The increase in the mortgage portfolio was again continued during
the past financial year and resulted in a rise in the interest and com
mission income by 9.2 million to f 56.5 million. In the course of 1976
relatively many high-interest-bearing loans were redeemed as a result of
the fall in interest rates. As we have attracted long-term funds to finance
these loans, this means a drawback that will be expressed in a
decrease in the interest income during the coming years. For this we
have created a provision to the amount of f3 million, which was
included under 'payables and transitory items’.
In accordance with the average, remaining currency of the redeemed
loans, this amount will be credited to the result in 6 years.
The higher income was offset by a rise in expenses (mainly in salaries
and social charges) of 1.4 million, so that, on balance, the gross
result increased by 7.8 million.
The real estate sector realized a gross profit of f11.1 million
12.3 million in 1975). This result includes an addition to the
provision for non-occupancy of another 4 million. An amount of
f 4.3 million was withdrawn from this provision to cover non
occupancy losses met with in 1976.
Operating results showed a sustained growth, viz. by f 1.1 million to
f 12.3 million. On the other hand, the profit on sales was f 0.5 million
less than that realized in the previous financial year. In view of the
explosive increase of the sales results in that year, to which reference
was made in our previous report, this decrease, which after all is still
relatively small, was entirely in keeping with expectations.
The sales results do not include the book profit (/2.8 million) ob
tained on the sale of old real estate, which was added to the re
placement reserve. The relatively small amount of this addition is
accounted for by the fact that the old real estate holdings have now
almost entirely been disposed of.
The securities business scored a positive result of f 0.6 million against
f 1.1 million in 1975.
In view of the dependence on conditions on the Stock Exchange the
results of this diversification will always show fluctuations from
year to year.
The dividend of the Friesch-Groningsche Hypotheekbank N.V. for
the financial year 1976 was fixed at f 2.68 per f 10 of a fully paid-up
share (in 1975 f 2.44). A statement of the dividends to be paid on
the various classes of shares is given later in this report.
We wish to conclude this report by expressing a word of thanks to
all our employees for the devotion they showed in fulfilling their
duties during the past year.
The Managing Board:
J. de Wilde, chairman
