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ePaper created 2015-04-21, 16:47:46 | version 1.37.0
7Letter from the Board of Management could not achieve this prior to the ECB’s deadline date. This meant that we had formally failed to meet the ECB’s requirements based on our annual financial statements for 2013. This caused a bit of commotion among the public and the media on the day when the results of the ECB’s stress test were announced. However, this quickly died down as a closer look at the results revealed that we had met all the supervisory requirements. The favourable impres- sion was further supported by the very good grades we received from the ECB for their Asset Quality Review of our balance sheet, which did not require us to make any adjustments to our provi- sions for risk. Furthermore, we provided all of the extensive data required by the ECB in an exemplary manner. Continuing on our growth course and mastering escalating regulatory requirements Our growth course was confirmed by the good business results we posted in 2014. Our momentum, however, is being increas- ingly hindered by the escalating regulatory requirements placed on the banking industry. As a mid-sized bank we, in particular, see ourselves increasingly confronted with demands that do not differentiate between the risks inherent in different business models or the size of banks. This undifferentiated “one-size-fits- all” approach is being carried out, above all, at the expense of those institutions with specialised business models, which there- fore do not fit the norm. The Leverage Ratio, which is foreseen as part of the Basel III re- quirements, is a very clear example. It sets the maximum debt ratio at 3 percent of total assets without taking the usual risk- related key figures into consideration. The European Banking Levy will also place a substantial burden on us. This is also a non-risk-adjusted requirement and based solely on the nominal value of liabilities. As a Pfandbrief bank, we will be clearly disadvantaged by this. Even though the strict rules of the Pfandbrief Act requires Pfandbriefe to be secured by recoverable cover pools, which in turn means that it is highly un- likely that the resolution fund will have to be utilised, outstand- ing Pfandbriefe will nevertheless have to be fully counted. The costs of meeting these – to a certain extent – dispropor- tionate requirements are very high for us. Coping with these requirements will necessitate very high levels of commitment and performance from us in this year and the next. We will be assisted by our successful course of growth, which will make it possible for us to sustainably strengthen MünchenerHyp’s earnings power. Strong solidarity The main reason why we were able to successfully master the previous business year was because all of us – here within the MünchenerHyp, our bodies and our partners in the Coopera- tive Financial Network – pulled together in the same direction. We would like to thank all of you who worked to ensure that MünchenerHyp remains prepared for the future: our members, the members of the delegates meeting, the Supervisory Board, the Cooperative Advisory Committee, the associations and firms within the Cooperative Financial Network, as well as the mem- bers of the Works Council and the Executive Employees Commit- tee for their constructive collaboration, and, last but not least, our employees. They performed extraordinarily on behalf of their MünchenerHyp. We are particularly grateful for the trust we received from all sides. Without this trust we would have been unable to master the difficult demands posed by the ECB. Now it’s our turn to show that we are worthy of this trust. This is the reason why trust is the theme of this annual report. We want to use the theme pages to present what we do in our daily banking work to ensure that we will continue to earn your trust in the future. Sincerely yours, Dr. Louis Hagen Bernhard Heinlein Michael Jung