ANNUAL REPORT 2006 - DG Hyp

OWN FUNDS
Results of operations
DG HYP’s earnings in the 2006 financial year were
characterised by an increase in gross profits, from
€ 289.6 million to € 296.6 million.
Net interest income in 2006 was up year-on-year at
€ 327.8 million (2005: € 325.6 million). Our net commission
result is characterised mostly by commission expenses
as part of our cooperation with sales partners in the
cooperative banking sector. The net commission result,
32 Deutsche Genossenschafts-Hypothekenbank AG | Annual Report 2006
Management Report
Change from the previous year
€ mn 31 Dec 2006 31 Dec 2005 € mn %
Issued share capital 90 90 – –
Reserves 647 617 30 4.9
Silent partnership contributions 774 774 – –
Special item for general banking risks 24 13 11 84.6
Items not eligible for inclusion – 42 – 40 – 2 – 5.0
Core capital 1,493 1,454 39 2.7
Supplementary capital 734 757 – 23 – 3.0
Deductibles pursuant to section 10 (6) of KWG – 13 – 14 1 – 7.1
Liable capital 2,214 2,197 17 0.8
in percentage points
Equity ratio 9.6 10.6 – 1.0
Core capital (Tier 1) ratio 6.4 7.0 – 0.6
OVERVIEW OF THE PROFIT AND LOSS ACCOUNT
which is normally negative, was thus improved in 2006
from € – 58.5 million to € – 46.4 million. The driving force
behind this change was our lower issuing activities in
2006 for refinancing via jumbo Pfandbriefe and loan
securitisation. In contrast, commission expense incurred for
intermediation in our lending business was up only slightly
year-on-year. In 2005, other operating income included a
one-off premium from the start-up phase of VR IMMO and
this year’s figure is thus lower year-on-year.
Change from the previous year
€ mn 2006 2005 € mn %
Net interest income 327.8 325.6 2.2 0.7
Net commission result – 46.4 – 58.5 12.1 20.7
Other operating income 15.2 22.8 – 7.6 – 33.3
Gross profit 296.6 289.9 6.7 2.3
Administrative expenses 191.4 178.1 13.3 7.5
Other operating expenses 12.7 4.5 8.2 n/a
Revaluation results 24.2 42.1 – 17.9 – 42.5
Provisions for loan losses – 84.1 – 98.0 13.9 14.2
Operating profit 32.6 51.4 – 18.8 – 36.6
Net extraordinary income/expenses – – 1.3 1.3 n/a
Taxes – 2.4 0.0 – 2.4 n/a
Partial profit transfer
Change in the fund
59.1 39.2 19.9 50.8
for general banking risks 24.1 – 10.9 35.0 n/a
Profit transfer 0.0 0.0 – –