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Geschäftsbericht 2012, englisch

Management report – münchener Hypothekenbank eg l annual Report 201222 Business development and overall conditions New mortgage business Our new business activities were supported by the favourable overall conditions in our core markets – especially in the German residential property market. We recorded significant growth that exceeded our business targets in both the residential and the commercial property financing business areas. We made a total of € 3.6 billion of new mortgage loans, or about 7 percent more than in the same year-ago period. With a volume of about € 3.0 billion, residential property financ- ing represented more than three-quarters of our total new business in 2012. In achieving this we were, above all, able to once again substantially expand our business with the Volks- banken and Raiffeisenbanken. The volume of brokered new busi- ness in this segment rose by about 25 percent. Business with housing companies developed at a stable pace and attained the previous year’s level. Our fixed-rate loans featuring attractive conditions and terms of over 20 years met with strong demand from private custom- ers. Our offer met the wishes of numerous customers who wanted to secure low interest rates over the entire lifetime of their loans. We again received an award for our residential property financing products in 2012 and this time we were honoured by n-tv, a German television station and by FMH, a financial consultancy. “We recorded significant growth that exceeded our business targets in both the residential and the commercial property financing business areas.” Sales of residential property financing generated by independ- ent financial service providers declined by 19 percent from the same year-ago figure to € 430 million. New business generated by PostFinance, our Swiss cooperation partner, continued to develop favourably. In addition to secure interest rates, many customers placed increasing value on flexible lending conditions. This was reflected by the increasing number of loans made in 2012 containing options concerning unscheduled repayments as well as altered repayment rates. New commitments to finance commercial property grew by 14 percent to € 662 million. About two-thirds of the financing volume was made for domestic loans. The loan-to-value ratios were moderate in comparison to the market value, as well as to the mortgage lending value. Margins tended to develop firmly and in most cases the fixed-interest periods were for five to ten years. Public-sector and bank lending, and municipal loans Overall conditions in the lending business with public-sector borrowers and banks remained difficult in 2012 as the European Residential housing Commercial property 2007 2008 2009 2010 2011 2012 4500 4000 3500 3000 2500 2000 1500 1000 500 0 MünchenerHyp New mortgage business 2007 – 2012 Commitments in € million 1623 1810 1814 2287 85 1818 3208 345 583 2808 662 2959

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