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Aareal: New business is catching up, margins are stable

Aareal Bank has issued property financing worth €1.9bn (58 % new credit) during the 3rd quarter, exceeding the figure for the same quarter of last year (€1.6bn). After nine months, new business volume comes to €5.7bn, falling just short of the previous year’s level (€6.0bn). The annual target of €7bn to €8bn remains firm. The North American portion of new credits was 43 % last quarter, so gross margins remained stable at 230 basis points (after deduction of foreign currency costs). Interest income dropped from €175mn to €164mn due to the reduction of the credit portfolio and currency effects. Commission surplus increased from €44mn to €48mn thanks to IT subsidiary Aareon, which is becoming more significant for the bank’s corporate success. Finally, the group result for the 3rd quarter increased by 11 % to €82mn and for the nine-month period by 7 % to €262mn. The forecast for the year remains at €310mn to €350mn.

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