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