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ePaper created 2012-04-20, 15:08:32 | version 1.23.0
24 Management Report – münchener Hypothekenbank eg l annual Report 2011 Business development and overall conditions MünchenerHyp in 2011 MünchenerHyp was able to withstand the pressures stemming from the difficult environment in the capital markets in 2011. Our new business results developed very well as we exceeded our targets in both the residential property financing and com- mercial property financing areas. A large portion of our new business was generated by financ- ing private property transactions, which in turn stemmed primarily from our Cooperative Financial Network business with the Volksbanken and Raiffeisenbanken. The competi- tive strengths of our cooperative partner banks coupled with heavy demand for property in Germany and unchanged low interest rates were the most important reasons for this success. Demand was also very strong for commercial property financ- ing, and especially for financing residential property portfolios. Our business outside of Germany benefited from the overall stable situation in our core markets of France and the UK. Our portfolio of loans in our receding property finance business in the USA developed according to strategy and continued to contract successively while posting very satisfactory results in terms of margins and declining risks. Against the background of the sovereign debt crisis, we focused our lending business with the public-sector and banks on core countries in Western Europe and system-relevant banks within these countries. As a result, this area of business declined sub- stantially. Our good new business results and the improved risk position noted for our American lending business assisted us in writing down our Greek portfolio on our own. “MünchenerHyp's new business developed very successfully, as targets in our core areas of business were even exceeded in some cases.” The volume of lending commitments made across all of our areas of business totalled € 4.8 billion, or about € 600 million less than in the previous year. This change was due to reduced level of lending business with the public-sector and banks, as well as in Switzerland. Our good new business performance favourably Source: MünchenerHyp As of: 02.01.2012 Mortgage rates MünchenerHyp (ten year fixed rate) Initialeffectiveannualrateinpercent 3 4 5 6 7 8 9 12 11 10 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Long-term average rate