Please activate JavaScript!
Please install Adobe Flash Player, click here for download
ePaper created 2014-04-15, 13:56:41 | version 1.30.00
26 Management report – münchener Hypothekenbank eg l annual report 2013 This resulted in net interest income and net commission income3 of € 94.3 million, an increase of 20 percent, or € 15.9 million. Total administrative expenses increased by € 6.7 million to € 67.0 million. Personnel expenses rose by € 3.3 million, or 10 percent. The higher levels of new business seen in the past two years, as well as projects and, not least, the more extensive supervisory requirements made it necessary to hire greater numbers of new personnel. The remaining administrative expenses rose addition- ally by 3.4 million due to projects such as: the new trading and valuation system required due to new regulations; further steps taken to define the Bank’s equity capital requirements in accord- ance with the Internal Ratings Based Approach (IRBA); studies concerning the future IT system, as well as other major projects. Depreciation and write-downs of intangible and tangible assets amounted to € 6.5 million, or € 1.3 million more than the same year-ago figure. Total administrative expenses4 amounted to € 73.5 million com- pared to € 65.5 million recorded in the previous year. The cost- income ratio excluding interest expenses arising from silent par- ticipations was 61 percent (previous year 62 percent). The net sum of other operating expenses and income totalled € 1.6 million, while results from operations before deducting provisions for risk5 amounted to € 22.4 million, or 111 percent higher than in the previous year. The item “Write-downs on and adjustments to claims and certain securities and additions to provisions for possible loan losses” totalled minus € 21.4 million. This figure includes an addition to reserves pursuant to Art. 340f of the German Commercial Code (HGB). The lending risk situation remained satisfactory, and there- fore we only needed to make a moderate addition to provisions for possible loan losses. This figure (including direct write-downs) amounted to a minus € 11.7 million (previous year minus € 3.9 million). Maturing securities and the sale of securities held as current assets, as well as the sale of promissory note loans, resulted in net income of € 4.4 million. The net sum of write- downs and write-ups to securities held as current assets was a minus € 1.4 million. “Income from reversals of write-downs on participating inter- ests, shares in affiliated companies and securities treated as fixed assets” amounted to a positive figure of € 20.2 million. This fig- ure is primarily the result of proceeds from the sale of securities held as assets. Prior to the transfer of funds to the Fund for General Banking Risks pursuant to Art. 340g of the German Commercial Code, re- sults from operations after deducting provisions for risk amount- ed to € 21.2 million. After transferring € 5.0 million to the Fund for General Banking Risks, and a tax expense item of € 9.5 mil- lion, annual net income mounted to about € 6.7 million. These figures show that we were able to increase our net income for the year as forecast. We are generally satisfied with the de- velopment of our business. Proposed allocation of distributable income Net income for the year amounted to € 6,707,712.48. A dividend distribution of 3.25 percent will be proposed at the Delegates’ Meeting. Unappropriated profit for the year – including profit brought forward from the previous year (€ 200,424.54) – amounting to € 6,908,137.02 should therefore be allocated as follows: 3.25 percent dividend 6,701,366.00 Euro Carried forward to new year 206,771.02 Euro 3) Net interest balance and net commission balance 4) General administration expenses and depreciation, and adjustments to intangible and tangible assets 5) Net sum of Income statement expense items 1. 2. 3. 4. 5. and income items 1. 2. 3. 4. 6.