Annual report 2013
At the end of the financial year, the Group’s balance sheet total was EUR 2,468.5 (2,276.1) million. Equity totalled EUR 497.9 (438.4) million and equity ratio was 20.7 (19.8) per cent. Return on equity was 15.5 (10.6) per cent and return on investment 5.5 (5.5) per cent.
The Group’s cash, cash in bank and securities stood at EUR 142.3 (129.0) million at the end of the financial year. The Group maintained good liquidity during the financial year. Of the EUR 80 million commercial paper programme, EUR 47.5 (36.5) million had been issued.
In May, VVO-group plc issued an EUR 100 million secured bond. The bond has a term of seven years and the fixed annual coupon rate is 3.25 per cent. The bond is backed by residential properties mostly located in the Helsinki Metropolitan Area.
At year end, the Group had EUR 611.9 (607.4) million in interest subsidy loans guaranteed by the State. The remaining average maturity was 3.9 (4.9) years for interest subsidy loans withdrawn before 2002, which amounted to EUR 261.8 (268.8) million, and 29.3 (29.8) years for interest subsidy loans withdrawn later than that, which in turn amounted to EUR 350.1 (338.6) million. The interest costs from interest subsidy loans amounted to EUR 10.5 (13.8) during the period, and the interest subsidy paid by the State to banks was EUR 0.3 (1.1) million. The remaining maturity of annuity loans at the current inflation rate is 25.3 (21.4) years.
At the turn of the year, market-based loans totalled EUR 802.0 (665.6) million. Market-based loans include an EUR 100 million bond issued during the review period. EUR 344.9 (352.0) million of the loan capital was hedged. The average maturity of the hedging was 6.6 (6.0) years. Of the market-based loans, EUR 252.2 (176.9) million was tied to a fixed rate. The remaining average maturity is 10.3 (11.1) years. The Group has EUR 1.9 (3.2) million in corporate loans related to unsold owner-occupied apartments and EUR 23.0 (22.8) million in loans related to the plot reserve.
At year end, the Group had EUR 2.4 (2.4) million in subordinated loans. Interest-bearing liabilities stood at EUR 1,795.1 (1,664.3) million at the end of the financial year.
The average interest rate cost for housing stock loans was 2.8 (3.1) per cent. The average interest for non-profit housing stock annuity loans was 4.1 (4.3) per cent. Meanwhile the average interest rate on market-based loans, without hedging costs, was 1.8 (2.4) per cent, and with hedging costs, 3.0 (3.3) per cent. The average interest rate on interest subsidy loans in 2013 was 1.7 (2.3) per cent.
A revenue of EUR 0.9 (an expense of 2.4) million was recognised in the profit and loss account as negative change in the values of swaption contracts entered into during the previous financial year.