Geschäftsbericht 2015, englisch

7 Letter from the Board of Management 7 sustainably increase its earnings power by growing organically in its core areas of business: providing financing for residential and commercial property. We took another important step towards realising this goal in the 2015 business year. Net interest income improved by almost 30 percent to € 221.5 million, and without taking on any higher risks. The risk situation in our lending busi- ness remained satisfactory. Our good new business results also had favourable effect on our portfolio of mortgage loans, which ex- ceeded € 25 billion for the first time ever. We want to continue pursuing our growth strategy in the future. For this reason we held talks with Hausbank München last year covering subjects ranging from cooperation through to a merger, with the objective of providing additional impetus to our organic growth with external growth. Following constructive talks, Haus- bank München decided at the start of 2016 that it did not wish to pursue a merger for the time being. The talks did, however, reveal potential areas of business where we could deepen or expand our collaboration. Four successful, large-volume Pfandbrief issues Demand for our Pfandbriefe was also very good in the previous year. The overall market was heavily affected, in particular, by the ECB’s third Covered Bond Purchase Programme, which favourably influenced the sale of covered bonds. In this environment we were able to successfully place four large-volume, benchmark Mort- gage Pfandbriefe issues with very low risk premiums. Our good name as an issuer among investors contributed to this success. During the year under review we were once again honoured as the best issuer of covered bonds and Pfandbriefe. Our success is the success of many The many challenges we faced in recent years have strengthened MünchenerHyp’s performance capabilities. A great deal of this is owed to our employees’ motivation, the constructive cooperation with the Works Council and the Executive Employees Committee, as well as the support we received from our members. Please ac- cept our warmest thanks for your efforts. We would also like to thank the members of the Supervisory Board, the Cooperative Advisory Committee, our colleagues in the associations and firms within the Cooperative Financial Network, and last, but not least, our customers for their productive and beneficial collaboration. The success of one link in a strong network always benefits the success of the entire community. Our sustained growth course is a joint effort and its success is based on the high motivation of our employees and the inter­ action between MünchenerHyp and its partners. For this reason, we want use this annual report to present some of the stories behind the numbers. We have selected some examples of the important steps and developments that have enabled us to im- plement our growth strategy. We will strive to continue growing organically in the current busi- ness year. We are confident that we will achieve this objective in view of the market environment, our competitive strengths, the dedication and expertise of our employees, and our attractive range of products. Sincerely yours, Dr. Louis Hagen Bernhard Heinlein Michael Jung

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