The market value of FGH BANK’S real estate portfolio, including participating interests not consolidated in the balance sheet, rose by some NLG 95 million in 1991 to stand at NLG 246 mil lion at the end of the year. A significant proportion of this rise was due to unavoidable property acquisitions in the USA. However, it is intended to dispose of much of this real estate, as and when conditions improve. Sales volumes at the Marina Benalmädena project - in which FGH BANK has a minority interest - were below projected levels in 1991. This provides further confirmation of the difficult market con ditions currendy affecting Spanish coastal resorts. In total, some NLG 534.4 million of funding was arranged for new loans and refinancing purposes in the present reporting period. Most of the funding came from private loans secured for periods of at least a year. Part of the finance was arranged via AEGON, the parent company of FGH BANK, and part direcdy by FGH BANK. With FGH BANK’s newly acquired status as a commercial bank, the Funding Department has been able to extend its range of short-term finan cing facilities as from January 1, 1992. Moreover, FGH BANK’s commercial bank status, coupled with the fact that it can offer highly competitive rates, has enabled the bank to attract sufficient funds to cover most its short-term needs. Training continued to receive special attention in 1991. The importance of improving quality and of recruiting well-qualified staff was also emphasized. The number of staff changes that took place in 1991 was significandy below the levels seen in previous years. In the course of 1991, the number of staff employed by FGH BANK and its subsidia ry companies rose from 269 to 271. Further improvements were made during the year to the computerized loans administration system introduced by FGH BANK in 1990. Work was also started on expanding FGH BANK’s computer systems to facilitate the introduction of checking accounts and short-term loan facilities with effect from January 1, 1992. The Executive Board of FGH BANK gready values the degree of professionalism shown by the bank’s staff in adapting to the new organization and the newly introduced work practices, and recognizes the important contribution made by the Staff Council. The Board is particularly appre ciative of the positive attitude adopted by the Staff Council and gready welcomes its constructive criti cism. FGH BANK’s operating profit before tax fell to NLG 94.9 million in 1991 from NLG 104.2 mil lion in 1990. This was due to the disappointing results of FGH BANK’s American subsidiary, FGH Realty Credit Corporation Inc. Profits growth from FGH BANK’s activities in the Netherlands exceeded that achieved in 1990. On an after tax basis, profits fell to NLG 50.2 mil lion in 1991 from NLG 67.3 million in the prece ding year. In view of the continuing weakness of the American realty market, an additional sum of NLG 22.5 million was added to the contingency reserves. In 1990, the corresponding figure was NLG 10 million. Income in the form of incidental and periodic interest payments rose to NLG 543.7 million in 1991, compared with NLG 476.0 million in 1990. REPORT OF THE EXECUTIVE BOARD I REAL ESTATE PORTFOLIO I FUNDING I ORGANIZATION AND PERSONNEL I COMPANY ACCOUNTS

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Annual Reports FGH Bank | 1991 | | pagina 16