94 Business performance and financial position Annual Information Business performance and financial position Excellent 2021 financial year HYPO Oberösterreich can look back on an exceptionally successful 2021 financial year. Consistent and proactive focus on the core aspects as defined in the HYPO Value Added Strategy 2025, viz. "Growth & Profitability", "Sustainability", "Digitisation", "Customer Orientation, Responsibility & Engagement", led to this excellent result. Annual result before taxes tripled within the year, increasing to EUR 32.5 million (2020: EUR 10.8 million). Total assets increased by 4.3 percent to EUR 8,158.5 million (2020: EUR 7,825.1 million). The main reasons for this excellent development included significantly increased volume of financing across all customer segments, very good securities business, consistently excellent risk situation and the positive valuation effects in the trading result. Growth in loans, deposits and issuances Volume of financing continued increasing at its high level. Loans and advances to customers increased by 2.5 percent to EUR 5,598.6 million (2020: EUR 5,459.7 million). HYPO Oberösterreich continued to strengthen its position as the primary housing construction bank in this state. Segment assets in customer segment institutional and corporate customers increased at its high level, by 5.4 percent to EUR 2,908.2 million (2020: EUR 2,759.0 million). The volume of new financing in private housing construction for the first time exceeded EUR 200 million. This represents an increase of almost 22 percent on 2020. Annual new private housing construction volumes thus more than tripled between 2013 and 2021. The low risk in the loan book when compared to Austria in general remains remarkable. The level of risk provisions as of the balance sheet date is only EUR 14.1 million (2020: EUR 13.8 million). The impaired loans ratio (in relation to receivables from customers) of only 0.25 percent (2020: 0.25 percent) remains unsurpassed among Austria’s universal banks. The value of the important NPL ratio (non-performing loans) is also excellent. This ratio was only 0.35 percent as at the end of 2021 (2020: 0.41 percent). The volume of securities issued increased by 2.1 percent to EUR 4,242.8 million (2020: EUR 4,157.5 million). The main reason for this was the first-time placement of a EUR 250 million mortgage-backed green bond on the international capital market. The demand for this bond, with its seven-year term, was high. Issuance was significantly oversubscribed. Issuance of convertible housing bonds (housing loans) was also highly satisfactory. A volume of more than EUR 40 million was here issued in 2021. This makes HYPO Oberösterreich number one in this sector of the Austrian banking market. HYPO Oberösterreich achieved growth in customer deposits as well. Savings and current account deposits rose by twelve percent to a new record level of EUR 1,945.2 million (2020: EUR 1,737.2 million). The bank thus continues to boast excellent liquidity resources, available for future growth. Strong results in net interest and commissions The net interest income increased by around eight percent to EUR 61.3 million (2020: EUR 56.7 million). About one third of the increase is due to expansion of business, whilst the remaining two thirds are attributable to special interest earned from the TLTRO. Compared to 2020, credit risk provisioning was significantly reduced. Its contribution of EUR 3.1 million to earnings was negative in 2021 (2020: EUR -5.6 million). The net interest income after risk provisions thus increased by almost 14 percent to EUR 58.1 million (2020: EUR 51.1 million). The companies accounted for at equity (Beteiligungs- und Wohnungsanlagen GmbH and Beteiligungs- und Immobilien GmbH) likewise made a positive contribution of EUR 6.1 million in 2021 to earnings (2020: EUR 6.2 million).
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