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ePaper created 2013-04-15, 17:20:51 | version 1.25.7
Management report 31 payments, we were able maintain the level at the previous year’s level. Total administrative expenses rose by 1.5 million to € 60.3 million. Personnel expenses increased by € 2.9 million to € 32.5 million as our existing capacities could not cope with the additional volumes of new business and it became necessary to hire new personnel. This increase was partially offset by the decline recorded for remaining administrative expenses, which fell by € 1.5 million to € 27.8 million. Above all, we were able to reduce the high costs for projects from their previous year’s level due to the completion of important projects in 2011, especially those for the introduction and approval of IRBA and the release change for our central IT system. Depreciation and write-downs of intangible and tangible assets amounted to € 5.2 million, or € 0.6 million more than the same year-ago figure. Total administrative expenses5 amounted to € 65.5 million in contrast to the € 63.5 million recorded in the previous year. Excluding interest expenses arising from silent participations, the cost-income ratio was 62 percent. The net sum of other operating expenses and income totalled minus € 2.3 million, while results from operations before pro- visions for risk6 amounted to € 10.6 million. The item “Write-downs on and adjustments to claims and certain securities and additions to provisions for possible loan losses,” totalled minus € 14.0 million. This figure includes an addition to reserves pursuant to Art. 340f of the German Commercial Code. Our lending risk situation remains satisfactory. As a result we just needed to make a very moderate addition to provisions for possible loan losses. This figure (including general valuation Paid up capital rose by € 1.9 million to € 160.8 million. Total liable equity also rose slightly to € 1,161.1 million (previous year € 1,157.3 million). “Our portfolio of mortgage loans increased further due to our favourable new business results. Total volume exceeded the € 20 billion mark for the first time.” Core capital amounted to € 776.5 million (previous year € 773.7 million). The solvency figure for core capital on December 31, 2012 was 9.1 percent (previous year 8.9 percent) and 13.5 per- cent for total capital (previous year 13.3 percent). Development of earnings Net interest income² improved by 9.4 percent, or € 11.1 million, to € 129.0 million. This figure was supported by the very good new business results in the residential property financing area. The earnings figure also contains income derived from the early termination of interest rate swaps. Driven by higher volumes paid out to referring partners in the residential property area of business – due to the higher volume of new business – the amount of commissions paid rose by 27 percent to € 60.3 million. The slight rise in commission income amounted to a net commission balance³ of minus € 50.6 million following a minus of € 38.3 million recorded in the previous year. This resulted in net interest less commission income4 of € 78.4 million. Despite the additional burdens arising from commission 2) Net sum of interest expenses, interest income and current income 3) Net sum of commission costs less commission income 4) Net interest balance and net commission balance 5) General administrative expenses and depreciation, and adjustments to value of intangible and tangible assets 6) Net sum of Income Statement expense items 1. 2. 3. 4. 5. 6. and income items 1. 2. 3. 4. 7.