Municipality Finance Plc
Half Year Report
4 August 2025 at 2:00 pm (EEST)
MuniFin Group’s Half Year Report January–June 2025 is published
This release is a summary of MuniFin Group’s Half Year Report published on 4 August 2025. The complete Half Year Report with tables is attached to this release and available at www.munifin.fi.
MuniFin Group will also publish its Pillar III Half Year Disclosure Report 2025 in accordance with Regulation (EU) No 575/2013 and Directive 2013/36/EU during the calendar week 33. The report will be available at MuniFin’s website.
In brief: MuniFin Group in the first half of 2025
* Alternative performance measure.
President and CEO of MuniFin, Esa Kallio:
“MuniFin's business is strongly connected to international capital markets through the company's funding. Investors' assessment of MuniFin is also influenced by the development of Finland's economy as part of European economic development. The year 2025 was expected to bring instability, but the fast pace and extreme unpredictability of the economic and political changes during Donald Trump’s second presidency have nevertheless managed to take most of us by surprise in the first half of the year. The new situation has also changed our perception of economic risk.
But in the midst of uncertainty lies opportunity. Europe has come to realise that we must reduce our military and economic dependence on the US and build the future on our own strengths. Driving growth across an economic area with nearly 500 million people opens ample opportunities for Finland and Europe as a whole. In the era of increasing globalisation, there was strong trust in the efficiency of multinational supply chains, but recent events have underscored the need to strengthen self-sufficiency across as many industries as possible, including the defence industry.
In MuniFin’s business operations, the first half of the year was stable and in line with our expectations. In the affordable social housing sector, the demand for our financing was even slightly stronger than we anticipated. With private construction still in the slump and housing demand continuing to exceed supply in growth centres, this was a welcome development.
Our impact on society and the environment comes through the projects we finance, which is why we place particular emphasis on the steering impact of our financing. In recent years, more than half of the new customer financing we have granted has been either green or social finance. To complement these sustainable finance products, we launched in January a sustainability-linked loan for municipalities, which is aimed at supporting climate work at the local level and has been met with an enthusiastic welcome. Municipalities will receive a margin discount on their loan every year they achieve or surpass their emission reduction targets.
Our values include responsibility, customer centricity and transparency. In line with these values, we are committed to predictable and transparent operations in the long term. Our customers can rely on us and our work in every situation. We are ensuring the availability of financing for our customers also – and especially – even when external circumstances change. And right now, those changes are frequent and unpredictable.”
Group’s key figures
Jan–Jun 2025 | Jan–Jun 2024 | Change, % | Jan–Dec 2024 | ||
Net operating profit excluding unrealised fair value changes (EUR million)* | 79 | 89 | -11.9 | 181 | |
Net operating profit (EUR million)* | 78 | 105 | -25.8 | 166 | |
Net interest income (EUR million)* | 124 | 129 | -3.6 | 260 | |
New long-term customer financing (EUR million)* | 2,411 | 2,416 | -0.2 | 5,056 | |
New long-term funding (EUR million)* | 7,345 | 4,942 | 48.6 | 8,922 | |
Cost-to-income ratio, %* | 30.6 | 23.7 | 6.8** | 27.7 | |
Return on equity (ROE), %* | 6.5 | 9.5 | -3.0** | 7.2 | |
30 Jun 2025 | 30 Jun 2024 | Change, % | 31 Dec 2024 | Change, % | |
Long-term customer financing (EUR million)* | 36,541 | 33,300 | 9.7 | 35,173 | 3.9 |
Green and social finance (EUR million)* | 10,501 | 8,130 | 29.2 | 9,353 | 12.3 |
Balance sheet total (EUR million) | 55,175 | 50,954 | 8.3 | 53,092 | 3.9 |
CET1 capital (EUR million) | 1,654 | 1,586 | 4.3 | 1,646 | 0.5 |
Tier 1 capital (EUR million) | 1,654 | 1,586 | 4.3 | 1,646 | 0.5 |
Total own funds (EUR million) | 1,654 | 1,586 | 4.3 | 1,646 | 0.5 |
CET1 capital ratio, %*** | 89.4 | 102.4 | -13.0** | 107.7 | -18.3** |
Tier 1 capital ratio, %*** | 89.4 | 102.4 | -13.0** | 107.7 | -18.3** |
Total capital ratio, %*** | 89.4 | 102.4 | -13.0** | 107.7 | -18.3** |
Leverage ratio, % | 11.4 | 12.0 | -0.6** | 12.3 | -0.9** |
Personnel**** | 187 | 196 | -4.6 | 178 | 5.1 |
* Alternative performance measure.
** Change in ratio.
*** The capital ratios at 30 June 2025 have been calculated in accordance with the CRR III regulation. The figures for the comparative periods have not been adjusted.
**** The comparable figure of personnel in the Parent Company as of 30 June 2024, was 185. There were 11 employees working MuniFin’s subsidiary at the end of June 2024.
MUNICIPALITY FINANCE PLC
Further information:
Esa Kallio
President and CEO
tel. +358 50 337 7953
Harri Luhtala
CFO
tel. +358 50 592 9454
MuniFin (Municipality Finance Plc) is one of Finland’s largest credit institutions. The owners of the company include Finnish municipalities, the public sector pension fund Keva and the State of Finland. The Group’s balance sheet totals over EUR 55 billion.
MuniFin’s customers include municipalities, joint municipal authorities, wellbeing services counties, corporate entities under their control, and affordable social housing organisations. Lending is used for environmentally and socially responsible investment targets such as public transportation, sustainable buildings, hospitals and healthcare centres, schools and day care centres, and homes for people with special needs.
MuniFin’s customers are domestic, but the company operates in a completely global business environment. The company is an active Finnish bond issuer in international capital markets and the first Finnish green and social bond issuer. The funding is exclusively guaranteed by the Municipal Guarantee Board.
Read more: www.munifin.fi
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