Strong Growth in Third Quarter
22.11.2007 - Münchener Hypothekenbank eG was able to further expand its new business results once again in the third quarter, despite unchanging modest demand for private housing mortgage financing across Germany.
MünchenerHyp made total loan commitments of € 2,895.8 million during the first nine months of the current business year. A residential property loan portfolio acquired by MünchenerHyp in July 2007 represented € 710.4 million of this amount. Total new commitments made were € 1,376.3 million higher than the same year-ago figure. After adjusting for the special effect of the acquired loan portfolio, the gain amounted to € 665.9 million. MünchenerHyp recorded significant gains in each of its primary business areas – residential property loans and commercial property finance.
“The favourable results confirm the strength and flexibility of our business model in an extremely competitive market environment. Our close partnership with the Volksbanken and Raiffeisenbanken, in particular, distinguished us from the competition," said Erich Rödel, Chairman of the Münchener Hypothekenbank’s Board of Management as he commented on the latest figures.
As of September 30, 2007 MünchenerHyp’s total assets had risen by 2.9 percent to € 32.8 billion. The success achieved in the bank’s new business activities led to a significant increase in MünchenerHyp’s portfolio of property loans, which rose by € 1.2 billion, or 9.8 percent, to € 13.4 billion. Results from business operations after making provisions for risk improved by 17.2 percent to € 22.5 million.
The currently limited refinancing possibilities and the global effects of the subprime crisis have not impacted on MünchenerHyp. The bank has no investments in the subprime segment in its portfolio.
In view of the continuing high volumes of new business being recorded, MünchenerHyp has confirmed its goals for the current business year. “Despite the difficult overall conditions in our markets we will continue to grow as planned in the residential property and commercial property finance areas. We anticipate that we will also see a robust demand for our financial products and services in the fourth quarter,” noted Erich Rödel.
Moody`s Confirms Ratings
19.10.2007 - Moody’s, a rating agency, has reaffirmed Münchener Hypothekenbank eG’s Aa3 long-term deposit rating, as well as their C+ rating for the Bank’s financial strength.
The rating for the Bank’s secured Pfandbriefe remained unchanged at Aaa. The outlook for all ratings was set at stable.
“We view these ratings as a confirmation of the direction of our strategy and business policy, which are oriented to meet the current and future challenges of the markets,“ noted Erich Rödel, Chairman of the Münchener Hypothekenbank’s Board of Management.
Münchener Hypothekenbank to Remain Independent - Merger Talks with DG HYP Ended
27.09.2007 - The boards of management of Münchener Hypothekenbank eG and DG HYP have today declared the merger negotiations to have ended by mutual consent.
Following detailed examination, no agreement could be reached regarding key aspects of the merger. An agreement was made to keep the contents of the merger talks confidential.
"We will continue to optimise both our product range and our services while consistently enhancing our proven business model in cooperation with the Volksbanken and Raiffeisenbanken", says Erich Rödel, Chairman of the Münchener Hypothekenbank’s Board of Management, outlining the bank’s direction. In so doing, the aim is to strengthen and continue to build on the leading position in the private property finance market in the cooperative FinanzVerbund. At the same time, MünchenerHyp will carry on driving forward the already successful expansion strategy in the national and international commercial property finance business.
During the first half of 2007, MünchenerHyp continued to grow. In contrast to the trend throughout Germany, mortgage holdings were increased by 2 percent and new business by 18 percent. The cost-income ratio improved by more than 2 percentage points to 49.0 percent. The positive trend in new business development is continuing in the second half of the year. MünchenerHyp is in no way exposed to the subprime segment of the US mortgage market and is thus not affected by the current situation.
The current capital market performance is strengthening the Pfandbrief trend and as a result conventional long-term property financing as well. "This is another factor from which MünchenerHyp will certainly benefit", adds Rödel.
"In future too, we will be open to partnerships and mergers and be well-equipped for them. Ultimately, however, the benefit of such a measure must always be clearly measurable for our customers and shareholders", says Rödel, keeping the door open to alternatives.
Münchener Hypothekenbank: Good First-Half Results - New Business Expands Further
30.08.2007 - Münchener Hypothekenbank eG is continuing to grow.
The Bank’s results from operations after deducting provisions for risks rose by about 15 percent to € 15.5 million during the first six months of 2007. Income and expenses developed favourably. Net interest income increased by 14 percent to € 63.7 million. In addition, administration expenses were further reduced and amounted to € 24.7 million. As a result, the Bank’s cost-income ratio improved by almost 2 percentage points to 49.0 percent. Total assets amounted to € 32.4 billion, or 1.6 percent higher than at year-end 2006. The total capital ratio was 10.8 percent. “These results are a seamless continuation of our successful development in the previous year,“ said Erich Rödel, Chairman of the Münchener Hypothekenbank’s Board of Management on the occasion of announcing the results for the first half 2007.
The unbroken growth of the Bank’s new business activities made an important contribution to the good results, which – despite the weakness seen in the volume of new construction in Germany – rose by 18 percent from € 1,129 million to a total of € 1,330.7 million. Both of MünchenerHyp’s core areas of business – residential property lending and commercial property financing – posted similar rates of growth.
Additional growth noted in the Bank’s residential property finance business was primarily driven by further intensified collaboration with the Volksbanken and Raiffeisenbanken. The volume of new business, excluding prolonged loans, increased by € 115 million to € 764.1 million. “Our business with the German cooperative FinanzVerbund (Financial Services Network) has been developing favourable for years based on our strategy of decisively expanding our sales efforts and implementing a future-oriented product concept. Our joint sales campaigns with our partner banks in the FinanzVerbund played a major role in signing up new customers,“ noted Erich Rödel. With the recently completed integration of software to process loan applications into the IT resources used by the FinanzVerbund, a standardised loan application process was established within the regions served by GAD, one of the two IT centres of the cooperatives’ FinanzVerbund. This new software further eases the processing of mortgage loan applications with MünchenerHyp. “This solution positions us as a pioneer in the German cooperative FinanzVerbund and also reinforces our standing in the residential property finance area,“ added Erich Rödel.
As part of its efforts to expand its core business of residential property lending, MünchenerHyp acquired a portfolio of residential property loans from the Allgemeine HypothekenBank Rheinboden AG (AHBR). The portfolio has a total volume of approx. € 715 million and consists of about 16,800 loans in Germany, of which over 98 percent are senior secured loans with very low average loan-to-value ratios. “The portfolio’s regional diversity is a very good complementary addition to our current inventory of loans,” said Erich Rödel. Although this transaction did not take effect for balance sheet purposes before 30 June, our inventory of property loans was fueled by the good growth of our new business activities and rose by 2 Percent to € 12.4 billion. This increase meant that the Bank’s development contrasted with the declining inventories trend seen in the market.
The volume of our new commitments made within the commercial property lending business rose by € 87 million to € 566.6 million. This increase was primarily driven by the Bank’s expanding international business activities, with most of the commitments made for property loans in the USA. Münchener Hypothekenbank’s main business within the USA is the financing of office properties with mainly senior secured loans, which reflects the Bank’s conservative risk strategy. MünchenerHyp is not engaged in any way in the subprime segment of the American mortgage market, and is not affected by the current situation.
Based on the results seen in the first half, Erich Rödel anticipates that MünchenerHyp will once again record an increase in earnings over the previous year.
Merger discussions with DG HYP are progressing as planned. Upon conclusion of the currently active due diligence phase and the valuation of both banks, the bank’s executive bodies will examine the results. The prerequisites for the merger will be met after all of the bodies of both banks have agreed. This should be completed this year. Erich Rödel: “The merger will enable us to realize significant synergies in the area of production, sales and processing. The merger represents an important foundation for ensuring sustainable growth in the future as well as a strengthening of the cooperative FinanzVerbund’s market position in the property finance sector as competitive and margin pressures will continue to increase in the future.“
MünchenerHyp Acquires Property Loan Portfolio from AHBR
12.07.2007 - Münchener Hypothekenbank eG announced today that it has acquired a portfolio of private residential property loans from the Allgemeine HypothekenBank Rheinboden AG (AHBR) as part of a true buy transaction.
The portfolio consists of approximately 16,800 performing loans with a total volume of about € 715 million. The loans were made by AHBR to finance private housing in Germany.“
The portfolio has good regional diversity, with a slight emphasis on North Rhine-Westphalia, and complements our current inventory of loans,“ said Erich Rödel, chairman of MünchenerHyp’s board of management. The loans in the portfolio have low loan-to-value ratios, and 98% of the portfolio consists of first mortgage loans. The purchase of the portfolio reinforces and expands MünchenerHyp’s core business of residential property finance. The acquisition of the portfolio will also make sense for the bank’s business strategy following a possible merger between MünchenerHyp and DG HYP.
MünchenerHyp’s main focus in the area of private housing loans is providing financing for loans brokered by cooperative banks. The acquisition of the new portfolio will not change this situation although the transaction will significantly increase the volume of the bank’s direct customer business. “Thanks to our efficient loan processing capabilities we’ll also be able to fully concentrate on meeting the needs of our new customers and provide them with attractive financial solutions,“ added Erich Rödel.
“This transaction marks the successful conclusion of another step in our efforts to reduce our retail portfolio. We are within our timetable and are confident that we will be able to shed the rest by the end of the year,“ noted Dr. Claus Nolting, chairman of Allgemeine HypothekenBank Rheinboden’s board of management. AHBR’s main business focus is commercial property finance. Following in-depth restructuring in 2006, which also included the closing of its private housing loan business, the bank has been doing business under the name COREALCREDIT since the fall of 2006 and has become a specialist bank for professional property investors in its core German market. In comparison to the start of 2006, when the AHBR had about € 10 billion in private housing loans on its books, the bank will only have about € 1.4 billion of these loans left on its books after the current transaction is completed.
The technical transfer of the loan portfolio from AHBR to MünchenerHyp will take place without delay. Refinancing of the loans will be primarily achieved using MünchenerHyp’s collateral pool.
DG Hyp and MünchenerHyp Sign Memorandum of Understanding
05.07.2007 - The management boards of Deutsche Genossenschafts-Hypothekenbank AG (DG HYP) and Münchener Hypothekenbank eG (MünchenerHyp) have signed a memorandum of understanding defining significant terms of their planned merger.
Both of the banks’ supervisory boards have authorised their respective management boards to continue making preparations for the merger of DG HYP and MünchenerHyp.
Plans call for the merger to be legally completed in two phases: Münchener Hypothekenbank eG will initially bring their business activities into an interim company and will retain its current legal status as a cooperative. The interim company will then merge with DG HYP. The result will be that Münchener Hypothekenbank eG (old) and DZ BANK AG (sole parent company of DG HYP) will own all shares in the new bank with the majority held by DZ BANK AG. The new bank will be named Münchener Hypothekenbank AG and its main office will be located in Munich.
Reinforcing the regional market positions of the Volksbanken and Raiffeisenbanken
The new bank’s main focus of business will remain the cooperative FinanzVerbund (Financial Services Network). Working together with the FinanzVerbund the new bank will develop innovative product and sales strategies to bolster the FinanzVerbund’s competitiveness and successful market position in the field of property finance. Bundling together the two banks’ strengths will reinforce the regional market positions of the Volksbanken and Raiffeisenbanken and enable them to generate higher levels of efficiency in the areas of production, sales, and transaction processing. It is anticipated that the merger will lead to significant synergies in earnings and cost savings.
New bank will have four core areas of business
Plans call for the new bank to be active in four areas of property finance: private and commercial property finance, municipal lending and treasury, and credit treasury business.
The key element of the new bank’s business model will be private housing finance. An innovative product and sales concept, as well as a unified brand strategy, will be specially developed to strengthen the position of this business area as the central anchor product for the Volksbanken and Raiffeisenbanken in order to realise more efficiently the major market potential of private housing finance on a broader basis.
Current expansion activities in the field of commercial property finance will be decisively continued within Germany and abroad. The strong market position currently held in the municipal lending and treasury segments of the market will be further expanded. The main focus in the credit treasury segment will be on improving the risk/return profile of the internal property loan portfolios as well as providing property-finance related consulting and services to third parties, especially to the Volksbanken and Raiffeisenbanken.
Merger agreement expected to be signed in this year
The due diligence phase of the planned merger, and a detailed evaluation of the business activities of both banks, will begin immediately. The final terms of the merger agreement will be prepared while these activities are taking place. It is anticipated that the ownership bodies of both banks will approve the terms of the agreement thereby enabling the merger to take place this year.
DG HYP and MünchenerHypothekenbank Consider Merging Property Financing Strength
22.05.2007 - The management boards of Deutsche Genossenschafts-Hypothekenbank AG (DG HYP) and Münchener Hypothekenbank eG (MünchenerHyp) are engaged in exploratory discussions concerning a possible merger of the two banks.
A corresponding letter of intent has been signed. The details of the new bank’s future main business focus and strategic direction will be defined in further talks and recorded in a memorandum of understanding.
We will advise you about the progress of the talks at the appropriate time.
Rödel Appointed Chairman of Management Board
02.04.2007 - On March 28, 2007 the Supervisory Board of the Münchener Hypothekenbank eG appointed Erich Rödel Chairman of the Board of Management of the Münchener Hypothekenbank eG effective as of the same date.
Erich Rödel has been a member of the Board of Management since 2001 and served as the Board’s speaker since 2003.
Münchener Hypothekenbank Increases its New Business and Results from Operations
27.03.2007 - Münchener Hypothekenbank further improved its new business performance in 2006.
Total new mortgage commitments made by MünchenerHyp amounted to € 2.42 billion, or 9 percent more than the high level achieved in the previous year.
“We are satisfied with the development of our new business efforts,” said Erich Rödel, Speaker of the Münchener Hypothekenbank’s Board of Management on the occasion of the Bank’s annual results press conference in Munich.
The increase was distributed equally over the two main areas of business. New commitments made for private housing loans increased by about 8 percent to € 1.35 billion Euro. Commitments for commercial property loans grew by approximately 10 percent to € 1.07 billion, thereby exceeding the 1 billion euro level for the first time.
The gain noted in private housing lending was primarily achieved by an even greater exploitation of the regional market potentials. Numerous new customers were won due to successful joint sales campaigns run with the Volksbanken and Raiffeisenbanken.
Within the commercial property lending segment, new business generated outside of Germany, in particular, expanded at a very strong pace and rose by over 27 percent to € 752 million. The increases were mainly generated in the USA. According to Erich Rödel, this performance is based on MünchenerHyp’s good relationships with major American financial companies.
MünchenerHyp also made progress in reducing its costs and streamlining its operations in 2006. The Bank’s cost/income ratio improved, based on a decline in general administrative expenses, from 52.9 percent to 51.5 percent. This improvement marked the achievement of key cost reduction goals stated in the MHB2008 strategy program. “We are in good shape to accomplish further increases in our business success,” emphasized Erich Rödel.
Operating results after provisions for risk improved as planned as they rose by 13 percent over the previous year’s figure to € 27.8 million.
Total assets declined by € 2.1 billion to € 31.9 billion. The reason for the decline was a lower level of outstanding loans in the Bank’s public-sector lending business, which MünchenerHyp does not pursue on a volume basis due to the very low margins involved in this segment. Commitments made in the public-sector lending business remained at last year’s level and amounted to € 2.3 billion.
MünchenerHyp anticipates that demand for property financing will remain stable in 2007. As of the end of February 2007 the volume of commitments made amounted to € 457.2 million, and was higher than the figure noted (€ 352.9 million) in the same year-ago period.
Klaus Sturm Appointed Member of Münchener Hypothekenbank eG Board of Management
26.03.2007 - The Supervisory Board of Münchener Hypothekenbank eG has appointed Mr. Klaus Sturm a member of theMünchener Hypothekenbank eG Board of Management effective May 1, 2007.
In the future, Mr. Sturm will be primarily responsible for the Bank’s capital markets business activities as well as for various internal departments.
Mr. Sturm is currently employed by the Deutsche Kreditbank AG where he is the member of their board of management and responsible for capital market business activities. Mr. Sturm was previously at BayernLB (Bayerische Landesbank) where he was head of Global Treasury and Funding, and responsible for the Group-wide management of assets and liabilities as well as refinancing.
New Business Results Increase Again in 2006
09.02.2007 - MünchenerHyp’s position in the private housing and commercial property finance markets enabled it to benefit from demand for financing which grew over the course of the year.
Mortgage commitments made in the Bank’s core business area of residential finance rose by 36.7 percent to € 1,253 million. Low interest rates fuelled strong demand for long-term financing. MünchenerHyp is particularly competitive in this segment of the lending market. The expiration of state subsidies for home buyers also boosted demand for home loans in 2005. The flat rate structure encouraged the increase in loan referrals from Volksbanken and Raiffeisenbanken.MünchenerHyp’s flexibly structured financing products for the private customer segment reinforced the good business relationship between it and its partner banks as the Bank’s products fulfilled local sales requirements. MünchenerHyp’s twelve regional offices play an important role in maintaining this business relationship as they provide the Volksbanken and Raiffeisenbanken top quality financial advice and also ensure rapid responses to all enquiries.Short decision paths and a flexible approach to processes and procedures also helped to boost new business performance in the commercial property finance sector – especially in the Bank’s direct business activities outside of Germany. Total new business in this area almost doubled and rose by € 429.8 million to € 966.9 million.Seasoned property finance professionals who have extensive local knowledge and contacts represent MünchenerHyp in key commercial property markets outside of Germany. Moreover, the Bank also benefits abroad because it focuses its efforts on market segments where it can leverage its strengths as an independent specialist.Lending commitments made to public-sector borrowers declined as less-than-satisfactory margins once again made the MünchenerHy reluctant to lend. New business results in this sector amounted to €1.9 billion, which was lower than in the same year-ago period.By the end of February 2006 MünchenerHyp had made total new mortgage commitments valued at € 352.9 million, in comparison to € 288.1 million posted in the same year-ago period.
