GFNFWAI
FGH Bank N.V. is a group company
of Bayerische Hypo- und
Vereinsbank AG Registered in
Munich.
The present financial statements
have been prepared in accordance
with the provisions laid down in
Paragraph 14 of Part 9, Book 2
of the Netherlands Civil Code,
the Decree on the Annual Accounts
of Banks, the Annual Accounts
Formats Decree, and relevant
recommendations by
De Nederlandsche Bank N.V.
The company's financial statements
are incorporated in the published
financial statements of Bayerische
Hypo- und Vereinsbank AG,
München. A copy of these financial
statements is available there.
All figures are expressed in
thousands of Dutch guilders, unless
otherwise stated.
RASIS OF rONSOLIDATION
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
'Income from securities and
participating interests'
In the figures for the financial year
1997 shown for purposes of
comparison, the figures of the
participating interest in
FGH Finance N.V. (Curasao), which
was sold at the end of 1997, are no
longer cosolidated; the results for the
year 1997 are included in 'Income
from securities and participating
interests'.
charged on loans to which a downward
value adjustment has been applied.
SHORT-TERM GOVERNMENT PAPER
Shares, which all form part of the
trading portfolio, are valued at
their market value as at the balance
sheet date.
Premiums or discounts on securities
and loans are included under the
relevant receivables or debts and are
accounted for in the income
statement over the remaining life of
the relevant items.
ACCOUNTING POLICIES AND
DETERMINATION OF RESULT
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 determined per item.
Loans are valued at nominal value
after deduction of value adjustments
for bad and doubtful debts.
Value adjustments to take account
of uncollectable debts are generally
determined for each separate item.
Any subsequent upward value
adjustments and readjustments of
downward value adjustments applied
to the 'Loans' item are shown in
the income statement under 'Value
adjustments to receivables'.
Interest and commission credited in
respect of which there is doubt about
their collectability are not
recognized as income.
This relates in particular to interest
and commission not received and
PARTICIPATING INTERES
Participating interests are
their net asset value on the basis o
the accounting policies as applied
by FGH Bank N.V. Interests in
non-consolidated participating
interests in excess of 20% are valu
on the basis of their net asset valu
Changes in the net asset value of
participating interests, insofar as
they relate to results achieved, plu
the income from the sale of
participating interests, are recogni
under 'Income from securities and
participating interests'.
Property for own use
Office buildings in own use are
valued at replacement costs. The
buildings in question are depreciated
on the basis of replacement value over
their estimated useful life with
allowance being made for residual
value. The change in value as a result
of this accounting policy is taken to
the revaluation reserve with allowance
being made for deferred taxation.
Property not for own use
L Properties earmarked for sale are
