The associated expenses also rose to NLG 422.0 million from NLG 360.1 million in 1990. Commission income increased to NLG 1.6 million in 1991 from NLG 1.3 million in 1990. The results from participating interests not consolidated in the balance sheet also improved, rising to NLG 4.8 million in 1991 from NLG 4.1 million in 1990. In spite of the need for larger corrections for foreign exchange differences in the present repor ting period, the “Other income” figure for 1991 was little changed from that reported in 1990. By comparison, the “Other expenses” item showed a significant change with the previous year’s figure, which was distorted by the transfer of a reserve for deferred liabilities, which was no longer required. The value of the consolidated loan portfolio at the end of 1991 totaled NLG 5.7 billion compared with NLG 5.2 billion at the end of 1990. This increase was due to a higher volume of lending activity both in the Netherlands and the United States. As a result of the growth in retained profits, the company’s equity position improved, with the stockholders’ equity rising to NLG 575.2 million at the end of 1991 from NLG 542.8 million the previous year. In the coming period, FGH BANK intends to extend its lending portfolio and to expand its ancil lary realty services. Greater emphasis will be placed on improving the quality and range of services offered to clients. Special attention will continue to be given to product development and customer relations. The Executive Board of FGH BANK is confident that moves to greater integration within Europe will provide a unique opportunity for FGH BANK to extend its area of operations. As part of this stra tegy, the bank will target specific countries in the coming period. Although investment is expected to remain at the same level as that seen in 1991, a slight reduction in staff numbers is projected for 1992. It is expected that uncertainty about the American economy and the realty market in the United States will make trading conditions difficult for FGH RCC. Since the market for commercial real estate in the United States is unlikely to recover significantly in 1992, this will continue to put pressure on RCC’s margins. In spite of the fact that the general outlook for the Dutch arm of FGH BANK is good, the Executive Board expects that the results for 1992 will conti nue to be affected by the difficulties being expe rienced by FGH BANK’s American subsidiary. 15 REPORT OF THE EXECUTIVE BOARD I FUTURE PROSPECTS UTRECHT, MARCH 11, 1992 W.A.J.M. van der Heijden R.J. Kahlmann Th.L.J. Zitman

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Annual Reports FGH Bank | 1991 | | pagina 17