DEVELOPMENTS AT BANK IM BISTUM ESSEN eG

Business developments at our bank in 2012 were dominated by pleasing growth in deposits and very positive trends in customer loans. This shows that our clients fully endorse our philosophy of FairBanking, i.e. offering personalised expert advice at fair prices. Thanks to our satisfactory profit situation, we will be able to distribute a dividend of 5 per cent to our members as well as further strengthening our equity capital. This will help pave the way for our bank to continue on its successful development course.

Total assets rose by EUR 71.7 million (+1.7 per cent) to EUR 4.3 billion in the course of last year. We were delighted to welcome 737 new customers last year, who contributed towards our bank's growth.

Client deposits increased by EUR 72 million (+1.7 per cent), with the sharpest rise in deposits due on demand. We made a conscious decision against stronger growth based on profit and risk factors. In our opinion, the tempting terms offered by some of our competitors are simply not viable for a sustainably managed bank. Banks that offer interest which far exceeds market rates have to invest this money speculatively and thereby encourage critical developments on the financial markets. Customers who manage their money responsibly should steer clear of these kinds of offers.

We cut bank liabilities by EUR 34 million (-7.1 per cent) to EUR 450 million. This item includes refinancing loans and investments by companies which hold a banking licence.


LENDING

We continued our policy of controlled growth in lending as planned, focusing on profit and risk considerations. Customer receivables soared by a very pleasing EUR 212.4 million (12.1 per cent) to EUR 1.95 billion, far exceeding our expectations

This trend was also seen in our lending to corporate clients – which grew by EUR 166.8 million (11.9 per cent) to EUR 1.57 billion – and retail customer loans, which increased by EUR 31.2 million (10.3 per cent) to EUR 333.9 million. In order to diversify our portfolio, we also issued promissory note loans amounting to EUR 14.5 million, which are likewise included under customer receivables. The increase in customer credit was caused by brisk demand from our customers for private construction mortgages and investment loans issued to our church organisations. The majority of the outstanding credit consisted of loans. Bank overdrafts to church enterprises and overdraft facilities for retail customers played a lesser role here.

We were also able to build on the previous year's good figures in new lending. All in all, we approved 480 new loans worth a total of EUR 490 million. This represents a EUR 153 million increase compared to the previous year. Of this, 130 contracts were with church organisations and enterprises, totalling EUR 417 million, and 350 were with retail customers, totalling EUR 73 million.
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