Please activate JavaScript!
Please install Adobe Flash Player, click here for download
ePaper created 2012-04-20, 15:08:32 | version 1.23.0
35Management Report Münchener Hypothekenbank eG This resulted in a net interest less commission income figure of € 79.6 million, or € 17.3 million less than the same year-ago figure. Net results for the trading portfolio amounted to a minus € 3.6 million. Total administrative expenses for the year under review grew by 4.5 million to € 58.9 million, while personnel expenses declined by € 1.7 million to € 29.6 million. In contrast, the remaining ad- ministrative expenses rose from € 23.0 million in 2010 to € 29.3 million. The reasons for the change were the bank levy, which had to be paid for the first time and amounted to € 2.2 million for the MünchenerHyp, as well as other expenses incurred for the introduction and approval of IRBA. Moreover, we also re- corded charges for a release change for our SAP system. The item “Depreciation and write-downs of intangible and tan- gible assets” amounted to € 4.6 million, and was at the previous year's level. Total administrative expenses4 amounted to € 63.5 million (previous year: € 58.9 million). Excluding interest expenses arising from silent participations, the cost-income ratio was 62 percent. The net sum of other operating expenses and income amounted to a minus € 1.7 million. Results from operations before pro- visions for risk5 amounted to € 10.7 million. The item “Write-downs on and adjustments to claims and certain securities and reversals to provisions for possible loan losses,” totalled € 57.6 million. In particular, our success in restructuring our lending business in the USA resulted in posting a favourable balance for provisions for lending risks. This figure includes the net sum of adjustments to the value of loans (including general valuation adjustments and direct write-downs) of € 11.8 million (previous year minus € 35.2 million). We recorded € 10.3 million Paid up capital rose by € 7.3 million over the previous year to € 158.9 million. Total liable equity amounted to € 1,157.3 million and was slightly below the previous year’s figure due to the maturity of a subordinated liability. “Our portfolio of mortgage loans grew substantially due to the good new business results, especially in the residential property financing segment.” Core capital amounted to € 773.7 million (previous year € 762.8 million). The solvency figure for core capital on December 31, 2011 was 8.9 percent (previous year 6.4 percent) and 13.3 per- cent for total capital (previous year 10.0 percent). The higher capital ratios resulted in the change in approach used to calcu- late equity capital requirements from the standardised approach to credit risk to IRBA. Development of earnings We recorded net interest income² of € 117.9 million for 2011, which was slightly lower than the previous year’s figure. The change was mainly due to higher refinancing costs caused by the uncertainty and crisis of confidence seen in the capital mar- kets. Our favourable new property financing business was not able to offset these higher costs. The earnings figure also in- cludes income from the early termination of interest rate swaps. Due to higher volumes paid out for private property loans generated by broker sales, the amount of commissions paid rose by 26 percent to € 47.4 million. A slight decline in com- mission income led to a net commission balance³ of minus € 38.3 million (previous year minus € 27.6 million). 2) Net sum of interest expenses, interest income and current income 3) Net sum of commission costs less commission income 4) General administrative expenses and depreciation, and adjustments to value of intangible and tangible assets 5) Net sum of Income Statement expense items 1. 2. 3. 4. 5. 6. and income items 1. 2. 3. 4. 7.