University of Helsinki Reports €16 Million Operating Deficit in 2023

In 2023 the University of Helsinki’s operating result (the result without taking investment activities and fundraising into account) was €16 million in deficit after taxes.

The surplus from fundraising, investment and financial activities was €72 million, driving the University’s overall result to €57 million in the black. The return on investment and financial income included €58 million in changes in the value of investments.

Core funding increased by €20 million. In particular, funding was boosted by the university index and related indexation for 2022.

The share of funding allocated to the University of Helsinki under the funding model of the Ministry of Education and Culture decreased slightly. On the basis of its own calculations, the University’s annual core funding will decline by €10 million annually over the next three years, which means that there will be €10 million less each year to spend.

University of Helsinki operating result after taxes for 2010–2023, € million

In addition to core funding, the University of Helsinki acquires external funding from a range of sources. Another record-breaking year was seen in external funding, totalling €340 million, of which €253 million was research funding. Roughly half of all research funding, €127 million, was awarded by the Research Council of Finland.

Growth in electricity costs halted

The University’s operating expenses increased by 6%. Staff expenses increased by €25 million, rents by €9 million and other expenses by €6 million. 

The steep rise in electricity costs was halted, falling €1.5 million from 2022. At the same time, however, heating costs increased. In 2022, electricity and heating costs increased by €9 million to a total of €20 million. In 2023, the corresponding total was €19 million.

Travel expenses increased by more than €3 million, returning close to pre-pandemic levels.

A good year in investment

In 2023 the University of Helsinki saw a 13.5% return on its securities portfolio. The return was primarily boosted by responsible equity index funds that invest globally. At the end of the year, the portfolio was valued at €672 million. The cornerstones of the University of Helsinki’s investment strategy, founded on academic research, are diversification, low costs and the mitigation of climate change. From the beginning of 2019, the average annual return on investment for the securities portfolio has been +11.6%.

The Board of the University of Helsinki has decided to increase the distribution of return on investment to one of the University’s core duties by up to approximately €10 million between 2024 and 2028. The additional distribution of returns will be targeted at supporting research.

The Board approved the University of Helsinki’s financial statements for 2023 in its meeting on 17 April 2024.