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It is in this context that we decided on the conti-
nued development of the Spain business:
Our strategy is to open up the Spanish market
from Hanover and, when positive experience is
gained, to increase business with the aim of ope-
ning an agency locally. This step will now be taken
this spring, because after initial business, we can
see the potential for development in the Spanish
market, which should be fully developed whilst
maintaining the bank’s conservative lending policy.
Our USA business also experienced a positive
development. Its volume of new business more
than tripled by comparison with the previous year.
The bank contributes, by way of syndicates, to
larger scale financings in line with its strict portfo-
lio requirements. Our market assessment of the
most important American locations continues to
be positive, with the result that we intend to
expand business there.
There is a slight disappointment with regard to
portfolio developments, which were down in 2005,
200
180
160
140
120
100
80
60
6.7% below the previous year’s level. In the sector
of commercial property financing, an increased
speed of transaction has generally been establis-
hed with the result that existing financings are
being repaid increasingly frequently, even in our
portfolios. Changes in market structures and new
products, such as mortgage backed securities,
which are competing with “traditional” property
financings and taking increasing market shares,
resulted, particularly in our UK portfolio, in shorter
terms for existing financings. However, a slight
and, in our opinion, short-term move away from
the portfolios also creates space for new busi-
ness, which the bank will use to its benefit.
The developments in capital market business in
the year under review were completely in line with
expectations. Naturally the volume of new busi-
ness in this area was not able to reach the record
levels of the two previous years, which were
influenced by special factors. Nevertheless, the
result is still significantly above the average over
several years.
Interest rate trends
vs. DAX and CDAX-Bank Index 30.05.1997 = 100; Month-End Values
220
40
Jun 97 Dec 97 Jun 98 Dec 98 Jun 99 Dec 99 Jun 00 Dec 00 Jun 01 Dec 01 Jun 02 Dec 02 Jun 03 Dec 03 Jun 04 Dec 04 Jun 05 Dec 05
CDAX DAX Dt. Hypo