Please activate JavaScript!
Please install Adobe Flash Player, click here for download
ePaper created 2012-04-20, 15:08:32 | version 1.23.0
25Management Report Münchener Hypothekenbank eG New mortgage business Heavy demand for property financing, above all in Germany resulted in higher regular new business results in both our residential and commercial property financing business areas. After posting € 3.6 billion in new business in 2010, our volume of lending commitments made last year amounted to € 3.4 bil- lion. We exceeded our 2011 business targets, which were based on the previous year’s regular new business results, above all in our residential property financing area of business. We were able to employ our specific competitive strengths to a very great extent against the background of attractive inter- est rates and the uncertainty surrounding Europe’s future. Above all, these strengths included our ability to offer cus- tomers long-term fixed rates of interest for up to 30 years. Far more customers than in the past wanted to lock-in low inter- est rates for as long as possible. This demand was also fuelled by consumer associations last year as they strongly recom- mended obtaining long terms of fixed mortgage rates as an important factor for solid financing. As a result, a substantial portion of our new business was for mortgages with fixed rates of interest for over 20 years. Beyond this, MünchenerHyp enjoys a good reputation in the market as a provider of safe, flexible and innovative financing solutions. Customers expect that their financing will adjust to their changing personal circumstances and financial pos- sibilities. “The favourable level of interest rates bolstered demand for long-term fixed rates of interest of up to 30 years, an area where MünchenerHyp has a particularly strong competitive position.” We once again received awards for the quality and flexibility of our financing solutions. In early 2012 we won “The most innovative property financer in 2011” prize from PlanetHome AG, and we were also a top-ranked finisher for the FMH “Best Property Financer in Germany” award. influenced our portfolio of mortgages and other property finance loans, which rose by € 1 billion to € 19.4 billion. Regulatory approval received from the Federal Financial Super- visory Authority (BaFin) that allowed MünchenerHyp to use the Internal Ratings Based Approach (IRBA) to calculate its equity capital requirements represented a major success for the Bank in 2011. IRBA permits a far more precise control of equity capital requirements than was possible with the previ- ously used standard approach. Risks in the lending area will now be valued by their internally calculated level of risk. This will lead to a substantial increase in the Bank’s equity capital ratio as MünchenerHyp’s low-risk business requires a signifi- cantly lower level of equity capital. We ended the year under review with annual net profits of € 4.9 million. Residential housing Commercial property including housing companies 2006 2007 2008 2009 2010 2011 MünchenerHyp New mortgage business 2006 – 2011 Commitments in € million 4500 4000 3500 3000 2500 2000 1500 1000 500 0 2432 1669 1957 1476 1777 125 799 1002 1219 660 2592 2894