The market value of FGH BANK’S real estate port
folio as at December 31, 1990 was NLG 151 mil
lion.
The disappointing growth in the number of tourists
visiting Spanish coastal resorts has affected the pro
spects for the Marina Benalmadena project near
Malaga, in which the FGH BANK has a minority
interest. In spite of this, the sale of apartments
exceeded projected levels, although the take-up of
commercial space was less encouraging. It has
therefore been decided to proceed with the next
phase of the project, which will consist solely of
apartments, in 1991, especially as there are now
indications that the tourism market in Spain is
recovering.
In total, some NLG 617 million of funding was
arranged for new loans and refinancing purposes.
Most of the funding came from private loans
secured for periods of at least a year. Part of the
finance was arranged via the AEGON parent
company and part directly by FGH BANK. Where
possible, the phasing of the new loans was brought
into fine with the bank’s existing commitments so as
to limit exposure to interest rate fluctuations.
The reorganization of FGH BANK into a specialist
realty bank was successfully completed in 1990. In
the new corporate structure, greater emphasis is
placed on customer service. Personal bankers serve
as a direct contact between individual clients and the
bank. By shortening the fines of communication,
the speed and efficiency of operations have been
greatly improved. During 1990, part of the
Keizersveer organization was integrated into that of
FGH BANK, which reinforced the role of the
Management Services Department.
As a result of this move, the quality of risk
management at the bank has been enhanced, which
should provide more effective long-term guarantees.
I Further efforts were made in the course of
the reporting period to improve the levels of staff
training and to continue to recruit well-qualified
employees. Regular staff appraisals and group mee
tings form an essential part of FGH BANK’S per
sonnel policy. A weekly company magazine is
published to keep employees informed of FGH
BANK’S progress.
A notable highlight in the course of 1990 was
the commissioning of a new computerized loans
administration system designed by the computer
department. This system, which is to be used both
by the marketing department and general manage
ment, should guarantee greater efficiency in dealing
with individual clients and is intended to form the
basis of future computerized information systems at
the bank.
I In the course of 1990, the number of staff
employed by FGH BANK and its subsidiary
companies fell from 298 to 269. The introduction
of a new organizational structure coupled with new
work practices has placed special demands on the
flexibility, creativity and dedication of the bank’s
employees. The Executive Board of FGH BANK
values the degree of professionalism shown by the
bank’s staff in adapting to the new organization and
recognizes the contribution made by the Staff
Council in this respect.
I It was with deep regret that the resignation of
Mr F.A.A. Stapels, Chairman of the Board of
Directors, was accepted at the FGH BANK’S annual
general meeting on May 29, 1990. Mr Stapels had
served as a member of the Board of Directors for
some five years and had been its Chairman since
1987. Many tributes were paid to Mr Stapels on his
retirement, with particular reference being made to
his ability to champion the bank’s cause. Mr Stapels
13
REPORT OF THE EXECUTIVE BOARD
I REAL ESTATE PORTFOLIO
I FUNDING
i ORGANIZATION AND PERSONNEL
