In the first half of 2013, investments by municipalities and municipal federations and the resulting financing requirements of the municipal sector remained at the previous year’s level. The rate of increase in lending for housing construction, on the other hand, was higher than anticipated at the end of last year. This increase in the demand for housing financing is largely due to customers looking to refinance their old state-subsidised housing loans with new market-based loans. As interest rates remained low, customers continued to actively use short-term financing.
Total lending volume at the end of the period stood at EUR 16.8 billion, which is 7.0 per cent higher than at the end of 2012. The amount of new loans withdrawn during the period increased by 17 per cent to EUR 1.9 billion.
New lending by MuniFin increased by 7.1% to EUR 1.6 billion during the first six months of the year. This increase was moderate and there were no significant changes in municipalities’ funding requirements. The housing loan portfolio did, however, grow somewhat faster than in 2011.
The Group’s net operating profit for the period was EUR 35.0 million, which represents a 15% increase on the previous year. The Group’s long-term loan portfolio grew to EUR 12.6 billion. New loans amounted to EUR 1.5 billion.
MuniFin has managed to maintain profitability despite the challenging operating environment. Growth has continued at a satisfactory, controlled rate, and operating profit for the first six months of the year 2010 is EUR 31 million, compared to the full-year operating profit of EUR 34 million in 2009.
Demand for lending remained at the same level compared to the previous year. The lending portfolio grew 11% during the first half of the year.
MuniFin has done extremely well in tightening competition: the long-term loan portfolio totalled EUR 6.2 billion at the end of June, the corresponding figure a year earlier being EUR 5.4 billion.
The loan portfolio has increased by 6.8% from the end of last year and 14.7% from the end of June 2007.
