Aareal reports less new business and high margin
Aareal Bank generated significantly less new business in the first quarter. Following €1.45bn in Q1 2018, in this year’s period the real estate financier granted loans for €812mn, €323mn of which were extensions. North America accounted for almost one third of the total, while Germany accounted for only 3%. The Wiesbaden-based company achieved a respectable pre currency hedge margin of 250 basis points. However, Aareal does not expect to be able to maintain this level for the entire year, and predicts an average margin of 180 to 190 basis points. The group operating result was €61mn, slightly below the previous year’s period (€67mn) but in line with planning. Aareal’s net interest income €135mn slightly exceeded last year’s figure. Aareal’s Management Board says that these figures are in line with guidance for the fiscal year.
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