Financial report and operating income
For the financial year 1978 a net Group result of 43,8 million
was achieved, composed as follows:
1978
1977
Gross profit FGH and
affiliated banks
76.900.000
60.900.000
Gross profit real estate
companies and other
diversifications
14.900.000
20.700.000
91.800.000
81.600.000
Corporation tax
Addition to reserve for
37.700.000
general contingencies
10.300.000
48.000.000
43.400.000
Net Group result
43.800.000
38.200.000
Consequently, the net Group profit rose by 15% as compared with
the previous financial year.
In the finance business new loans and repayments moved almost
at the same level as in 1977. Nevertheless, an increase in the
interest and commission balance was realised of 20,5 million,
which is mainly caused by the continuation of the considerable
growth of the mortgage portfolio and the net worth in the previous
financial year.
General expenses rose by 13% to reach 23,7 million.
This rise is for the greater part accounted for by the staff costs
as a result of salary adjustments and the increase in the number
of employees in connection with the growth of our business
activities.
With effect from the financial year 1978 we started to make a more
exact allocation of general Group expenses over the various
divisions than has been the case up to now. As a result more of
these expenses, viz. 1,2 million, were charged on to the real
estate companies and other diversifications than in the previous
financial year.
The addition to the past service reserve for pensions (in 1978
2 million), which in some years was accounted for as a separate
item in the profit and loss account, has now again been included
under general expenses. The comparative figures for 1977 were
adjusted accordingly. The separate statement was a result of the
improvement in the pension provisions, which had long been
intended and was realised in 1978, and from which considerable
past service commitments resulted. Now that the new provisions
have been brought about, it may be expected that these costs will
follow the normal trend in the future, so that no separate
statement is necessary any longer.
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