COREALCREDIT BANK AG

� BVG-Grundstücks- und Verwertungsgesellschaft mbH, Frankfurt/Main
The Bank did not prepare any consolidated financial statements in 2010 and 2011 as the
remaining subsidiaries are, individually and collectively, not significant in relation to the
requirement to present a true and fair view of the net assets, financial position and results of the
operations of the company.
TREND INFORMATION
Statement of No Material Adverse Change
Save as disclosed in section headed "Business Development and Outlook for the Year 2012" on
page 50, there has been no material adverse change in the prospects of COREALCREDIT since
31 December 2011 (the date of the last published audited financial statements).
Business Development and Outlook for the Year 2012
Business performance
Despite the generally difficult environment, COREALCREDIT further consolidated its position as a
specialist in the market for structured real estate financing in its core market of Germany in 2011.
The Bank's net profit for the year 2011 reached the forecast level for 2011.
Although the financial market situation was generally tense, particularly in the second half of the
year, and unsecured refinancing was available to just a few banks and only occasionally at
acceptable conditions, Pfandbriefe again proved to be a relatively reliable source of liquidity.
In 2011, COREALCREDIT experienced healthy demand from real estate investors active in
Germany. As a specialist in the market, the Bank structured complex real estate financing
arrangements, based on focus, flexibility and experience. In the current environment, it has also
benefited from the reliability and binding nature of its loan commitments.
In addition, the consistent focus on quality and profitability with regard to new business and
targeted measures for non-core business led to a further improvement in the Bank's business
portfolio in terms of achieving a balanced risk/return profile.
New business
In 2011, COREALCREDIT acquired new business amounting to EUR 1,083.8 million (2010:
EUR 1,071.8 million). This new business volume includes loan extensions of EUR 377.5 million
(previous year: EUR 322.3 million).
As in the past, the Bank's main priority is the profitability of each individual transaction, maintaining
its own rigorous risk standards, and using the available resources to the best possible effect. The
Bank exceeded its income targets in 2011, while using less liquidity than planned and further
improving its risk profile. The risk-adjusted contribution margin proved effective as a key
management tool for each new transaction, as well as throughout the company.
In terms of property usage, the Bank's financing activity was concentrated on office, retail and
hotel properties (at 32%, 17% and 18% respectively), as well as multi-family houses (17%). The
properties financed are located throughout Germany, with a focus on the regions of North-Rhine
Westphalia (21%), Bavaria (18%) and Berlin (12%).
Wherever appropriate, interest hedging agreements were concluded with clients to accompany
new loan agreements.
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