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.
Subscribers to our premium service have access to this article in full as well as to an additional 480,000+ news items: all filterable by topic, company, asset class, city or keyword. In TD Premium you can search for investment deals, leases, current project developments and company news with pinpoint accuracy.
TD Premium is Germany's leading property information tool that interconnects news, transactions, project data, market and company information in a unique and flexible system.