ANNUAL REPORT 2006 - DG Hyp

Management Report
LOCAL AUTHORITY LENDING AND PUBLIC FINANCE
Amongst the mortgage banks, DG HYP is one of the
largest providers of local authority lending and public
finance in Germany. At present, around 45 per cent of all
local authorities use our standardised financial services.
DG HYP enjoys a leading role in the German cooperative
banking sector with more than 8,000 customers from the
Bund, states, regions and local authorities.
The value of our public sector lending business can be
clearly seen from current developments: new business and
loan extensions for original local authority business (direct
financing for local authorities in Germany) totalled € 3,296
million on the reporting date, and was thus again up yearon-year
(2005: € 3,189 million).
This growth documents DG HYP’s market lead in the
German cooperative banking sector, and underscores the
bank’s close links with the 1,200 cooperative banks nationwide.
It is strongly anchored in the regions, which offers
strong foundations for in-depth market development in
this division. We support the cooperative banks when
advising local authorities, cities and municipalities for all
financing issues.
We were able to increase the numbers of transactions
concluded for promissory notes (€ 942 million) and securities
eligible for inclusion as cover assets (€ 7,107 million)
by a total of 14.6 per cent year-on-year, which means that
the volume of business for public finance and originated
local authority lending is up by a total of 11.1 per cent, to
€ 11,345 million.
ORIGINATED LOANS TO LOCAL
AUTHORITIES – NEW BUSINESS AND
LOAN EXTENSIONS
€ mn
3,500
3,000
2,500
2,000
1,500
1,000
500
2002
866
2003
1,375
2004
2,065
2005
3,189
Deutsche Genossenschafts-Hypothekenbank AG | Annual Report 2006
2006
3,296
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