ANNUAL REPORT
2021
years
TRADITION ON
THE MOVE
Overview
BUSINESS DEVELOPMENT
IN € MILLION *
2021 2020 Change %
Lending business
a) Mortgage loans 6,799 6,395 6
aa) Residential property financing 4,338 4,019 8
ab) Commercial property financing 2,461 2,376 4
b) Loans to public sector and banks 743 97 666
Total 7,542 6,492 16
OVERVIEW OF PORTFOLIOS
IN € MILLION *
2021 2020 Change %
Total assets 52,538 48,558 8
Mortgage loans 41,662 38,411 8
Public sector and banks 3,619 3,704 – 2
Pfandbriefe and other bonds 41,992 39,576 6
Liable equity capital 1,790 1,676 7
INCOME STATEMENT
IN € MILLION *
2021 2020 Change %
Net interest income and net commission income 272 238 14
Administrative expenses 133 128 4
Results from ordinary business activities 11 3 95 18
Transfer to the Fund for General Banking Risks 0 20 – 100
Net income 59 38 57
EMPLOYEES
NUMBER
2021 2020 Change %
Average number of employees per year 624 611 2
Apprentices 14 15 – 7
Employees participating in parental leave, early retirement and partial retirement (non-working phase) 38 35 9
* Amounts have been rounded.
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Content
6 Letter from the Board of Management
8
Management Report
9 Economic report
9 General economic conditions
15 Business development
18 Financial performance, financial position and net assets
21 Ratings, sustainability and regulatory conditions
24 Registered office, executive bodies, committees and employees
25 Risk, outlook and opportunities report
25 Risk report
33 Corporate planning
33 Outlook – opportunities and risks
37
Annual Statement of Accounts
38 Balance sheet
42 Income statement
43 Statement of development in equity capital and cash flow statement
45 Notes
46 General information on accounting policies
48 Notes to the balance sheet income statement
57 Publication in accordance with Section 28 Pfandbrief Act
66 Other disclosures
68 Bodies
69 Auditing Association
69 Other financial obligations
70 Contingent liability
71 Independent Auditor’s Report
77 Affirmation by the Legal Representatives
78 Annex to Annual Financial Statements pursuant to Section 26a
Para. 1 Sentence 2 of the German Banking Act (KWG)
79 Report of the Supervisory Board
82
Further Information
83 The members of the Delegates Meeting
84 Agenda – General (Delegates) Meeting
85 Executive management and bodies
86 Contact
89 Imprint
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125 years of
Münchener Hyp
125 action-packed years of a cooperative success model.
From the first loans to Bavarian farmers to an international
mortgage bank – we are committed to supporting our cus-
tomers as partners at all times.
1896
The Bavarian state
government founds Bayerische
Landwirthschaftsbank – now
MünchenerHyp.
1971
New name: “Münchener
Hypothekenbank”. Focus on
financing residential proper-
ties as agricultural loans
become increasingly less
relevant.
1991
Business operations
expanded to the
new German states
2021
MünchenerHyp celebrates its
125th anniversary.
2014
MünchenerHyp is
supervised directly
by the ECB. It issues
the world’s first
sustainable Pfand-
brief.
1948
The bank building is
destroyed in the Second
World War. Rebuilt
on Nussbaumstrasse:
Employees pitch in
personally.
1897
Prince Regent
Luitpold loses the
right to use the
crown as a seal
(logo).
1910
The golden age of mortgage
banks: Bayerische Landwirth-
schaftsbank enjoys strong
growth.
1934
Housing financing begins
1999
International commercial
property financing business
launches.
2002
Move to Karl-
Scharnagl- Ring
1926
The bank moves into its
new building at
Ludwigstrasse 7.
1928
The Pfandbrief is
the most impor-
tant source of
refinancing. This is
a gold Pfandbrief
from 1928.
1918
The bank faced a serious crisis
at the end of the First World
War. It achieves a turnaround
with the help of the Bavarian
state government.
www.muenchenerhyp.de/
geschaeftsbericht2021/en/
18901880 1910
19401950 19201960
1980 19901970 2000 2010
1900
Letter from the Board of Management
125 years ago, on 2 December 1896, MünchenerHyp was
founded as Bayerische Landwirthschaftsbank. As the name
suggests, its original task was to support Bavarian farmers with
fair mortgage loans. MünchenerHyp has long since outgrown
its original business purpose. Today, we are an internationally
operating real estate bank specialising in financing residential
and commercial property. We are counted among the signifi-
cant European banks by the European Central Bank (ECB) and
are therefore directly supervised by it.
Through all the changes, successes and setbacks, over 125
years MünchenerHyp has remained true to its core: it is an
independent cooperative bank. The cooperative principle
still shapes our independent business activities today.
Especially in difficult times, it is the willingness and ability to
act that counts. Another financial year dominated by the
COVID-19 pandemic once again demanded a great deal of
energy and flexibility in order to maintain business as usual
for our customers and partners.
Record result in new business
We benefited from continuing high demand for property and
property financing. Low interest rates ensured positive momen-
tum on property markets, resulting in a high volume of new
business. After a slight decline in new business during 2020,
the past financial year put us back on track to achieve a
record result. With property financing totalling EUR 6.8 billion,
we achieved the highest volume of new business in our Bank’s
history. Together with purchases of capital market securities,
which we need in order to manage liquidity requirements, our
new business even exceeded EUR 7 billion for the first time.
In private residential property financing, we were able to
continue the growth of past years. Commitment volume rose
by almost 8 percent to EUR 4.3 billion. Around three quarters
of this figure related to financing brokered by cooperative
primary banks. We were able to significantly expand the busi-
ness referred to us by independent financial service providers
and by PostFinance in Switzerland. In the Austrian market, we
expanded the circle of our cooperation partners and have
now gained a stronger foothold after entering this market
with new business of EUR 48 million.
In commercial property financing, the effects of the COVID-19
pandemic were still felt. We are therefore satisfied that we
were able to increase our new business again. All in all, we
granted approximately EUR 2.5 billion in commercial property
financing, up by 3.5 percent year on year. The focus was on
the German market, which is appreciated by investors for its
high stability.
The strength of new business is also reflected in the mortgage
portfolios. Unlike many property financiers, who struggle to
maintain their loan portfolios, we were able to expand them
by 8 percent to EUR 41.6 billion over the course of the year.
As a result, our total assets jumped over the EUR 50 billion
threshold for the first time, reaching EUR 52.5 billion at year-
end 2021. Credit risks remained at a very low level despite
the ongoing COVID-19 pandemic and the devastating floods.
Higher earning power – good capital base
The development of earnings was encouraging. Net interest
income rose by 16 percent to EUR 402.6 million, thanks in
particular to the positive development of new business over
many years. Net interest and commission income also im-
proved significantly, rising by 14 percent to EUR 272.4 million.
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On the other hand, administrative expenses increased only
moderately by 3.5 percent to EUR 132.9 million. Apart from
higher personnel costs, this was mainly due to the increase
in the bank levy by EUR 3.7 million, which has now reached
the considerable figure of EUR 19.6 million and may not be
recognised as an expense for tax purposes.
We remain satisfied with MünchenerHyp’s capital base. Our
members’ capital contributions increased by EUR 90.1 million
to EUR 1.24 billion. Our regulatory equity capital totalled
EUR 1.79 billion. This gives us a Common Equity Tier 1 ratio
of 20.4 percent as of 31 December 2021, still placing us well
above the minimum capitalisation set for our Bank by the
ECB, even taking into account the additional capital buffers
required of all banks by the banking supervisory authorities.
Positive funding conditions
In the last year, we very successfully issued securities in euros,
British pounds and Swiss francs on the capital market. This
enabled us to refinance on the one hand at attractive condi-
tions and on the other hand in matching currencies. Among
our Pfandbrief issues, two long-dated Mortgage Pfandbriefe
with a volume of EUR 500 million each, which we issued in
the first half of 2021, stood out in particular. In July, we re-
turned to the UK capital market with a Mortgage Pfandbrief
for GBP 350 million. In Switzerland, we again successfully
issued several bonds with a total volume of CHF 1.8 billion.
MünchenerHyp is therefore a well-accepted and established
issuer both on the Swiss market, but MünchenerHyp is also
recognised as an issuer in Swiss francs on the international
capital markets. In uncovered paper, we celebrated a first with
a green senior non-preferred bond of EUR 500 million – our
first green bond in this product category.
Dividend for financial year 2021
After not having been allowed to distribute a dividend in the
two previous years, or only to a limited extent, due to ECB
rulings, we are not subject to any restrictions this year. There-
fore, we can finally allow our members once more to take
their due share in the success of MünchenerHyp. The net in-
come for 2021 and profit carried forward from previous years
of around EUR 33 million are available for the distribution.
This results in a dividend of 4.75 percent per share. We thank
our members for their loyalty to MünchenerHyp in these
challenging times.
Tradition on the move
MünchenerHyp’s 125-year history has been shaped by people
working together to overcome the challenges of the times.
Thus, our success in this anniversary year is also based on the
cooperative will to achieve more together. Our employees in
particular have contributed to this success story, achieving a
record result despite the continuing burdens imposed by the
COVID-19 pandemic. For this we thank them most sincerely.
We also thank the Supervisory Board for its valuable advice.
And we thank the Delegates for their support and commit-
ment not only in the last year but also in the five years of
their term of office, which ended as scheduled in 2021. We
look forward to working with the new Delegates Meeting in
the years ahead. We would like to thank the Works Council
and the Executive Employees Committee for their construc-
tive cooperation.
In view of positive economic and growth forecasts and hopes
of an easing COVID-19 pandemic, we started 2022 on a note
of cautious optimism. However, Russia’s attack on Ukraine
and growing concerns over inflation significantly increase
the uncertainties already hanging over this year’s business
development and make it even harder to arrive at a forecast.
So from today’s perspective it will be difficult to achieve the
moderate expansion of our new business planned for this
financial year.
Yours sincerely,
Dr Louis Hagen Dr Holger Horn Ulrich Scheer
CEO CRO CFO
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Management Report
9 ECONOMIC REPORT
9 General economic conditions
9 Economic development
9 Financial markets
11 Property markets and property financing markets
15 Business development
15 New mortgage business
16 Capital markets business
16 Refinancing
18 Financial performance, financial position
and net assets
18 Development of earnings
19 Balance sheet structure
21 Ratings, sustainability and regulatory conditions
21 Ratings
21 Sustainability
22 Separate non-financial report
22 Regulatory conditions
24 Registered office, executive bodies,
committees and employees
24 Registered office
24 Executive bodies and committees
24 Employees
24 Corporate governance statement in accordance
with Section 289f HGB
25 RISK, OUTLOOK AND OPPORTUNITIES
REPORT
25 Risk report
25 Counterparty risk
29 Market price risks
30 Liquidity risk
32 Investment risk
32 Operational risks
32 Risk-bearing capacity
32 Use of financial instruments for hedging purposes
32 Accounting-related internal control and
risk management processes
33 Corporate planning
33 Outlook – opportunities and risks
33 Economic development and financial markets
34 Property markets and property financing markets
35 Business development at
Münchener Hypothekenbank
36 Disclaimer regarding forward-looking statements
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Economic report
GENERAL ECONOMIC
CONDITIONS
Economic development
The global economy picked up again in 2021 after the slump
triggered by the COVID-19 pandemic. However, the upswing
progressively weakened over the course of the year. New
waves of infection caused by mutations of the virus and per-
sistent supply bottlenecks slowed economic recovery from
mid-year onwards. According to IMF data from January 2022,
global gross domestic product rose by 5.9 percent. This strong
growth was mainly due to the easing of massive lockdown
restrictions in many countries, which greatly boosted demand
after the previous year’s decline. Economic recovery, supply
bottlenecks and rising food and energy prices drove inflation
to 3.1 percent in the industrialised countries and 5.7 percent
in the developing countries in 2021.
It was a similar picture for the eurozone. Strong recovery in
economic output, with growth of 5.2 percent, concealed eco-
nomic problems triggered by the latest waves of COVID-19
and supply bottlenecks. Moreover, economic performance
varied quite considerably between member states. Inflation
increased to 4.9 percent as of November 2021, up from just
0.3 percent during 2020. After a significant rise in unem-
ployment at the start of the year, the labour market remained
fairly stable thereafter, resulting in the eurozone unem-
ployment rate of 7.3 percent in October 2021 being half a
percentage point below the annual average for 2020.
In Germany, gross domestic product grew less strongly than
expected in 2021, reaching 2.8 percent. As in other countries,
the pandemic, together with supply and material bottlenecks,
had a dampening effect on the German economy. Economic
output has not yet returned to pre-pandemic levels. Growth
was again supported in particular by public consumption
which, like last year, rose by 3.4 percent. Foreign trade also
recovered. Construction investment, having grown strongly in
past years, rose by only 0.5 percent. This was due to shortages
of labour and materials.
Consumer prices rose by 3.1 percent on average over the year,
the highest increase since 1993. Inflation was driven mainly
by energy prices, which rose by 10.4 percent overall. Food and
goods prices also increased significantly. The labour market,
on the other hand, remained robust. With 44.9 million people
in work, employment stayed at the previous year’s level.
The number of unemployed people fell by around 80,000 to
2.6 million, with the unemployment rate declining by 0.2 per-
centage points to 5.7 percent as a result. Short-time (Kurzarbeit)
work programmes were used considerably less than in the
previous year.
Financial markets
For another year, financial markets were severely impacted by
the development of the COVID-19 pandemic. Optimism about
vaccination campaigns initially buoyed stock markets, but was
dampened again by further waves of infection. Steadily rising
inflation rates over the course of the year were another nega-
tive influencing factor.
Most central banks therefore began to adjust monetary policy.
The US Federal Reserve (“Fed”) announced in November that it
would end its asset purchase programmes by mid-2022. In view
of positive economic data and low unemployment, a faster
exit from bond purchases by March 2022 was already decided
in December 2021. The Bank of England also responded to
rising inflation by raising interest rates by 0.15 percentage
points to 0.25 percent in December 2021. The ECB, on the
other hand, acted more cautiously. Although the Pandemic
Emergency Purchase Programme (PEPP) will be discontinued
in March 2022, the Asset Purchase Programme (APP) will con-
tinue until the end of 2022. According to the ECB’s forward
guidance, an interest rate hike is not expected until net new
purchases have ended. The main refinancing rate thus remained
at 0.0 percent in 2021.
The extremely low yields on ten-year German government
bonds at the beginning of 2021 did not last long. With the
start of the vaccination campaign, the easing of the COVID-19
Economic report
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YIELD ON TEN-YEAR BUNDS 2021
IN %
January February March April May June July August September October November December
– 0.3
– 0.4
– 0.5
– 0.6
– 0.7
– 0.8
– 0.9
– 1.0
– 0.1
– 0.2
0.0
0.1
Source: Bloomberg
wave in spring and rising inflation rates, Bund yields rose
from minus 0.57 percent at the beginning of the year to minus
0.10 percent in May of last year. To maintain favourable
financing conditions, the ECB tried to limit the rise in yields
and increased the monthly purchase volume under the PEPP
programme. As a result, yields fell back to a low of minus
0.5 percent in August. By the end of the year, they had risen
once more to a level of minus 0.18 percent with relatively
high volatility.
On the foreign exchange market, the US dollar made signifi-
cant gains against the euro over the course of the year. From
USD 1.22 at the beginning of the year, it peaked at USD 1.12
and ended the year at USD 1.13. The US dollar was supported
by higher growth rates in the USA, which increased significantly
due to the US government’s stimulus and relief packages. In the
second half of the year, the Fed also announced a more re-
strictive monetary policy, which provided additional support
for the US dollar.
The Swiss franc also gained against the euro over the course
of the year, ending 2021 at CHF 1.035, CHF 0.05 lower than
the rate at year-end 2020. The British pound posted compa-
rable gains, rising over the course of the year from GBP 0.89
at 31 December 2020 to GBP 0.84 at the end of 2021.
Despite quite attractive spread levels on the covered bond
market, many issuers took advantage of especially favourable
long-term tender opportunities at the central bank to refi-
nance. The ECB provided further liquidity on the capital market
in March 2021 by increasing the volume of possible tender
amounts and implementing the monthly securities purchases
in a very flexible manner. The ECB’s monetary policy kept
yields on many bonds in negative territory. Institutional inves-
tors therefore extended their investment term or increased
their credit risk in order to continue generating positive inter-
est income.
Issuing activities on the primary market for covered bonds
were similarly restrained as last year. In particular, the ECB’s
further series of TLTRO tenders affected the volume of publicly
traded covered bond issues. Moreover, the wave-like develop-
ment of the pandemic repeatedly unsettled the markets. All in
all, the euro-denominated issue volume of benchmark covered
bonds came to around EUR 95 billion in 2021, a slight increase
of 3 percent compared with the previous year. The countries
with the highest issuance were France with 24 percent of total
volume and Germany with 17 percent.
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RESIDENTIAL BUILDING PERMITS IN GERMANY 2010–2021
FIGURES IN 000
20112010 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
150
200
250
300
350
400
188
228
241
272
285
313
375
348
347
361
369
375*
* Estimated. Source: German Federal Statistical Office
Property markets and property financing markets
Residential property, Germany
The German residential property market remained buoyant.
The pandemic had no negative effects. High demand com-
bined with short supply in metropolitan areas thus caused
prices to rise more significantly than in the previous year.
Analyses conducted by vdpResearch show that prices for
houses and apartments increased by 12.5 percent in the third
quarter of 2021 compared with the same period of the previ-
ous year. Prices of single and two-family houses were up by
12.6 percent, with condominium prices rising by 12.2 percent.
Despite higher price growth momentum, this was driven not
by speculation but rather by the overall conditions: high excess
demand, low interest rates, rising prices for building land and
higher construction costs.
Thus, construction costs for residential property rose dramati-
cally in 2021, in particular because vital raw materials such as
timber and steel were in short supply. The rise in the number
of building permits slowed down slightly compared with the
previous year. By the end of November 2021, the construction
of over 340,000 housing units had been approved, up 2.8 per-
cent on the previous-year period. The construction backlog,
which includes all construction projects that have been
approved but not yet started or completed, increased further,
rising to just under 780,000 housing units by the end of 2020.
This is essentially because many construction companies are
working at full capacity.
Stable growth in rents meant that multi-family houses remained
an attractive asset class for investors. Rent increases averaging
4.0 percent compared with the previous year led to price rises
for multi-family houses, resulting in the capital value index
for multi-family houses rising by an average of 10.4 percent
year on year. In the top seven cities, growth momentum was
only slightly below the national average. Rent levels in the
cities rose by an average of 3.9 percent and capital values by
9.5 percent compared with the previous year.
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DEVELOPMENT OF PROPERTY PRICES IN GERMANY
YE 2010 = 100
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
90
100
110
120
130
140
150
160
170
180
190
Owner-occupied housing
Condominiums
Single family houses
Source: vdp Research property price index, Q3 2021, based on analysis of the vdp transaction database
As of November 2021
Partly as a result of this trend, more was invested in German
residential property during 2021 than ever before. According
to surveys by Ernst & Young, institutional investors invested
almost EUR 53 billion in German residential property port folios,
two and a half times as much as in the previous year. Of this
figure, the takeover of Deutsche Wohnen by Vonovia alone
accounted for EUR 23.5 billion. But even without this extraor-
dinary transaction, the capital invested in German residential
property increased by over 40 percent compared with the pre-
vious year. The institutional housing market continued to be
dominated by domestic investors with a share of 76 percent.
Furthermore, the German residential property market remained
a safe investment target compared with other countries.
Consequently, demand for construction financing was strong.
In the first three quarters of 2021, loans with a total volume
of around EUR 223 billion were granted for the purchase of
residential property (existing and new builds), an increase of
13.6 percent compared with the same period of the previous
year.
Against the background of the continuing boom in the German
residential property market, in its Financial Stability Report
the ECB called on European countries to counter this devel-
opment with macroprudential measures. In January 2022,
BaFin announced the introduction of additional capital require-
ments due to the rise in residential property prices. The counter-
cyclical capital buffer of previously 0 percent was set at
0.75 percent of risk-weighted assets as of 1 February 2022. In
addition, a ‘sectoral systemic risk buffer’ of 2.0 percent of
risk-weighted assets on loans secured by residential property
is to be introduced. However, the debt-to-equity and asset
encumbrance ratios of private households in residential prop-
erty financing, which have been stable for years, showed no
sign that banks’ lending criteria were relaxed in 2021.
Residential property, international
European residential property markets showed similar momen-
tum to Germany, with rising demand for housing and strong
price growth. Eurostat’s house price index showed a year on
year increase of 7.2 percent in the first half of the year.
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DEVELOPMENT OF COMMERCIAL PROPERTY TRANSACTIONS
IN GERMANY 2017–2021
IN € BILLION
15.6
17.6
18.8
20.3
57.2
60.5
70.7
58.6
52.9
60.9
2017
2018
2019
2020
2021
Residential (only portfolio)
Commercial
Source: EY Research
As of January 2022
The European residential property markets with the strongest
price momentum were Austria, the Netherlands and the UK,
with increases of over 10 percent compared with the same
period in the previous year. The Austrian federal government
is therefore planning to introduce stricter lending rules to
oblige mortgage providers to adopt more cautious lending
policies.
The Swiss residential property market recorded price growth
of 4.7 percent in the first half of 2021 compared with the
equivalent previous-year period, with prices for single-family
houses in particular rising sharply. Price growth momentum
is therefore continuing. On the rental housing market, the
vacancy rate declined slightly for the first time, but a supply
surplus still remains.
Commercial property, Germany
EUR 60.9 billion was invested in German commercial proper-
ties, an increase of 4 percent. Including investments in com-
mercial residential property, 2021 was a record year for the
German commercial property market, with a total volume of
EUR 113.8 billion. For the first time, residential property was
the strongest asset class, accounting for almost 60 percent of
transaction volume. Only around a quarter of total volume
was attributable to office properties. Logistics and retail prop-
erties each accounted for less than 10 percent of transaction
volume.
Measures to combat the COVID-19 pandemic – lockdowns in
particular – continued to put a noticeable strain on commercial
property markets, and this was also reflected in price perfor-
mance during 2021. According to vdpResearch, for example,
prices of commercial properties declined by 0.9 percent in the
third quarter of 2021 compared with the same period of the
previous year. One reason for this was that prices of retail
properties fell by 3.6 percent. On the other hand, office prop-
erties recovered slightly with a price increase of 0.3 percent.
Office prime yields in Germany’s top property markets remained
stable over the course of the year, averaging 2.7 percent on a
net basis. Office properties in Berlin generated the lowest
prime yields at 2.5 percent net.
The positive performance of the German office investment
market is essentially due to the low interest rate environment
and the lack of alternative asset classes. After all, office letting
markets remain characterised by caution and hesitation on
the part of tenants, especially with regard to new leases or
expansion plans. In the first three quarters of 2021, around
2.6 million square metres of office space was let in the top
seven office cities, down by 4 percent on the same period of
the previous year. Compared with market activity in 2019 –
before the outbreak of the COVID-19 pandemic – lease turn-
over actually declined by almost 30 percent. Vacancy rates
have thus risen in all German metropolitan areas, with Berlin
recording the largest increase from 2.8 to 3.9 percent. Frankfurt
am Main has the highest vacancy rate among the German
cities at 7.7 percent. Prime rents for office properties again
recorded slight year on year growth of 1 percent on average
in 2021.
The pandemic has accelerated the process of change in the
retail sector which was already under way before 2020. Many
retail chains have reduced their branch networks and floor
space due to declining sales in bricks-and-mortar retailing. In
all German cities, vacancy rates in retail locations have risen
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and market rents have declined. The change is most pronounced
in Berlin, where the retail vacancy rate rose to 13.4 percent
and prime rents fell by 5 percent in 2021. The most expensive
location for inner city retail properties was Munich with a
net initial yield of 2.9 percent. Since the start of the pandemic,
shopping centre yields have risen to 5.3 percent net, reflecting
uncertainty over investments in this segment. At the same
time, the decline in rents for shopping centres was more pro-
nounced than in the city centres.
Commercial property, international
Transaction volume on European commercial property markets
recovered in 2021 following a significant slump in the previous
year. EUR 275 billion was invested in commercial properties
across Europe, an increase of 23 percent. Germany accounted
for one third of European transaction volume, followed by the
UK with 24 percent, France with 10 percent and the Nether-
lands with 5 percent. Residential portfolios and office proper-
ties each accounted for one third of transaction volume,
putting the residential segment at European level on a par
with office properties for the first time.
In the UK, investment volume was the highest since 2015,
reaching a figure of EUR 67 billion, representing a year on
year increase of 50 percent. The period between the Brexit
referendum and the UK’s actual exit from the EU greatly
unsettled investors because the impacts of Brexit on the
labour market and on demand for commercial property were
difficult to predict. Net initial yields for all property types
therefore rose significantly, because investors had priced the
uncertainty into their yield forecasts. Yields rose most strongly
in regional markets, especially for retail properties in those
markets. In 2021, prime yields for shopping centres in the UK
were 7.5 percent. Prime office properties in the City of London
returned to a net yield level of 3.5 percent in 2021, a figure
last recorded in 2015.
In France, EUR 27 billion was invested in commercial property
and residential portfolios in 2021, down by 18 percent com-
pared with the previous year. The decline is explained by the
very selective behaviour of investors in the office segment,
which is the most important type of use in the French com-
mercial property market. Due to the strict measures taken to
combat the pandemic, office properties stood empty for several
weeks and users began to reduce their space requirements.
As a result, prime rents in central Paris fell by 3 percent year
on year. Rents for commercial properties fell by 16 percent in
France during 2021, while shopping centre rents declined by
4 percent. Net initial yields were unchanged at 3.2 percent for
commercial buildings and rose to 4.8 percent for shopping
centres.
In the Netherlands, transaction volume fell by 26 percent year
on year to EUR 14 billion. This was due to government inter-
vention in the residential property market, which made inves-
tors in commercial residential property portfolios far more
cautious. Yields remained unchanged at 3.1 percent on a net
basis for office properties in Amsterdam and 3.4 percent on
average for all Dutch cities. Office rents were unchanged
compared with the previous year. Retail rents also declined in
the Netherlands, with rents dropping by 6 percent for com-
mercial buildings and by 10 percent for shopping centres.
In Spain, transaction volume recovered to just under
EUR 11.3 billion, up 27 percent on the previous year. Investor
interest in prime office properties in Spanish cities was so
great that the net initial yields in Madrid and Barcelona each
fell by 10 basis points. The net initial yield for office proper-
ties in Madrid was 3.1 percent and in Barcelona 3.2 percent.
In both cities, vacancy rates rose slightly and prime office
rents declined by an average of 3 percent in 2021. At 5 per-
cent, the decline in rents for shopping centres was relatively
moderate compared with other European cities, as footfall
rapidly recovered once lockdown restrictions were eased. Yields
for commercial properties were stable at 3.4 percent in 2021,
while net initial yields for shopping centres rose to 5.3 percent.
In the US, commercial property and residential portfolios
worth USD 582 billion had changed hands by the end of the
third quarter of 2021, up by 39 percent year on year. Multi-
family apartments were the most sought-after asset class,
accounting for almost 40 percent of investment volume. Logis-
tics properties were the second strongest asset class with a
market share of 23 percent, followed by office properties with
a market share of 19 percent.
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MÜNCHENER HYPOTHEKENBANK EGANNUAL REPORT 2021
NOTESMANAGEMENT REPORT FURTHER INFORMATION
ANNUAL STATEMENT
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FOREWORD
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MÜNCHENERHYP NEW MORTGAGE BUSINESS 2017–2021
COMMITMENTS IN € MILLION
3,185
3,142
3,717
4,338
1,629
2,477
2,690
2,461
4,019
2,147
2017
2018
2019
2021
2020
Residential housing
Commercial property
BUSINESS DEVELOPMENT
New mortgage business
In the year under review, we more than made up for the
pandemic-related decline in new business during 2020. We
achieved a record result with a commitment volume of
EUR 6.8 billion, representing an increase of 6.3 percent. With
growth recorded in both private and commercial property
financing, we are satisfied with the overall development of
new business.
New business in private property financing grew by 7.9 per-
cent, the same rate as last year, to reach EUR 4.3 billion. The
continuing property boom and the low level of interest rates
contributed to this growth, leading to very strong demand for
financing with long fixed interest rate periods – an area in which
our offering puts us in a particularly competitive position.
In brokerage business with our partner banks from the Coop-
erative Financial Network, we matched the previous year’s
record result with a commitment volume of EUR 3.1 billion.
We achieved this in particular through further improvements
in digital processes and services for our cooperative brokerage
partners.
Sales of private property finance generated via independent
financial service providers in Germany increased by 22 percent
year on year, to EUR 818 million.
In our partnership with PostFinance in Switzerland, we were
able to significantly expand new business thanks to high
demand for property financing and a very successful joint
sales campaign. The commitment volume rose by 49 percent
to EUR 415 million. In the Austrian market, we entered into
partnerships with other financial service providers, enabling
us to expand new business to EUR 48 million (previous year:
EUR 16 million).
In commercial property financing, our lending business con-
tinued to be affected by the economic consequences of the
COVID-19 pandemic. Against this background, we are satisfied
that we were able to expand our new business by 3.5 percent
to around EUR 2.5 billion. This means that we have returned
to our growth path after last year’s significant decline.
This was attributable in particular to our domestic business,
which contributed the lion’s share with a new business volume
of EUR 1.7 billion. At EUR 0.7 billion, international business
was around EUR 0.2 billion below the previous year’s result of
EUR 0.9 billion. The most important international market for
us in 2021 was the Netherlands with 28 percent of new busi-
ness, replacing last year’s leader, the USA (syndicated business
only), which accounted for 19 percent, followed by Spain
with 16 percent, and France and the UK with 14 percent each.
New business was thus more evenly distributed across our
target markets than in the previous year. By asset class, office
properties accounted for 44 percent of new business, resi-
dential portfolios for 23 percent, retail properties for 13 percent,
logistics properties for 11 percent and mixed use for the remain-
ing 9 percent.
Earnings performance in commercial new business improved
further. We were able to significantly exceed the earnings
target without increasing the risks. This applies to domestic
business and even more so to international business. Average
loan volumes, having increased significantly in previous years,
declined slightly.
From a risk perspective, we maintained our conservative financ-
ing approach with a focus on conventional financing at
completion, giving due consideration to adequate, sustainable
minimum cash flows and locations. We consider the high
equity ratios in the financing structures, which average approx-
imately 45 percent and increased slightly compared with the
previous year, to be a positive aspect. Despite price trends in
the market, which have further widened the gap between
market and lending values, our average loan-to-value ratios
declined slightly.
Economic report
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MÜNCHENER HYPOTHEKENBANK EGANNUAL REPORT 2021
NOTESMANAGEMENT REPORT FURTHER INFORMATION
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MORTGAGE RATES MÜNCHENERHYP
TEN YEAR FIXED RATE | IN %
1990 1992 201620142012201020082006200420022000199819961994 2018 2020
2022
0
2
1
3
4
5
6
7
8
9
10
0
2
1
3
4
5
6
7
8
9
10
long-term average rate 4.81
8.64
■
■
1.13
As of: 02.01.2022
Capital markets business
In line with the business strategy, capital markets business is
conducted with restraint. New purchases serve primarily to
meet regulatory requirements. Liquid securities are needed to
manage liquidity and the cover pools, and also as collateral in
ECB repo transactions or tender operations.
Highly liquid sovereign and bank securities continued to trade
at very high spread levels and resulted in high total asset
costs. As a result, securities purchases were kept to the bare
minimum.
New business increased significantly to EUR 743.0 million in
2021 after EUR 97 million in 2020. This was due to realloca-
tions. The portfolio volume fell slightly to EUR 3.6 billion
( previous year: EUR 3.7 billion).
Refinancing
MünchenerHyp consistently enjoyed access to funding at
good conditions during the reporting year.
In the first six months of the year our focus in terms of large-
volume funding transactions was on the issue of Pfandbriefe
and uncovered bonds in euros and Swiss francs (CHF).
This began in January 2021 with the issue of a Mortgage
Pfandbrief with a volume of EUR 500 million, a term of just
under 19 years at a spread of 1 basis point above the mid-
swap rate and a coupon of 0.01 percent.
At the beginning of March 2021, we successfully issued a green
(uncovered) senior non-preferred bond with a volume of
EUR 500 million. This was a first for the Bank in two respects:
It is its first green bond in this product category, and also
the first time it has issued a senior non-preferred bond in
bench mark format. The bond has a term of eight years and a
coupon of 0.375 percent. The issue was placed at a price of
57 basis points above the mid-swap rate.
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At the end of April 2021, MünchenerHyp reported a record
spread for long-dated Pfandbriefe. An issue with a volume of
EUR 500 million and a term of 15 years was issued at a price
3 basis points below the mid-swap rate and a coupon of
0.25 percent. Investor demand was so brisk that the order
book was closed after two hours at EUR 1.35 billion.
In addition to the above-mentioned bonds in euros, we issued
around 1.1 billion in Swiss francs up to mid-July. Of this, around
CHF 700 million was issued via syndicated bonds on the capi-
tal market and approximately CHF 400 million via private
placements. This lively issuance activity included various terms
(from two to 20 years) and product categories (Pfandbrief,
senior preferred and senior non-preferred). Most of the senior
products were issued as green bonds, which enabled the Bank
to appeal to and win over new groups of investors.
The very successful issuing activity in Swiss francs continued
in the second half of the year. We issued further Pfandbriefe
with a volume of CHF 0.7 billion. About CHF 550 million of this
sum was issued via syndicated bonds on the capital market
and approximately CHF 150 million via private placements. In
2021 as a whole, bonds in Swiss francs totalling around
CHF 1.8 billion were sold, making MünchenerHyp once again
one of the most important foreign issuers in Switzerland.
In the second half of the year, we also made a very successful
return to the British capital market. For the first time since
2013, we issued a benchmark Pfandbrief in British pounds
(GBP). The volume is GBP 350 million, the term just under
3.5 years and the coupon 0.5 percent. Owing to high demand,
it was possible to reduce the spread in the course of the
transaction. The spread is 39 basis points above gilts (UK sov-
ereign bonds).
In November 2021, we tapped an existing EUR 500 million
Pfandbrief with a remaining term of almost 18 years by a
further EUR 250 million. The issue was placed at a price of
2 basis points above the mid-swap rate. The outstanding
nominal volume of this bond, which matures in 2039, is now
EUR 750 million.
MünchenerHyp’s total issue volume on the capital market in
the year under review was around EUR 6.6 billion. In covered
funding, Mortgage Pfandbriefe accounted for EUR 4.1 billion,
including our own Mortgage Pfandbriefe deposited with the
ECB, with a volume of EUR 2.5 billion for uncovered funding.
Once again, no Public Pfandbriefe were issued, in keeping
with MünchenerHyp’s business strategy.
Economic report
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FINANCIAL PERFORMANCE,
FINANCIAL POSITION AND
NET ASSETS
Development of earnings
Net interest income
1
increased in the year under review, rising
by EUR 54.8 million, or 15.8 percent, to EUR 402.6 million. The
increase was driven primarily by strong new business in the
year under review and previous years. Net interest income
also includes a premium for targeted longer-term refinancing
operations III (TLTRO III) with the European Central Bank in
the amount of EUR 18.3 million.
Commission paid totalled EUR 142.2 million, up by
EUR 19.7 million or 16.1 percent on the previous-year level,
thanks to very successful new business. Commission received
fell to EUR 12.0 million, resulting in net commission income
2
of minus EUR 130.2 million, compared with minus
EUR 109.5 million in the previous year.
This resulted in net interest and commission income
3
of
EUR 272.4 million, which corresponds to an increase of
EUR 34.1 million, or 14.3 percent compared with the previous
year.
General administrative expenses rose by EUR 8.5 million to
EUR 126.7 million. This included an increase in personnel
costs of EUR 5.0 million, or 8.7 percent. This is due to the
continued need to expand the workforce and salary increases.
Other administrative expenses rose by EUR 3.5 million, or
5.8 percent. The expense for the bank levy alone increased by
EUR 3.7 million. This means that the increase in the bank levy
alone exceeded the increase in the overall item. This shows
that very close attention was paid to cost discipline in the
year under review.
Depreciation, amortisation and value adjustments of intangible
assets and fixed assets fell by EUR 4.0 million year on year to
EUR 6.2 million.
Total administrative expenses
4
amounted to EUR 132.9 million
compared with EUR 128.4 million in the previous year. The
cost-income ratio
5
was 48.8 percent after 53.9 percent in the
previous year, and is thus within the target corridor of below
50 percent.
The net result of other operating expenses and income
amounted to minus EUR 3.3 million.
The operating result before risk provisions
6
increased by
28.1 percent year on year, to EUR 136.2 million.
The item “Depreciation, amortisation and value adjustments
on accounts receivable and certain securities as well as
allocations to provisions for possible loan losses” amounted
to minus EUR 27.0 million. The required loan loss provisions
remained at a very low level despite the ongoing COVID-19
pandemic. The net result of changes in loan loss provisions
(including direct write-downs) amounted to minus
EUR 5.9 million (previous year: minus EUR 10.1 million).
The early application of IDW RS BFA 7 for the formation of
general loan loss provisions for the lending business resulted
in an effect of minus EUR 8.0 million. An amount of
EUR 6.0 million was set aside for risks arising from a legal
dispute.
The item “Income from reversals of write-downs on partici-
pating interests, shares in affiliated companies and securities
treated as fixed assets” amounted to EUR 3.5 million.
Income from ordinary business activities amounted to
EUR 112.7 million. After tax expenses of EUR 53.6 million,
net income for the financial year comes to EUR 59.1 million,
a year on year increase of 56.7 percent.
The return on equity (RoE) before tax amounted to 6.7 per-
cent
7
. After tax, the Bank achieved an RoE of 3.5 percent
8
.
1
Net interest income is calculated by adding item 1 ‘Interest income’ plus item 3 ‘Current
income’ plus item 4 ‘Income from profit-pooling, profit transfer or partial profit transfer
agreements’ minus item 2 ‘Interest expenses’ as shown in the income statement.
2
Net commission income is calculated by offsetting item 5 ‘Commission received’ and item 6
‘Commission paid’ as shown in the income statement.
3
The net interest and commission income is the sum of net interest income and net commission
income.
4
Total administrative expenses are the sum total of item 8 ‘General administrative expenses’ and
item 9 ‚Depreciation, amortisation and write downs of intangible assets and tangible assets‘ as
shown in the income statement.
5
Ratio of total administrative expenses to net interest and net commission income
6
Net result of items 1 to 10 in the income statement.
7
RoE before tax is calculated as the ratio of income statement item 14 ‘Results from ordinary
activities’ to balance sheet liability item 9 ‚Fund for general banking risks (previous year)‘ plus
liability item 10aa ‘Members capital contributions (current year)’ plus item 10b ‘Revenue
reserves (previous year)’ plus income statement item 18 ‚Retained earnings brought forward
from previous year‘.
8
RoE after tax is calculated as the ratio of income statement item 16 ‘Allocation to fund for
general banking risks’ plus item 17 ‘Net income’ to balance sheet liability item 9 ‚Fund for
general banking risks (previous year)‘ plus liability item 10aa ‘Members capital contributions
(current year)’ plus item 10b ‘Revenue reserves (previous year)’ plus income statement item 18
‘Retained earnings brought forward from previous year’.
Economic report
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PORTFOLIO DEVELOPMENT MÜNCHENERHYP 2017–2021
IN € MILLION
29,227
31,956
35,498
38,411
41,662
2017
2018
2019
2020
2021
Residential housing Germany
Residential housing Switzerland and Austria
Commercial property Germany
Commercial property abroad
Balance sheet structure
Total assets increased to EUR 52.5 billion at the end of the
2021 financial year, compared with EUR 48.6 billion at 31 De-
cember 2020. This 8 percent increase is mainly due to growth
in the mortgage loan business portfolio.
During the course of the year, the mortgage loan portfolio
grew by EUR 3.2 billion, to EUR 41.7 billion. Private residential
property financing in Germany was once again the fastest
growing segment, with growth of EUR 2.0 billion.
The private residential property financing portfolio is struc-
tured as follows: domestic – EUR 23.5 billion (previous
year: EUR 21.5 billion); foreign – EUR 5.2 billion (previous year:
EUR 4.7 billion). In addition to the financing business in
Switzerland, this portfolio also includes financing in Austria.
The commercial property financing portfolio totals EUR 13.0 bil-
lion (previous year: EUR 12.2 billion). Of this amount, EUR 3.7 bil-
lion (previous year EUR 3.2 billion) is attributable to financing
outside Germany. The most important international market is
the Netherlands with 23 percent (previous year: 21 percent),
followed by the USA with 22 percent (previous year: 23 per-
cent), Spain with 18 percent (previous year: 19 percent) and
the UK with 15 percent (previous year: 17 percent).
In line with our business and risk strategy, the portfolio of
public-sector and bank loans and securities decreased from
EUR 3.7 billion to EUR 3.6 billion, EUR 2.2 billion of which
was made up of securities and bonds.
At the end of 2021, the net sum of hidden charges and
hidden reserves in the securities portfolio amounted to
EUR 33 million (previous year: EUR 43 million).
A detailed examination of all securities indicated that there
are no permanent impairments. We have accounted for bonds
on a held-to-maturity basis. Write-downs to a lower fair value
were not necessary.
The portfolio of long-term funding instruments increased by
EUR 2.4 billion to EUR 42.0 billion. Mortgage Pfandbriefe
accounted for EUR 30.3 billion of this amount, Public Pfand-
briefe for EUR 1.5 billion and uncovered bonds for EUR 10.2 bil-
lion. The total volume of funding instruments – including
money market funds and customer deposits – increased to
EUR 49.7 billion as of 31 December 2021.
Economic report
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The item “Other liabilities to customers” can be broken down
as follows:
OTHER LIABILITIES TO CUSTOMERS
IN € 000
Remaining term < one year Remaining term > one year Total
Other liabilities to customers as of 31 Dec. 21 2,065,449 2,393,353 4,458,802
Registered bonds 27,908 1,514,764 1,542,672
of which institutional investors 27,572 1,360,764 1,388,336
Promissory note loans on the liabilities side 485,077 808,589 1,293,666
of which institutional investors 119,289 507,589 626,878
Other 1,552,464 70,000 1,622,464
of which institutional investors 860,015 70,000 930,015
Members capital contributions grew by EUR 90.1 million, to
EUR 1,243.2 million. Together with the issue of the Additional
Tier 1 bond in the amount of CHF 125 million in 2019, regula-
tory equity capital totalled EUR 1,790.1 million (previous year:
EUR 1,676.4 million).
Common Equity Tier 1 capital rose from EUR 1,517 million in
the previous year to EUR 1,626 million. At 31 December 2021,
the Common Equity Tier 1 capital ratio was 20.4 percent
(previous year: 20.6 percent), the Tier 1 capital ratio was
21.9 percent (previous year: 22.2 percent) and the total capital
ratio was 22.5 percent (previous year: 22.8 percent). The lever-
age ratio at 31 December 2021 was 3.6 percent (previous year:
3.6 percent).
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RATINGS, SUSTAINABILITY AND
REGULATORY CONDITIONS
Ratings
In October 2021, the rating agency Moody’s confirmed all of
MünchenerHyp’s ratings. At the same time, it changed the
outlook from “negative” to “stable”.
Moody’s remains positive about the fact that MünchenerHyp
has a strong reputation on the capital market as an issuer of
Pfandbriefe, noting that it has an accordingly high level of
refinancing strength, and also acknowledges the firm ties and
corresponding support the Bank enjoys within the Cooperative
Financial Network.
CURRENT RATINGS AT A GLANCE
Rating
Mortgage Pfandbriefe Aaa
Junior Senior Unsecured A2
Senior Unsecured Aa3
Short-term liabilities Prime-1
Long-term deposits Aa3
MünchenerHyp has not issued any Public Pfandbriefe for
some years now, as these are only profitable through
cross-selling income. As a result, it withdrew its rating for
Public Pfandbriefe in 2020.
Even to achieve the highest Pfandbrief rating of Aaa, Moody’s
still only requires compliance with the legally required over-
collateralisation, but no additional over-collateralisation.
The long-term unsecured liabilities have ratings from the
other two major rating agencies, Standard & Poor‘s (A+) and
Fitch (AA-), via the combined rating of the Cooperative Finan-
cial Network.
Sustainability
The regulatory requirements of the EU, the ECB, the European
Banking Authority (EBA) and BaFin regarding sustainability in
corporate governance increased significantly in the year under
review. These requirements relate primarily to MünchenerHyp’s
core business, risk management and reporting.
In the year under review, the focus was particularly on the
topics of EU taxonomy, the ECB guide on climate-related and
environmental risks, disclosure pursuant to CRR II and the
guidelines on loan origination and monitoring (LOaM). In order
to implement these requirements, the Board of Management
launched a project that encompasses almost all areas of
MünchenerHyp and aims to create the processes, structures
and data foundations needed for appropriate sustainability
management.
In order to embed sustainability even more deeply in the
Bank’s organisation, an ESG framework was developed in
2021 that defines structures and responsibilities for all sus-
tainability issues, including ESG risk management issues. For
this purpose, an ESG committee was set up to advise the
Board of Management on all matters relating to sustainability.
It consists of representatives from all affected areas and in
particular has the task of further developing the sustainability
strategy and preparing sustainability-relevant decision pro-
posals for the Board of Management.
The focus of our sustainability activities remains on our core
business. In the private residential property financing business,
our loans with a social and environmental focus (MünchenerHyp
Green Loan and MünchenerHyp Family Loan) accounted for
more than 20 percent of new business in private property
financing. We publish an annual impact report on the specific
environmental value-added of sustainable loans for private
and commercial property.
In terms of sustainable securities, in 2021 we issued ESG
Pfandbriefe, uncovered senior preferred and non-preferred
bonds and commercial paper. Approximately EUR 875 million
was successfully placed in this segment in 2021.
In its sustainability rating, ISS ESG awarded MünchenerHyp a
rating of C+ for sustainability management in 2020. Although
this is a slight downgrade compared with the B- rating received
in previous years, it still places us among the top performers
in the Financials/Mortgage & Public Sector rating peer group.
As a result, ISS ESG has granted us “Prime Status” again.
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The agency Sustainalytics introduced a new rating method-
ology in 2020. It now assesses sustainability commitment
using a scoring system from 0 to plus 40. The lower the risk
score, the stronger the sustainability management.
Separate non-financial report
MünchenerHyp has been reporting on the non-financial aspects
and the material economic, environmental and social impacts
of its business activities since 2012. We comply with the require-
ments set out in the German CSR Directive Implementation
Act (CSR-Richtlinie-Umsetzungsgesetz – CSR-RUG) by pub-
lishing a non-financial report. In accordance with the Dele-
gated Act specifying the disclosure obligations under Article
8 of the Taxonomy Regulation, we will publish information
on our taxonomy-eligible economic activities for the first time
in 2021, as well as further key indicators relating to selected
risk positions. The non-financial report is published at the
same time as the annual report on the Bank’s website and in
the electronic Federal Gazette (Bundesanzeiger).
Regulatory conditions
Capital
MünchenerHyp calculates its capital requirements largely using
the internal ratings based approach (IRBA).
Liquidity
The Liquidity Coverage Ratio (LCR) was maintained without
issue throughout the year, with values above 400 percent on
average. The minimum was above 200 percent. The Net Stable
Funding Ratio (NSFR) was always above 110 percent.
MünchenerHyp’s risk score in 2021 was 18.5, which corre-
sponds to a low risk. This puts the bank in 5th place in the
Thrifts and Mortgages peer group.
9
THE DEVELOPMENT OF THE SUSTAINABILITY RATINGS SINCE 2019
2019 2020 2021/2022
ISS-ESG
B –
(Prime Status)
C +
(Prime Status)
C +
(Prime Status)
Sustainalytics 65 out of 100 points Risk score of 17.4 (low risk) Risk score of 18.5 (low risk)
9
Copyright © 2021 Sustainalytics. All rights reserved. This section contains information developed
by Sustainalytics (www.sustainalytics.com). Such information and data are proprietary of Sus-
tainalytics and/or its third party suppliers (Third Party Data) and are provided for infor mational
purposes only. They do not constitute an endorsement of any product or project, nor an invest-
ment advice and are not warranted to be complete, timely, accurate or suitable for a particular
purpose. Their use is subject to conditions available at https://www.sustainalytics.com/legal-
disclaimers.
The development of the sustainability ratings in 2021/2022
and the two previous years at a glance:
Single Supervisory Mechanism for EU banks
The “finalisation” of Basel III also includes the gradual intro-
duction of an output floor of 72.5 percent to limit the effects
of internal approaches compared with standard approaches.
This means that in particular banks with low risk weightings
for their receivables, such as MünchenerHyp, will be adversely
affected by the changes. The introduction of this floor will
also impact MünchenerHyp’s capital ratios. Overall, we take a
critical view of the new regulation, because it will make lend-
ing more expensive. The Bank is monitoring developments and,
given the currently high Common Equity Tier 1 ratio, believes
that this regulatory change will be manageable.
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The Bank’s Compliance unit follows discussions on the publi-
cation of new national and international regulations very
closely and forwards any new regulations to the responsible
departments within the Bank, where they are implemented
in various measures and projects. The abundance of additional
regulatory requirements imposed by supervisory authorities
causes significant costs and poses a considerable challenge for
our Bank’s human and financial resources.
As every year, the ECB conducted the so-called Supervisory
Review and Evaluation Process (SREP), comprising a very
detailed evaluation of the business model, internal governance
and capital and liquidity adequacy. Any additional capital
and liquidity requirements are derived from that process. The
additional capital adequacy requirement (P2R) imposed within
the framework of the SREP amounts to 1.75 percent of total
capital; no additional requirements were set for liquidity.
Minimum Requirements for Risk Management (MaRisk)
The German Minimum Requirements for Risk Management
(Mindestanforderungen an das Risikomanagement – MaRisk)
were updated in the year under review by way of an amend-
ment. However, because the existing European requirements,
which MünchenerHyp already fulfilled, were essentially trans-
posed into German law, hardly any change was needed.
Recovery and resolution plan
The recovery plan was updated and the information required
for the resolution plan was sent to the resolution authority.
There were no significant changes compared with the previ-
ous year.
IBOR reform
IBOR reference interest rates came under heavy criticism in
the wake of the manipulation scandals a few years ago; at
the same time, the abolition of the submission obligation for
panel banks made it necessary to replace the LIBOR rates.
Alternative risk-free rates (RFRs) were developed and estab-
lished; existing IBOR reference rates are gradually being
replaced based on the new RFR benchmarks.
MünchenerHyp is affected both by the announced changes in
relation to the interest rate benchmarks and by the Benchmarks
Regulation. However, due to the highly specialised business
model, there is much less of a need for change than for most
other banks directly supervised by the ECB. The necessary
adjustments are being undertaken as part of a project.
Economic report
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MÜNCHENER HYPOTHEKENBANK EGANNUAL REPORT 2021
NOTESMANAGEMENT REPORT FURTHER INFORMATION
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REGISTERED OFFICE, EXECUTIVE
BODIES, COMMITTEES AND
EMPLOYEES
Registered office
Münchener Hypothekenbank eG has its registered office in
Munich. The Bank also has a branch in Berlin and 10 regional
offices.
Executive bodies and committees
The Supervisory Board appointed Ulrich Scheer – previously
General Executive Manager – as a member of the Board of
Management (CFO) effective as of 1 September 2021.
The Supervisory Board appointed Dr. Holger Horn as Deputy
Chairman of the Board of Management (CRO) effective as of
1 January 2022.
The Supervisory Board intends to appoint Markus Wirsen as a
member of the Board of Management effective as of 1 April
2022. He was previously Head of Restructuring & Recovery at
DZ HYP AG.
In June 2021, the four employee representatives on the Super-
visory Board were regularly elected for a new period of office.
Reimund Käsbauer, Michael Schäffler and Frank Wolf-Kunz
were re-elected. Claudia Schirsch was newly elected to the
Supervisory Board. Barbara von Grafenstein stood down from
the Board.
The Delegates Meeting was regularly elected for a new period
of office during the year under review. Due to the COVID-19
pandemic, the election was conducted by postal vote. Eighty
delegates and six substitute delegates were elected.
Employees
In a second year dominated by the COVID-19 pandemic,
employee health was the particular focus of our human
resources work. With the measures in place, such as the crisis
team, working from home and hygiene rules, we were able
to maintain the Bank’s operations at all times and to contain
infections to the extent possible. Since March 2020, around
70 employees have had the coronavirus, almost all of them
having been infected outside the Bank. Happily, all have since
recovered.
In the second year of the pandemic, there was less inclination
to join or leave MünchenerHyp. Both new hires and employee
turnover declined compared with 2020. Recruitment remains
a key challenge for the Bank given the tight labour market.
For this reason, MünchenerHyp’s human resources strategy is
focused on, among other things, enhancing our employer
brand, attracting and promoting talent, creating attractive
overall conditions for all employees and offering attractive
remuneration.
The Bank employed 624 employees
10
(previous year: 611) on
average over the year.
Corporate governance statement in accordance with
Section 289f HGB
The proportion of women in the Bank as a whole came to
50 percent in the reporting year. At Board of Management level,
the proportion came to 0 percent, while the proportion at the
first management level below the Board was 22 percent, at
the second level 18 percent and at the third level 31 percent.
The proportion of women on the Supervisory Board was
17 percent in 2021. MünchenerHyp has set itself the objective
of increasing the proportion of women in management posi-
tions. For the Supervisory Board and the two management
levels below the Board of Management, the Bank is aiming for
a proportion of women of 20 percent, with a target quota for
the Board of Management of 33 percent. In December 2020,
the Nomination Committee of MünchenerHyp’s Supervisory
Board addressed the issue of the proportion of women on the
Board of Management and Supervisory Board and decided to
retain the existing target quotas and to strive to achieve them
by 2026 in the context of upcoming succession arrangements.
10
Number of employees in accordance with Section 267 (5) of the German Commercial Code
(Handelsgesetzbuch – HGB); excludes trainees, employees on parental leave, in early retirement
or in partial retirement (non-working phase) and employees on leave of absence.
Economic report
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ANNUAL STATEMENT
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Risk, outlook and opportunities report
RISK REPORT
Continuous risk control and monitoring is essential to manag-
ing business development at MünchenerHyp. Risk management
is therefore a high priority in terms of the overall management
of the Bank.
The framework governing business activities is laid down in
the business and risk strategy. The MünchenerHyp Board of
Management as a whole is responsible for this strategy, which
is reviewed regularly to ensure its objectives are being met,
revised where necessary and discussed with the Supervisory
Board at least once a year.
The Supervisory Board’s Risk Committee is informed of the
Bank’s risk profile at least once a quarter and additionally as
necessary, so that it can exercise its supervisory function. This
information is based on, among other things, reports on
ICAAP and ILAAP and on credit risks, operational risk reports
and the risk report prepared in accordance with MaRisk. The
Risk Committee also receives numerous detailed reports from
internal management, regarding funding and liquidity, for
example.
Risk management is based firstly on the analysis and presenta-
tion of existing risks, and secondly on comparing these risks
with the available risk coverage potential (risk-bearing capac-
ity). There are also various other relevant analyses that need
to be viewed as a whole to enable adequate management of
the Bank. Extensive control procedures involving internal,
process-dependent monitoring are employed for this purpose.
The Internal Audit department, which is independent of all
processes, has an additional supervisory role in this respect.
When analysing and presenting the existing risks, a distinction
is made between counterparty risks, market price risks, credit
spread risks, liquidity risks, participation risks, model risks,
property risks and operational risks. Additional risks, such as
placement risk, reputational risk, business risk and ESG risk,
etc. are each seen as elements of the above risks and are
taken into account at the appropriate point in the respective
calculations.
Counterparty risk
Counterparty risk (credit risk) is of major importance for
MünchenerHyp. Counterparty risk is the risk that a counter-
party will fail to meet its payment obligations towards the
Bank, by paying late or by defaulting completely or in part.
The Credit Manual sets forth the credit approval procedures
and process regulations for those units involved in the lending
business and the permissible credit products. The business
and risk strategy also contains more detailed explanations on
the sub-strategies for target customers and target markets,
as well as basic specifications for measuring and managing
credit risks at individual transaction and portfolio level. Individ-
ual limits have been set for all types of lending, e.g. depend-
ing on the rating. Another factor is regional diversification,
which is ensured by country limits.
In the mortgage business, we ensure that we grant senior
loans predominantly with moderate loan-to-value ratios; in
the commercial business, limits also apply with regard to
DSCR and LTV. The current loan-to-value ratios break down
as follows:
Risk, outlook
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TOTAL PORTFOLIO OF MORTGAGES AND OTHER LOANS
INCLUDING OPEN COMMITMENTS IN €
Loan-to-value ratio 31 Dec. 2021 Relative 31 Dec. 2020 Relative
Up to 60 % 17,712,207,741.73 39.5 % 16,401,392,390.88 39.6 %
> 60 % and <= 70 % 6,840,677,939.84 15.3 % 7,042,011,598.28 17.0 %
> 70 % and <= 80 % 7,817,675,352.88 17.4 % 7,619,966,869.31 18.4 %
> 80 % and <= 90 % 4,114,483,751.81 9.2 % 3,423,715,652.17 8.3 %
> 90 % and <= 100 % 3,513,107,035.49 7.8 % 2,918,027,657.66 7.1 %
Over 100 % 4,826,847,133.62 10.8 % 3,921,580,700.76 9.5 %
Without 1,656,656.42 0.0 % 52,169,575.59 0.1 %
Total 44,826,655,611.79 100.0 % 41,378,864,444.65
100.0 %
The regional breakdown within Germany is summarised below:
TOTAL PORTFOLIO OF MORTGAGE AND OTHER LOANS
INCLUDING OPEN COMMITMENTS IN €
Region
31 Dec. 2021 Relative 31 Dec. 2020 Relative
Baden-Württemberg 3,756,142,446.13 8.4 % 3,459,145,234.81 8.4 %
Bavaria 8,474,865,821.42 18.9 % 7,698,948,641.11 18.6 %
Berlin 2,275,822,809.98 5.1 % 2,156,619,521.57 5.2 %
Brandenburg 764,316,946.44 1.7 % 614,702,291.86 1.5 %
Bremen 146,032,821.18 0.3 % 117,028,114.15 0.3 %
Hamburg 1,216,985,454.59 2.7 % 1,218,687,423.53 2.9 %
Hesse 3,276,664,075.86 7.3 % 3,015,553,722.32 7.3 %
Mecklenburg-West Pomerania 595,844,836.17 1.3 % 556,461,832.57 1.3 %
Lower Saxony 3,196,387,918.79 7.1 % 2,996,660,642.83 7.2 %
North Rhine-Westphalia 5,609,760,400.35 12.5 % 5,223,538,665.42 12.6 %
Rhineland-Palatinate 1,813,885,036.53 4.0 % 1,702,546,791.15 4.1 %
Saarland 431,112,825.77 1.0 % 424,211,558.98 1.0 %
Saxony 1,113,316,958.79 2.5 % 1,088,839,097.08 2.6 %
Saxony-Anhalt 695,276,822.37 1.6 % 634,003,054.63 1.5 %
Schleswig-Holstein 2,052,971,928.16 4.6 % 1,955,811,355.81 4.7 %
Thuringia 355,371,130.18 0.8 % 334,394,103.65 0.8 %
Total domestic 35,774,758,232.71 79.8 % 33,197,152,051.47 80.2 %
Risk, outlook
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The international breakdown is as follows:
TOTAL PORTFOLIO OF MORTGAGE AND OTHER LOANS
INCLUDING OPEN COMMITMENTS IN €
Country 31 Dec. 2021 Relative 31 Dec. 2020 Relative
Austria 224,186,194.19 0.5 % 181,484,755.12 0.4 %
France 472,425,600.20 1.1 % 441,156,481.80 1.1 %
United Kingdom 541,450,654.06 1.2 % 544,295,423.01 1.3 %
Spain 659,341,232.09 1.5 % 611,836,583.85 1.5 %
Luxembourg 105,094,688.44 0.2 % 64,900,000.00 0.2 %
Switzerland 5,224,247,514.15 11.7 % 4,803,985,406.13 11.6 %
Netherlands 868,016,719.22 1.9 % 701,825,145.19 1.7 %
Belgium 105,544,541.73 0.2 % 38,101,461.97 0.1 %
USA 851,590,235.00 1.9 % 794,127,136.11 1.9 %
Total foreign 9,051,897,379.08 20.2 % 8,181,712,393.18 19.8 %
Total domestic and foreign 44,826,655,611.79 100.0 % 41,378,864,444.65 100.0 %
Credit risk management starts when the target transaction is
selected with the drafting of loan terms and conditions.
Regularly reviewed risk cost functions are used for this purpose.
Depending on the type and risk level of the transaction, various
rating and scoring procedures are used.
In property financing, a broadly diversified portfolio of mainly
residential property finance and credit approval processes
that have been tried and tested for years are reflected in a
portfolio with a low credit risk. Our lending business with
public sector borrowers and banks is focused on central and
regional governments, public local authorities and Western
European banks (covered bonds only). The regional focus is on
Germany and Western Europe, respectively. Highly liquid sov-
ereign bonds and other highly rated securities will continue to
be needed to a certain extent, in order to guarantee compliance
with CRR liquidity requirements.
Mortgage loans are checked for the need for a specific loan
loss provision based on their rating, any payment arrears or
other negative factors. Workout Management carries out
more extensive specific loan loss provision monitoring, espe-
cially in non-retail business.
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Broken down by rating classes, the portfolio distribution is as
follows:
TOTAL PORTFOLIO OF MORTGAGE AND OTHER LOANS
INCLUDING OPEN COMMITMENTS IN €
Rating category 31 Dec. 2021 Relative 31 Dec. 2020 Relative
0a to 0b 0.00 0.0 % 0.00 0.0 %
0c to 0e 10,321,572,171.81 23.0 % 9,247,515,408.72 22.3 %
1a to 1c 22,541,286,450.37 50.3 % 21,862,138,711.57 52.8 %
1d to 2a 9,367,647,410.66 20.9 % 8,002,947,835.60 19.3 %
2b to 2c 1,183,501,713.56 2.6 % 1,031,810,223.26 2.5 %
2d to 2e 374,436,327.41 0.8 % 330,512,201.14 0.8 %
3a to 3b 567,687,876.18 1.3 % 530,722,388.44 1.3 %
3c to 3d 212,184,459.98 0.5 % 146,036,067.04 0.4 %
3e 36,082,435.09 0.1 % 20,611,297.77 0.0 %
4a to 4e 221,905,737.35 0.5 % 206,086,646.53 0.5 %
without rating 351,029.38 0.0 % 483,664.58 0.0 %
Total 44,826,655,611.79 100.0 % 41,378,864,444.65 100.0 %
The Bank sets up a general loan loss provision as a precaution
to cover latent credit risks. This general loan loss provision is
calculated based on an expected credit loss model, with the
IFRS 9 methodology being adopted for levels 1 and 2 and
applied to the HGB assessment basis. Latent default risks are
thus taken into account at an early stage compared with the
previous calculation based on the letter by the German Federal
Ministry of Finance dated 10 January 1994. The early applica-
tion of IDW RS BFA 7 via an expected credit loss model leads
to an increase in general loan loss provisions of EUR 8 million.
As property markets remain largely very stable despite the
COVID-19 pandemic, specific loan loss provisions continue
to be recognised at a very low level for both the residential
property financing business and the commercial property
financing business.
Business relations with financial institutions are based on
master agreements that allow the netting of receivables from
and liabilities to the other institution. Collateral agreements
exist with all derivative counterparties. Derivative transactions,
insofar as they are subject to clearing, are settled via a central
counterparty (CCP).
Risk, outlook
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Specific and general loan loss provisions changed as follows
in the year under review:
TOTAL LENDING BUSINESS
*
IN EUR MILLION
Opening balance Additions Reversals Utilisation
Exchange rate-
related and other
changes Closing balance
Specific provisions 29.5 7.7 – 2.6 – 0.7 0.7 34.6
General provisions 13.0 8.0 0.0 0.0 0.0 21.0
* Including a provision for irrevocable loan commitments in the amount of EUR 1.0 million.
Market price risks
Market price risks include the risks to the value of positions
due to changes in market parameters, including interest rates,
volatility and exchange rates. They are quantified as a poten-
tial present value loss using a present value model. This dis-
tinguishes between interest rate, option and currency risks.
In the case of the interest rate risk, a distinction is made
between general and specific interest rate risks. General inter-
est rate risk is the risk that the market value of investments
or liabilities that depend on general interest rates will be
adversely affected if interest rates change.
Specific interest rate risk, also known as the credit spread risk,
is also included under market price risk. The credit spread is
defined as the difference in yield between a risk-free and a
risky bond. Spread risks take account of the risk that the
spread may change even without any change to the rating.
The reasons for a change to yield spreads may include:
■
varying opinions among market participants regarding
positions;
■
an actual change in the creditworthiness of the issuer not
already reflected in its rating;
■
macroeconomic aspects that influence creditworthiness
categories.
The risks inherent in options include: volatility risk (vega: the
risk that the value of a derivative instrument will change
due to increasing or decreasing volatility), time risk (theta: the
risk that the value of a derivative instrument will change
over time), rho risk (the risk of change to the value of the
option if the risk-free interest rate changes) and gamma risk
(the risk of a change to the option delta if the price of the
underlying asset changes; the option delta describes the change
in value of the option due to a change in price of the under-
lying asset). Options in capital market business are not con-
tracted for the purposes of speculation. All option positions
arise implicitly as a result of borrower’s option rights (e.g.
statutory termination rights under Section 489 of the German
Civil Code (Bürgerliches Gesetzbuch – BGB) or the right to
make unscheduled repayments) and are hedged where neces-
sary. These risks are carefully monitored in the daily risk report
and are limited.
Currency risk is the risk that the market value of investments
or liabilities that depend on exchange rates will be adversely
affected due to changes in exchange rates. Foreign currency
transactions of MünchenerHyp are hedged to the maximum
possible extent against currency risks; only the margins included
in interest payments are not hedged.
Share price risk is low for MünchenerHyp; it results almost
exclusively from participations in companies in the Coopera-
tive Financial Network. In addition, the Bank has invested in a
mixed fund (as a special fund of Union Investment), in which
a mix of shares is also possible. Responsibility for calculating
risk ratios is transferred to the investment fund company; the
results are reviewed for plausibility and then input into the
Bank’s systems.
In order to manage market price risks, the present value of all
MünchenerHyp transactions is determined on a daily basis. All
transactions are valued using the ‘Summit’ application. Inter-
est rate risk is managed based on the BPV vector (Base Point
Value), which is calculated daily from the change in present
value per maturity band that would occur if the mid-swap curve
changed by one basis point. Sensitivities to exchange rates and
in relation to rotations in the interest rate curve and changes
to the base spread and volatilities are also determined.
Market risks are recorded and limited at MünchenerHyp using
the value at risk (VaR) indicator. The VaR calculation takes
account of both linear and non-linear risks by means of a his-
toric simulation. The impact of extreme movements in risk
factors is also measured here and for other types of risks using
various stress scenarios.
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The daily stress scenarios (others are tested with less
frequency) are:
■
Supervisory requirements:
»
The yield curve is shifted up and down in parallel by
200 basis points for each currency separately. The
poorer of the two results is taken into account and
is limited.
»
In addition, six further stress tests (parallel shift up/
down, steepening/flattening, parallel shift up/down in
the short-term segment) are calculated. The poorest
result is monitored as an early warning indicator for
the limit. The stress tests are prescribed by EBA Guide-
line 2018/02.
■
Parallel shifting: the current yield curve is shifted up and
down completely by 50 basis points across all currencies at
the same time. The poorer of the two results is taken into
account.
■
Sensitivities:
»
Exchange rates: all foreign currencies change by
10 percent.
»
Volatilities: all volatilities increase by 1 percentage
point.
»
Steepening/flattening: a moderate steepening/flatten-
ing of the yield curve is simulated, i.e. at the short end
by up to +/– 10 basis points, at the long end by up to
+/– 20 basis points, rotation around the 5-year grid point
■
Historic simulation:
»
Terrorist attack in New York on 11 September 2001:
changes in market prices between 10 September 2001
and 24 September 2001, i.e. the direct market reaction
to the attack, are applied to the current level.
»
2008 financial market crisis: changes in interest rates
between 12 September 2008 (last banking day before
the collapse of investment bank Lehman Brothers) and
10 October 2008 are applied to the current level.
»
Brexit: change in interest rates and exchange rates due
to the Brexit referendum on 23 and 24 June 2016.
In the reporting year, the maximum VaR of the entire portfo-
lio (interest, currencies and volatilities) at a confidence level
of 99 percent with a ten-day holding period was EUR 42 mil-
lion. The average figure was approximately EUR 29 million.
Although MünchenerHyp is a trading book institution (for
futures only), it has not concluded any trading transactions
since 2012.
In order to manage credit spread risks, the present value of
asset-side capital market transactions of MünchenerHyp is
calculated and the credit spread risks determined on a daily
basis. The credit spread VaR, credit spread sensitivities and
various credit spread stress scenarios are calculated in the
Summit valuation system.
Credit spread risks are recorded and limited at MünchenerHyp
using the VaR indicator. The VaR is calculated based on a his-
toric simulation.
The current (daily) credit spread stress scenarios are:
■
Parallel shifting: all credit spreads are shifted up and down
by 100 basis points. The poorer of the two results is taken
into account.
■
Historic simulation of the collapse of the investment bank
Lehman Brothers: the scenario assumes an immediate
change in spreads based on the change that was measured
in the period from one banking day before the collapse of
Lehman Brothers to four weeks after this date.
■
Flight to government bonds: this scenario simulates a
highly visible risk aversion seen on the markets in the past.
The spreads of risky security classes widen, while the
spreads of safe sovereign bonds tighten.
■
Euro crisis: this scenario replicates the change in spreads
during the euro crisis between 1 October 2010 and 8
November 2011. During that period, in particular the
spreads of poorly rated sovereign bonds increased sharply.
■
COVID-19 crisis: this scenario reflects the change in credit
spreads in the wake of the COVID-19 crisis between
28 February and 18 March 2020. Spreads increased signifi-
cantly in all asset classes during this period.
The credit spread VaR for the entire portfolio using a 99.9 per-
cent confidence level and a holding period of one year stood
at a maximum of EUR 223 million in the reporting year, while
the average figure was about EUR 212 million.
Liquidity risk
Liquidity risk includes the following risks:
■
Inability to honour payment obligations on time (liquidity
risk in the narrower sense).
■
Inability to procure sufficient liquidity when needed at
anticipated conditions (funding risk).
■
Inability to close out, extend or settle transactions without
incurring a loss due to insufficient market depth or market
disruptions (market liquidity risk).
MünchenerHyp distinguishes between short-term solvency
measures and medium-term structural liquidity planning.
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Short-term solvency measures
The purpose of short-term solvency measures is to ensure
that the Bank is able on a daily basis to honour payment obli-
gations in due form, in time and in full, even during stress
situations (willingness to pay). Current supervisory require-
ments (MaRisk and CRD IV) regarding banks’ liquidity reserves
have been implemented.
MünchenerHyp classes itself as a capital market-oriented in-
stitution within the meaning of MaRisk and therefore also
fulfils the requirements of BTR 3.2.
MaRisk distinguishes between five different scenarios, which
have been implemented accordingly:
1) Base case: corresponds to normal management of the Bank.
2) Bank stress: the reputation of the institution deteriorates,
for example due to large on-balance-sheet losses.
3) Market stress: short-term event affecting one part of the
financial market. Examples of this include the terrorist
attack on 11 September 2001 or the financial market /
sovereign debt crisis.
4) Combined stress: simultaneous occurrence of bank and
market stress.
5) Combined stress without countermeasures: it is assumed
that it is no longer possible to obtain any liquidity at all.
According to MaRisk, the Bank must meet the liquidity
requirements arising from scenarios 1 to 4 for a minimum
of 30 days. Scenario 5 is the worst-case scenario for internal
management purposes.
Depending on the scenario, various modelling assumptions
have been deduced for all important cash flows, such as
drawdowns of liquidity lines, drawdowns of loan commit-
ments already made or changes to collateral. In addition, all
securities were allocated to various liquidity classes in order
to deduce the volume in each scenario that could be sold or
placed in a securities repurchase agreement, and in what time
frame, in order to generate additional liquidity. In all cases,
statutory restrictions, such as the 180-day rule in the German
Pfandbrief Act (Pfandbriefgesetz – PfandBG), were met at all
times. The result is a day-by-day presentation of available
liquidity over a three-year horizon in three currencies (euros,
US dollars and Swiss francs). Positions in other currencies are
negligible. Limits are set in the stress scenarios across various
horizons as early warning indicators for each scenario.
In addition, the liquidity coverage ratio (LCR) and a forecast in
accordance with CRD IV are calculated across all currencies at
least once a week.
Medium-term structural liquidity planning
The purpose of structural liquidity planning is to safeguard
medium-term liquidity. The legal basis for this is both MaRisk
BTR 3 and CRD IV on the net stable funding ratio (NSFR).
Medium-term liquidity management in accordance with
MaRisk is based on short-term liquidity management in
accordance with MaRisk, i.e. both use the same scenarios
and modelling assumptions. Due to the longer observation
period, however, additional modelling is taken into account
that is not critical to short-term liquidity management, such
as new business planning or current expenses such as salaries
and taxes.
Medium-term liquidity planning has the following liquidity
ratios over time as profit or loss components:
■
cumulative overall cash flow requirement;
■
available covered and uncovered funding potential, includ-
ing planned new business and extensions in accordance
with Moody’s over-collateralisation requirements;
■
other detailed data for planning and management activities.
Liquidity risks are limited via the structural liquidity forecast
and stress scenarios, based on available liquidity within a year.
In addition, the NSFR is computed monthly across all curren-
cies in accordance with CRD IV. Forecasts are also created
for monitoring purposes. Since 30 June 2021, the mandatory
minimum level of 100 percent imposed by the supervisory
authority for compliance with the NSFR has applied.
In order to reduce refinancing risks, MünchenerHyp strives to
refinance loans with matching maturities where possible.
The Bank continuously checks if its relevant refinancing sources
(above all, those within the Cooperative Financial Network)
are still available. In order to limit market liquidity risk, in its
business with governments and banks, the Bank predominantly
acquires ECB-eligible securities that can be used as collateral
for ECB open market operations at any time.
In order to diversify its refinancing sources, the Bank has built
up a modest deposit business. At the end of 2021, the portfolio
volume was EUR 524 million.
MünchenerHyp does not have any illiquid bonds, such as
mortgage-backed securities (MBS) or similar securities, in its
portfolio.
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Investment risk
This describes the risk of potential losses if the price of invest-
ments falls below their carrying amount. This applies to long-
term participations held by MünchenerHyp for strategic reasons
in companies of the Cooperative Financial Network and, to a
small extent, positions within its special mixed fund.
Operational risks
Operational risks are the risk of potential losses caused by
human error, process or project management weaknesses,
technical failures or negative external factors. Human error
includes unlawful action, inappropriate selling practices,
unauthorised actions, transactional errors and information
and communication risks.
We minimise our operational risks by using skilled staff, trans-
parent processes, automated standard workflows, written work
instructions, comprehensive IT system function tests, appro-
priate contingency plans and preventive measures. Insurable
risks are covered by insurance policies to the normal extent
required by banks.
The materiality of all services outsourced by MünchenerHyp
in connection with banking transactions and financial services
or other standard banking services has been examined in a
risk analysis. All outsourced services are monitored in accord-
ance with ECB guidelines and included in the risk manage-
ment process.
Risk-bearing capacity
The technical concepts and models used to calculate risk-
bearing capacity, known as ICAAP, are continually updated in
accordance with supervisory requirements. MünchenerHyp
calculates its risk-bearing capacity in accordance with the
requirements of the ECB, based on both the normative and
the economic perspective.
Market risks, loan default risks, operational risks, spread and
migration risks, refinancing risks, investment risks, property
risks and model risks, which include other risks not specifically
listed, are deducted. Risks are allocated to risk-coverage poten-
tial conservatively, disregarding any diversification effects
between different types of risks.
The Bank maintained its risk-bearing capacity at all times
throughout the year under review.
Use of financial instruments for hedging purposes
We engage in hedging activities – interest rate and currency
derivatives – in order to further reduce our risks and to hedge
our business activities. We do not use credit derivatives. Asset
swaps are used as micro-hedges at the level of larger indi-
vidual transactions. Structured underlying transactions, such
as callable securities, are hedged accordingly with structured
swaps. Exchange rate risks for commitments in foreign currency
are hedged primarily by endeavouring to secure funding in
matching currencies; any remaining transactions are hedged
using (interest rate) cross-currency swaps. At portfolio level,
we prefer to use interest rate swaps and swaptions as hedging
instruments. Bermuda options on interest rate swaps (swap-
tions) are used in addition to linear instruments to hedge
embedded statutory termination rights or interest rate cap
agreements.
Accounting-related internal control and risk
management processes
The accounting-related internal control system is documented
in organisational guidelines, process descriptions, accounting
manuals and operating instructions. It comprises organisa-
tional security measures and ongoing automatic measures
and controls that are integrated into work processes. The
main controls are segregation of functions, the dual control
principle, access restrictions, payment guidelines, the new
product and new structure processes and balance confirma-
tions. Non-process-specific audits are conducted primarily
by Internal Audit.
The risk management methods described in the risk report
provide ongoing qualitative and quantitative information on
the financial situation of MünchenerHyp, such as performance
development. Aspects of all types of risks are included in this
assessment.
At MünchenerHyp there is close coordination between the
risk control and financial reporting units. This process is moni-
tored by the entire Board of Management.
The output from the risk management system is used as a
basis for multi-year planning calculations, year-end projec-
tions and reconciliation procedures for the accounting ratios
calculated in the Bank’s financial reporting process.
Risk, outlook
and opportunities report
32
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NOTESMANAGEMENT REPORT FURTHER INFORMATION
ANNUAL STATEMENT
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SEARCH
CORPORATE PLANNING
MünchenerHyp regularly analyses its business model based
on the challenges that the Bank will face in future, and further
develops its business and risk strategy on this basis. In order
to achieve its strategic objectives, numerous measures have
been defined across various areas of activity, some of which
have already been implemented and which we will continue
to implement consistently in the years ahead. The MaRisk-
compliant strategic process plays a crucial role in this. The
starting point for the annual strategy cycle is a strategic review
comprising an audit of the implementation and impact of the
adopted measures. As part of the annual planning that follows
the strategy process, sales targets and centralised and decen-
tralised components of administrative expenses are reconciled
with the projected rolling multi-year income statement. All
earnings and cost components and our risk-bearing capacity
are monitored continually or projected on a rolling basis, so
that the Bank can react promptly and appropriately to fluctu-
ations in earnings or costs.
Planning also includes matters in relation to capital adequacy,
to ensure the Bank complies with supervisory requirements.
OUTLOOK –
OPPORTUNITIES AND RISKS
Economic development and financial markets
The global economic recovery lost momentum at the start of
2022. Above all, the possible effects of the new, rapidly spread-
ing Omicron variant, are creating new uncertainties. Many
economic researchers fear that Omicron could severely inhibit
the recovery of the global economy by delaying the normali-
sation of economic and social life. Rising energy prices accom-
panied by higher-than-expected inflation across a broad front
pose a further risk to the global economy. Against this back-
ground, the IMF expects the global economy to grow by
4.4 percent in 2022, a far more moderate rate compared with
the year under review. At the time of writing this report, it
was not yet possible to foresee the consequences for the
global economy of the Russian attack on Ukraine. Massively
rising energy prices and a slowing recovery of the global
economy are expected.
For the eurozone, the IMF forecasts growth of 3.9 percent.
Here, too, the current wave of the coronavirus pandemic in
particular is delaying the economic recovery. Inflation will
also remain high. The ECB forecasts an inflation rate of
3.2 percent for 2022.
The German economy, on the other hand, is expected to grow
at a higher rate in 2022 than in the year under review. In its
Annual Economic Report, the German government expects
gross domestic product to grow by 3.6 percent in 2022. Accord-
ing to forecasts, the economic recovery will be interrupted by
the winter phase of the pandemic, but not as severely as in
2021. An increasing upswing is predicted from the second
quarter onwards, which will receive impetus primarily from
private consumption and corporate investment. Forecasts for
the construction industry are also positive. The German Institute
for Economic Research (DIW) expects residential construction
volume to increase by 12.7 percent in 2022, due in particular
to spending on energy-saving renovations. Inflation will remain
high in 2022, reaching 3.3 percent according to German
government estimates. A stable trend is expected for the labour
market, as the shortage of skilled workers is likely to increase.
The German government therefore expects the unemploy-
ment rate to fall to 5.1 percent.
In view of rising inflation rates and the weakened but never-
theless continuing economic recovery, many central banks are
planning to tighten monetary policy. The US Federal Reserve,
for example, intends to cease bond purchases as early as March
2022 and start raising interest rates. The Fed is now expected
to hike interest rates three to four times during 2022. Two
rate hikes are expected from the Bank of England. The ECB
will end its PEPP purchase programme in March and plans
to end the APP purchase programme by the end of 2022. After
that, interest rate hikes could also be on the cards for the
eurozone.
On the foreign exchange market, a slightly positive perfor-
mance is expected for the euro and more of a downward
trend for the US dollar, as the eurozone’s economic recovery
is thought to have greater potential. In the medium term,
however, it remains to be seen how far the ECB will follow
other central banks in raising interest rates, potentially caus-
ing higher euro exchange rates due to its own interest rate
measures. The British pound could benefit from further inter-
est rate hikes by the Bank of England in the short term. As
far as the Swiss franc is concerned, we expect only minor
fluctuations and more or less stable exchange rates in 2022.
Risk, outlook
and opportunities report
33
MÜNCHENER HYPOTHEKENBANK EGANNUAL REPORT 2021
NOTESMANAGEMENT REPORT FURTHER INFORMATION
ANNUAL STATEMENT
OF ACCOUNTS
FOREWORD
CONTENT
SEARCH
Funding spreads for banks could come somewhat under pres-
sure due to the repayment of TLTRO tenders. A prolongation
of the long-term tenders is generally expected, but at less
attractive conditions. All in all, the ECB’s reduced purchase
programmes and repayments of TLTRO tenders should result
in less excess liquidity on the market and lead to slightly
rising interest rates and higher funding spreads for banks.
For covered bond markets, experts predict significantly higher
issuing activity in 2022 due to the repayment of TLTRO tenders.
Covered bonds which were previously funded in part via the
ECB’s low-cost tender programme would then be increasingly
offered through public transactions once more. A slight
widening of spreads is therefore expected. A new issue volume
for benchmark covered bonds denominated in euros of
EUR 120 billion is forecast for 2022.
Property markets and property financing markets
The outlook for the residential and commercial property
markets is mixed. On the one hand, experts do not expect any
fundamental changes compared with the positive trend of
2021; on the other hand there are risks and uncertainties. This
applies in particular to the further course of the COVID-19
pandemic and its economic effects as well as possible exag-
gerations, especially in residential property markets. In addition,
there are uncertainties about possible economic effects of
the war in Ukraine.
For residential property markets in our target countries of
Germany, Switzerland and Austria, prices are forecast to con-
tinue rising, as demand continues to exceed supply, especially
in Germany. With regard to interest rates, experts expect a
slight increase in 2022. Nevertheless, interest rates will remain
low in a long-term comparison. Demand will be supported by
higher inflation, as property is also seen as protecting against
inflation. High purchase prices and the new building campaign
(Neubauoffensive) planned by the German government are
perceived as having a dampening effect on price development.
Overall, the experts therefore expect a certain slowdown in
price growth compared with the previous year.
Against this background, we expect demand for property
financing to remain high in our three target markets. How
the introduction of the countercyclical capital buffer and
the capital buffer for systemic risks by BaFin in Germany will
affect prices and demand for property could not yet be relia-
bly estimated at the time of writing this report.
Demand is predicted to remain high in the commercial residen-
tial property markets, as Germany is internationally regarded
as one of the most stable and liquid markets in this segment.
In the case of commercial properties, the pandemic’s impact
on the market differs depending on the various types of use,
for which there are different forecasts. Overall, however,
demand is expected to remain stable. For example, a transaction
volume of between EUR 80 and 90 billion for commercial
properties and commercial residential investments is forecast
for Germany, which is on a par with the level recorded in
2021 excluding the Vonovia/Deutsche Wohnen deal.
The outlook for office property in our target markets in Europe
and the USA has improved. In some markets, demand for
space is rising again and rents are growing as a result. Both
tenants and investors place increasing value on modern
spaces that meet sustainability criteria. We expect this trend
to continue, resulting in an increase in vacancies in most
cities due to older and outdated spaces. For institutional inves-
tors, office properties thus remain an attractive asset class,
especially as stable prime rents are expected for 2022. In com-
peting for the best properties, investors are prepared to pay
high prices, meaning that net initial yields are expected to
decline in the cities.
The market for retail properties will see further consolidation
of retail chains in 2022, leading to rising vacancies in the city
centres and shopping centres. Prime rents will continue to fall
in both commercial buildings and shopping centres; market
value corrections must also be expected. International retail
chains will take advantage of competitors’ branch closures to
secure business premises in prime locations. Hence, we expect
letting activity to continue, but at lower rents and with shorter
terms, because retail chains do not want to make long-term
commitments. Investors, on the other hand, are increasingly
interested in specialist stores, retail parks and local shopping
facilities, because these usually have longer lease terms than
shopping centres or commercial buildings.
Risk, outlook
and opportunities report
34
MÜNCHENER HYPOTHEKENBANK EGANNUAL REPORT 2021
NOTESMANAGEMENT REPORT FURTHER INFORMATION
ANNUAL STATEMENT
OF ACCOUNTS
FOREWORD
CONTENT
SEARCH
Business development at Münchener Hypothekenbank
In our new business plans, we anticipate further economic
recovery and stable demand in our target markets for private
and commercial property financing. Therefore, we are planning
for moderate growth of new business in our two core business
segments in 2022. Whether we achieve this goal is accom-
panied by increasing uncertainties. This applies in particular
to the potential impact of the war in Ukraine on economic
development and consequently on the property markets. In
addition, there is the continuing high inflation as well as
possible new waves of the pandemic caused by mutations of
the coronavirus.
In the business segment of private residential property financ-
ing, we want to take advantage of the opportunities offered
by the expected high demand for property financing in particu-
lar. Since competition among providers in Germany, Switzerland
and Austria will remain as keen as ever, we will step up our
market cultivation efforts.
In association business with the banks of the Cooperative
Financial Network, we will carry out two regional sales
campaigns that will strengthen our market presence with
attractive offers. We will also continue to digitalise and
speed up our lending processes.
In our cooperation with independent financial service provid-
ers, we see further potential for growth due to strong demand
for housing in the property and financing markets, although
we do not expect new business to continue developing at the
dynamic rate seen in 2021.
In Switzerland, we want to at least maintain the level of new
business achieved in 2021. We see potential for further new
business in the market strength of PostFinance and the high
demand for residential property financing in Switzerland. For
the financing business in Austria, we expect significant
growth and plan to gradually enter into further partnerships
with Austrian financing intermediaries.
We aim to strategically expand the second core business
segment of commercial property financing by pursuing a
moderate growth trajectory. This applies to both domestic
and international business. Implementation depends on the
general economic conditions and the pandemic. As for the
COVID-19 pandemic, we assume it will have a significant
but temporary impact. It is important to assess the associated
risks in a forward-looking and conservative manner, paying
particular attention to the economic risks. In this respect, when
making financing decisions we will continue to prioritise the
criteria for a positive assessment, being the viability of the
location and the sustainability of individual cash flows, in line
with our business and risk strategy.
As we expect interest rates to rise only slightly, we assume
stable financing conditions. The inflow of capital from inves-
tors and institutional buyers into the asset class of property
will therefore remain high, given the continuing lack of alter-
native, more profitable forms of investment. Hence, there will
continue to be sufficient financing opportunities for
MünchenerHyp.
We also expect increasing transaction activity on the national
and international syndication markets in 2022, as this market
has largely tolerated the uncertainty created by the COVID-19
pandemic and the trend towards large volumes of financing
is continuing. However, only a few banks are willing to leave
such financing volumes entirely on the balance sheet. We
therefore expect MünchenerHyp’s loan participation volume
to rise in 2022 compared with the previous year. On the
other hand, we expect demand for underwriting transactions
in direct business to increase again. Here, MünchenerHyp
provides the overall financing and subsequently surrenders
portions of the financing to other banks or institutional inves-
tors. In this regard we will also continue to use our established
syndication programme with the Cooperative Financial Network.
The objective of our lending business with the public sector
and banks continues to be primarily to manage liquidity. For
2022, we expect stable development of our portfolio volume,
as maturing securities will have to be replaced to manage
liquidity.
For 2022, we forecast a funding requirement of between
EUR 9.0 billion and EUR 10.5 billion, of which EUR 7.5 billion
to EUR 8.0 billion is expected to be raised on the capital
market and the remainder on the money market. We plan to
launch three to four large-scale issues. Due to its partnership
with PostFinance in Switzerland, MünchenerHyp will continue
to have a funding requirement in Swiss francs.
Two large-volume bonds will mature and fall due for repayment
in the 2022 financial year: a Mortgage Pfandbrief with a
volume of EUR 1.125 billion in June and a Mortgage Pfandbrief
with a volume of USD 600 million in December.
Risk, outlook
and opportunities report
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MÜNCHENER HYPOTHEKENBANK EGANNUAL REPORT 2021
NOTESMANAGEMENT REPORT FURTHER INFORMATION
ANNUAL STATEMENT
OF ACCOUNTS
FOREWORD
CONTENT
SEARCH
We will further develop our sustainability strategy in 2022
based on the defined key themes (sustainable business model,
responsible corporate governance, climate change and CO
2
emissions, risk management, social responsibility, customers
and business partners, employees). We will also focus on the
implementation of regulatory requirements with regard to
sustainability and ESG risks.
We are aiming to achieve a moderate increase in net interest
income generated from business operations in 2022. Stable
trends in our key markets will again provide opportunities to
expand our new business and thus our mortgage portfolios.
This will continue to have a positive impact on the Bank’s
earnings. On the other hand, mounting competition and
ongoing high regulatory pressure will have the opposite effect.
We expect loan loss provisions to increase slightly compared
with 2021. This is due to the increased portfolios and, in
particular, the macroeconomic uncertainties described above.
In the current market environment, we are nevertheless con-
fident that we will attain our targets for the 2022 financial year
and succeed in further expanding our market position. We
expect net income to be in line with the previous year’s level.
Disclaimer regarding forward-looking statements
This annual report contains statements concerning our expec-
tations and forecasts for the future. These forward-looking
statements, in particular those regarding MünchenerHyp’s
business development and earnings performance, are based
on planning assumptions and estimates and are subject to
risks and uncertainties. Our business is exposed to a plethora
of factors, most of which are beyond our control. These
mainly include economic developments, the state and further
development of financial and capital markets in general
and our funding conditions in particular, as well as unexpected
defaults on the part of our borrowers. Actual results and
developments may therefore differ from the assumptions
that have been made today. Such statements are therefore
only valid at the time this report was prepared.
Risk, outlook
and opportunities report
36
MÜNCHENER HYPOTHEKENBANK EGANNUAL REPORT 2021
NOTESMANAGEMENT REPORT FURTHER INFORMATION
ANNUAL STATEMENT
OF ACCOUNTS
FOREWORD
CONTENT
SEARCH
Balance sheet
31 DECEMBER 2021
ASSETS
IN €
31 Dec. 21
€ 000
31 Dec. 20
1. Cash reserve
a) Cash on hand 8,796.12 9
b) Balances with central banks 574,566,979.14 151,901
of which: with Deutsche Bundesbank € 574,566,979.14
574,575,775.26 151,910
2. Claims on banks
a) Mortgage loans 200,820.73 1,804
b) Public-sector loans 100,618,954.28 100,576
c) Other claims 1,538,332,814.59 1,833,316
of which: payable on demand € 860,064,160.54
1,639,152,589.60 1,935,696
3. Claims on customers
a) Mortgage loans 41,555,682,120.04 38,319,055
b) Public-sector loans 1,351,009,628.59 1,754,449
c) Other claims 139,172,647.16 191,434
43,045,864,395.79 40,264,938
4. Bonds and other fixed-income securities
a) Bonds and notes 2,213,810,841.00 1,906,376
aa) Public-sector issuers € 1,591,894,268.88 (1,116,468)
of which: eligible as collateral for Deutsche Bundesbank advance € 1,554,425,667.08
ab) Other issuers € 621,916,572.12 (789,908)
of which: eligible as collateral for Deutsche Bundesbank advance € 479,841,010.53
b) Own bonds and notes 4,500,101,743.06 3,750,170
Nominal value € 4,500,000,000.00
6,713,912,584.06 5,656,546
Carried forward 51,973,505,344.71 48,009,090
Assets continued on page 39
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MÜNCHENER HYPOTHEKENBANK EGANNUAL REPORT 2021
ANNUAL STATEMENT
OF ACCOUNTS
MANAGEMENT REPORT NOTES FURTHER INFORMATIONFOREWORD
Balance Sheet
CONTENT
SEARCH
ASSETS
IN €
31 Dec. 21
€ 000
31 Dec. 20
Brought forward: 51,973,505,344.71 48,009,090
5. Equities and other variable-yield securities 147,000,000.00 147,000
6. Participations and shares in cooperatives
a) Participations 102,726,167.61 104,535
of which: credit institutions € 21,146,905.41
b) Shares in cooperatives 18,500.00 19
of which: in credit cooperatives € 15,500.00
102,744,667.61 104,554
7. Shares in affiliated companies 11,751,601.64 12,352
8. Intangible assets
Concessions acquired for consideration, commercial rights and
similar rights and values, as well as licenses to these rights and values 1,361,040.87 4,203
1,361,040.87 4,203
9. Tangible assets 65,923,645.34 67,105
10. Other assets 139,905,293.28 144,641
11. Deferred items
a) From issuing and lending business 95,482,199.69 68,762
b) Other 556,249.87 711
96,038,449.56 69,473
Total assets 52,538,230,043.01 48,558,418
Assets continued from page 38
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MÜNCHENER HYPOTHEKENBANK EGANNUAL REPORT 2021
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OF ACCOUNTS
MANAGEMENT REPORT NOTES FURTHER INFORMATIONFOREWORD
Balance Sheet
CONTENT
SEARCH
LIABILITIES, CAPITAL AND RESERVES
IN €
31 Dec. 21
€ 000
31 Dec. 20
1. Liabilities to banks
a) Registered Mortgage Pfandbriefe issued 700,885,229.96 704,383
b) Registered Public Pfandbriefe issued 84,267,413.73 85,919
c) Other liabilities 7,288,048,674.84 6,828,229
of which: payable on demand € 1,171,327,026.45
8,073,201,318.53 7,618,531
2. Liabilities to customers
a) Registered Mortgage Pfandbriefe issued 9,068,509,005.09 9,157,495
b) Registered Public Pfandbriefe issued 1,339,299,948.51 1,808,582
c) Other liabilities 4,458,802,692.24 3,881,626
of which: payable on demand € 29,890,185.03
14,866,611,645.84 14,847,703
3. Certificated liabilities
a) Bonds issued 26,718,552,638.91 23,887,921
aa) Mortgage Pfandbriefe € 20,706,065,922.64 (19,174,300)
ab) Public Pfandbriefe € 66,081,222.64 (96,098)
ac) Other bonds and fixed-income securities € 5,946,405,493.63 (4,617,523)
b) Other certificated liabilities 657,136,339.05 164,058
of which: money market paper € 657,136,339.05
27,375,688,977.96 24,051,979
4. Other liabilities 165,643,285.51 140,379
Carried forward 50,481,145,227.84 46,658,592
Liabilities continued on page 41
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MÜNCHENER HYPOTHEKENBANK EGANNUAL REPORT 2021
ANNUAL STATEMENT
OF ACCOUNTS
MANAGEMENT REPORT NOTES FURTHER INFORMATIONFOREWORD
Balance Sheet
CONTENT
SEARCH
LIABILITIES, CAPITAL AND RESERVES
IN €
31 Dec. 21
€ 000
31 Dec. 20
Brought forward: 50,481,145,227.84 46,658,592
5. Deferred items
From issuing and lending business 77,456,245.24 60,323
77,456,245.24 60,323
6. Provisions
a) Provisions for pensions and similar obligations 36,182,293.00 34,922
b) Provisions for taxes 14,450,000.00 595
c) Other provisions 51,172,575.00 36,810
101,804,868.00 72,327
7. Subordinated liabilities 19,500,000.00 49,700
8. Instruments of the additional regulatory core capital 120,995,063.40 115,719
9. Fund for general banking risks 55,000,000.00 55,000
10. Capital and reserves
a) Subscribed capital
1,243,221,000.00 1,153,052
aa) Members capital contributions € 1,243,221,000.00
(1,153,052)
b) Revenue reserves
372,000,000.00 347,000
ba) Legal reserve € 366,000,00.00
(341,000)
bb) Other revenue reserves € 6,000,000.00
(6,000)
c) Unappropriated profit
67,107,638.53 46,705
1,682,328,638.53 1,546,757
Total liabilities, capital and reserves 52,538,230,043.01 48,558,418
1. Contingent liabilities
Contingent liability on guarantees and indemnities 766.94 1
2. Other commitments
Irrevocable loan commitments 5,126,313,844.21 4,750,652
Liabilities continued from page 40
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MÜNCHENER HYPOTHEKENBANK EGANNUAL REPORT 2021
ANNUAL STATEMENT
OF ACCOUNTS
MANAGEMENT REPORT NOTES FURTHER INFORMATIONFOREWORD
Balance Sheet
CONTENT
SEARCH
Income statement
FOR THE YEAR ENDED 31 DECEMBER 2021
INCOME STATEMENT
IN €
1 Jan. to 31 Dec. 21
€ 000
1 Jan. to 31 Dec. 20
1. Interest income from 940,668,072.39 958,386
a) Lending and money market operations 893,614,994.79 916,363
of which: negative interest on financial assets 5,623,228.41 3,221
b) Fixed-income securities and government debt register claims 47,053,077.60 42,023
2. Interest expenses 541,705,127.45 612,036
of which: positive interest on financial liabilities 49,762,630.51 18,712
3. Current income from 3,570,301.41 1,419
a) Shares and other non-fixed income securities 0.00 0
b) Participating interests and shares in cooperatives 2,470,301.41 519
c) Investments in affiliated companies 1,100,000.00 900
4. Income from profit-pooling, profit transfer or partial profit transfer agreements 69,318.18 31
5. Commission received 12,047,082.52 13,007
6. Commission paid 142,199,744.88 122,471
7. Other operating income 2,859,374.74 2,561
8. General administrative expenses 126,728,884.40 118,172
a) Personnel expenses 63,043,536.17 58,002
aa) Wages and salaries 53,161,157.45 47,123
ab) Social security contributions and cost of pensions and other benefits 9,882,378.72 10,879
of which: for pensions € 1,978,350.70 3,334
b) Other administrative expenses 63,685,348.23 60,170
9. Depreciation, amortisation and write-downs of intangible and tangible assets 6,210,664.26 10,213
10. Other operating expenses 6,122,129.55 6,157
11. Write-downs on and valuation allowances of loans and advances and specific
securities, as well as additions to loan loss provisions 27,017,864.95 10,603
12. Depreciation, amortisation and write-downs of participating interests, shares
in affiliated companies and securities treated as fixed assets 0.00 412
13. Income from reversals of write-downs on participating interests, shares
in affiliated companies and securities treated as fixed assets 3,493,197.43 0
14. Results from ordinary business activities 112,722,931.18 95,340
15. Taxes on revenue and income 53,652,421.33 37,639
16. Allocation to fund for general banking risks 0.00 20,000
17. Net income 59,070,509.85 37,701
18. Retained earnings brought forward from previous year 33,037,128.68 24,004
19. Allocation to revenue reserves 25,000,000.00 15,000
a) Legal reserve 25,000,000.00 15,000
b) Other revenue reserves 0.00 0
20. Unappropriated profit 67,107,638.53 46,705
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Income statement
CONTENT
SEARCH
Statement of development in equity capital
and cash flow statement
STATEMENT OF DEVELOPMENT IN EQUITY CAPITAL FOR 2021
IN € 000
Subscribed capital
Revenue
reserves
Unappropriated
profit
Total capital
and reserves
Members capital
contributions
Silent
participations
Capital and reserves as of 1 Jan. 2020 1,072,453 332,000 24,004 1,428,457
Net change in capital 80,598 80,598
Dividends paid 0 0
Net income 15,000 22,701 37,701
Capital and reserves as of 31 Dec. 2020 1,153,051 347,000 46,705 1,546,756
Net change in capital 90,170 90,170
Dividends paid 13,668 13,668
Net income 25,000 34,071 59,071
Capital and reserves as of 31 Dec. 2021 1,243,221 372,000 67,108 1,682,329
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Statement of development in equity
capital and cash flow statement
CONTENT
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CASH FLOW STATEMENT 2021
IN € MILLION
31 Dec. 21
1. Profit for the period 59.1
2. Depreciation, amortisation and write-downs of and valuation allowances on receivables and items of fixed assets / reversals of such write-downs and valuation allowances 23.8
3. Increase / decrease in provisions 29.5
4. Other non-cash expenses / income – 0.2
5. Gain / loss on disposal of fixed assets 4.1
6. Other adjustments (net) 0.0
7. Increase / decrease in receivables from credit institutions 282.3
8. Increase / decrease in receivables from customers – 2,812.8
9. Increase / decrease in securities (unless classified as long term financial assets) – 750.1
10. Increase / decrease in other assets relating to operating activities 37.4
11. Increase / decrease in liabilities to credit institutions 506.8
12. Increase / decrease in liabilities to customers 40.2
13. Increase / decrease in securitised liabilities 3,327.1
14. Increase / decrease in other liabilities relating operating activities – 437.7
15. Interest expense / interest income – 160.8
16. Income tax expense / income – 14.4
17. Interest and dividend payments received 594.6
18. Interest paid – 31.2
19. Income taxes paid – 39.3
20. Cash flows from operating activities (total of lines 1 to 19) 658.4
21. Proceeds from disposal of long-term financial assets – 726.6
22. Payments to acquire long-term financial assets 416.7
23. Proceeds from disposal of tangible fixed assets 0.0
24. Payments to acquire tangible fixed assets – 1.7
25. Proceeds from disposal of intangible fixed assets 0.0
26. Payments to acquire intangible fixed assets – 0.6
27. Cash flows from investing activities (total of lines 21 to 26) – 312.2
28. Proceeds from capital contributions 90.2
29. Dividends paid to shareholders – 13.7
30. Changes in cash funds relating to other capital (net) 0.0
31. Cash flows from financing activities (total of lines 28 to 30) 76.5
32. Net change in cash funds 422.7
33. Effect on cash funds of exchange rate movements and remeasurements 0.0
34. Cash funds at beginning of period 151.9
35. Cash funds at end of period (total of lines 32 to 34) 574.6
44
MÜNCHENER HYPOTHEKENBANK EGANNUAL REPORT 2021
ANNUAL STATEMENT
OF ACCOUNTS
MANAGEMENT REPORT NOTES FURTHER INFORMATIONFOREWORD
Statement of development in equity
capital and cash flow statement
CONTENT
SEARCH
Notes
46 GENERAL INFORMATION ON
ACCOUNTING POLICIES
48 NOTES TO THE BALANCE SHEET
INCOME STATEMENT
48 Maturity analysis by residual term
49 Claims on | liabilities
49 Securities
50 Separate funds
50 Subordinated assets
50 Trading book
51 Fixed assets
52 Shareholdings
52 Tangible assets
52 Other assets
52 Deferred items
52 Deferred taxes
53 Assets pledged to secure liabilities
53 Other liabilities
53 Subordinated liabilities
53 Additional Tier 1 Capital Instruments
54 Members capital contributions
54 Details of revenue reserves
54 Foreign currency items
54 Other commitments
54 Interest expenses
54 Other operating expenses
54 Write-downs on and value allowances of loans
and advances and specific securities, as well as
additions to loan loss provisions
54 Forward trades and derivatives
56 Cover statement for Pfandbriefe
57 PUBLICATION IN ACCORDANCE
WITH SECTION 28 PFANDBRIEF ACT
57 Mortgage Pfandbriefe
57 Mortgage Pfandbriefe outstanding and their cover
59 Key figures for Pfandbriefe outstanding and their
cover
59 Mortgage loans used as cover for Mortgage
Pfandbriefe
61 Payments in arrears on covering mortgages
62 Public Pfandbriefe
62 Public Pfandbriefe outstanding and their cover
63 Key figures on Pfandbriefe outstanding and their
cover
63 Mortgage loans used as cover for Public
Pfandbriefe
65 Payments in arrears on claims used to cover Public
Pfandbriefe
65 Overdue interest
65 Foreclosures and receiverships of mortgages used
as cover
66 OTHER DISCLOSURES
66 Membership data
66 Personnel statistics
67 Special disclosure requirements
67 Proposed appropriation of distributable income
67 Report on events after the balance sheet date
67 Company
68 BODIES
68 Supervisory Board
68 Board of Management
69 AUDITING ASSOCIATION
69 OTHER FINANCIAL OBLIGATIONS
70 CONTINGENT LIABILITY
71 INDEPENDENT AUDITOR’S REPORT
77 AFFIRMATION BY THE LEGAL
REPRESENTATIVES
78 ANNEX TO ANNUAL FINANCIAL
STATEMENTS
79 REPORT OF THE SUPERVISORY BOARD
45
MÜNCHENER HYPOTHEKENBANK EGANNUAL REPORT 2021
NOTESMANAGEMENT REPORT FURTHER INFORMATION
ANNUAL STATEMENT
OF ACCOUNTS
FOREWORD
CONTENT
SEARCH
General information on accounting policies
The Münchener Hypothekenbank eG annual financial state-
ments as of 31 December 2021 were prepared in accordance
with the provisions of the German Commercial Code (HGB), in
conjunction with the accounting regulation for banks and
financial service institutions (RechKredV), and in accordance
with the rules contained in the Cooperatives Act (GenG) and
the Pfandbrief Act (PfandBG).
All claims are stated at nominal amounts in accordance with
Section 340e (2) of the German Commercial Code. The differ-
ence between the amounts disbursed and the nominal amount
is shown under deferred items. All identifiable individual credit
risks are covered by specific value adjustments and provisions
set up against claims for repayment of principal and payment
of interest. Due to early application of IDW RS BFA 7 as of
31 December 2021 general allowances are calculated using an
Expected Credit Loss model, whereby the IFRS 9 methodology
is employed for stage 1 and 2 and applied using the German
Commercial Code’s (HGB) basis for assessment. Taking into
account the probability of default, the loss given default and
the exposure at default, general allowances are created for
latent default risks for all transactions reported under the
balance sheet items loans and advances to credit institutions
and loans and advances to customers, as well as for irrevocable
loan commitments. General allowances for irrevocable loan
commitments are reported in the balance sheet in the form of
a provision. All transactions not subject to a specific allowances
requirement test are assigned to stage 1 and 2, whereby the
expected 12-month expected loss is calculated for stage 1 and
the lifetime expected loss is calculated for stage 2. All trans-
actions are generally assigned to stage 1 at the time they are
acquired. The assignment to stage 2 is made at the balance
sheet date if the transaction’s risk of default has increased sig-
nificantly compared to the risk of default when the transaction
was originally acquired. The relevant point-in-time parameters
for calculating risk provisions are determined on the basis of
macroeconomic forecasts, which are updated quarterly by
Münchener Hypothekenbank’s stress testing committee on the
basis of external macroeconomic data.
In addition, contingency reserves were formed pursuant to
Section 340f of the German Commercial Code.
Securities held in the liquidity portfolio are strictly valued
at the lower of cost or market principle. The present value
corresponds to the current exchange or market price.
Securities held as fixed assets, which were mainly acquired as
cover for Public Pfandbriefe and for other coverage purposes,
are valued at their cost of purchase. Discounts and premiums
are recognised as interest income or expense over the residual
life of the securities. Securities associated with swap agree-
ments are valued together with these agreements as a single
item. To the extent that derivatives are used to hedge risks
they are not valued individually. As in the previous year, secu-
rities held as fixed assets in the business year, and which were
not subject to a sustained decrease in value, are valued in
accordance with the modified lower of cost or market princi-
ple. In cases involving securities treated as fixed assets where
a permanent decrease in value is anticipated, the write-down
to the fair value takes place on the balance sheet date.
Borrowed securities do not appear on the balance sheet.
In accordance with the rules pertaining to the valuation of
fixed assets, participations and holdings in affiliated companies
are valued at their cost of purchase. Depreciation is taken
on those assets where the reduction in value is expected to be
long-term.
Participations of current assets are shown under the item
“Other assets”.
Intangible assets and tangible assets are valued at cost or
production costs less accumulated depreciation. Scheduled
depreciation is carried out in accordance with the normal
useful life. Due to technical innovation, the normal useful life
for software is based on empirical business reality. Low-value
business assets are treated in accordance with tax regulations.
Non-scheduled depreciation is taken in the event of a perma-
nent loss in value.
46
MÜNCHENER HYPOTHEKENBANK EGANNUAL REPORT 2021
General information on
accounting policies
NOTESMANAGEMENT REPORT FURTHER INFORMATION
ANNUAL STATEMENT
OF ACCOUNTS
FOREWORD
CONTENT
SEARCH
Existing deferred taxes arising due to temporary differences
between values calculated for trading and tax purposes are
cleared. A backlog of deferred tax assets is not recorded in the
balance sheet.
Liabilities are shown at settlement value. Zero bonds are car-
ried in the accounts at the issuing price plus earned interest
based on the yield at the time of purchase in accordance with
the issuing conditions. The difference between the nominal
amount of liabilities and the amount disbursed is shown
under deferred items. Based on the principles of prudent
business practice, provisions have been made for uncertain
liabilities in the amount of the settlement value of these
liabilities. Provisions with a remaining term of more than one
year were discounted using the commensurate average rate
of market interest rates.
Provisions made for pension obligations are calculated based
on the projected unit credit method a discount rate of
1.87 percent and a 2.5 percent rate of salary growth, as well
as a 2.0 percent rate of pension growth. The calculation is
made on the basis of “Guideline tables 2019 G” prepared by
Prof. Dr. Klaus Heubeck. In accordance with the terms of
Section 253 (2) of the German Commercial Code the average
market rate of interest of the last 10 business years is used
for discount purposes with an assumed remaining term to
maturity of 15 years.
Per the terms of Section 256a of the German Commercial
Code, monetary assets and liabilities denominated in foreign
currencies are calculated using the European Central Bank’s
exchange rate valid on the balance sheet date. Results realised
from the conversion of particularly covered foreign currency
positions are carried under net interest income. Results realised
from the conversion of specific value adjustments denomi-
nated in foreign currencies are shown under the item “Income
from reversals of write-downs to claims and certain securities
as well as reversals of provisions for possible loan losses”. Costs
and income are valued at the individual daily exchange rate.
Negative interest on financial assets or financial liabilities
has been deducted from the related interest income items or
interest expense items shown on the income statement.
47
MÜNCHENER HYPOTHEKENBANK EGANNUAL REPORT 2021
General information on
accounting policies
NOTESMANAGEMENT REPORT FURTHER INFORMATION
ANNUAL STATEMENT
OF ACCOUNTS
FOREWORD
CONTENT
SEARCH
Notes to the balance sheet
income statement
Maturity analysis by residual term
ASSETS
IN € 000
31 Dec. 21 31 Dec. 20
Claims on banks 1,639,153 1,935,696
– Three months 1,538,396 1,833,349
– Three months – one year 16 67
– One year – five years 55 312
– Five years 100,686 101,968
Claims on customers 43.045.864 40,264,938
– Three months 758.232 798,783
– Three months – one year 1,936,432 1,524,926
– One year – five years 12,446,834 11,272,022
– Five years 27,904,366 26,669,207
Bonds and other fixed-income securities ≤ one year 242,615 335,009
LIABILITIES, CAPITAL AND RESERVES
IN € 000
31 Dec. 21 31 Dec. 20
Liabilities to banks 8,073,201 7,618,530
– Three months 1,441,538 1,880,534
– Three months – one year 320,505 282,129
– One year – five years 4,908,741 4,036,414
– Five years 1,402,417 1,419,453
Liabilities to customers 14,866,612 14,847,703
– Three months 917,821 963,929
– Three months – one year 1,329,639 1,111,891
– One year – five years 1,263,893 986,402
– Five years 11,355,259 11,785,481
Certificated liabilities 27,375,689 24,051,979
Bonds issued
– Three months 523,286 559,029
– Three months – one year 1,938,249 2,394,972
– One year – five years 11,265,756 8,440,760
– Five years 12,991,262 12,493,160
Other certificated liabilities
– Three months 331,905 164,058
– Three months – one year 325,231 0
48
MÜNCHENER HYPOTHEKENBANK EGANNUAL REPORT 2021
Notes to the balance sheet
income statement
NOTESMANAGEMENT REPORT FURTHER INFORMATION
ANNUAL STATEMENT
OF ACCOUNTS
FOREWORD
CONTENT
SEARCH
Claims on | Liabilities
CLAIMS ON AND LIABILITIES TO AFFILIATED COMPANIES AND COMPANIES, IN WHICH PARTICIPATING INTERESTS ARE HELD
IN € 000
31 Dec. 21 31 Dec. 20
Affiliated
companies
Companies in which
participating interests are held
Affiliated
companies
Companies in which
participating interests are held
certificated non-certificated certificated non-certificated certificated non-certificated certificated non-certificated
Claims on banks 0 0 0 669,230 0 0 0 840,621
Claims on customers 0 0 0 0 0 0 0 0
Bonds and other fixed-income securities 0 0 92,076 0 0 0 104,407 0
Liabilities to banks 0 0 0 554,447 0 0 0 686,454
Liabilities to customers 0 3,492 0 0 0 2,943 0 0
Certificated liabilities 0 0 0 0 0 0 0 0
Subordinated liabilities 0 0 0 0 0 0 0 0
Securities
SECURITIES MARKETABLE ON THE STOCK EXCHANGE
IN € 000
31 Dec. 21 31 Dec. 20
Asset category Listed Unlisted Listed Unlisted
Bonds and other fixed-income securities 1,985,441 209,463 1,624,446 259,762
Shares and other non-fixed-income securities 0 0 0 0
Participations 0 0 0 0
49
MÜNCHENER HYPOTHEKENBANK EGANNUAL REPORT 2021
Notes to the balance sheet
income statement
NOTESMANAGEMENT REPORT FURTHER INFORMATION
ANNUAL STATEMENT
OF ACCOUNTS
FOREWORD
CONTENT
SEARCH
Separate funds
SHARES IN SEPARATE FUNDS
IN € 000
Description of the fund Investment goal
Valuation pursuant to Section 168 and
278 Capital Investment Code (KAGB), or
Section 36 Investment Act (old version) or
comparable foreign regulations Difference to book value
Distribution paid out
for financial year
UIN-Fonds No. 903
Long-term return and diversification benefits compared
to a direct investment in shares, taking the structure of
the Bank’s portfolio into consideration 165,213 18,213 0
Subordinated assets
SUBORDINATED ASSETS
IN € 000
31 Dec. 21 31 Dec. 20
Bonds and other fixed-income securities 92,076 92,076
Trading book
As of 31 December 2021, the portfolio contained no financial
instruments used in the trading book. During the year under
review no changes were made to the Bank’s internal criteria for
including financial instruments in the trading portfolio.
50
MÜNCHENER HYPOTHEKENBANK EGANNUAL REPORT 2021
Notes to the balance sheet
income statement
NOTESMANAGEMENT REPORT FURTHER INFORMATION
ANNUAL STATEMENT
OF ACCOUNTS
FOREWORD
CONTENT
SEARCH
Fixed assets
DEVELOPMENT OF FIXED ASSETS
IN € 000
Acquisition and
production
costs
Changes total + / –
1
Net book value on
31 Dec. 21 31 Dec. 20
Bonds and other
fixed-income securi-
ties 1,906,376 + 307,435 2,213,811 1,906,376
Shares and other
non fixed-income
securities 0 0 0 0
Participations
and shares in
cooperatives 104,554 - 1,809 102,745 104,554
Shares in affiliated
companies 12,351 - 600 11,751 12,351
Acquisition
and produc-
tion costs at
start of busi-
ness year
Additions
during
business
year
Disposals
during
business
year
Transfers
during
business
year
Acquisition
and produc-
tion costs at
end of busi-
ness year
Accumulated
depreciation
at start of
business year
Depreciation
during
business
year
Additions
during
business
year
Changes in legal depreciation
taken related to Accumulated
depreciation
at end of
business year
Net book value on
Additions Disposals Transfers 31 Dec. 21 31 Dec. 20
Intangible assets 40,592 557 41,149 36,389 3,399 39,788 1,361 4,203
a) Internally
generated
commercial
property rights
and similar rights
and assets 5,241 5,241 5,241 5,241 0 0
b) Concessions
acquired for
consideration,
commercial rights
and similar rights
and values, as
well as licenses
to these rights
and values 35,351 557 35,908 31,148 3,399 34,547 1,361 4,203
Tangible assets 100,228 1,697 1,109 100,816 33,123 2,812 1,043 34,892 65,924 67,105
1
The Bank has exercised the option, available under Section 34 (3) of the accounting regulation for banks and financial services institutions, to combine certain items.
51
MÜNCHENER HYPOTHEKENBANK EGANNUAL REPORT 2021
Notes to the balance sheet
income statement
NOTESMANAGEMENT REPORT FURTHER INFORMATION
ANNUAL STATEMENT
OF ACCOUNTS
FOREWORD
CONTENT
SEARCH
During the year under review a write-down of € 600 thousand
to the lower fair value of € 600 thousand was taken in the
investment in the wholly owned subsidiary M-4tec GmbH. No
information was available on the other participations on
the balance sheet date that the present value of the Bank’s
participations and capital holdings at cooperatives, holdings in
affiliated companies, as well as the value of shares and other
non-fixed-income securities was less than their book values.
The item “Bonds and other fixed-income securities” includes
securities with a book value of € 808,327 thousand (previous
year: € 620,404 thousand) exceeding the present value of
€ 799,074 thousand (previous year: € 618,483 thousand). To
the extent that these securities are associated with a swap
transaction, they are valued together with the transaction as
a single item.
Securities held as fixed assets, which are separately identified
in the portfolio management system and are not expected to
be subject to a permanent impairment in value, are valued in
accordance with the moderated lower of cost or market prin-
ciple. In light of our intention to hold these securities until
they mature, we generally assume that market price-related
decreases in value will not become effective and that these
securities will be repaid in full at their nominal value at ma-
turi ty. Of the securities that are not valued in accordance with
the moderated lower of cost or market principle € 2,194,904
thousand (previous year: € 1,884,209 thousand) are marketa-
ble securities.
Shareholdings
SHAREHOLDINGS
IN € 000
Percentage
of capital
held Equity Profit / loss
M-Wert GmbH, Munich
1
100.00 773 499
Immobilienservice GmbH
der Münchener
Hypothekenbank eG,
Munich (profit transfer
agreement)
2
100.00 509 69
Nußbaumstraße GmbH &
Co. KG, Munich
2
100.00 11,476 391
M-4tec GmbH, Munich
1
100.00 1,235 – 684
1
Annual financial statements 2020.
2
Annual financial statements 2021.
Tangible assets
The portion of the total value attributable to the land and
buildings used by the Bank is € 53,983 thousand (previous
year: € 54,941 thousand), and of plant and office equipment
€ 2,914 thousand (previous year: € 2,947 thousand).
Other assets
The item “Other assets” includes deferred items of € 49,226
thousand related to the derivative business, and € 67,618
thousand in commissions for mortgage loans that will be paid
after the balance sheet date. Furthermore this item also in-
cludes € 18,469 thousand in cash collateral pledged within
the framework of the banking levy.
Deferred items
DEFERRED ITEMS FROM THE ISSUING AND LOAN BUSINESS
IN € 000
31 Dec. 21 31 Dec. 20
Assets side 11.
Discount from liabilities 71,983 49,781
Premium from claims 3,827 4,810
Other deferred charges 20,228 14,882
Liabilities side 5.
Premium from liabilities 58,079 51,776
Discount from claims 1,274 674
Other deferred income 18,104 7,873
The remaining deferred items include compensatory payments
by the Bank to derivative counterparties due to a change in
the collateralisation agreements or agreements arising from
the transition from EONIA to €STR. These compensatory pay-
ments are shown on a proportionate basis in the income
statement.
Deferred taxes
Deferred tax liabilities mainly result from the low valuation of
bank buildings taken for tax purposes.
Deferred tax assets arise from provisions made for pensions,
and the different methods used to value premiums from
swap options that were exercised. The remaining backlog of
deferred tax assets arising after clearing is not recorded in
the balance sheet.
52
MÜNCHENER HYPOTHEKENBANK EGANNUAL REPORT 2021
Notes to the balance sheet
income statement
NOTESMANAGEMENT REPORT FURTHER INFORMATION
ANNUAL STATEMENT
OF ACCOUNTS
FOREWORD
CONTENT
SEARCH
Assets pledged to secure liabilities
Within the framework of open market deals with the European
Central Bank, securities valued at € 4,292,000 thousand (pre-
vious year: € 3,400,000 thousand) were pledged as collateral
to secure the same amount of liabilities. The book value of
the pledged assets (genuine repurchase agreements) was € 0
(previous year: € 0). Within the framework of security
arrangements for derivative transactions, cash collateral of
€ 1,286,540 thousand (previous year: € 1,691,470 thousand)
was provided. Securities valued at € 14,734 thousand (previ-
ous year: € 14,202 thousand) were pledged to secure pension
obligations and requirements of the partial retirement model
for older employees. Securities valued at € 20,000 thousand
(previous year: € 18,000 thousand) were pledged to secure
financial aid obligations within the framework of a Contrac-
tual Trust Arrangement (CTA). Claims in respect of loans valued
at € 548,451 thousand (previous year: € 473,603 thousand)
were assigned to secure loans obtained from credit institutions.
Pursuant to Section 12 Para. 5 of the Restructuring Fund Act
(Restrukturierungsfondsgesetz – RStruktFG) € 18,469 thou-
sand in cash collateral has been pledged.
Other liabilities
The item “Other liabilities” consists of € 112,882 thousand for
deferred items and adjustment items for valuation of foreign
currency items, and € 29,910 thousand related to derivative
transactions, as well as interest deferrals for an Additional
Tier 1 (AT1) bond of € 2,195 thousand.
Subordinated liabilities
Subordinated liabilities incurred interest expenses of € 1,508
thousand (previous year: € 3,663 thousand).
Subordinated liabilities which individually exceed 10 percent
of the overall statement amount to:
Nominal amount Currency Interest rate Maturity date
3,000,000.00 EUR 5.10 07.07.2022
4,500,000.00 EUR 5.57 25.03.2022
10,000,000.00 EUR 6.01 01.12.2022
The instruments comply with the provisions of Section 63 of
the Capital Requirements Regulation (CRR).
Early repayment obligations are excluded in all cases. The
conversion of these funds into capital or other forms of debt
has not been agreed upon nor is foreseen. Reporting on the
balance sheet is shown at nominal value.
Additional Tier 1 Capital Instruments
Additional Tier 1 (AT1) capital with a total nominal value of
CHF 125 million, or a book value of € 121 million valued
at the exchange rate on the balance sheet date, is reported
under the item Additional Tier 1 (AT1) Instruments. Interest
expenses amounted to € 3,657 thousand on the balance sheet
date, of which € 2,195 thousand was attributable to accrued
interest. The bond was issued on 12 December 2019 in denom-
inations of CHF 50,000, carries a coupon of 3.125% and is a
perpetual bond. The bond is callable by MünchenerHyp for
the first time after 5.5 years.
The interest rate will be adjusted to the current 5-year CHF
mid-swap rate for the first time on 2 June 2025 and every
5 years after that date, as well as an additional margin of
3.656% per year.
Payment of interest will not take place if the issuer has insuf-
ficient distributable items available for distribution, if the
issuer is ordered to do so by a competent regulatory authority,
or due to non-compliance with equity capital and capital
buffer requirements.
Interest payments are not cumulative.
The bond will be written down in the event MünchenerHyp’s
Common Equity Tier 1 capital ratio (CET1 ratio) falls below a
minimum level of 7 percent. A write-up of the bond is at the
full discretion of the issuer and requires sufficient net income
for the year and may not contravene any statutory or official
prohibition on distribution.
Pursuant to the terms of commercial law, this is a liability and
not equity.
53
MÜNCHENER HYPOTHEKENBANK EGANNUAL REPORT 2021
Notes to the balance sheet
income statement
NOTESMANAGEMENT REPORT FURTHER INFORMATION
ANNUAL STATEMENT
OF ACCOUNTS
FOREWORD
CONTENT
SEARCH
Members capital contributions
Members capital contributions disclosed under capital and
reserves item 10aa) consisted of:
MEMBERS CAPITAL CONTRIBUTIONS
IN €
31 Dec. 21 31 Dec. 20
Capital contributions 1,243,221,000.00 1,153,051,340.00
a) of remaining
members 1,231,501,180.00 1,150,101,680.00
b) of former members 10,128,160.00 2,715,160.00
c) in respect of shares
under notice 1,591,660.00 234,500.00
Outstanding obligatory
payments in respect of
shares 0.00 0.00
Details of revenue reserves
DEVELOPMENT OF REVENUE RESERVES
IN € 000
Legal reserve
Other revenue
reserves
1 Jan. 2021 341,000 6,000
Transfer from 2020
retained earnings 0 0
Transfer from 2021 net income 25,000 0
31 Dec. 2021 366,000 6,000
The increase in the assessment period used for defining the
average discount rate from 7 to 10 years resulted in a positive
contribution to income of € 2,435 thousand, which is barred
from being distributed and is included under the item “Other
revenue reserves”.
Foreign currency items
FOREIGN CURRENCY ITEMS
IN € 000
31 Dec. 21 31 Dec. 20
Assets side 6,603,665 6,139,207
Liabilities side 5,723,114 4,434,524
Contingent liabilities and other
obligations 364,131 384,874
Other commitments
The irrevocable loan commitments contained in this item
consist almost solely of mortgage loan commitments made
to customers. It is anticipated that the irrevocable loan com-
mitments will be drawn down. Against the background of
the ongoing monitoring of loans, the probable need to create
provisions for risks related to contingent obligations and
other obligations is viewed as minor.
Interest expenses
This item includes the premium for targeted longer-
term refinancing operations (TLTRO II program and
TLTRO III program) shown as a negative interest expense
of € 39,058 thousand (previous year: € 9,992 thousand).
The amount attributable to the previous year 2020 is
EUR 9,019 thousand (previous year: EUR 0.00 thousand).
Other operating expenses
This item contains expenses arising from adding interest
effects of € 3,127 thousand (previous year: € 3,553 thousand)
for established provisions.
Write-downs on and value allowances of loans and
advances and specific securities, as well as additions to
loan loss provisions.
The item “Depreciation, amortisation and value adjustments
on accounts receivables and certain securities as well as allo-
cations to provisions for possible loan losses” amounted to
minus EUR 27,018 thousand (previous year: EUR 10,603 thou-
sand). The provisions for possible loan losses were at a very
low level despite the ongoing coronavirus pandemic.
The net result of changes in loan loss provisions (including
direct amortisation and depreciation) amounted to minus
EUR 5,894 thousand (previous year: minus EUR 10,102 thou-
sand). The early application of IDW RS BFA 7 for the forma-
tion of general loan loss provisions for the lending business
resulted in an effect of minus EUR 8,050 thousand (previous
year: EUR 0.00 thousand), of which EUR 1,000 thousand
(previous year: EUR 0.00 thousand) was in the form of a
provision for latent default risks for commitments. An amount
of EUR 6,000 thousand was set aside for risks arising from a
legal dispute.
Forward trades and derivatives
The following derivative transactions were made to hedge
swings in interest rates or hedge against exchange rate risks.
These figures do not include derivatives embedded in under-
lying basic transactions stated on the balance sheet.
54
MÜNCHENER HYPOTHEKENBANK EGANNUAL REPORT 2021
Notes to the balance sheet
income statement
NOTESMANAGEMENT REPORT FURTHER INFORMATION
ANNUAL STATEMENT
OF ACCOUNTS
FOREWORD
CONTENT
SEARCH
NOMINAL AMOUNTS
IN € MILLION
Residual term ≤ one
year
Residual term > one
year ≤ five years
Residual term >
five years Total
Fair value at balance
sheet date
1
neg. (–)
Interest-rate-related transaction
Interest rate swaps 8,939 24,201 47,890 81,031 -232
Interest rate options
– Calls 2 94 810 906 69
– Puts 73 46 3 122 -1
Other interest rate contracts 250 57 3,057 3,365 59
Currency-related transactions
Cross-currency swaps 1,530 2,864 343 4,737 -104
Currency swaps 562 0 0 562 3
1
Valuation methods:
Interest rate swaps are valued using the present value method based on the current interest rate curve at the balance sheet date. In doing so the cash flows are discounted using market interest rates
appropriate for the related risks and remaining terms to maturity. Interest that has been accrued but not yet paid is not taken into consideration. This approach is known as “clean price” valuation.
The value of options is calculated using option price models and generally accepted basic assumptions. In general, the particular value of an option is calculated using the price of the underlying value,
its volatility, the agreed strike price, a risk-free interest rate and the remaining term to the expiration date of the option.
The derivative financial instruments noted involve premiums
stemming from option trades in the amount of € 38.7 million
(previous year: € 39.1 million) which are carried under the
balance sheet item “Other assets”.
Interest attributable to derivative deals is carried under the
balance sheet items “Claims on banks” with € 284.0 million
(previous year: € 299.9 million) and “Liabilities to banks” with
€ 288.8 million (previous year: € 304.9 million) or “Claims on
customers”, which amounted to € 10.3 million (previous year:
€ 10.3 million) while “Liabilities to customers” were € 15.2
million (previous year: € 15.5 million). The accrual of compen-
satory payments made is entered under “Other assets” with
€10.6 million (previous year: € 7.9 million); the accrual of
compensatory payments received is entered under “Other
liabilities” with € 29.9 million (previous year: € 36.2 million).
Compensatory items in the amount of € 112.9 million (pre-
vious year: € 99.8 million) related to the valuation of foreign
currency swaps are carried under the balance sheet item
“Other liabilities”.
The counterparties of derivative contracts are banks and pro-
viders of financial services, located in OECD countries, and
separate funds under public law in Germany.
Hedging arrangements were made to reduce credit risks
associated with these contracts. Within the framework of
these arrangements collateral was provided for the net
claims / liabilities arising after the positions were netted.
In the context of the Bank’s hedging positions, € 1,986 million
(previous year: € 1,643 million) in balance sheet hedging po-
sitions were designated in accounting to hedge interest rate
risks associated with securities carried on the balance sheet
under “Bonds and other fixed-income securities”. It may be
assumed that the effectiveness of the hedging positions will
remain unchanged over the entire term of the transaction as
the conditions of the securities correspond to those of the
hedging derivatives (critical term match method). Offsetting
changes in value are not shown in the balance sheet; uncov-
ered risks are treated in accordance with standard valuation
principles. The total amount of offsetting value changes for
all valuation units amounted to € 301 million.
Interest-based finance instruments carried in the banking
book are valued without losses within the framework of an
overall valuation, whereby the interest rate driven present
values are compared to the book values and then deducted
from the positive surplus of the risk and portfolio manage-
ment expenses. In the event of a negative result a provision
for contingent risks has to be made.
A related provision did not have to be made based on the
results of the calculation made on 31 December 2021.
As on the date of record the portfolio contained no derivatives
used in the trading book.
55
MÜNCHENER HYPOTHEKENBANK EGANNUAL REPORT 2021
Notes to the balance sheet
income statement
NOTESMANAGEMENT REPORT FURTHER INFORMATION
ANNUAL STATEMENT
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FOREWORD
CONTENT
SEARCH
Cover statement for Pfandbriefe
A. MORTGAGE PFANDBRIEFE
IN € 000
31 Dec. 21 31 Dec. 20
Ordinary cover assets 31,558,599 29,509,670
1. Claims on banks (mortgage loans) 195 1,796
2. Claims on customers (mortgage loans) 31,505,940 29,455,410
3. Tangible assets (charges on land owned by the Bank) 52,464 52,464
Substitute cover assets 615,414 600,414
1. Other claims on banks 0 0
2. Bonds and other fixed-income securities 615,414 600,414
Total cover 32,174,013 30,110,084
Total Mortgage Pfandbriefe requiring cover 30,297,713 28,846,300
Surplus cover 1,876,300 1,263,784
B. PUBLIC PFANDBRIEFE
IN € 000
31 Dec. 21 31 Dec. 20
Ordinary cover assets 1,480,866 1,958,141
1. Claims on banks (public-sector loans) 25,000 100,564
2. Claims on customers (public-sector loans) 1,320,866 1,712,577
3. Bonds and other fixed-income securities 135,000 145,000
Substitute cover assets 0 0
1. Other claims on banks 0 0
2. Bonds and other fixed-income securities 0 0
Total cover 1,480,866 1,958,141
Total public-sector Pfandbriefe requiring cover 1,456,322 1,945,094
Surplus cover 24,544 13,047
56
MÜNCHENER HYPOTHEKENBANK EGANNUAL REPORT 2021
Notes to the balance sheet
income statement
NOTESMANAGEMENT REPORT FURTHER INFORMATION
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Publication in Accordance with Section 28 Pfandbrief Act
MORTGAGE PFANDBRIEFE
Mortgage Pfandbriefe outstanding and their cover
ORDINARY COVER ASSETS
IN € 000
Nominal value Net present value Risk-adjusted net present value
1
31 Dec. 21 31 Dec. 20 31 Dec. 21 31 Dec. 20 31 Dec. 21 31 Dec. 20
Mortgage Pfandbriefe 30,297,713 28,846,300 32,742,132 32,919,871 30,714,992 30,295,939
Cover pool 32,174,013 30,110,084 36,715,063 36,066,459 34,255,079 33,084,816
of which further cover assets 615,414 600,414 766,343 699,138 718,235 668,546
Over-collateralisation 1,876,300 1,263,784 3,972,931 3,146,588 3,540,087 2,788,877
1
Pursuant to Section. 5 (1) No 1 of the Pfandbrief-Net Present Value Directive (PfandBarwertV), the dynamic approach was used to calculate the present value of risk.
MATURITY STRUCTURE
IN € 000
31 Dec. 21 31 Dec. 20
Residual term
Mortgage
Pfandbriefe Cover pool
Mortgage
Pfandbriefe Cover pool
≤ 0.5 year 1,251,813 989,807 1,258,120 827,004
> 0.5 year and ≤ 1 year 691,743 1,324,077 1,237,079 1,038,094
> 1 year and ≤ 1.5 years 1,174,247 1,336,689 1,250,335 1,075,649
> 1.5 years and ≤ 2 years 1,170,388 1,308,949 550,349 1,348,741
> 2 years and ≤ 3 years 1,435,033 3,024,537 1,900,130 2,642,447
> 3 years and ≤ 4 years 1,362,515 2,761,418 990,322 3,047,510
> 4 years and ≤ 5 years 3,345,001 2,604,343 1,352,787 2,555,621
> 5 years and ≤ 10 years 7,477,722 9,273,499 8,936,315 8,867,721
> 10 years 12,389,251 9,550,694 11,370,863 8,707,297
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MÜNCHENER HYPOTHEKENBANK EGANNUAL REPORT 2021
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FURTHER COVER ASSETS IN ACCORDANCE WITH SECTION 19 (1) NO 2 AND 3 PFANDBRIEF ACT
IN € 000
31 Dec. 21 31 Dec. 20
Total
thereof
Total
thereof
in accordance with Section 19 (1) No 2
Bonds in
accordance with
Section 19 (1) No 3
in accordance with Section 19 (1) No 2
Bonds in
accordance with
Section 19 (1) No 3Overall
thereof covered
bonds from banks
in accordance
with Article 129
Regulation (EU)
No 575 / 2013 Overall
thereof covered
bonds from banks in
accordance
with Article 129
Regulation (EU)
No 575 / 2013
Germany 457,000 0 0 457,000 442,000 0 0 442,000
Belgium 38,000 0 0 38,000 38,000 0 0 38,000
Finland 50,000 0 0 50,000 50,000 0 0 50,000
France 60,000 0 0 60,000 60,000 0 0 60,000
Austria 10,414 0 0 10,414 10,414 0 0 10,414
Total – all states 615,414 0 0 615,414 600,414 0 0 600,414
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MÜNCHENER HYPOTHEKENBANK EGANNUAL REPORT 2021
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NOTESMANAGEMENT REPORT FURTHER INFORMATION
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FOREWORD
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Key figures for Pfandbriefe outstanding and their cover
OUTSTANDING MORTGAGE PFANDBRIEFE
Figures in 31 Dec. 21 31 Dec. 20
Outstanding Mortgage Pfandbriefe € 000 30,297,713 28,846,300
thereof share of fixed-rate Pfandbriefe, Section 28 (1) No 9 % 84 86
ORDINARY COVER ASSETS
Figures in 31 Dec. 21 31 Dec. 20
Cover pool € 000 32,174,013 30,110,084
thereof total amount of claims which exceed the limits laid down in Section 13 (1) Section 28 (1) No 7 € 000 0 0
thereof total amount of claims which exceed the limits laid down in Section 19 (1) No 2 Section 28 (1) No 8 € 000 0 0
thereof total amount of claims which exceed the limits laid down in Section 19 (1) No 3 Section 28 (1) No 8 € 000 0 0
thereof share of fixed-rate cover pool, Section 28 (1) No 9 % 96 96
Net present value pursuant to Section 6 Pfandbrief-Net Present Value Regulation
for each foreign currency in EUR, Section 28 (1) No 10 (net total)
USD (€ 000) 101,002 34,397
GBP (€ 000) – 70,675 19,213
CHF (€ 000) 910,326 1,267,450
Volume-weighted average of the maturity that has passed since the loan was granted (seasoning), Section 28 (1) No 11 Years 5 5
Average loan-to-value ratio using the mortgage lending value, Section 28 (2) No 3 % 52 52
Mortgage loans used as cover for Mortgage Pfandbriefe
A. ACCORDING TO THEIR AMOUNTS IN TRANCHES
IN € 000
31 Dec. 21 31 Dec. 20
Up to € 300,000 18,947,591 17,958,015
More than € 300,000 up to € 1,000,000 4,033,192 3,392,161
More than € 1,000,000 up to € 10,000,000 2,347,516 2,284,506
More than € 10,000,000 6,230,300 5,874,988
Total 31,558,599 29,509,670
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B. ACCORDING TO STATES IN WHICH THE REAL PROPERTY IS LOCATED AND TO PROPERTY TYPE
IN € 000
Total Residential Commercial
Total Overall
Condo-
miniums
Single and
two-family
houses
Multifamily
houses
Buildings
under con-
struction
Building
land Overall
Office
buildings
Retail
buildings
Industrial
buildings
Other
commer-
cially used
buildings
Buildings
under con-
struction
Building
land
Germany
31 Dec. 21 25,044,046 21,569,121 3,140,923 13,786,350 4,631,687 9,579 582 3,474,925 2,249,632 981,101 7,972 236,220 0 0
31 Dec. 20 23,614,141 20,307,232 2,847,751 12,785,205 4,662,111 11,583 582 3,306,909 2,180,280 870,059 8,002 248,568 0 0
Belgium
31 Dec. 21 29,640 0 0 0 0 0 0 29,640 29,640 0 0 0 0 0
31 Dec. 20 29,640 0 0 0 0 0 0 29,640 29,640 0 0 0 0 0
France
31 Dec. 21 254,183 0 0 0 0 0 0 254,183 192,983 61,200 0 0 0 0
31 Dec. 20 286,098 19,260 0 0 19,260 0 0 266,838 204,272 62,566 0 0 0 0
United
Kingdom
31 Dec. 21 332,936 0 0 0 0 0 0 332,936 291,828 16,780 0 24,328 0 0
31 Dec. 20 337,991 0 0 0 0 0 0 337,991 270,044 45,209 0 22,738 0 0
Luxembourg
31 Dec. 21 90,919 0 0 0 0 0 0 90,919 90,919 0 0 0 0 0
31 Dec. 20 64,900 0 0 0 0 0 0 64,900 64,900 0 0 0 0 0
The
Netherlands
31 Dec. 21 631,851 284,810 0 0 284,810 0 0 347,041 141,996 200,896 0 4,149 0 0
31 Dec. 20 478,082 224,791 0 0 224,791 0 0 253,291 133,236 115,906 0 4,149 0 0
Austria
31 Dec. 21 157,384 17,737 5,839 11,753 145 0 0 139,647 36,240 103,407 0 0 0 0
31 Dec. 20 140,778 1 0 1 0 0 0 140,777 36,240 104,537 0 0 0 0
Spain
31 Dec. 21 443,576 8,520 0 0 8,520 0 0 435,056 118,441 316,615 0 0 0 0
31 Dec. 20 396,009 0 0 0 0 0 0 396,009 119,906 276,103 0 0 0 0
Switzerland
31 Dec. 21 3,980,894 3,980,894 1,453,023 2,527,871 0 0 0 0 0 0 0 0 0 0
31 Dec. 20 3,672,445 3,672,445 1,317,509 2,354,936 0 0 0 0 0 0 0 0 0 0
USA
31 Dec. 21 593,170 108,789 0 0 108,789 0 0 484,381 392,454 21,505 0 70,422 0 0
31 Dec. 20 489,586 72,179 0 0 72,179 0 0 417,407 332,560 19,848 0 64,999 0 0
Total –
all states
31 Dec. 21 31,558,599 25,969,871 4,599,785 16,325,974 5,033,951 9,579 582 5,588,728 3,544,133 1,701,504 7,972 335,119 0 0
31 Dec. 20 29,509,670 24,295,908 4,165,260 15,140,142 4,978,341 11,583 582 5,213,762 3,371,078 1,494,228 8,002 340,454 0 0
60
MÜNCHENER HYPOTHEKENBANK EGANNUAL REPORT 2021
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NOTESMANAGEMENT REPORT FURTHER INFORMATION
ANNUAL STATEMENT
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FOREWORD
CONTENT
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Payments in arrears on covering mortgages
PAYMENTS IN ARREARS ON COVERING MORTGAGES
IN € 000
31 Dec. 21 31 Dec. 20
Total amount
of payments in arrears
for at least 90 days
Total amount of these claims
inasmuch as the respective amount in
arrears is at least 5% of the claim
Total amount
of payments in arrears
for at least 90 days
Total amount of these claims
inasmuch as the respective amount in
arrears is at least 5% of the claim
Germany 9,923 11,088 8,603 10,168
Switzerland 0 0 1,323 1,339
Total – all states 9,923 11,088 9,926 11,507
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NOTESMANAGEMENT REPORT FURTHER INFORMATION
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PUBLIC PFANDBRIEFE
Public Pfandbriefe outstanding and their cover
Discounts based on the vdp credit quality differentiation model were taken into consideration in calculating the cover pool.
ORDINARY COVER ASSETS
IN € 000
Nominal value Net present value Risk-adjusted net present value
1
31 Dec. 21 31 Dec. 20 31 Dec. 21 31 Dec. 20 31 Dec. 21 31 Dec. 20
Public Pfandbriefe 1,456,322 1,945,094 1,910,940 2,666,974 1,783,234 2,480,155
Cover pool 1,480,866 1,958,141 2,109,031 2,992,645 1,882,235 2,656,239
of which further cover assets 0 0 0 0 0 0
of which derivatives 0 0 36,424 45,373 27,662 34,910
Over-collateralisation 24,544 13,047 198,091 325,671 99,001 176,084
1
Pursuant to Section 5 (1) No 1 of the Pfandbrief-Net Present Value Directive (PfandBarwertV), the dynamic approach was used to calculate the present value of risk.
MATURITY STRUCTURE
IN € 000
31 Dec. 21 31 Dec. 20
Residual term
Public
Pfandbriefe Cover pool
Public
Pfandbriefe Cover pool
≤ 0.5 year 21,254 20,355 32,457 15,755
> 0.5 year and ≤ 1 year 12,004 28,176 79,984 25,719
> 1 year and ≤ 1.5 years 35,527 12,357 50,721 20,592
> 1.5 years and ≤ 2 years 55,383 8,628 9,778 28,176
> 2 years and ≤ 3 years 102,081 9,875 100,590 20,985
> 3 years and ≤ 4 years 86,737 6,813 149,664 9,875
> 4 years and ≤ 5 years 116,379 219,660 84,219 6,813
> 5 years and ≤ 10 years 332,940 159,379 492,707 514,312
> 10 years 694,017 1,015,623 944,974 1,315,914
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FURTHER COVER ASSETS FOR PUBLIC PFANDBRIEFE IN ACCORDANCE WITH SECTION 20 (2) NO 2 PFANDBRIEF ACT
IN € 000
31 Dec. 21 31 Dec. 20
money claims in accordance with Section 20 (2) No 2 money claims in accordance with Section 20 (2) No 2
Overall
thereof covered bonds from banks
in accordance with Article 129
Regulation (EU) No 575 / 2013 Overall
thereof covered bonds from banks
in accordance with Article 129
Regulation (EU) No 575 / 2013
Germany 0 0 0 0
Total 0 0 0 0
Key figures on Pfandbriefe outstanding and their cover
OUTSTANDING PUBLIC PFANDBRIEFE
Figures in 31 Dec. 21 31 Dec. 20
Outstanding Mortgage Pfandbriefe € 000 1,456,322 1,945,094
thereof share of fixed-rate Pfandbriefe, Section 28 (1) No 9 % 91 91
COVER ASSETS
Figures in 31 Dec. 21 31 Dec. 20
Cover pool € 000 1,480,866 1,958,141
thereof total amount of claims which exceed the limits of Section 20 (2) Section 28 (1) No 8 € 000 0 0
thereof percentage share of fixed-rate cover pool, Section 28 (1) No 9 % 95 92
Net present value pursuant to Section 6 Pfandbrief-Net Present Value Regulation for each foreign currency in EUR, Section 28 (1) No 10 (net total) € 000 0 0
Mortgage loans used as cover for Public Pfandbriefe
A. ACCORDING TO THEIR AMOUNTS IN TRANCHES
IN € 000
31 Dec. 21 31 Dec. 20
Up to € 10,000,000 90,572 131,241
More than € 10,000,000 up to € 100,000,000 370,181 446,787
More than € 100,000,000 1,020,113 1,380,113
Total 1,480,866 1,958,141
63
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B. ACCORDING TO GROUP OF BORROWERS AND REGIONS
IN € 000
Total Of which owed by Of which guaranteed by
All states Total State
Regional
authorities
Local
authorities Other debtors Total State
Regional
authorities
Local
authorities Other debtors
Germany
31 Dec. 21 1,325,866 1,319,283 0 1,150,113 94,170 75,000 6,583 0 0 6,583 0
31 Dec. 20 1,803,141 1,795,973 0 1,510,112 135,296 150,565 7,168 0 0 7,168 0
Austria
31 Dec. 21 155,000 155,000 120,000 35,000 0 0 0 0 0 0 0
31 Dec. 20 155,000 155,000 120,000 35,000 0 0 0 0 0 0 0
Total –
all states
31 Dec. 21 1,480,866 1,474,283 120,000 1,185,113 94,170 75,000 6,583 0 0 6,583 0
31 Dec. 20 1,958,141 1,950,973 120,000 1,545,112 135,296 150,565 7,168 0 0 7,168 0
64
MÜNCHENER HYPOTHEKENBANK EGANNUAL REPORT 2021
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NOTESMANAGEMENT REPORT FURTHER INFORMATION
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FOREWORD
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Payments in arrears on claims used to cover public pfandbriefe
PAYMENTS IN ARREARS ON CLAIMS USED TO COVER PUBLIC PFANDBRIEFE
IN € 000
31 Dec. 21 31 Dec. 20
Total amount
of payments in arrears
for at least 90 days
Total amount of these claims
inasmuch as the respective amount in
arrears is at least 5% of the claim
Total amount
of payments in arrears
for at least 90 days
Total amount of these claims
inasmuch as the respective amount in
arrears is at least 5% of the claim
Total 0 0 0 0
Overdue interest
COVERING MORTGAGES WITH OVERDUE INTEREST
IN € 000
Total Thereof residential Thereof commercial
2021 2020 2021 2020 2021 2020
Overdue interest 237 210 231 205 5 5
Foreclosures and receiverships of mortgages used as cover
FORECLOSURES AND RECEIVERSHIPS
Total Thereof residential Thereof commercial
2021 2020 2021 2020 2021 2020
Pending on balance sheet date
– Foreclosure proceedings 53 95 50 93 3 2
– Receivership proceedings 17 28 16 27 1 1
17
1
26
1
16
1
25
1
1
1
1
1
Foreclosures completed during business year 21 27 21 26 0 1
1
Thereof included in pending Foreclosure proceedings.
During the year under review no property had to be taken over to salvage our claims.
65
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Other Disclosures
Membership data
MEMBERSHIP CHANGES
Number of members
Beginning of 2021 64,254
Additions in 2021 586
Reductions in 2021 1,627
End of 2021 63,213
CAPITAL CONTRIBUTIONS
IN €
31 Dec. 21
Increase in remaining members capital
contributions 81,399,500.00
Amount of each share 70.00
Members liability 0.00
Personnel statistics
In the reporting year, the average number of employees was:
Male Female Total
Full-time employees 294 177 471
Part-time employees 28 125 153
Total number of employees 322 302 624
These figures do not include:
Apprenticed trainees 3 11 14
Employees participating in parental leave, early retirement, partial
retirement (non-working phase), or employees suspended with pay 8 30 38
66
MÜNCHENER HYPOTHEKENBANK EGANNUAL REPORT 2021
Other Disclosures
NOTESMANAGEMENT REPORT FURTHER INFORMATION
ANNUAL STATEMENT
OF ACCOUNTS
FOREWORD
CONTENT
SEARCH
Special disclosure requirements
Pursuant to Section 8 CRR (Articles 435 to 455), Münchener
Hypothekenbank publishes information it is required to dis-
close in a separate disclosure report in the Federal Gazette
(Bundesanzeiger), as well as on the Bank’s homepage.
Pursuant to Section 26a (1) (4) of the German Banking Act
(KWG), the quotient of net income and total assets is equal to
0.1124 percent.
Proposed appropriation of distributable income
Net income for the year comes to EUR 59,070,509.85. These
annual financial statements show an advance allocation
of EUR 25,000,000 to legal reserves. Retained earnings of
EUR 67,107,638.53 are reported.
ALLOCATION OF RETAINED EARNINGS
IN €
2.75 percent dividend
32,861,500.00
from profit carried forward
2.00 percent dividend
23,899,500.00
from the net income for the year
Further allocation to
legal reserves 10,000,000.00
Carried forward to new year 346,638.53
Events after the balance sheet date
The following events of particular importance occurred after
the close of the financial year.
Russia’s attack on Ukraine has led to increasing uncertainties
in terms of economic effects. We do not have any exposures
in either country. However, an economic downturn caused by
a possible decline in global trade as a result of the war could
negatively impact the risk situation and the planned moder-
ate expansion of our new business.
In its general ruling dated 31 January 2022, BaFin set a domestic
countercyclical capital buffer of 0.75 percent. BaFin also intends
to set a capital buffer for systemic risk of 2.00 percent for
domestic residential property financing.
At the time of writing this report, it was not possible to reliably
estimate how the introduction of this buffer in Germany will
affect prices and demand for properties and thus our growth
strategy.
Company
Münchener Hypothekenbank eG
Karl-Scharnagl-Ring 10
80539 Munich
Register of cooperatives of the District Court of Munich
Gen.-Reg 396
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MÜNCHENER HYPOTHEKENBANK EGANNUAL REPORT 2021
Other Disclosures
NOTESMANAGEMENT REPORT FURTHER INFORMATION
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FOREWORD
CONTENT
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Bodies
Supervisory Board
Dr. Hermann Starnecker
Spokesman of the Board of Management
VR Bank Augsburg-Ostallgäu eG
Chairman of the Supervisory Board
Gregor Scheller
Chairman of the Board of Management
VR Bank Bamberg-Forchheim eG (until 31.01.2022)
President and Chairman of the Board of
Genossenschaftsverband Bayern e.V. (as of 01.02.2022)
Deputy Chairman of the Supervisory Board
HRH Anna Duchess in Bavaria
Entrepreneur
Barbara von Grafenstein
Employee representative (until 30.06.2021)
Thomas Höbel
Spokesman of the Board of Management
Volksbank Raiffeisenbank Dachau eG
Josef Hodrus
Spokesman of the Board of Management
Volksbank Allgäu-Oberschwaben eG
Jürgen Hölscher
Member of the Board of Management
Emsländische Volksbank eG
Rainer Jenniches
Chairman of the Board of Management
VR-Bank Bonn eG
Reimund Käsbauer
Employee representative
Michael Schäffler
Employee representative
Claudia Schirsch
Employee representative (as of 01.07.2021)
Kai Schubert
Member of the Board of Management
Raiffeisenbank Südstormarn Mölln eG
Frank Wolf-Kunz
Employee representative
Board of Management
Dr. Louis Hagen
Chairman of the Board of Management
Dr. Holger Horn
Deputy Chairman of the Board of Management
(as of 01.01.2022)
Ulrich Scheer
Member of the Board of Management (as of 01.09.2021)
Mandates
Dr. Louis Hagen
KfW
Member of the Board of Supervisory Directors
Dr. Holger Horn
FMS Wertmanagement AöR
Member of the Board of Supervisory Directors
As of the balance sheet date loans to members of the Super-
visory Board amounted to € 647 thousand (previous year:
€ 750 thousand). As in the previous year: the lending portfolio
did not include any loans made to members of the Board of
Management. Pension provisions of € 20,117 thousand (previ-
ous year: € 18,460 thousand) were made for former members
of the Board of Management and their surviving dependants.
Total remuneration received by the members of the Board of
Management during the year under review amounted to
€ 2,021 thousand (previous year: € 1,438 thousand), for members
of the Supervisory Board € 503 thousand (previous year:
€ 589 thousand). Total compensation received by the members
of Advisory Committee amounted to € 35 thousand (previous
year: € 14 thousand). Total compensation received by former
members of the Board of Management and their surviving
dependants amounted to € 1,505 thousand (previous year:
€ 1,369 thousand).
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Other Financial
Obligations
Auditing
Association
DGRV – Deutscher Genossenschafts- und
Raiffeisenverband e. V.,
Linkstraße 12, 10785 Berlin
To total fee charged by the auditor was € 648 thousand (pre-
vious year € 658 thousand) excluding value-added tax. The
individual charges are as follows:
TOTAL AUDITOR FEE
IN € 000
31 Dec. 21 31 Dec. 20
For audit services
1
620 636
Other assurance services 28 22
Tax advisory services 0 0
Other services 0 0
1
of which reversal of provisions from 2020 of EUR 66 thousand
Pursuant to Section 12 Para. 5 of the Restructuring Fund Act
(Restrukturierungsfondsgesetz – RStruktFG) irrevocable
payment obligations of € 18,469 thousand were recorded at the
balance sheet date.
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Other Financial Obligations
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Contingent Liability
Our Bank is a member of the protection scheme of the National
Association of German Cooperative Banks (Sicherungseinrich-
tung des Bundesverbandes der Deutschen Volksbanken und
Raiffeisenbanken e. V.). Per the statutes of the protection
scheme we have issued a guarantee to the National Association
of German Cooperative Banks. As a result, we have a contin-
gent liability of € 26,461 thousand. In addition, pursuant to
Article 7 of the Accession and Declaration of Commitment
to the bank-related protection scheme of the BVR Instituts-
sicherung GmbH (BVR-ISG), a premium guarantee is in force.
This pertains to special contributions and special payments in
the event of insufficient financial resources in order to pay
for losses of depositors of one of the CRR credit institutions
belonging to the protection scheme in the event of a com-
pensation case, as well as to meet refunding obligations
pursuant to cover measures.
Munich, 25 February 2022
Münchener Hypothekenbank eG
The Board of Management
Dr. Louis Hagen Dr. Holger Horn Ulrich Scheer
CEO CRO CFO
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performance for the financial year from 1 January 2021
to 31 December 2021 in compliance with German proper
accounting principles, and
■
the accompanying management report as a whole provides
an appropriate view of the Cooperative’s position. In all
material respects, this management report is consistent
with the annual financial statements, complies with German
legal requirements and accurately presents the opportuni-
ties and risks of future development. Our audit opinion on
the management report does not cover the content of
the components of the management report referred to in
the section entitled ‘Other information’.
In accordance with section 322(3) sentence 1 of the German
Commercial Code (Handelsgesetzbuch – HGB), we declare
that our audit has not led to any reservations relating to the
legal compliance of the annual financial statements and the
management report.
Basis for the audit opinions
We conducted our audit of the annual financial statements and
the management report in accordance with section 53(2) of the
German Cooperatives Act (Genossenschaftsgesetz – GenG),
sections 340k and 317 of the HGB, and the EU Statutory Audit
Regulation (No. 537/2014), and in compliance with German
Generally Accepted Standards for Financial Statement Audits
promulgated by the Institut der Wirtschaftsprüfer (Institute of
Public Auditors in Germany – IDW). Our responsibilities under
those requirements and principles are further described in the
‘Auditor’s responsibilities for the audit of the annual financial
statements and the management report’ section of our auditor’s
report. We are independent of the Cooperative in compliance
with the requirements of European law and German commercial
law and professional law, and we have fulfilled our other
German professional responsibilities in accordance with these
requirements. In addition, in accordance with point (f) of Article
10(2) of the EU Statutory Audit Regulation in conjunction with
sections 55(2) and 38(1a) of the GenG, we declare that none
of the persons employed by us who could influence the results
of our audit provided any non-audit services prohibited under
Article 5(1) of the EU Statutory Audit Regulation. We believe
that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinions on the annual
financial statements and the management report.
Key audit matters in the audit of the annual financial
statements
Key audit matters are those matters that, in our professional
judgement, were of most significance in our audit of the annual
financial statements for the financial year from 1 January 2021
to 31 December 2021. These matters were addressed in the con-
text of our audit of the annual financial statements as a whole
and, in forming audit opinion thereon, we do not provide a
separate audit opinion on these matters.
REPORT ON THE AUDIT OF THE
ANNUAL FINANCIAL STATEMENTS
AND OF THE MANAGEMENT
REPORT
Audit opinions
We have audited the annual financial statements of
Münchener Hypothekenbank eG, Munich (the ‘Cooperative’),
comprising the balance sheet as at 31 December 2021, the
income statement, cash flow statement and statement of
changes in equity for the financial year from 1 January 2021
to 31 December 2021, as well as the notes to the annual
financial statements, including the presentation of the
accounting policies. In addition, we audited the management
report of the Cooperative for the financial year from 1 Janu-
ary 2021 to 31 December 2021. In accordance with the
German legal requirements, we did not audit the content of
the components of the management report referred to in
the section entitled ‘Other information’.
In our opinion, based on the findings of the audit,
■
the accompanying annual financial statements comply,
in all material respects, with the requirements of German
commercial law applicable to credit cooperatives with
publicly traded debt instruments and give a true and fair
view of the assets, liabilities and financial position of the
Cooperative as at 31 December 2021 and of its financial
Independent Auditor’s Report
TO MÜNCHENER HYPOTHEKENBANK EG, MUNICH
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In the following, we describe what we consider to be the key
audit matters:
Recoverability of loans and advances to customers
We have structured our presentation of these key audit
matters as follows:
a) Matter and issue
b) Audit approach and findings
c) Reference to further information
a) Loans and advances to customers of EUR 43.0 billion are
reported in the annual financial statements of Münchener
Hypothekenbank eG as at 31 December 2021. Most of these
loans and advances are secured by mortgages. Total loan loss
allowances (specific valuation allowances and global valuation
allowances) of EUR 54.6 million were recognised as at 31 De-
cember 2021.
Münchener Hypothekenbank eG regularly reviews the market
and lending values of the properties on the basis of appraisals
and analyses the economic circumstances of the borrowers,
including on the basis of submitted annual financial state-
ments, business plans and management accounting reports,
among other documents. These results flow into the borrow-
ers’ ratings.
As a rule, the market and lending values of the properties
are determined by appraisers using the income approach or
the ‘Sachwertverfahren’, which is a specifically German form
of the modified cost approach. The valuation parameters
selected for this purpose significantly influence the value
of the collateral and the recognition of any necessary loan
loss allowance. Recognition of the loan loss allowance is sub-
ject to estimation uncertainty in this respect.
The risk exposure in the annual financial statements is that
the need to recognise loan loss allowances is not identified in
a timely manner or in an adequate amount.
b) Among other things, in the course of our audit we exam-
ined the available documentation relating to the valuation of
the properties serving as collateral and the monitoring of the
economic circumstances in a sample of loan exposures, and
satisfied ourselves that the ratings were performed appropri-
ately and in a timely manner.
In particular, we assessed whether the valuation parameters
applied and the assumptions made in the appraisals are ap-
propriate and reasonable. Among other things, we relied on
publicly available market data to do this.
Based on our audit, the assumptions made by Münchener
Hypothekenbank eG in reviewing the recoverability of the
loans and advances are appropriate, taking into account the
available information.
c) For information on the measurement of loans and advances
to customers and the recognition of loan loss allowances,
please refer to the section entitled ‘General information on
accounting policies’ in the notes to the annual financial
statements. For information on the process of counterparty
credit risk management, please refer to the section entitled
‘Counterparty credit risk’ in the risk report, which is part of
the management report.
Other information
The Board of Management is responsible for the other infor-
mation. The other information comprises the following docu-
ments obtained by us prior to the date of this auditor’s report:
■
the corporate governance statement in accordance with
section 289f(4) of the HGB contained in the management
report (disclosures on the percentage of women in gov-
erning bodies). We did not examine the content of this
component of the management report.
■
the separate non-financial report in accordance with
section 289b(3) of the HGB.
The other information also comprises
■
all the other parts of the annual report – excluding other
cross-references to external information – with the excep-
tion of the audited annual financial statements and man-
agement report, as well as our auditor’s report.
Those other parts of the annual report are expected to be
made available to us after the date of this auditor’s report.
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Our audit opinions on the annual financial statements and on
the management report do not cover the other information,
and consequently we do not express an audit opinion or any
other form of assurance conclusion thereon. In connection with
our audit, our responsibility is to read the other information
and, in so doing, to consider whether the other information
■
is materially inconsistent with the annual financial state-
ments, with the management report or our knowledge
obtained in the audit, or
■
otherwise appears to be materially misstated.
Responsibilities of the Board of Management and the
Supervisory Board for the annual financial statements
and the management report
The Board of Management of the Cooperative is responsible
for the preparation of the annual financial statements that
comply, in all material respects, with the requirements of Ger-
man commercial law applicable to credit cooperatives with
publicly traded debt instruments, and for ensuring that the
annual financial statements give a true and fair view of the
assets, liabilities, financial position and financial performance
of the Cooperative in compliance with German proper ac-
counting principles. In addition, the Board of Management
is responsible for such internal control as it, in accordance
with German proper accounting principles, has determined
necessary to enable the preparation of annual financial state-
ments that are free from material misstatement, whether
due to fraud or error.
In preparing the annual financial statements, the Board of
Management is responsible for assessing the Cooperative’s
ability to continue as a going concern. It also has the respon-
sibility for disclosing, as applicable, matters relating to going
concern. In addition, it is responsible for financial reporting
based on the going concern basis of accounting, provided no
actual or legal circumstances conflict with this.
The Board of Management is additionally responsible for pre-
paring the management report that as a whole provides an
appropriate view of the Cooperative’s position and is, in all
material respects, consistent with the annual financial state-
ments, complies with German legal requirements and appro-
priately presents the opportunities and risks of future devel-
opment. In addition, the Board of Management is responsible
for such arrangements and measures (systems) as it has con-
sidered necessary to enable the preparation of a management
report that complies with the German legal requirements, and
to be able to provide sufficient, appropriate evidence for the
assertions in the management report.
The Supervisory Board is responsible for overseeing the Coop-
erative’s financial reporting process for the preparation of the
annual financial statements and of the management report.
Auditor’s Responsibilities for the Audit of the Annual
Financial Statements and the Management Report
Our objectives are to obtain reasonable assurance about
whether the annual financial statements as a whole are free
from material misstatement, whether due to fraud or error,
and whether the management report as a whole provides
an appropriate view of the Cooperative’s position and, in all
material respects, is consistent with the annual financial
statements and the knowledge obtained in the audit, complies
with the German legal requirements and appropriately
presents the opportunities and risks of future development,
as well as to issue an auditor’s report that includes our audit
opinions on the annual financial statements and the manage-
ment report.
Reasonable assurance is a high level of assurance, but is not
a guarantee that an audit conducted in accordance with sec-
tion 53(2) of the GenG, sections 340k and 317 of the HGB,
and the EU Statutory Audit Regulation in compliance with
German Generally Accepted Standards for Financial State-
ment Audits promulgated by the IDW will always detect a
material misstatement. Misstatements can arise from fraud
or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these an-
nual financial statements and the management report.
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We exercise professional judgement and maintain profes-
sional scepticism throughout the audit. We also:
■
identify and assess the risks of material misstatement of
the annual financial statements and the management
report, whether due to fraud or error, design and perform
audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a
basis for our audit opinions. The risk of not detecting a
material misstatement resulting from fraud is higher than
for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations or the
override of internal control.
■
obtain an understanding of internal control relevant to the
audit of the annual financial statements and of arrange-
ments and measures (systems) relevant to the audit of the
management report in order to design audit procedures
that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of
these systems.
■
evaluate the appropriateness of accounting policies used by
the Board of Management and the reasonableness of esti-
mates made by the Board of Management and related dis-
closures.
■
conclude on the appropriateness of the Board of Manage-
ment’s use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may
cast significant doubt on the Company’s ability to continue
as a going concern. If we conclude that a material uncer-
tainty exists, we are required to draw attention in the audi-
tor’s report to the related disclosures in the annual financial
statements and the management report or, if such disclo-
sures are inadequate, to modify our opinion. Our conclusions
are based on the audit evidence obtained up to the date of
our auditor’s report. However, future events or conditions
may cause the Cooperative to cease to be able to continue
as a going concern.
■
evaluate the overall presentation, structure and content of
the annual financial statements, including the disclosures,
and whether the annual financial statements present the
underlying transactions and events in a manner that the
annual financial statements give a true and fair view of the
assets, liabilities, financial position and financial performance
of the Cooperative in compliance with German proper
accounting principles.
■
evaluate the consistency of the management report with
the annual financial statements, its conformity with German
law and the view of the Cooperative’s position it provides.
■
perform audit procedures on the prospective information
presented by the Board of Management in the management
report. On the basis of sufficient appropriate audit evidence
we evaluate, in particular, the significant assumptions used
by the Board of Management as a basis for the prospective
information, and evaluate the proper derivation of the
prospective information from these assumptions. We do
not express a separate opinion on the prospective informa-
tion and on the assumptions used as a basis. There is a
substantial unavoidable risk that future events will differ
materially from the prospective information.
We communicate with those charged with governance
regarding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify
during our audit.
We also provide those charged with governance with a state-
ment that we have complied with the relevant independence
requirements, and communicate with them all relationships
and other matters that may reasonably be thought to bear on
our independence, and where applicable, the related safe-
guards.
From the matters communicated with those charged with
governance, we determine those matters that were of most
significance in the audit of the annual financial statements of
the current period and are therefore the key audit matters.
We describe these matters in our auditor’s report unless law
or regulation precludes public disclosure about the matter.
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In our opinion, the reproduction of the annual financial
statements and the management report contained in the
above-mentioned electronic file provided and prepared for
publication purposes complies, in all material respects, with
the requirements of section 328(1) of the HGB for the elec-
tronic reporting format. We do not express any opinion on
the information contained in this reproduction nor on any
other information contained in the above-mentioned elec-
tronic file, beyond this reasonable assurance conclusion and
our audit opinion on the accompanying annual financial
statements and the accompanying management report for
the financial year from 1 January to 31 December 2021 con-
tained in the ‘Report on the audit of the annual financial
statements and of the management report’ above.
Basis for the reasonable assurance conclusion
We conducted our assurance engagement on the reproduc-
tion of the annual financial statements and the management
report contained in the above-mentioned electronic file pro-
vided in accordance with section 317(3a) of the HGB and IDW
Assurance Standard: Assurance in accordance with section
317(3a) of the HGB on the electronic reproduction of financial
statements and management reports prepared for publication
purposes (IDW AsS 410 (10.2021)). Accordingly, our responsi-
bilities are further described below in the section entitled
‘ Auditor’s responsibilities for the assurance engagement on
OTHER LEGAL AND REGULATORY
REQUIREMENTS
Assurance report in accordance with section 53(4) of the
German Cooperatives Act (Genossenschaftsgesetz – GenG)
and section 317(3a) of the German Commercial Code
(Handelsgesetzbuch – HGB) on the electronic reproduction
of the annual financial statements and the management
report prepared for publication purposes
Reasonable assurance conclusion
We have performed an assurance engagement in accordance
with section 53(4) of the GenG and section 317(3a) of the
HGB to obtain reasonable assurance about whether the repro-
duction of the annual financial statements and of the man-
agement report contained in the electronic file provided
muenchenerhyp_geschaeftsbericht_2021_esef.xhtml and
prepared for publication purposes (the ‘ESEF documents’)
complies, in all material respects, with the requirements of
section 328(1) of the HGB for the electronic reporting format
(‘ESEF format’). In accordance with German legal requirements,
this assurance engagement only extends to the conversion of
the information contained in the annual financial statements
and the management report into the ESEF format and there-
fore relates neither to the information contained within this
reproduction nor to any other information contained in the
above-mentioned electronic file.
the ESEF documents’. Our auditing association has applied
the IDW Standard on Quality Management: Requirements for
quality management in the audit firm (IDW QS 1).
Responsibilities of the Board of Management and the
Supervisory Board for the ESEF documents
The Board of Management of the Cooperative is responsible
for the preparation of the ESEF documents, including the
electronic reproduction of the annual financial statements
and the management report in accordance with section
328(1) sentence 4 no. 1 of the HGB.
In addition, the Board of Management of the Cooperative is
responsible for such internal control as it has considered nec-
essary to enable the preparation of ESEF documents that are
free from material non-compliance with the requirements of
section 328(1) of the HGB for the electronic reporting format,
whether due to fraud or errors.
The Supervisory Board is responsible for overseeing the process
of preparing the ESEF documents as part of the financial
reporting process.
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Auditor’s responsibilities for the assurance engagement
on the ESEF documents
Our objective is to obtain reasonable assurance about whether
the ESEF documents are free from material non-compliance
with the requirements of section 328(1) of the HGB, whether
due to fraud or error. We exercise professional judgement and
maintain professional scepticism throughout the assurance
engagement. We also:
■
identify and assess the risks of material non-compliance
with the requirements of section 328(1) of the HGB,
whether due to fraud or error, design and perform assur-
ance procedures responsive to those risks, and obtain
assurance evidence that is sufficient and appropriate to
provide a basis for our assurance conclusion.
■
obtain an understanding of internal control relevant to
the assurance engagement on the ESEF documents in
order to design assurance procedures that are appropriate
in the circumstances, but not for the purpose of expressing
an assurance conclusion on the effectiveness of these
controls.
■
evaluate the technical validity of the ESEF documents, i.e.
whether the electronic file provided containing the ESEF
documents meets the requirements of Delegated Regulation
(EU) 2019/815, in the version applicable as at the reporting
date, governing the technical specification for this elec-
tronic file.
■
evaluate whether the ESEF documents enable a XHTML
reproduction whose content is identical to the audited
annual financial statements and the management report.
Further information in accordance with Article 10 of the
EU Statutory Audit Regulation
As the responsible auditing association, we are the statutory
auditor of the Cooperative.
We declare that the audit opinions expressed in this auditor’s
report are consistent with the additional report to the Super-
visory Board or the Audit Committee in accordance with
Article 11 of the EU Statutory Audit Regulation in conjunction
with section 58(3) of the GenG (long-term audit report).
Persons employed by us who could influence the results of
the audit have provided the following services, which were
not disclosed in the annual financial statements or in the
management report of the audited Cooperative, in addition
to the statutory financial statement audit for the audited
Cooperative or for companies controlled by it:
■
other assurance services for banking supervision
■
other assurance services in connection with the deposit
guarantee scheme
■
review of the condensed half-yearly financial statements
and of the interim management report
■
review of the separate non-financial report
■
issuance of comfort letters.
OTHER MATTER – USE OF THE
AUDITOR’S REPORT
Our auditor’s report must always be read together with the
audited financial statements, the audited management report,
and the ESEF documents we examined. The annual financial
statements and the management report converted to the
ESEF format – including the versions to be published in the
Federal Gazette – are merely electronic reproductions of the
audited annual financial statements and the audited man-
agement report and do not replace them. In particular, the
ESEF report and our assurance opinion contained therein
must only be used in conjunction with the ESEF documents
made available in electronic form that we examined.
German public auditor responsible for the engagement
The German Public Auditor responsible for the engagement is
Dorothee Mende.
Bonn, 21 March 2022
DGRV – Deutscher Genossenschafts-
und Raiffeisenverband e. V.
Peter Krüper Dorothee Mende
Wirtschaftsprüfer Wirtschaftsprüfer
(German Public Auditor) (German Public Auditor)
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Affirmation by the Legal Representatives
To the best of our knowledge, and in accordance with appli-
cable reporting principles for annual financial reporting, the
annual financial statements give a true and fair view of the
assets, liabilities, financial position and earnings situation of
the company, and the management report of the company
includes a fair review of the development and performance of
the business and the position of the company, together with
a description of the principal opportunities and risks associ-
ated with the anticipated development of the company.
Munich, 25 February 2022
Münchener Hypothekenbank eG
The Board of Management
Dr. Louis Hagen Dr. Holger Horn Ulrich Scheer
CEO CRO CFO
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the Legal Representatives
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Annex to Annual Financial Statements
PURSUANT TO SECTION 26A PARA. 1 SENTENCE 2 OF THE
GERMAN BANKING ACT (KWG) FOR THE PERIOD ENDING
31 DECEMBER 2020 (“COUNTRY BY COUNTRY REPORTING”)
The number of full-time equivalent salaried employees is
576.70.
Profit before tax amounts to € 112,723 thousand.
Taxes on income amount to € 53,652 thousand and refer to
current taxes.
Münchener Hypothekenbank eG did not receive any public
assistance during the current business year.
Münchener Hypothekenbank eG is a Pfandbrief Bank operat-
ing in the legal format of a registered cooperative. The Bank’s
core areas of business are granting mortgage loans for resi-
dential and commercial property, as well as issuing Mortgage
Pfandbriefe. The Bank’s most important market is Germany.
Furthermore, business relationships are also maintained with
clients in other European countries, in particular. All of the
Bank’s business is processed at its head office in Munich. The
Bank does not maintain any branch offices outside of Germany.
Münchener Hypothekenbank eG defines its revenues as the
sum of the following components of the income statement
pursuant to the rules of the German Commercial Code (HGB):
interest income, interest expenses, current income from par-
ticipating interests and shares in cooperatives and investments
in affiliated companies, income from profit-pooling, profit
transfer or partial profit transfer agreements, commission
received, commission paid and other operating income. Reve-
nues for the period 1 January to 31 December 2021 were
€ 275,309 thousand.
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Report of the Supervisory Board
The Board of Management kept the Supervisory Board up to
date with regular, detailed verbal and written reports about key
matters at the Bank. The Board of Management reported on the
position of the Bank, the development of business, key financial
indicators and the review of the Bank’s business and risk strat-
egy. In addition, the current liquidity situation and measures to
control liquidity were explained to the Supervisory Board, and it
was provided with detailed reports on the risk situation, meas-
ures to control risks and the Bank’s risk management system.
The Supervisory Board also obtained comprehensive reports on
the status of strategic and operational planning. It was involved
in all important decisions. Current developments on the prop-
erty market and in private and commercial property financing
were monitored and discussed. During the Supervisory Board
meetings, considerable attention was also devoted to the in-
creasing regulatory requirements and their implementation.
Annual meetings were once again held between the Joint Su-
pervisory Team and the Chairman of the Supervisory Board and
the Chairs of the various Supervisory Board committees. In ad-
dition, representatives of the ECB and the Joint Supervisory
Team presented the results of the Supervisory Review and Eval-
uation Process 2020 and the supervisory recommendations to
the Supervisory Board and discussed them with it.
Evaluation of the Supervisory Board
The Supervisory Board conducted the annual evaluation of
the Board of Management and the Supervisory Board based
on the guidance for carrying out the suitability assessment
and on conflicts of interest. The preparatory work was con-
ducted by the Nomination Committee in accordance with the
regulations of Section 25d of the German Banking Act (Kred-
itwesengesetz – KWG). The results were discussed within the
Supervisory Board in December 2021 and documented in the
reports on the suitability assessment and the efficiency re-
view. It was found that the structure, size, composition and
performance of the Supervisory Board, as well as the knowl-
edge, skills and experience of the individual members of the
Supervisory Board and the Supervisory Board as a whole,
comply with legal requirements and those defined in the
Bank’s Articles of Association.
Succession plans for the Board of Management and the Su-
pervisory Board were drawn up based on the suitability as-
sessment and efficiency review, and improvements to increase
the efficiency of the Supervisory Board’s activities were defined.
In line with the existing onboarding and training concept, the
Supervisory Board attended training sessions on current regu-
latory topics and legal developments. Training sessions were
also planned and conducted for the Supervisory Board com-
mittees.
During the financial year under review, the Supervisory Board
carried out its supervisory function as required by law, the
Bank’s Articles of Association and its rules of procedure. The
Board of Management reported in a timely manner to the
Supervisory Board regarding the Bank’s corporate planning,
its business and financial situation, and further strategic de-
velopment. The Supervisory Board thereby supported the
work of the Board of Management in an advisory capacity
and monitored its management of business. The Supervisory
Board’s decisions on actions requiring its approval were taken
on the basis of reports and materials submitted by the Board
of Management.
Topics reviewed during Supervisory Board meetings
During the past financial year, the Supervisory Board held one
constituent meeting, four regular meetings and two further
meetings in order to continuously advise and monitor the man-
agement of MünchenerHyp in accordance with the require-
ments incumbent upon it by law and under the Bank’s Articles
of Association. The main topics and focus of its deliberations
included business development and planning, business and risk
strategy, the risk situation, regulatory issues, the development
and operationalisation of the IT strategy, governance issues and
long-term succession planning for the Board of Management
and Supervisory Board. The effects of the COVID-19 pandemic
on banking operations, the core business and the risk situation,
as well as possible risks resulting from the flood disaster that
occurred in parts of Germany in mid-July, were continuously
monitored.
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Collaboration with the Board of Management
The Chairman of the Supervisory Board was in regular close
contact with the Chairman of the Board of Management, dis-
cussing important matters and decisions in face-to-face
meetings.
In addition, the Chairman of the Board of Management con-
tinuously and regularly reported to the Chairman of the Su-
pervisory Board between the individual meetings, verbally and
in writing, about all major developments within the Bank.
Activities of the Supervisory Board committees
The Supervisory Board has established four committees. These
are the Nomination Committee, the Audit Committee, the
Risk Committee and the Remuneration Control Committee.
The committees regularly reported on their activities during
the Supervisory Board meetings.
Five meetings of the Nomination Committee were held in
the reporting year. In addition to regular Board of Manage-
ment and Supervisory Board matters, it also addressed, in par-
ticular, the suitability assessment and efficiency review of the
management bodies and preparation for succession planning
for the Board of Management and the Supervisory Board. The
Supervisory Board furthermore supported the onboarding of a
member of the Board of Management and successfully com-
pleted the structured selection process for a new member of
the Board of Management.
The Audit Committee held three meetings, during which it
discussed the results of the audit of the annual financial
statements and of the management report. Other topics in-
cluded the Bank’s internal control system, reports prepared by
the Internal Audit department and by the Compliance Officer,
the results of external audits, and issues and requirements
discussed during meetings with banking supervisory authorities.
The Risk Committee convened twelve meetings. The Board
of Management provided the Committee with detailed reports
on the development of markets in which the Bank provides
property financing. The Committee also addressed the regula-
tory environment, risk strategy, risk governance, legal risks, IT
risks and information security, including data protection.
Furthermore, it considered and authorised loans requiring
approval and took note of any reportable transactions. The
Board of Management presented individual exposures of sig-
nificance for the Bank to the Committee and discussed them
with the Committee. Detailed reports were also provided on
the provision and management of liquidity and on refinanc-
ing. As part of this process, the risk types associated with the
Bank’s business were discussed and examined in detail. In
addition to credit risks, these include in particular market,
liquidity and operational risks, taking into account risk-bear-
ing capacity in accordance with the Minimum Requirements
for Risk Management (MaRisk). Reports on the Bank’s risk
situation were regularly submitted to the Committee and
explained in detail by the Board of Management and Head of
Risk Controlling. Furthermore, the effects of the COVID-19
pandemic and the flood disaster on the risk situation and the
lending business were continuously monitored. The Committee
also reviewed the sales report, the outsourcing report and the
report prepared by the Chief Information Security Officer (CISO).
The two meetings of the Remuneration Control Committee
addressed the Bank’s remuneration systems, the goals and
remuneration of members of the Board of Management and all
related issues. The Committee determined the appropriateness
of MünchenerHyp’s remuneration systems and recommended
that the Supervisory Board take note of the results of the ap-
propriateness test.
Annual financial statements
The DGRV – Deutscher Genossenschafts- und Raiffeisenver-
band e. V., Berlin, as the statutory auditing association, au-
dited the accounting records, annual financial statements and
the management report for financial year 2021 and issued an
unqualified audit opinion. No reservations were raised. The
auditors reported extensively on the key findings of the audit
during a meeting of the Audit Committee. They were also
available to provide additional information. Each member of
the Supervisory Board was provided in good time with the
auditing association’s audit report on the statutory audit
pursuant to Section 53 of the Cooperatives Act (Genossen-
schaftsgesetz – GenG) including the audit of Münchener Hy-
pothekenbank eG’s financial statements for 2021, for their
information. The Supervisory Board discussed the results of
the audit during a meeting held jointly with the Board of
Management and attended by the auditor. The results of the
audit are also reported at the Delegates Meeting.
The annual financial statements, the management report, the
Board of Management’s proposal for the allocation of distrib-
utable income, and the non-financial report were examined
by the Supervisory Board and approved. The Supervisory
Board recommends that the Delegates Meeting approve the
annual financial statements for 2021 – as explained – and
endorse the Board of Management’s proposal for the alloca-
tion of net income. The proposal complies with the provisions
of the Bank’s Articles of Association.
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Changes to the Supervisory Board
In June 2021, the four employee representatives on the Super-
visory Board were regularly elected for a new period of office.
Reimund Käsbauer, Michael Schäffler and Frank Wolf-Kunz
were reelected. Claudia Schirsch was newly elected. Barbara
von Grafenstein stood down from the Supervisory Board. She
had been a member of the Supervisory Board since 2016 and
contributed to the Bank’s success with great professionalism.
We sincerely thank her for her valuable commitment.
Development of MünchenerHyp during the year under
review
MünchenerHyp performed very well in its anniversary year of
2021. It achieved a new record result in new mortgage busi-
ness and again significantly increased its earning power. At
the same time, it proved that its growth strategy can succeed
in a competitive environment, even under the difficult condi-
tions of the continuing COVID-19 pandemic. The Bank also
took further important steps towards the digitalisation of its
processes and services. On the capital markets, it was able to
refinance at attractive conditions thanks to its placement
power and reputation.
Over its 125-year history, MünchenerHyp has repeatedly
shown that it can overcome difficult times and emerge from
them stronger, because it has a solid and sustainable business
model that enables it to meet the challenges ahead.
The Supervisory Board would like to thank the Board of Man-
agement and the Delegates of MünchenerHyp for their con-
structive and supportive cooperation in the year under review.
We also thank our employees, who have worked with great
dedication and professionalism for the success of their Bank
in another year full of uncertainty and health concerns for
themselves and their families. We thank the Delegates Meet-
ing, which was newly elected in 2021, for its constructive
cooperation over the past five years and look forward to
working with the new Delegates Meeting in the years ahead.
Munich, April 2022
Münchener Hypothekenbank eG
Dr Hermann Starnecker
Chairman of the Supervisory Board
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FURTHER INFORMATION
83 THE MEMBERS OF
THE DELEGATES MEETING
84 AGENDA –
GENERAL (DELEGATES) MEETING
85 EXECUTIVE MANAGEMENT AND BODIES
86 CONTACT
86 Headquarters
87 Contacts in the federal states
88 Cooperation partners
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THE MEMBERS OF
THE DELEGATES MEETING
AS OF 31 DECEMBER 2021
Peter Bahlmann » Bank director
Heinrich Beerenwinkel » Bank director
Gunnar Bertram » Bank director
Horst Bertram » Investor Relations manager
Thomas Bierfreund » Bank director
Christian Dietrich » Bank director
Eva Irina Doyé » Attorney, tax consultant
Clemens Fritz » Bank director
Steffen Fromm » Bank director (as of 16.12.2021)
Rainer Geis » Bank director
Josef Geserer » Bank director
Christian Glasauer » Bank director (as of 15.09.2021)
Helmut Graf » Bank director
Markus Gschwandtner » Bank director
Dr. Harald Heker » Chairman of the Board of Management
Martin Herding » Bank director
Joachim Hettler » Bank director
Dr. Michael Hies » Managing director
Ingo Hinzmann » Bank director
Michael Hohmann » Bank director
Konrad Irtel » Bank director (ret.)
Thomas Jakoby » Bank director
Andreas Jeske » Bank director
Michael Joop » Bank director
Carsten Jung » Bank director
Herbert Kellner » Bank director
Manfred Klaar » Bank director
Robert Kling » Bank director
Dr. Carsten Krauß » Bank director
Norbert Lautenschläger » Bank director
Marcus Wilfried Leiendecker » Bank director
Martin Leis » Bank director
Dr. Ursula Lipowsky » Attorney
Georg Litmathe » Auditor/tax consultant (ret.)
Thomas Ludwig » Bank director
Jan Mackenberg » Bank director
Karl Magenau » Bank director
Gregor Mersmann » Bank director
Klaus Merz » Bank director
Markus Merz » Bank director
Franz Dierk Meurers » Bank director
Jens Ulrich Meyer » Bank director
Prof. Dr. Peter Otto Mülbert » University professor
Carsten Müller » Bank director
Markus Müller » Bank director
Heinrich Oberreitmeier » Bank director
HSH Albrecht Prince of Oettingen-Spielberg »
Managing director and Owner
Armin Pabst » Bank director (ret.)
Markus Pavlasek » Bank director
Karsten Petersen » Bank director
Claus Preiss » Bank director
Jens Prößer » Bank director
Jan H. Reese » Bank director
Richard Riedmaier » Bank director
Frank Ruffing » Bank director
André Schaffeld » Bank director
Ulrich Scheppan » Bank director
Michael Schlagenhaufer » Bank director
Dr. Eckhard Schmid » Attorney
Franz Schmid » Bank director
Andreas Schmidt » Board of Management
Andreas Schmidt » Certified property specialist
Dr. Marc Alexander Schmieder » Attorney
Carsten Schüler » Real estate agent
Thorsten Schwengels » Bank director
Roland Seidl » Bank director
Hermann-Josef Simonis » Bank director
Martin Spils » Bank director
Jörg Stahl » Bank director
Thomas Standar » Bank director
Thomas Stolper » Bank director
Remo Teichert » Bank director
Stefan Terveer » Bank director
Werner Thomann » Bank director
Martin Trahe » Bank director, † 15.12.2021
Florian Ungethüm » Attorney
Peter Voggenreiter » Bank director
Karsten Voß » Bank director
Chris Wallbaum » Bank director
Dr. Gerhard Walther
» Bank director
Silke Wolf » Managing director, † 14.09.2021
Michael Zaigler » Managing director
NOTESMANAGEMENT REPORT FURTHER INFORMATION
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MÜNCHENER HYPOTHEKENBANK EGANNUAL REPORT 2021
The members of
the Delegates Meeting
83
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AGENDA –
GENERAL (DELEGATES) MEETING
23 APRIL 2022 AT 10.30 AM
1. Report of the Board of Management about the 2021
business year
2. Report of the Supervisory Board on its activities
3. Report on the results of the statutory auditor’s report
4. Consultation of the auditor’s report and resolution
regarding the extent of disclosure of the auditor’s
report
5. Resolutions to ratify
a) the annual financial statements for 2021
b) the proposed appropriation of distributable income
c) ratification of the acts of the Board of Management and
the Supervisory Board
6. Elections to the Supervisory Board:
Re-election of Josef Hodrus, Kai Schubert
7. Other issues
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Agenda –
General (Delegates)Meeting
84
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Supervisory Board
Dr. Hermann Starnecker
Chairman of the Supervisory Board
Gregor Scheller
Deputy Chairman of the Supervisory Board
HRH Anna Duchess in Bavaria
Barbara von Grafenstein (until 30.06.2021)
Thomas Höbel
Josef Hodrus
Jürgen Hölscher
Rainer Jenniches
Reimund Käsbauer
Michael Schäffler
Claudia Schirsch (as of 01.07.2021)
Kai Schubert
Frank Wolf-Kunz
Board of Management
Dr. Louis Hagen
CEO (Chairman)
Dr. Holger Horn
CRO (Deputy Chairman)
(as of 01.01.2022)
Ulrich Scheer
CFO
(as of 01.09.2021)
General Executive Manager
Ulrich Scheer (until 31.08.2021)
Ingo Schramm
Trustees
Dr. Joseph Köpfer
Senior Ministerial Counsellor (ret.), (until 31.03.2022)
Walter Heinz Christl
Ministry director (as of 01.04.2022),
Deputy (as of 01.01.2022 until 31.03.2022)
Dr. Günter Graf
Ministry director
Deputy
Cooperative Advisory Committee (as of 01.01.2022)
N.N.
Chairman
Herbert Kellner »
VR-Bank Ismaning Hallbergmoos Neufahrn eG
Deputy Chairman
Hans-Jörg Meier » Volksbank Bühl eG
Deputy Chairman
Manfred Asenbauer » VR-Bank Passau eG
Matthias Berkessel » Volksbank Rhein-Lahn-Limburg eG
Frank Buchheit » levoBank eG
Jürgen Edel » Volksbank Brenztal eG
Bernhard Failer » Raiffeisen-Volksbank Ebersberg eG
Josef Frauenlob » Volksbank Raiffeisenbank
Oberbayern Südost eG
Steffen Fromm » VR-Bank Neu-Ulm eG
Ralf Gottschalk » Volksbank
Herrenberg-Nagold-Rottenburg eG
Herbert Hermes » Volksbank Vechta eG
Carsten Jung » Berliner Volksbank eG
Thomas Lange » Volksbank Raiffeisenbank Bayern Mitte eG
Markus Müller » Sparda-Bank Hessen eG
Stefan Rinsch » Volksbank Krefeld eG
Martin Traub » Raiffeisenbank Ehingen-Hochsträß eG
Thorsten Wolff » Volksbank Brilon-Büren-Salzkotten eG
EXECUTIVE MANAGEMENT AND BODIES
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MÜNCHENER HYPOTHEKENBANK EGANNUAL REPORT 2021
Executive Management
and Bodies
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CONTACT
HEADQUARTERS
Main Office
Münchener Hypothekenbank eG
Karl-Scharnagl-Ring 10 | 80539 Munich
PO Box 22 13 51 | 80503 Munich
Phone +49 89 5387-0 | Fax +49 89 5387-770
E-mail: info@muenchenerhyp.de
Internet: www.muenchenerhyp.de
Accounting | Taxes
Johann Götz » Phone +49 89 5387-2701
Business Process Optimisation
Florian Lang » Phone +49 89 5387-1602
Central Services
Dr. Phil Zundel » Phone +49 89 5387-2000
Commercial Real Estate Finance
Jan Polland » Phone +49 89 5387-2200
Compliance
Nathalie Wagemanns » Phone +49 89 5387-1301
Internal Audit
Gisela Conrads » Phone +49 89 5387-3701
International Debt Investments
Guido Zeitler » Phone +49 89 5387-2260
IT
Hans-Georg Klinkenberg » Phone +49 89 5387-4201
Legal
Günther Schwarz » Phone +49 89 5387-5402
Offices of The Board of Management
Dr. Louis Hagen (CEO) » Phone +49 89 5387-1011
Dr. Holger Horn (CRO) » Phone +49 89 5387-1021
Ulrich Scheer (CFO) » Phone +49 89 5387-1021
Private Customers | Private Housing Business
Brokers
Dr. Peter Knorr » Phone +49 89 5387-3010
Verbund
Thomas Hügler » Phone +49 89 5387-3308
Risk Controlling | Regulation
Hannsjörg Eisenreich » Phone +49 89 5387-3200
Transaction Management Capital Markets | Treasury
Ingeborg Eitler » Phone +49 89 5387-7327
Transaction Management Property Finance
Commercial Real Estate Customers
Susanne Falkenberg » Phone +49 89 5387-1701
Private Customers
Ingo Schramm » Phone +49 89 5387-6001
Treasury
Rafael Scholz » Phone +49 89 5387-5500
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CONTACTS
IN THE FEDERAL STATES
Regional Office Augsburg
Regional director: Peter Birgmeier
Münchener Hypothekenbank eG
Von-der-Tann-Straße 45
86159 Augsburg
Phone +49 821 25763-0
Fax +49 821 25763-20
Regional Office Berlin
Regional director: Stefan Polter
Münchener Hypothekenbank eG
Kurfürstendamm 151
10709 Berlin
Phone +49 30 329007-0
Fax +49 30 329007-20
Regional Office Cologne
Regional director: Daniel Probstfeld
Münchener Hypothekenbank eG
Herwarthstraße 1
50672 Cologne
Phone +49 221 500616-0
Fax +49 221 500616-20
Regional Office Dresden
Regional director: Cornelius Dachsel
Münchener Hypothekenbank eG
Cossebauder Straße 20
01157 Dresden
Phone +49 351 427971-0
Fax +49 351 427971-20
Regional Office Frankfurt
Regional director: Michael Hohmann
Münchener Hypothekenbank eG
Mainluststraße 12
60329 Frankfurt am Main
Phone +49 69 743465-0
Fax +49 69 743465-20
Regional Office Hamburg
Regional director: Olaf Kaspereit
Münchener Hypothekenbank eG
Brooktorkai 20
20457 Hamburg
Phone +49 40 355430-0
Fax +49 40 355430-35
Regional Office Hanover
Regional director: Karl-Heinz Meyer
Münchener Hypothekenbank eG
Berliner Allee 5
30175 Hanover
Phone +49 511 856144-0
Fax +49 511 856144-20
Regional Office Muenster
Regional director: Ingo Haut
Münchener Hypothekenbank eG
Hafenweg 46–48
48155 Muenster
Phone +49 251 91997-0
Fax +49 251 91997-20
Regional Office Munich
Regional director: Barbara von Grafenstein
Münchener Hypothekenbank eG
Karl-Scharnagl-Ring 10
80539 Munich
Phone +49 89 5387-521
Fax +49 89 5387-566
Regional Office Nuremberg
Regional director: Klaus Böhmer
Münchener Hypothekenbank eG
Wallensteinstraße 61–63
90431 Nuremberg
Phone +49 911 214675-0
Fax +49 911 214675-20
Regional Office Stuttgart
Regional director: Wolfgang Bronner
Münchener Hypothekenbank eG
Lange Straße 6
70173 Stuttgart
Phone +49 711 222962-0
Fax +49 711 222962-22
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COOPERATION
PARTNERS
Paris
ARP
Pascal Roth
1 Rue François 1er
France-75008 Paris
Phone + 33 1 456262-50
E-mail: Pascal.Roth@groupe-arp.fr
Madrid
VP Investment & Finance Advisory, S.L.
Peter von Puttkamer
Paseo de la Castellana, 45
Spain-28046 Madrid
Phone + 34 645 988 291
E-mail: pvp@vpadvisory.eu
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Imprint
Published by
© Münchener Hypothekenbank eG
Karl-Scharnagl-Ring 10
80539 Munich
Register of cooperatives of the District Court
of Munich Gen.-Reg 396
Coordination
Central Services – Communication and Marketing
Münchener Hypothekenbank eG
Concept | Design
MPM Corporate Communication Solutions
Mainz
www.mpm.de
Translation
BBi (Scotland) Ltd
Suite 4.1.A, 290 Bath Street
Glasgow G2 4JR
United Kingdom
Photo credits
Title page:
MünchenerHyp
Archiv MünchenerHyp
Hüttl, MünchenerHyp, 1997
© denkmaeler-muenchen.de
Dorotheum, Wien (frei)
David Rumsey Map Collection
Page 2:
MünchenerHyp
Archiv MünchenerHyp
Hüttl, MünchenerHyp, 1997
© denkmaeler-muenchen.de
Dorotheum, Wien (frei)
Stadtmuseum München
BayernLB
AdobeStock
Page 5:
Fotostudio Black BOX
Tommy Lösch
Munich
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