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
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
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 ORGANIZATION AND PERSONNEL
I COMPANY ACCOUNTS