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MuniFin Group published its Half Year Report from January–June 2023: Business developed steadily under uncertain market environment

Cover page of the MuniFin Half Year Report 2023. Left side of the cover is green, the right side is decorated with the MuniFin brand pattern.

The first half of 2023 was marked by continued economic uncertainty. The Russian invasion of Ukraine gave rise to an energy crisis and caused the cost of living to shoot up, complicating the economic situation. MuniFin’s operations remained stable and the company was able to successfully carry out its core mandate of ensuring the availability of affordable financing for its customers.

The Group’s net operating profit excluding unrealised fair value changes amounted to EUR 81 million in January–June, growing from the comparison period and exceeding the previous year’s figure by 9.3%. The increase in net operating profit was affected by significant non-recurring item included in the comparison period’s costs and increase in net interest income of 2%.

New long-term customer financing decreased in January–June and amounted to EUR 1.9 billion. Long-term customer financing excluding unrealised fair value changes totalled EUR 31.5 billion at the end of June and saw an increase of 2.8%.

In January–June, new long-term funding reached to more than EUR 7 billion. MuniFin decided to repay the debt related to the European Central Bank’s targeted longer-term refinancing operations (TLTRO III) in the reporting period. The debt totalled EUR 2.0 billion. 

The Group’s total liquidity is very strong. Because of the uncertainty arising from the war and inflation outlook, the Group has maintained larger than normal liquidity buffers as a precaution.

At the end of June, the Group’s CET1 capital ratio was very strong at 101.3%. The Group’s leverage ratio continued to strengthen, and it was 11.9%. 

–Market turbulence has not had a direct effect on MuniFin’s operations. Our funding has remained stable and our access to the capital markets strong throughout the first half of the year. Despite the continued uncertainty, we have again successfully carried out our core mandate and ensured affordable financing for our customers, notes Esa Kallio, President and CEO at MuniFin.

The Group will also publish a separate Pillar III Report on risk management and capital adequacy on August 8.