In the past fiscal year the growth of the mortgage portfolio amounted to
425 million compared to 693 million in 1979.
This smaller increase resulted in a decline of the receipt of commissions
by 4,1 million to a level of 21,9 million.
On the other hand, the interest balance rose by 6,8 million, or up 8%.
The general expenses of the finance business rose by 5,2 million to
31,8 million. The causes for this increase include: the on average
higher number of staff employed, principally as a result of the
expansion of the internationally-oriented activities and the costs
connected with the improvement of organizational efficiency.
Also the 'Costs involved in moneys raised' were higher, chiefly as a
result of relatively high costs connected with the placement of some
large loans abroad.
Starting with the fiscal year 1980, all assets and liabilities, in foreign
currency denominations, are valued at the exchange rate as at the
balance sheet date. Any exchange rate differentials resulting from not
having fully balanced positions in foreign currencies, which up until
now were credited or debited to the results, are booked as changes in
the equity capital. In the year under review this position led to an
addition of 1.588.000.
The real estate business and other diversifications experienced to an
even stronger degree than the finance business, the effect of
unfavorable market conditions. Gross profit of 3,1 million for 1980
lagged considerably behind the results for 1979 18,4 million) and also
these of the preceding years.
On the one hand, this setback is caused by decreased sales and, on the
other hand, by book losses taken as a consequence of the re-valuation
of some development projects, chiefly Belgian. For these projects,
where for the time being sales have been stagnant, an amount of 6
million was written off, as well as an amount of 3,5 million of non-
activated interest, both debited to the results.
In addition, for minority participations a downward re-valuation equal
to 2,8 million was made, and interest was not activated to an amount
of 4,1 million, likewise principally for projects situated in Belgium.
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