From GlobeNewswire:

Municipality Finance Plc has released its Financial Statements Bulletin for the period 1.1.–31.12.2023. The net operating profit, excluding unrealised fair value changes, increased by 3.2% to EUR 176 million. The net interest income grew by 7.5%, reaching EUR 259 million. Despite rising costs due to increased guarantee commissions, the Group’s leverage ratio stood at 12.0% at the end of December.

In response to the Russian invasion of Ukraine, the Group maintained strong liquidity buffers and saw a positive effect on net interest income due to accelerated inflation and rising market interest rates. Long-term customer financing increased by 7.5%, totalling EUR 32,948 million, with a significant portion being dedicated to green and social financing to promote sustainability and equality.

New long-term funding reached EUR 10,087 million in 2023, and the Group’s liquidity remained very strong. They anticipate their net operating profit to remain stable or higher in 2024, but acknowledge the potential impact of the IFRS valuation principles causing temporary unrealised fair value changes.

President and CEO Esa Kallio commented on the year 2023, noting that despite rising geopolitical tensions and market volatility, MuniFin was able to carry out its core mandate of providing affordable long-term financing for customers. The demand for financing in the municipality sector fluctuated throughout the year, affected by factors such as temporary tax benefits and rising construction costs.

The new government programme did not have a direct impact on municipal operations, but customers in the housing and social sectors faced challenges due to increased costs and uncertainties. However, demand for financing started to pick up towards the end of the year as construction costs levelled off and right-of-occupancy projects were rushed due to changes in government programmes.



Read more: Municipality Finance Plc Financial Statements Bulletin