authorities but we have been forced to withdraw the products from the
market. In the latter half of the year, we introduced a new version of the
Capital Mortgage. After a slow start, this product is now enjoying growing
interest, partly on the strength of a very favorable review by Vereniging Eigen
Huis. For the reasons mentioned above, however, production of mortgages
for the retail market was down overall, in comparison with 1986.
Our aggregate mortgage production in the Netherlands amounted to NLG
680 million, NLG 53 million more than in 1986. The portfolio declined by
10% to NLG 3,547 million, partly owing to the fact that, when real estate
was transferred to AEGON at the beginning of 1987, the loans relating to
the properties concerned were transferred as well.
For our American finance company, FGH Realty Credit Corporation, a
structured growth target was fixed for the years ahead. The company is
concentrating on the financing of commercial real estate mainly in the
so-called Tri-State area, i.e. the states of New York, New Jersey and
Connecticut. In line with this policy, the mortgage portfolio in the United
States underwent further expansion. Gross production for our own portfolio
was USD 92.5 million compared with USD 142.8 million in 1986.
The decline was due to changes in the market resulting in a reduced demand
for short-term finance. In addition, we began 1987 by syndicating a
proportion of the loans already contracted.
As per year-end 1987, the portfolio totaled USD 235 million compared with
USD 211.3 million at the end of the previous year.
After a series of years showing an uptrend in results, our stockbroking
activities experienced a downturn in 1987. Margins were under pressure
throughout the year. In October, stock prices fell sharply worldwide,
resulting in greater caution on the part of investors and a lower level of
activity.
Our subsidiary Van Haften Co N. V. consequently saw its commission
income decline by 31% to NLG 13 million. Gross income was down by 20%.
Net earnings showed a steeper decline, due to extra depreciation of data
processing equipment, higher staff costs and the start-up costs of the office
opened in London in August. Good management of the bank’s own
securities positions meant that Van Haften did not suffer any losses on the
positions held at the time of the crash in October.
Gemeenschappelijk Eigendom B. V. and Ruysdael B. V.which have a
combined value of NLG 2.0 billion and comprise approximately 15,000 units
of real estate of an extremely wide variety. The management costs are
charged to the companies which own the real estate portfolios.
Following the transfer of real estate to Transveer and Gemeenschappelijk
Eigendom, the value of FGH’s own real estate portfolio is only about NLG
102 million, mainly in the USA.
Finance Business
in the USA
Banking and Securities
Business
Management and Operation Keizersveer B. V.the company in which all the real estate divisions of FGH
of Real Estate have been amalgamated, is now managing the portfolios of Transveer B. V.
