The Mortgage Society of Finland: Hypo Group’s January–December 2020

_{The Mortgage Society of Finland: Hypo Group’s January–December 2020}

_{The Mortgage Society of Finland}

_{Financial Statement Release}

_{February 1 2021 Helsinki 3:00 p.m.}

Hypo Group’s January–December 2020

The home finance specialist Hypo Group’s net interest income grew and capital adequacy strengthened.

CEO Ari Pauna:

“Focusing on low risk housing collateralized lending in urbanising Finland is yielding profits even as the corona crisis continues. Hypo Group’s net interest income and net fee and commission income grew. CET 1 Capital adequacy continued to strengthen. Impairment losses remained at low level. Liquidity is very strong.”

• Operating profit was EUR 8.0 million (EUR 8.4 million 1–12/2019)
• Net interest income increased to EUR 14.6 million (EUR 14.5 million 1–12/2019)
• Non-performing loans remained low at 0.11% of loan book (0.10% 31 December 2019)
• Expected credit losses were 0.01% of the loan book
• Net fee and commission income was EUR 3.7 million (EUR 3.6 million 1–12/2019)
• Other income totaled EUR 4.2 million (EUR 2.7 million 1–12/2019) including valuation originated net income from securities trading EUR 0.8 million (EUR -0.2 million 1–12/2019)
• Total costs were EUR 14.4 million (EUR 12.3 million 1–12/2019) including EUR 1.7 million contribution to the Resolution Fund for the year 2020 (EUR 0.9 million 1–12/2019)
• Common Equity Tier 1 (CET1) ratio, calculated with standard and basic methods, was 13.9% (13.4% on 31 December 2019)
• Liquidity Coverage Ratio (LCR) was 194.5 % (163.8 %).

GROUP'S KEY FIGURES
(1000 €)	1-12/2020	1-12/2019	10-12/2020	10-12/2019
Net interest income	14 562	14 452	3 787	4 019
Net fee and commission income	3 675	3 562	921	854
Total other income	4 236	2 689	1 617	631
Total expenses	-14 429	-12 296	-3 418	-3 483
Operating profit	8 044	8 407	2 906	2 021
Receivables from the public and public sector entities	2 510 910	2 586 147	2 510 910	2 586 147
Deposits	1 562 234	1 628 793	1 562 234	1 628 793
Balance sheet total	3 213 082	3 230 657	3 213 082	3 230 657
Return on equity % (ROE)	4,9	5,5	7,1	5,3
Common Equity Tier 1 (CET1) ratio	13,9	13,4	13,9	13,4
Cost-to-income ratio, %	63,9	59,6	53,6	63,5
Non-performing assets, % of the loan portfolio	0,11	0,10	0,11	0,10
LTV-ratio, % / Loan to Value, average, %	33,8	35,3	33,8	35,3
Loans  / deposits, %	160,7	158,8	160,7	158,8
Liquidity Coverage Ratio (LCR), %	194,5	163,8	194,5	163,8

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