2015-02-12 15:00:00 CET
2015-02-12 15:00:01 CET
REGULATED INFORMATION
Suomen Hypoteekkiyhdistys - Financial Statement Release
HYPO FINANCIAL STATEMENT RELEASE
CEO Mr Ari Pauna:
”Uncertain times, urbanisation and the restructuring of the financial sector
have increased the business and growth opportunities of the Hypo Group
specialising in housing finance. The result for year 2014 was good and markedly
better than the previous year.”
Helsinki, 2015-02-12 15:00 CET (GLOBE NEWSWIRE) --
THE HYPO GROUP'S YEAR 2014
The home finance specialist Hypo's operating profit improved by almost 25
percent, deposits increased to over EUR 500 million and the Common Equity Tier
1 (CET1) ratio remained strong at 15 percent.
CEO Ari Pauna:
”Uncertain times, urbanisation and the restructuring of the financial sector
have increased the business and growth opportunities of the Hypo Group
specialising in housing finance. The result for year 2014 was good and markedly
better than the previous year.”
Operating profit increased to EUR 7.5 million.
The Group's operating profit met the expectations and was EUR 7.5 million (EUR
6.0 million in 2013).
Total assets increased to EUR 1 500 million (EUR 1 220 million). The net
impairments on loans remained very low and amounted to EUR 0.03 million (EUR
-0.02 million).
The loan portfolio's growth was also reflected in the net interest income which
grew by 21%. Fee and commission income increased to EUR 3.7 million (EUR 2.7
million).
Administrative expenses, depreciation and other expenses totalled EUR 9.7
million (EUR 8.1 million). Cost-to-income ratio was 56.4 percent (57.4
percent).
The Group's comprehensive income EUR 7.9 million (EUR 7.7 million) includes
i.a. operating profit and changes in equity due to changes in fair value
reserves.
The Group's reputation as a stable and strongly capitalised Finnish credit
institution and deposit bank increased further. The number of Group's customers
increased to around 25.000.
Loans secured by residential property continued to increase. Non-performing
loans remained at a low level.
As a mortgage society, Hypo's loan portfolio is entirely secured by residential
property. The loan portfolio's average LTV (loan-to-value) continued to improve
and was 44.88% (49.98%) on December 31, 2014.
At year end Hypo's total loan portfolio stood at EUR 1 204.0 million (EUR 977.9
million).
The amount of non-performing loans, describing the loan portfolio's quality and
reported in line with the new regulations, continued to remain low at EUR 2.7
million (EUR 1.3 million), which corresponds to only 0.23 percent of the total
loan portfolio.
Strong liquidity and capital adequacy.
The Group liquidity was very strong throughout the financial year. The amount
of liquid assets, including cash and binding credit facilities, was EUR 229.9
million (EUR 205.6 million). Cash, totalling EUR 226.4 million, consisted of
well-diversified deposits and of debt securities tradable on the secondary
market, of which 65.0% were at least AA− rated and 95.6% ECB eligible.
The Group's CET1 capital ratio was 15,1 percent (14.7 percent), calculated by
the standard method.
The quality and amount of the Group's own funds was excellent in relation to
the group's current and future business as well as to unexpected developments
in the operating environment.
Hypo Group as an investment is low risk yet profitable. Deposit growth 41
percent.
The Group's financing position remained stable, and the deposit funding
increased compared to 2013. The amount of deposits grew by 41 percent and was
EUR 507.4 million (EUR 359.7 million), including deposits made by financial
institutions, and accounted for 36.9 percent (32.4%) of total funding.
The Mortgage Society of Finland has domestic programmes for issuance of EMTNs
and Certificate of Deposits. During the financial year, four bond issues were
completed totalling a nominal amount of EUR 177.2 million. As at December 31,
2014 the amount of outstanding bonds and CDs stood at EUR 648.5 million (EUR
534.3 million), which corresponded to 47.2 percent (48.1%) of total funding.
Future outlook
The outlook for the Finnish economy is still modest, and the economic cycle is
not expected to bring any rapid stimulation to the prevailing situation in the
Finnish housing market. Despite the uncertainty of the operating environment,
Hypo, as a specialised mortgage institution focusing on growth centers, has
good possibilities to continue growing its business in a profitable manner
while managing risks also in 2015. The management expects the Group operating
profit for 2015 to reach year 2014's level while liquidity is being further
strengthened.
CONSOLIDATED INCOME STATEMENT,
IFRS
1.1.2014 1.1.2013
(1000 €) 31.12.2014 31.12.2013 10-12/201 10-12/201
4 3
--------------------------------------------------------------------------------
Interest income 21 070,7 17 663,2 5 347,4 5 163,0
Interest expenses -14 643,2 -12 373,0 -3 718,5 -3 189,5
--------------------------------------------------------------------------------
Net interest income 6 427,5 5 290,2 1 629,0 1 973,5
Income from equity investments 84,0 98,0 0,0 28,0
Net income from financial assets 2 778,9 101,9 444,6 89,4
available for sale and
fromsecurities and foreign
currency transactions
Net income from investment 4 362,5 5 825,4 1 609,5 1 645,2
properties
Fee and commission income 3 603,8 2 731,9 1 079,7 678,9
Impairment losses on loans and -31,1 19,1 143,0 -9,3
other commitments
Administrative-, depreciations and -9 727,7 -8 060,4 -3 321,6 -2 715,4
other operating expenses
--------------------------------------------------------------------------------
OPERATING PROFIT 7 498,0 6 006,1 1 584,1 1 690,2
Income taxes -1 330,3 -1 116,5 -278,1 -220,6
--------------------------------------------------------------------------------
PROFIT FOR THE PERIOD 6 167,7 4 889,7 1 306,0 1 469,7
CONSOLIDATED STATEMENT OF 7 899,7 7 726,9 1 335,4 3 433,3
COMPREHENSIVE INCOME STATEMENT
(1000 €) 31.12.2014 31.12.2013 10-12/201 10-12/201
4 3
--------------------------------------------------------------------------------
Total capital ratio, % 15,2 14,7 15,2 14,7
CET1 capital ratio, % 15,1 14,7 15,1 14,7
Total capital (m€) 90 566 84 440 90 566 84 440
CET1 capital 89 758 84 238 89 758 84 238
Cost-to-income ratio,% 56,4 57,4 69,7 61,5
Non-performing loans, % of total 0,23 0,14 0,23 0,14
loans
LTV-ratio, % 44,88 49,98 44,88 49,98
Deposits/loans, % 42,1 36,8 42,1 36,8
Receivables from the public and 1 204 042 977 893 1 204 042 977 893
public sector entities
Deposits 507 388 359 734 507 388 359 734
Balance sheet total 1 499 915 1 219 595 1 499 915 1 219 595
All information included in this release is preliminary and unaudited. The
audited Financial Statements will be published on 13.2.2015 and the Annual
Report during the week 11/2015.
The Mortgage Society of Finland
Suomen AsuntoHypoPankki Oy
Contact Information:
CEO Mr. Ari Pauna, tel. +358 9 228 361, +358 50 353 4690
COO Ms. Elli Reunanen, tel. +358 9 228 361, +358 50 527 9717
Director, Marketing and Communications Ms. Elina Aalto, tel. +358 400
209 548
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