ANNUAL REPORT 2008 - DG Hyp

Management Report
REPORT ON EVENTS AFTER THE BALANCE SHEET DATE
AND FORECAST
Report on material events after the reporting date
Events after 31 December 2008
No events occurred between 1 January and 10 February
2009 that would have had a material impact on our
2008 results.
Report on expected developments
Cautionary forward-looking statement
The forecast and other parts of the Annual Report
include expectations and forecasts that relate to the future.
These forward-looking statements, in particular regarding
DG HYP’s business and earnings growth, are based on
forecasts and assumptions, and are subject to risks and
uncertainties. As a result, the actual results may differ
materially from those currently forecast. There are a large
number of factors that impact on our business, and which
are beyond our control. These factors primarily include
changes to the general economic situation, the competitive
situation and developments on the national and international
real estate and capital markets. In addition, results
can be impacted by possible defaults by borrowers or other
risks, some of which are discussed in detail in the risk
report.
In this regard, it must be pointed out that, at the time
of writing, there is major uncertainty surrounding the
development of the capital and real estate markets over
the rest of 2009. What does appear to be certain is that it
will take until well into 2009 for the Pfandbrief and interbank
markets to become fully functional again. The extent
of the economic downturn and the related negative impact
on the real estate markets are all the subject of very different
assessments.
Anticipated business development
In implementing its restructuring, DG HYP has ensured
that its business strategy and organisational approach are
geared towards the future developments and needs of the
market. DG HYP’s strategy, with its focus on traditional balance-sheet
real estate lending business and based on a
strong anchoring in the cooperative banking sector, has
proven its worth. Despite the increasingly difficult liquidity
situation as a result of the crisis of confidence on the market,
we were able to position ourselves at the year-end as
a strong, well-functioning provider of commercial real
estate finance. Whilst DG HYP was still able to enter into
new business during the fourth quarter thanks to the allocation
of liquidity via the DZ BANK Group, some of its competitors
were forced to withdraw from the market. In this
way, the Bank has proved itself to be a reliable provider of
commercial real estate finance for its new and existing customers
alike in Germany and abroad even in difficult times.
From this position, we are confident that we can
achieve our goals. Looking to 2009, we expect to see
greater growth in new business in our domestic and foreign
markets. As a centre of excellence within the German
Cooperative Financial Services Network, we will be further
developing customised commercial real estate finance
products and services for the cooperative banks and supporting
them as they present themselves on the market
and tap into regional potential.
Our commercial real estate financing expertise, our network
in the German cooperative banking sector and the
expansion of our international activities form solid foundations
for a high-performance real estate bank focused on
the commercial real estate sector.
Deutsche Genossenschafts-Hypothekenbank AG | Annual Report 2008
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