Annual Report 2010 - Muenchener Hypothekenbank eG

münchenerhYp in 2010 We further developed our business and risk strategy during the year under review. We are planning a growth course that is primarily focused on private property financing in germany. due to positive development of this market in germany coupled with the substantial expansion of our business with the volks- banken and Raiffeisenbanken, we were able to realise significant potential in our Cooperative financial Network business and beyond. in the area of commercial property financing – following a notable decline in new business in 2009 – we were once again presented with attractive business possibilities, which we pur- sued gradually and in a risk-aware manner. here we are focus- ing on the german market as well as on other countries in Western Europe, especially the uK and france. BUSINESS dEvELOPmENT ANd OvERALL cONdITIONS our objective in the credit business with the public-sector and banks was to keep our portfolio stable. We exercised particular caution in this segment given the ongoing uncertainties in the capital markets regarding the creditworthiness of governments and their banking sectors. The total volume of lending commitment increased as planned, from € 2.8 billion in the previous year to € 5.4 billion. More than half of the total growth was driven by the expansion of new business in private property financing. This also allowed us to expand the portfolio of mortgage loans and other construc- tion financing loans by € 1.8 billion, to € 18.4 billion. “münchenerhyp further developed its business and risk strategies in 2010. the Bank expanded its new mortgage business based on this foundation.” source: münchenerhyp as of: 01.01.2011 mortgage rates münchenerhyp (ten year fixed rate) initialeffectiveannualrateinpercent 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 3 4 5 6 7 8 9 12 11 10 Long-term average rate