Geschäftsbericht 2015, englisch - Report of the supervisory board

Report of the Supervisory Board Report of the Supervisory Board During the year under review the Supervisory Board carried out its supervisory functions in accordance with the legal requirements, the Bank’s Articles of Association and its bylaws. The Board of Ma­ n­­ agement reported in a timely manner to the Supervisory Board re- garding the Bank’s corporate planning, its business and financial situation, as well as the Bank’s further strategic development. The Supervisory Board thereby advised the Board of Management and supervised its management of business. The Supervisory Board’s decisions on actions requiring its approval were made on the basis of reports and materials submitted by the Board of Management. During the year under review the Supervisory Board held its con- stituent meeting and four regularly scheduled meetings with the Board of Management. The key subjects and advisory issues covered were the development and planning of the Bank’s business activi- ties, the business and risk strategy, the Bank’s risk situation, regu- latory issues and talks regarding cooperation, as well as a possible merger, with Hausbank München eG. The Supervisory Board has established committees to enable it to carry out its duties efficiently. The committees are: the Audit Com- mittee, the Risk Committee, and the Nomination and Remuneration Control Committee. The committees regularly reported on their activities during the Supervisory Board’s meetings. The accounting documents, the annual financial statements and the Management Report for the 2014 financial year were audited as assigned by the Deutsche Genossenschafts- und Raiffeisenverband e. V., Berlin, and received an unqualified certificate from the audi- tors. There were no reservations. The auditors gave an extensive oral presentation of the primary results of their audit during a meeting of the Supervisory Board’s Audit Committee. Moreover, the auditors were also available to provide additional information. Each mem- ber of the Supervisory Board received a copy of the audit report of the legal audit prepared by the auditors in accordance with Article 53 of the Cooperatives Act (Ge­ nossenschaftsgesetz), includ- ing the audit of the 2015 annual statement of accounts for the Münchener Hypothekenbank eG, for their information on a timely basis. The results of the audit were examined during a joint meeting of the Board of Management and the Supervisory Board attended by the auditor. The results of the audit are also stated during the Delegates Meeting. The annual financial statements, the Management Report, and the Board of Management’s proposal for the allocation of distributable income were examined by the Supervisory Board and endorsed. The Supervisory Board recommends that the Delegates’ Meeting ap- prove the annual financial statements for 2015 – as explained – and endorse the Board of Management’s proposal for the allocation of net income. The proposal is in accordance with the terms of the Bank’s Articles of Association. Following five years as a member of the Supervisory Board, Erich Rödel stepped down as scheduled due to age reasons during the year under review. Prior to joining the Supervisory Board Mr Rödel had been the Chairman of Münchener Hypothekenbank’s Board of Management. Mr Rödel’s service to the Bank was marked by his high level of expertise and his great passion for the Bank in all of the positions he held. He was instrumental in advancing the suc- cessful development of the Bank during a period of great upheaval for the banking sector, and especially for Pfandbrief banks. Mr Gregor Scheller, the Chairman of the Board of Management of the Volksbank Forchheim eG, was newly elected as a member of the Supervisory Board during the 2015 Delegates Meeting. The 2015 business year was one of the most successful in the past five years for MünchenerHyp. The Bank was able to further improve the previous year’s record level of new business and also posted a substantial increase in earnings. These results showed that the Bank came through the turmoil associated with the financial markets crisis and enormous regulatory requirements – especially those imposed after the Bank came under the direct supervision of the European Central Bank (ECB) – stronger than before and continues to remain on track for growth. In view of the looming additional regulatory burdens, the Bank’s objective is to employ appropriate measures that will further strengthen and enhance its progress on its path of growth. MünchenerHyp’s Board of Management and all of the Bank’s em- ployees are striving to achieve this objective with great élan and exceptional commitment. The Supervisory Board recognises and appreciates these efforts and is grateful for them. Munich, April 2016 MÜNCHENER HYPOTHEKENBANK eG Konrad Irtel Chairman of the Supervisory Board 83

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