Aareal exceeds even raised target in new business


Aareal Bank had just raised its new business target for 2018 in November, from between €7bn and €8bn to between €8bn and €9bn. That mark was ultimately exceeded with €9.5bn, as the Wiesbaden-based real estate financier released this morning. A substantial portion of the new business (39 %) was transacted in the USA, while the German portion shrank from 15 to 9 %. The average gross margin of all new loans exceeded expectations at 210 basis points. The group’s operative earnings of €316mn were within the communicated target range, though at the lower end. For 2019 the bank is expecting operative group earnings of €240mn to €280mn, which would correspond to the previous year’s figures not including the one-off effect of the Düsseldorf Hyp takeover. New business is anticipated to drop back to between €7bn and €8bn in 2019, which is expected to be a more difficult year. The bank will “again focus in part on the US market with its strong margins.”

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