Please activate JavaScript!
Please install Adobe Flash Player, click here for download
ePaper created 2014-04-15, 13:56:41 | version 1.30.00
Management report 47 We believe that the volume of business with the public-sector and banks will be similar to the previous year’s level. The prima- ry purpose of this area of business remains unchanged: control of liquidity and cover pools. Despite a comparatively high new mortgage business, our refi- nancing needs will be lower in 2014 as the volume of maturing bonds will only be just under 40 percent of the previous year’s figure. The main emphasis of our issues will remain unchanged and be on Mortgage and Public Pfandbriefe. We expect that we will launch three covered benchmark issues with a minimum volume of € 500 million per issue. Private placements are also an important refinancing element for us and enable us to meet individual investor requirements. “We are confident that we will attain our objectives for the 2014 fiscal year.” As in the previous year, we anticipate that a major portion of our uncovered refinancing requirements will be met by institutes within the Cooperative Financial Network. We plan to further expand our sustainability-related activities and the management of our sustainability efforts. In addition, we want to further improve our ratings for sustainability. We are striving to increase our net interest income from our business operations in 2014. The stable development noted in our core markets offers us unchanging opportunities to further expand our new business and our mortgage portfolio. This will also have an increasingly favourable effect on the Bank’s results. For this reason we anticipate that our results will rise further in 2014. Despite a decline in other associated costs, we anticipate that our administrative expenses will rise slightly in 2014 due to high- er costs for strategically important tasks, and projects arising from regulatory requirements. We nevertheless still anticipate that we will post a cost-income ratio of less than 60 percent. Based on currently available information, we expect that pro- visions for risks related to our lending business will develop in a stable fashion. Our plans also include issues concerning the appropriate level of equity capital. The Bank will be required to have a common equity Tier 1 capital ratio of 8 percent following the planned takeover of banking supervisory duties by the ECB on Novem- ber 4, 2014. Despite the easing of equity capital requirements arising from the Bank’s accreditation to employ IRBA, this change means that MünchenerHyp will have to acquire common equity Tier 1 capital in the form of additional paid up capital as it is not possible for the Bank to divest itself of risk-weighted assets with- out having a substantial impact on the income statement and cover for Pfandbriefe. The successful conclusion of these mea sures during the current business year assures that the Bank can meet equity capital requirements mandated by supervisory rules on a lasting basis. In light of the anticipated good market conditions, we are con- fident that we will achieve our targets for the 2014 business year and further improve our market position. We believe that we can achieve higher net income for the year than in 2013.