Kuntarahoitus Oyj - Annual report/ annual accounts

Municipality Finance has published its Annual Report 2013.

Municipality Finance's capital adequacy ratio at high level
Own funds exceeded half a billion euros

Municipality Finance Plc

Annual Report 2013

Stock exchange release 5 March 2014 at 3:00 p.m. (EET)



Municipality Finance's capital adequacy ratio at high level
Own funds exceeded half a billion euros

Municipality Finance own funds exceeded half a billion euros, totaling EUR
511.5 million at year-end. The company's capital adequacy ratio was 39.88 per
cent. Despite the very high adequacy ratio the company continued to increase
its own funds through the result of its operations, in accordance with the
company's strategy. The company must fulfill increasing leverage ratio
requirements brought about by stricter regulation of the banking sector by
2018. 

Municipality Finance remained the largest lender for its customer base in 2013.
The company's lending portfolio to the municipal sector and customers engaged
in central government subsidised housing production was EUR 17.8 billion. The
company's funding acquisition during the year totaled a record-breaking EUR
10.7 billion, of which a significant proportion was due to the company's own
normal refinancing. The company's liquid funds amounted to EUR 5.5 billion at
the end of 2013, which represents a financing buffer of approximately 10.3
months for the company's customers in a situation where funding acquisition
from the international financial markets would dry up. 

The Group's profit for the financial year was EUR 124.7 million. The company's
balance sheet total stood at EUR 26.2 billion. The Board of Directors of
Municipality Finance Plc proposes to the Annual General Meeting that no
dividend be paid for the financial year, so that the company can strengthen its
own funds according to its strategy. 

Municipality Finance's customers and shareholders benefit from the company's
operations through competitive financing costs, certainty of financing for
their necessary investments, and through the growth of the shareholder value. 

Summary of Municipality Finance's year 2013:

  -- The Group's net operating profit amounted to EUR 141.3 million (2012: EUR
     138.6 million). The growth was 2% year-on-year.
  -- Net interest income grew by 5% compared with the previous year, totaling
     EUR 149.5 million (2012: EUR 142.4 million).
  -- The balance sheet total was EUR 26,156 million (2012: EUR 25,560 million).
  -- The Group's risk bearing capacity continued to be very strong, with the
     capital adequacy ratio at 39.88% at year-end (2012: 33.87%) and the capital
     adequacy ratio for Tier 1 capital at 35.42% (2012: 26.22%).
  -- Total funding acquisition for 2013 amounted to EUR 10,695 million (2012:
     EUR 6,590 million). The total amount of funding grew to EUR 23,108 million
     (2012: EUR 22,036 million).
  -- Lending increased to EUR 17,801 million (2012: EUR 15,700 million). In
     total, 9% more loans were withdrawn than in the previous year, amounting to
     EUR 3,537 million (2012: EUR 3,254 million).
  -- The leasing portfolio stood at EUR 81 million at year end (2012: EUR 64
     million).
  -- Investments totaled EUR 5,671 million at the end of 2013 (2012: EUR 6,224
     million).
  -- The turnover of Municipality Finance's subsidiary, Inspira, stood at EUR
     1.7 million (2012: EUR 1.8 million). Inspira's operating profit for 2013
     was EUR 0.0 million (2012: EUR 0.2 million).



Further information:

Municipality Finance Plc
Pekka Averio, President and CEO

tel. +358 500 406 856,
 e-mail pekka.averio@munifin.fi

Municipality Finance's Annual Report 2013 and the 6 February 2014 published
Municipality Finance Plc's Financial Statements Bulletin 2013 can be downloaded
as PDF files from the company's website at www.munifin.fi

Attachments:

Annual report 2013 stock exchange release 20140305.pdf