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

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

_{The Mortgage Society of Finland}

_{Financial Statement Release} 

_{February 2 2024 Helsinki 11:30 a.m.}

Hypo Group’s January–December 2023

The home finance specialist Hypo Group’s net interest income grew 19 percent 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. The deposits and loan portfolio grew more than the market. 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 8.5 million (EUR 7.1 million 1–12/2022)
• Net interest income was EUR 18.2 million (EUR 15.3 million 1–12/2022)
• Non-performing loans remained low at 0.19% 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 4.7 million (EUR 3.6 million 1–12/2022)
• Other income was EUR 2.1 million (EUR 5.8 million 1–12/2022)
• Total costs decreased to EUR 16.5 million (EUR 17.5 million 1–12/2022)
• Common Equity Tier 1 (CET1) ratio, calculated with standard and basic methods, was 14.2% (13.8% on 31 December 2022)
• Liquidity Coverage Ratio (LCR) was 326.4% (201.6 % on 31 December 2022)

GROUP'S KEY FIGURES
(1,000 €)	1-12/2023	1-12/2022	10-12/2023	10-12/2022
Net interest income	18,204	15,264	5,007	1,552
Net fee and commission income	4,697	3,592	1,172	880
Total other income	2,106	5,766	-559	1,067
Total expenses	-16,504	-17,543	-4,465	-3,098
Operating profit	8,503	7,079	1,156	402
Receivables from the public and public sector entities	2,785,973	2,754,008	2,785,973	2,754,008
Deposits	1,562,999	1,466,671	1,562,999	1,466,671
Balance sheet total	3,619,094	3,461,004	3,619,094	3,461,004
Return on equity (ROE) %	4.5	4.0	2.5	1.0
Common Equity Tier 1 (CET1) ratio %	14.2	13.8	14.2	13.8
Cost-to-income ratio %	65.5	71.2	79.8	88.8
Non-performing assets % of the loan portfolio	0.19	0.14	0.19	0.14
LTV-ratio (Loan to Value, average) %	30.3	30.8	30.2	30.8
Loans  / deposits %	178.2	187.8	178.2	187.8
Liquidity Coverage Ratio (LCR) %	326.4	201.6	326.4	201.6
Net Stable Funding Ratio (NSFR) %	112.0	106.5	112.0	106.5
Leverage Ratio (LR) %	3.9	3.9	3.9	3.9

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

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