MuniFin Group maintained steady operations in the first half of 2024 despite the challenges in the operating environment.
The Group’s net operating profit excluding unrealised fair value changes amounted to EUR 89 million, growing from the comparison period and exceeding the previous year’s figure by 9.6%. The increase in net operating profit was boosted mostly by rising short-term market rates and lower expenses than in the comparison period.
New long-term customer financing increased in January–June and amounted to EUR 2.4 billion. Long-term customer financing (long-term loans and leased assets) excluding unrealised fair value changes totalled EUR 34.3 billion at the end of June and saw an increase of 4.0% in the reporting period. The total amount of green finance aimed at environmentally sustainable investments and social finance aimed at investments promoting equality and communality increased by 15.7% during the reporting period. The ratio of green and social finance to long-term customer financing excluding unrealised fair value changes grew to 23.7%.
In January–June, new long-term funding reached EUR 4.9 billion. At the end of June, the total funding was EUR 44.5 billion. The Group’s total liquidity is very strong. The Group’s leverage ratio also remained at a strong level, standing at 12.0% at the end of June. At the end of June, the Group’s CET1 capital ratio was very strong at 102.4%.
“The first half of 2024 was marked by continued economic uncertainty and inflation concerns. The challenges in the operating environment did not affect MuniFin’s performance, and we were able to successfully carry out our core mandate of ensuring the availability of affordable financing for our customers. In the first half of the year, municipalities had slightly lower demand for financing than expected, whereas the affordable social housing sector had high financing needs”, notes Esa Kallio, President and CEO at MuniFin.
The Group also published a separate Pillar III report on risk management and capital adequacy.