Report and recommendations
of the Supervisory Board
TO THE SHAREHOLDERS
Having considered the unqualified
audit report issued by KPMG
Accountants N.V.the supervisory
directors of FGH Bank N.V. have
approved and signed the financial
statements for 1998 prepared hy the
Managing Board. These financial
statements incorporate the
consolidated annual accounts and
the company balance sheet and
income statement. We recommend
that the financial statements
presented in this annual report be
adopted accordingly.
As already stated, the intention
announced in December 1997
hy the Bayerische Vereinsbank AG
(renamed Bayerische Hypo- und
Vereinsbank AG on 1 September
1998) to acquire the shares of
FGH Bank N.V. was carried out on
31 March 1998.
The acquisition of FGH Bank N.V.
is a direct result of the strategy of
the HypoVereinsbank, established in
Munich, to develop into a 'Bank der
Regionen', a European bank with a
prominent presence in all the
important real estate regions.
For FGH Bank N.V. the take-over
represents a major fillip.
With the support of the new parent
company it can concentrate on
expanding the range of services and
developing its core business:
financing commercial real estate.
As a result of the transfer to a new
shareholder, we said farewell to
Mr H.B. van Wijk and Mr P. van de
Geijn in 1998.
Mr J J. Kaptein reached the set
retirement age for supervisory
directors. We would like to thank all
three very much for their great
commitment and dedication over
many years as members of the
Supervisory Board of FGH Bank N.V.
On behalf of Bayerische Hypo- und
Vereinsbank AG, Mr E. Eisele
and Mr C. Nolting were appointed
as members of the Supervisory Board
with effect from of 31 March 1998.
As of the same date
Mr f.B.M. Streppel, who was
chairman of the Managing Board of
FGH Bank N.V. until the take-over,
joined our board.
The composition of the Managing
Board has also changed in the past
year. Mr H. Copier and Mr P.C. Keur,
who both already had a seat on the
Managing Board, were appointed as
corporate directors by the meeting of
shareholders on 30 March 1998.
At the same time
Mr G.H.M. Nibbering was appointed
director of Real estate valuation.
Mr R.J. Kahlmann retired with effect
from 10 June 1998. We would like to
thank him very much for his
commitment to FGH Bank N.V.
At the extraordinary meeting of
shareholders on 23 July 1998 he was
replaced by Mr G.S. Klein - hitherto
director of Bayerische Vereinsbank AG -
who was appointed as a corporate
director. Mr P.C. Keur acts as
spokesman of the Managing Board of
FGH Bank N.V.
Five Supervisory Board meetings were
held in 1998. In addition, the
Supervisory Board kept in touch with
business strategy and developments
at FGH Bank N.V. via numerous
discussions and written reports, and
maintained a close watch on all
major credit exposures and other
important events.
Risk policy, developments on the
money and capital market and
matters concerning staff were also
discussed in depth, as were current
developments in computerization,
and issues relating to the euro and
the millennium.
The trend in the balance sheet,
financial position and results gives
every reason for satisfaction regarding
the current position of FGH Bank N.V.
and certainly justifies confidence in
the future.
At this point we should therefore like
to express our appreciation for the
results of the past financial year and
the enthusiasm and dedication with
which they were achieved.
Utrecht, 12 February 1999
Supervisory Board
E. Eisele, chairman
C. Nolting
f.B.M. Streppel
