Geschäftsbericht 2015, englisch

23 management report Sales of private property loans via independent providers of finan- cial services fell by 43 percent from the previous year’s figure to € 336 million. We accepted the decline in order to optimise the credit margins we obtain in this segment. Our cooperation with Swiss PostFinance developed quite nicely as the volume of loans they brokered rose substantially. We were also able to expand our new commercial property finance business at a faster pace – by 18 percent to € 1.3 billion (previous year € 1.1 billion) – than predicted. Lending commitments of about € 1 billion made to finance commercial properties represented the majority of new business generated in this segment as our financ- ing business with commercial housing companies amounted to € 0.3 billion and was slightly below the previous year’s performance. We achieved these results in a market environment that was in- creasingly difficult because of declining margins and tendencies to once again accept greater risks in financing. The fact that we were nevertheless able to grow our new business at an acceptable level of risk was primarily owed to the expansion of our process- ing capacities and the optimisation of our internal processing pro- cedures. These improvements allow us to review a higher volume of new business inquiries and offer made-to-measure customer- oriented solutions. In addition, we also accepted the challenges posed by price competition. We were able to increase the volume of our new business in our foreign markets, in particular, over the previous year’s figure due our favourable refinancing conditions. Capital Markets Business Regulatory requirements as well as the low interest rate policy continued to have a major effect on the securities business with the public sector and banks. For these reasons our activities in this sector were marked by great restraint. In accordance with our business and risk strategy we only invested in liquid securities issued by very creditworthy issuers lo- cated in EU core countries. The volume of new business contracted by about € 200 million to € 0.7 billion. The volume of these secu- rities in our portfolio declined by € 1.2 billion to € 8.2 billion. As of: 02.01.2016 Mortgage rates MünchenerHyp (ten year fixed rate) 9 8 7 6 5 4 3 2 1 0 10 11 Initial effective annual rate in percent long-term average rate 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2014 2012 2016 199019921994199619982000200220042006200820102014 20122016

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