Explanatory Notes
General
Basis of Consolidation
Valuation Policies and Result
Determination
FGH BANK N.V. is a group company of AEGON N.V.,
registered in The Hague.
The present financial statements have been drawn up in
accordance with the provisions laid down in Part 9,
Book 2, of the Dutch Civil Code; The Decree governing
Financial Statements prepared by Banks; The Financial
Statements Formats Decree; and relevant
recommendations made by De Nederlandsche
Bank N.V.
The company's financial statements are incorporated in
the published financial statements of AEGON N.V.
The Hague. A copy of these financial statements is
available there.
All figures are expressed in thousands of guilders, unless
otherwise stated.
Pursuant to a resolution of the Extraordinary General
Meeting of Shareholders held in Utrecht on
August 31, 1995, the company's Articles of
Incorporation were amended and totally revised.
The amendments comprise:
transfer of the company's registered place of business
from Amsterdam to Utrecht
withdrawal of all subscribed preference A shares
totalling NLG 135 million
redemption of the existing rights to earnings by
AEGON N.V. and the resulting amendment to the rules
on appropriation of earnings.
The certificate of no objection required by law for this
amendment to the articles was obtained by decision of
November 3, 1995, under number N.V. 3602.
The amendment to the articles took effect on
December 29, 1995.
The rights to earnings accruing under Article 33 of the
old Articles of Incorporation totalling NLG 415 million
were paid out on July 1, 1995.
In accordance with Article VI (1) of the 'Act dated
March 17, 1993 concerning the provisions governing the
financial statements prepared by banks' an additional
write-down has been applied to the item 'Loans' up to
1994.
With effect from January 1, 1995 the additional
write-down was transferred to the shareholders' equity
in order to provide a clearer view of the equity base. As
a result of this change, both Loans and Equity reserves
increase by NLG 133 million. The effect of this
procedure on the 1995 result is negligible. The amounts
shown for comparison with the previous financial year
have not been adjusted.
The group financial statements include the
figures for FGH BANK N.V., its subsidiaries
and group companies, but do not include the
results of those companies which together only
make a very minor contribution to the overall
result nor do they include the results of those
companies that are only held with a view to
disposal.
Proportional consolidation has been applied to
participating interests designated as joint
ventures, where the joint ventures in question are
financial institutions. Other joint ventures have
been included in the group financial statements as
participating interests.
The income from non-consolidated participating
interests has been included under the heading
'Income from securities and participating
interests'.
Assets and Liabilities
Assets and liabilities are valued at nominal value,
unless otherwise stated. Where appropriate, the
value of the assets has been reduced accordingly.
Reductions in value are generally specified per
item.
Any subsequent upward value adjustments and
re-adjustments of downward value adjustments
applied to the 'Loans' item are shown in the
income statement under 'Value adjustments to
receivables'.
Participating Interests
Participating interests are valued at their net asset
value on the basis of the valuation policies as
applied by FGH BANK N.V. Interests in non-
consolidated participating interests in excess of
20% are valued on the basis of their net asset
value. Changes in the net asset value of
participating interests are included with the
income from the sale of participating interests
under 'Income from securities and participating
interests', insofar as such value changes affect the
results obtained.
Real Estate and Equipment
Real Estate for own use:
Office buildings in own use are valued at replace
ment value.
The buildings in question are depreciated on the