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ePaper created 2015-04-21, 16:47:46 | version 1.37.0
49management report expect that our cooperation with Swiss PostFinance will lead to a continuation of the favourable new business results we have seen in previous years, even in a quieter market environment. Our plans call for a slight increase in the the total volume of new business in the area of commercial property financing over the previous year’s level. The main focus here will remain on financ- ing property in Germany. Furthermore, our recruiting has en- hanced our ability to acquire new business. As a result, we an- ticipate that the volume of new business in Germany will rise further. Our direct and syndicated lending business in 2015 will again be primarily focused on institutional and professional pri- vate investors. Beyond this, we plan to expand the volume of commercial property financing deals arranged in collaboration with the Volksbanken and Raiffeisenbanken. The objective of our lending business with the public-sector and banks will remain unchanged and primarily serve to manage li- quidity and cover pools. We anticipate higher liquidity requirements for refinancing pur- poses in 2015 than in the previous year. These are expected to be about € 7 billion. We believe that we will be able to obtain attractive refinancing conditions due to the interest rate envi- ronment, our standing as an issuer, as well as the quality of our cover pool. Pfandbriefe will remain unchanged as the pri- mary emphasis of our issues. We currently plan to float three covered benchmark issues with a minimum volume of € 500 million per issue. Private placements are also an important re- financing element for us which we employ to meet individual investor requirements. As in the previous year, we anticipate that demand from insti- tutes within the Cooperative Financial Network will absorb the major portion of our uncovered refinancing products. We plan to further pursue our sustainability-related strategic objectives and deepen our commitment. We plan to use ecologi- cal and social financing criteria, as well as sustainable product options, to anchor the concept of sustainability more firmly within MünchenerHyp’s core area of business. We also plan to float a further sustainable issue as part of our refinancing ac- tivities. We are striving to achieve a moderate increase in our net interest income from our business operations in 2015. The stable devel- opment seen in our core markets offers us unchanged opportu- nities to further expand our new business results and thus our mortgage portfolio. This will also have an increasingly favourable effect on the Bank’s performance. As a result we are striving to achieve a further in- crease in our earnings. We expect administrative expenses to rise in 2015 in view of un- changing high levels of regulatory requirements, the first-time imposition of the European banking levy, and higher fees paid to supervisory authorities. Our expenses will rise substantially if we do not reduce administrative expenses unrelated to regu- latory requirements. Nevertheless, we still expect that our cost- income ratio will be below 60 percent. Based on currently available information, we anticipate that provisions for risk related to our lending business will develop stably. In light of the anticipated favourable market environment, we are confident that we will achieve our objectives for the 2015 business year and be able to further expand our market posi- tion. We expect that net income for the year will be at the pre- vious year’s level.