Annual Report 2010 - Muenchener Hypothekenbank eG

24 | 25 münchener hypothekenbank eg | annUaL report 2010 management report Results from operations after making provisions for risk increased by € 3.7 million to € 16.7 million. We were able to close out the year under review with annual net profits of € 11.0 million. mORTgAgE BUSINESS our new mortgage business showed positive development in the past year. overall, we made € 3.6 billion in mortgage loan commitments, which largely compensated for the decline in 2009 caused by the financial market crisis and the recession. The majority of this new business was related to private prop- erty financing. in the area of residential property financing, we benefited from the high demand for private property financing in germany. After a fairly subdued start to the year, we were able to increase our new business by more than 75 percent to € 3.2 billion. during the past year, our most important sales partners were once again the volksbanken and Raiffeisenbanken. our range of products with their secured long-term interest rates and high level of flexibility provided our cooperative partner banks with clear competitive advantages. Thus we were able to help the volksbanken and Raiffeisenbanken expand their market posi- tion as quality providers for property financing during the last year. The sales of private property financing through independent financial service providers, known as broker sales, increased by 84 percent over the previous year, to € 390 million. our coop- eration with the Swiss Postfinance was also further expanded, and it benefitted from one-time effects related to the acquisi- tion of a large portfolio of private property loans. our financing business with housing companies was also inten- sified in 2010. New business reached a volume of € 315 million. in the area of commercial property financing we once again started expanding new business during the past year based on our strict risk standards. The total volume of lending commit- ments made increased over the same year-ago figure to € 345 million, and, as planned, about 70 percent of this volume was domestic. in addition to germany, the target markets for acquir- ing new business were the strong economic regions in Western Europe. No new business was concluded in the uSA; instead, we provided active support to our existing portfolio. “the Bank’s new mortgage business almost doubled in comparison to 2009 as we recorded a volume of € 3.6 billion. the main focus was on private property financing in Germany.” residential housing commercial property 2004 2005 2006 2007 2008 2009 2010 münchenerhyp new mortgage bUsiness 2004 – 2010 commitments in € million 4500 4000 3500 3000 2500 2000 1500 1000 500 0 16231810 537917 1254967 13531069 22871814 851818 3453208