income portfolio showed a net
decline of NLG 193 million to
NLG 2.6 billion. As most of the
mortgage portfolio's growth was in
this segment, the volume of funds
taken up at variable interest rates
increased by NLG 1.3 billion to
NLG 3.9 billion.
Under the regime of the
"Patronatserklärung" by Bayerische
Hypo- und Vereinsbank AG our bank
has become a more active player
on the money and capital markets
than was the case in the past.
The Treasury activities are likely to
become ever more significant in the
years ahead.
HUMAN RESOURCES AND
ORGANIZATION
Developments on the labour market
and in our organization make it
necessary to adjust our personnel
policy: like our services, this policy
will increasingly have to be
customized, reconciling the
individual needs of staff with the
changing requirements of the
organization. Following on from the
existing personnel policy, in the
coming years the emphasis will
therefore be placed on identifying
and specifying the skills required for
optimum management of the
business and where necessary
drawing up individual programmes
for their continued development.
At 31 December 1998 the staff
totalled 181 persons: 131 men and
50 women. At the end of 1997 the
total was 177.
The link-up with Bayerische Hypo-
und Vereinsbank AG demanded
extra efforts from all staff. Also,
there was the introduction of the
euro and the testing of our systems
down to the smallest detail to
check that they are "millennium-
proof" which required due attention
last year. At the end of 1998, in
preparation for the large-scale
streamlining of the processing of
loan applications which came into
effect at the beginning of January
1999, we launched a tailor-made
training programme. This concerned
not only competence, capabilities
and skills but also attitudes and
personality features.
Above all, we believe that every
member of staff should feel as happy
as possible in our organization.
Despite the extreme pressure of
work, we again succeeded in
meeting, and even surpassing, our
targets in 1998. This was only
possible thanks to the great
dedication of all staff and the very
constructive dialogue with the
Staff Council. We appreciate all that
has been achieved and would like to
express our sincere thanks and
recognition for that.
nuTinoK
From what we have said, it is
already evident that the take-over by
Hypo Vereinsbank has given our
organization new impetus, speeding
up a number of beneficial changes
both internally and in the market.
As a result, 1999 will be a year in
which we strengthen and consolidate
our position as the real estate bank
and increase our commercial clout.
In January of this year, the front
office started introducing a new,
more efficient primary process which
will achieve dramatic reductions in
the time taken to deal with loan
applications. We shall also continue
implementing our plans for
expanding our consultancy activities
in the commercial real estate
market. Following the successful
switch to the euro, preparations for a
smooth change-over to the next
century are in full swing. In view of
the progress so far, we have every
confidence in a successful
conclusion.
The great challenge for this year is
to at least equal the commercial
success of 1998. Given the
continuing favourable market
conditions, we expect to see some
increase in the profits from the core
business in the Netherlands.
Particularly as regards the return on
equity, it is important to become
less dependent on conditions on the
funding market and to win over new
target groups. This year we are
therefore investing in building up
our fee business capacity.
FGH Expertise will target the
market with the combined
competence of FGH Bank. We shall
also continue to expand the existing
asset management and structured
finance activities.
The greater opportunities under our
new parent company, the continuing
favourable market and the
organizational changes which have
been set in train inspire confidence
that 1999 will bring an at least
comparable net result.
Utrecht, 12 February 1999
Managing Board
H. Copier
P.C. Keur
G.S. Klein
