ANNUAL REPORT 2006 - DG Hyp

Management Report
FINANCIAL SITUATION AND RESULTS OF OPERATIONS
Financial situation
DG HYP’s total assets as at the reporting date stood
at € 85.7 billion, an 8.3 per cent increase over
31 December 2005. Our stock of loans increased by a total
of € 3.0 billion to € 73.0 billion. Although the volume of
real estate loans fell by € 1.3 billion as a result of portfolio
sales and continued redemption, we were able to increase
our MBS holdings by 45.0 per cent to € 4.9 billion thanks
to growth in new commitments. In the public-sector lending
segment, at € 22.6 billion, securities held for investment
were € 2.4 billion higher than at the end of 2005.
Loans to local authorities were up slightly year-on-year at
€ 22.0 billion. The securities portfolio used for yield and
liquidity management rose by € 2.3 billion to € 9.2 billion.
New issues in the 2006 financial year made themselves
felt, showing a € 4.8 billion increase to € 27.9 billion in liabilities
to banks and customers. The volume of securitised
liabilities rose by € 1.3 billion to € 54.1 billion.
DEVELOPMENT OF LENDING VOLUME
Own funds and risk-weighted assets
DG HYP’s core capital was reinforced, and its quality
was improved, by increasing capital reserves in the amount
of € 30 million (and by € 154 million in perpetual silent
contributions) to replace the limited-term silent partnership
contributions that no longer qualified as core capital.
Risk-weighted assets, as defined by the capital ratio
according to the German Banking Act (Grundsatz I)
amounted to € 23.2 billion as at the balance sheet date.
The core capital ratio as of 31 December 2006 is thus
6.4 per cent; the equity ratio is 9.6 per cent.
Change from the previous year
€ mn 31 Dec 2006 31 Dec 2005 € mn %
Real estate lending 23,531 24,790 – 1,259 – 5.1
MBS 4,923 3,396 1,527 45.0
Public-sector lending (total) 44,588 41,833 2,755 6.6
– loans to local authorities 21,975 21,616 359 1.7
– Securities 22,613 20,217 2,396 11.9
Total portfolio 73,042 70,019 3,023 4.3
RISK-WEIGHTED ASSETS, AS DEFINED BY THE CAPITAL RATIO ACCORDING
TO THE GERMAN BANKING ACT (GRUNDSATZ I) AS AT 31 DECEMBER 2006
€ mn
Risk weighting 100 % 50 % 25 % 20 % 10 % Total
Balance sheet items 9,827 8,589 – 3,097 454 21,967
Off-balance sheet items 711 245 1 73 – 1,030
Derivatives – 8 – 165 – 173
Total 10,538 8,842 1 3,335 454 23,170
Deutsche Genossenschafts-Hypothekenbank AG | Annual Report 2006
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