31.3.2011
Eva Liljeblom becomes Chairman of the Board of Municipality Finance
Professor Eva Liljeblom, Rector of Hanken School of Economics, has been elected as the Chairman of Municipality Finance's new Board of Directors. The following were elected as ordinary members of the Board of Directors: Fredrik Forssell (Director, Keva), Teppo Koivisto (Head of Division, State Treasury), Tapio Korhonen (Finance Director, City of Helsinki), Sirpa Louhevirta (Group Treasurer, Sanoma Oyj), Ossi Repo (Mayor, City of Kemi), Asta Tolonen (Financial Director, Kainuu Regional Council) and Juha Yli-rajala (Director, City of Tampere).
The objective of the Shareholders' Nomination Committee comprised of Municipality Finance's major shareholders was to create an effective Board of Directors made up of professionals with a high level of familiarity with the company's industry and appropriate, diverse expertise and experience. The Shareholders' Nomination Committee evaluated candidates based on the short and long term needs of the company and its Board of Directors. The criteria used included knowledge and practical experience of international financial markets, familiarity with lending operations and the risks related to the financial industry, awareness of municipal financial management, municipal functions and operating models, familiarity with social housing production and experience of corporate management.
The Shareholders' Nomination Committee's proposal for the new Board of Directors was approved during the company's Annual General Meeting held on 23 March 2011. In conjunction with the appointment of the new Board, the company's Articles of Association were amended to state that the Board of Directors shall have no fewer than five and no more than eight ordinary members and that the Board members' term of office ends at the conclusion of the Annual General Meeting following their election. The amendments to the Articles of Association and the composition of the Board of Directors has been recorded in the Trade Register.
Eva Liljeblom, newly elected Chairman of the Board of Municipality Finance, comments on her appointment as follows:
"Municipality Finance has an interesting combination of in-depth expertise in financing in the municipal sector and extensive expertise in international funding acquisition. The company's is in excellent condition and it has the best possible credit ratings confirmed by international rating institutions. Municipality Finance plays a crucial role in securing financing for the municipal sector in Finland. As a member of the Board of Directors, I have seen the company grow and develop since 2003 and I am pleased to accept the position of Chairman of the Board."
Record-breaking result for Municipality Finance in 2010
Municipality Finance posted its best-ever result in 2010. The Group's net operating profit grew by 73% to reach EUR 58.3 million while net interest income increased by 56%, totalling EUR 78.7 million.
While the number of requests for loan proposals received by Municipality Finance fell by approximately one fifth, the company won 80% of the competitive bids it participated in. Last year, Municipality Finance also launched financial leasing services to provide its clients a broader range of financing products.
As in the previous year, the company was clearly the largest financer for the municipal sector in 2010. Total funding acquisition increased to EUR 17,162 million and lending grew to EUR 11,698 million. At the same time, Municipality Finance's risk bearing capacity remained strong. The Group's balance sheet grew by 38%, reaching EUR 20,047 million.
In recent years, the competitive situation in the market for funding state-subsidised and municipal housing production has continued to be affected by the inactivity of commercial banks in the segment, and Municipality Finance does not expect this to change in the coming years. Therefore, the company holds a key position in ensuring funding for its customers, even in uncertain times.
