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ePaper created 2012-04-20, 15:08:32 | version 1.23.0
36 Management Report – münchener Hypothekenbank eg l annual Report 2011 in income from maturing securities and the sale of securities held as current assets, as well as from the sale of promissory note loans. Reserves were released pursuant to Art. 340 f of the German Commercial Code in order to achieve favourable results despite the write-down required for Greek bonds. The item “Write-downs on and adjustments to the value of par- ticipating interests, shares in affiliated companies and securities treated as fixed assets,” amounted to minus € 61.9 million. This figure was due, in particular, to the write-down of bonds issued by the Greek government, and by a Greek company that were guaranteed by the Greek government, which amounted to € 65.3 million. This was offset by € 3.4 million of proceeds from the sale of securities treated as fixed assets. Prior to the transfer of funds to the Fund for General Banking Risks, results from operations after making provisions for risk amounted to € 6.5 million. After transferring € 1.7 million to the Fund for General Banking Risks, and a tax income item of € 0.1 million, annual net profits amounted to € 4.9 million. Proposed allocation of distributable income Net income for the year amounted to € 4,857,889.27. A dividend distribution of 3.25 percent will be proposed at the delegates’ meeting. The net income for the year – including the profit brought forward from the previous year – amount- ing to € 5,159,902.34 should therefore be allocated as follows: 3.25 percent dividend € 5,109,684.74 Carried forward to new year € 50,217.60 Report on events after the balance sheet date Greece’s situation worsened at the start of 2012. Negotiations were initiated concerning a second aid package and higher markdown of debt held by private creditors, which soon proved to be quite difficult. Although these negotiations had reached a decisive stage, they had not been concluded by the balance sheet date. The results of these negotiations and the implemen- tation of the resulting measures will determine if we have made sufficient provisions for risk.