REPORT OF THE MANAGEMENT BOARD
Operating expenses were down from NLG 50.6 to
NLG 41.3 million owing to a slightly smaller staff and
lower allocations to provisions.
The loan portfolio amounted to NLG 6.7 billion at the
end of 1996 (1995: NLG 6.5 billion) including NLG 188
million for the account and risk of third parties.
In December 1996, in the proceedings initiated by the
Dutch Ministry of Finance concerning alleged
contraventions of the law, the court passed an
interlocutory decision requiring the Ministry to submit
further evidence. We remain confident as ever about the
outcome of the proceedings.
Treasury
During the reporting period more than NLG 445 million
of funding was arranged with a term longer than one
year in order to provide new loans and for refinancing
purposes. Since our foreign activities are being wound
down, other lending to foreign group companies will
decline further in the near future. In this connection we
are reconsidering the role of the finance company,
FGH Finance N.V., in Curasao.
Organization and Personnel
Mr. W.A.J.M. van der Heijden has had to decide not
to return as Chairman of the Management Board of
FGH BANK N.V. He has resigned the post of delegate
member of the Supervisory Board which he had held
since March 1995. The Management Board will miss his
contribution; his specific knowledge of the real estate
market was of particularly great importance.
As stated, the number of staff has declined slightly.
The organizational structure is unchanged.
The management is extremely grateful for the
commitment shown by the staff and expresses its
appreciation for the constructive role played by the Staff
Council in helping to implement company policy.
Future prospects
Our expertise in the field of real estate finance
combined with our traditional position in the real estate
market means that we are strong in both the world of
financing and the world of commercial property. This
combination gives FGH BANK a special position and
makes it the leading realty bank.
In 1997 we shall strengthen our contacts with the
professional market in the region, e.g. by setting up
commercial branches in Rotterdam, Maastricht and
Groningen. We shall also continue to improve the
supply of tailor-made solutions through the use of
modern instruments. Institutional investors will be
offered new funding products for the first time.
For this year we expect a slight expansion of our
portfolio with an attractive return and with controllable
risks based on our expertise. We will see a further slight
fall in the number of employees and no significant
change in investment levels.
Unless special circumstances arise, the result will be in
the same order of magnitude as last year.
Utrecht, March 7, 1997
J.B.M. Stieppel
R.J. Kahlmann
