 4.1 million 1–12/2021)
• Other income grew to EUR 5.8 million (EUR 4.7 million 1–12/2021)
• Total costs decreased to EUR 17.5 million (EUR 18.0 million 1–12/2021) including EUR 2.1 million contribution to the Resolution Fund for the year 2022 (EUR 1.9 million 1–12/2021) and EUR 3.4 million in IT costs related to the renewal project of the core banking system (EUR 3.7 million 1–12/2021)
• Common Equity Tier 1 (CET1) ratio, calculated with standard and basic methods, was 13.8% (13.6% on 31 December 2021)
• Liquidity Coverage Ratio (LCR) was 201.6% (179.9% on 31 December 2021)

GROUP'S KEY FIGURES
(1000 €)	1-12/2022	1-12/2021	10-12/2022	10-12/2021
Net interest income	15 264	17 276	1 552	4 440
Net fee and commission income	3 592	4 077	880	961
Total other income	5 766	4 734	1 067	1 306
Total expenses	-17 543	-18 023	-3 098	-5 787
Operating profit	7 079	8 064	402	920
Receivables from the public and public sector entities	2 749 916	2 636 986	2 749 916	2 636 986
Deposits	1 463 261	1 660 288	1 463 261	1 660 288
Balance sheet total	3 461 004	3 324 839	3 461 004	3 324 839
Return on equity % (ROE)	4,0	4,7	1,0	2,2
Common Equity Tier 1 (CET1) ratio	13,8	13,6	13,8	13,6
Cost-to-income ratio, %	71,2	69,0	88,8	86,2
Non-performing assets, % of the loan portfolio	0,14	0,14	0,14	0,14
LTV-ratio, % / Loan to Value, average, %	30,8	33,1	30,8	33,1
Loans  / deposits, %	187,0	158,8	187,0	158,8
Liquidity Coverage Ratio (LCR), %	201,6	179,9	201,6	179,9
Net Stable Funding Ratio (NSFR), %	106,5	114,1	106,5	114,1
Leverage Ratio (LR), %	3,9	3,8	3,9	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