REPORT OF THE EXECUTIVE BOARD was seen as being instrumental in updating the bank’s image to reflect more accurately its position as a vital part of the AEGON concern. At the same meeting, Mr. R.A.H. van der Meer was appointed to the Board of Directors and Mr H.B. van Wijk elected as the Board’s Chairman. FGH BANK’S operating profit before tax rose to NLG 104.2 million in 1990 from NLG 87.3 million in 1989. The strong growth in profits was mainly attributable to the company’s operations in the Netherlands. The poor results of FGH BANK’S American subsidiary depressed profits below the level originally projected. On an after tax basis, profits fell from NLG 77.1 million in 1989 to NLG 67.3 million in 1990. This reflects the fact that up to the end of 1989, profits were fiscally still being offset against losses made in previous years. In view of the continuing weakness of the American realty market, an additional sum of NLG 10 million was added to the contingency reserves as in 1989. Income in the form of interest payments rose in 1990 as did the associated expenses, although the net income figure remained virtually unchanged at NLG 98 million. Income from brokerage fees and incidental interest payments rose NLG 0.9 million in 1990 to NLG 20.5 million. Brokerage income increased in both the Netherlands and the United States, while the total fees collected from accelerated loan redemp tions dropped slightly. The overall loan premium rose due to the higher volume of financing supplied for new construction and development projects. Profits from participating interests not consolidated in the balance sheet fell from NLG 7.5 million to NLG 4.0 million, as these figures no longer include the results of Van Haften Co. N.V., a former subsidiary company. All other areas of the business showed a significant improvement in profitability compared with 1989, mainly due to the sale of participating interests and reductions in the required level of provisions. I The value of the consolidated loan portfolio at the end of 1990 totaled NLG 5.2 billion compared with NLG 4.8 billion at the end of 1989. This incre ase was due to a higher volume of lending activity both in the Netherlands and the United States. As a result of the profits growth, the company’s equity position improved, with the stockholders’ equity rising to NLG 542.8 million at the end of 1990. from NLG 498.8 million the previous year. In the coming period, FGH BANK intends to extend its lending portfolio and to expand its ancillary realty services. Greater emphasis will be placed on improving the quality and range of services offered to clients. FGH BANK will continue to develop new market sectors that require specialized services. The Executive Board of FGH BANK is confident that this strategy will allow the bank to strengthen its existing business base. Although investment is expected to remain at a similar level as that recorded in 1990, some reduction in staff numbers will be necessary. The general outlook for the Dutch arm of FGH BANK is good, while uncertainty about the American economy and the realty market in the United States 14 COMPANY ACCOUNTS FUTURE PROSPECTS

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Annual Reports FGH Bank | 1990 | | pagina 16