Despite further growth of credits, interest
income rose only slightly (0.9%). Interest
margins continued to be under pressure in the
first half of the year, after which they recovered,
but only partially. For the year as a whole, they
were lower than in 1984.
Total costs rose by 9.8% to Fl. 280.1 million,
staff costs being up 11.0% due mainly to
accelerated automation and rapidly rising
expenses for the voluntary early retirement
scheme.
Gross earnings in 1985 amounted to Fl. 148
million, an increase of 11 An unchanged sum
of Fl. 70 million was transferred to the provision
for general contingencies. Lower taxation and
other factors led to a net profit of Fl. 63
million, an improvement of 13.8% on the 1984
figure of Fl. 55 million.
The balance sheet total, which amounted to
Fl. 16.0 billion at the end of 1984, rose by
9.9% to Fl. 17.6 billion. The aggregate sum of
credit transactions reached Fl. 10.7 billion, an
increase of 10.4%. Loans to, or bearing a
guarantee from, central government or local
authorities increased by 15%. Other credits rose
by well over 8%, largely under the influence of
an increase in domestic business credits.
Of the funds entrusted to the bank, deposits
(8.9%) and creditors (21.1 showed the largest
increases. Savings rose by 3.6%, mainly under
the influence of the growth in demand for
the Mees ECU Savings Account. With the issue
during the year of a debenture loan in ECUs and
the introduction of savings certificates and
"Bankbrieven" in ECUs, the bank increased its
involvement in the growing market for this
European currency.
The sum of the shareholders' equity and sub
ordinated loans rose by Fl. 55 million to Fl. 757
million at the balance sheet date.
The domestic network of Bank Mees
Hope NV was slightly reduced in 1985. With the
merging of a number of branches as part of the
plan to optimize the service provided by each,
the number fell to 24.
Fore more detailed information, the reader is
referred to the annual report to be published by
Bank Mees Hope NY.
54
