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22 Business Development Management report – münchener Hypothekenbank eg l annual report 2013 New mortgage business The pronounced price-driven competition in our core markets led to slightly lower lending margins than noted in the previous two years. Margins were once again closer to levels seen in many earlier years. Despite the fact that we continued to shun par- ticipating in price-driven competition, we did manage to hold our new mortgage business at a very high level. Our goal is to grow at an acceptable level of risk while generating adequate margins. We achieved this in 2013 as we recorded new business (excluding prolongations) of € 3.6 billion, which was also at last year’s level. As a result, we were able to continue on our course of growth – as we had anticipated in our last Annual Report – and further strengthen our position in the market. Residential housing Commercial property MünchenerHyp New mortgage business 2008 – 2013 Commitments in € million 2008 2009 2010 2011 2012 2013 1000 500 0 1500 2000 2500 3000 3500 4000 4500 2287 1814 345 3208 583 2808 662 2959 739 2879 1818 85 The volume of mortgage loan commitments made in the resi- dential property financing area of business amounted to € 2.9 billion and was slightly below the € 3.0 billion figure posted in the previous year. This was mainly because 2012 was an excep- tionally successful year for our business with banks within the Cooperative Financial Network. However, in comparison to the previous years, business with cooperative banks remained at a very high level. Our performance here was driven by strong de- mand for long-term fixed interest rates along with flexible finan- cial solutions. Demand for forward loans was more moderate in view of the continuing low level of interest rates. Financing of owner-occupied houses and condominiums represented the greatest share of our business with Cooperative Financial Net- work banks. “New business remained sound at a very high level. As a result we were able to continue on our growth course and further strengthen our position in the market.” Sales of residential property financing generated by independ- ent providers of financial services rose by 23 percent over the previous year’s figure to € 531 million. We were thus, as planned, able to offset the decline noted in 2012. As foreseen, our collab- oration with the Swiss PostFinance advanced further. Loans were primarily made to owner-occupants at acceptable levels of risk and at comparatively low loan-to-value ratios. The volume of our new commercial property financing business increased by 12 percent to almost € 740 million. Our forecast had foreseen a slight expansion of new business. The focus of these activities was on financing transactions in Germany. Out- side of Germany we only financed selectively due to the difficult market conditions. Margins also developed favourably as we were able to substantially exceed our margin targets. As planned, we were able to expand our business with commercial housing companies.