Due to a change in organisation the desired separation in function
between appraisal and credit provision has further been accentuated
while preserving the greatest possible co-ordination.
As already mentioned earlier in this report, consultations with the staff
council have been constructive. The main subjects coming up for
discussion in 1979 were: the transfer of our principal seat from
Amsterdam to Utrecht and its consequences in the social field, the
acquisition of the Kok Group and the take-over of 50% of the shares
Gebam; in addition, several (re)organisations as well as several schemes
for staff members and pensioners were dealt with.
Financial report and operating income
For the financial year 1979 a net group profit of
41,4 million was achieved, composed as follows:
1979 1978
Gross profit FGH and
affiliated banks
74.100.000
76.900.000
Gross profit real estate
companies and other
diversifications
18.400.000
92.500.000
14.900.000
91.800.000
Corporation tax
40.600.000
f
37.700.000
Addition to provision for
general contingencies
10.500.000
51.100.000
10.300.000
48.000.000
Net group profit
41.400.000
43.800.000
This statement shows that the gross profit of the finance business
dropped by 2,8 million (4%), whereas the gross profit of the real estate
companies and other diversifications rose by 3,5 million (23%), which
resulted in a somewhat higher gross group profit.
Because the Corporation tax due was relatively higher as a result of the
abolition of the investment allowance, the net group profit fell by
2,4 million, or 5%.
In the foregoing we already mentioned that the growth of the mortgage
portfolio was lower than in 1978. This resulted in lower commission
receipts.
On the other hand, the interest balance rose as a result of a higher
average mortgage portfolio than in 1978, while the pressure on the
interest margin was resisted reasonably well. On balance, the interest
and commission balance 101,3 million) hardly differed from that of the
previous year 101,4 million).
General expenses showed an increase of 12,6%, which - as already
mentioned in the foregoing - is mainly caused by the staff additions that
have become necessary and the newly started internationalisation that
are having an effect on expenses.
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