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
