Aareal Bank News (en) http://www.aareal-bank.com/ Aareal Bank news in English de Aareal Bank AG http://www.aareal-bank.com/EXT:tt_news/ext_icon.gif http://www.aareal-bank.com/ Aareal Bank AG News TYPO3 - get.content.right http://blogs.law.harvard.edu/tech/rss Tue, 11 Aug 2009 07:30:00 +0200 50.0826538.248624 Aareal Bank Group reports robust business development during the second quarter of 2009 http://feedproxy.google.com/~r/aareal/news/en/~3/q3QXfYfews8/ Q2 pre-tax profit of ? 25 million (Q1: ? 17 million), despite the global economic slump and the...
  • Q2 pre-tax profit of ? 25 million (Q1: ? 17 million), despite the global economic slump and the prevailing financial markets crisis
  • Allowance for credit losses remains at a manageable level, projection for the full year confirmed
  • Structured Property Financing enjoys solid new business and stable net interest income ? satisfactory overall performance of Consulting/Services
    • Wiesbaden, 11 August 2009 ? Aareal Bank Group?s robust business development continued into the second quarter of the current year. Against the background of a difficult market environment, the Group once again achieved a satisfactory result, therefore remaining successfully on track. Group profit before taxes improved to ? 25 million in the second quarter of 2009, after ? 17 million in the first quarter (Q2 2008: ? 48 million). Both segments ? Structured Property Financing and Consulting/Services ? once again posted positive quarterly results, in spite of the dramatic slump affecting the global economy and the continuing challenges on the financial markets. Aareal Bank Group is therefore one of the few banks, in Germany and abroad, to have achieved a positive result in all quarters since the outbreak of the financial markets crisis two years ago. "Aareal Bank Group remained on track in a difficult environment", said Dr Wolf Schumacher, Chairman of the Management Board. "Thanks to its conservative business policy and its robust client business, the bank continues to generate solid results. We are still in a good position to manage the manifold burdens and difficulties posed by the crisis affecting financial markets and the sharp recession. Once again, we have proven that our business model based on two columns is sustainable, consistent, and viable. We continue to control our risk exposure and costs. Our business is profitable enough to also absorb the costs for the silent participation and the guarantee facilities extended by SoFFin."

    Structured Property Financing: sustainable business policy bears fruit

    Aareal Bank's Structured Property Financing segment once again posted a positive result, in spite of a significant deterioration in its market environment. At ? 18 million, (Q2 2008: ? 37 million), the segment's operating profit was slightly higher than in the first quarter of 2009 (? 16 million). Aareal Bank continued to adhere to its strict and selective new business policy that focuses on quality and return. New business amounted to ? 1.7 billion in the first six months of 2009. The bank continued to concentrate predominantly on its existing client base, and on active financing projects. Net interest income in the Structured Property Financing segment amounted to ? 101 million in the quarter under review, compared to ? 102 million in the first quarter of 2009, and ? 95 million in the second quarter of 2008. The year-on-year increase is largely due to the higher margins achieved in the lending business. Aareal Bank consistently exploited the favourable capital market environment during the first half of the year to place issues over and above its bond guaranteed by the German Financial Markets Stabilisation Fund (SoFFin): placements focused on Pfandbriefe, but also included medium-term senior unsecured bonds. The liquidity generated through these issues provides the bank with ample funding for its new business budgeted for the second half of the year. Given the extremely low interest rates prevailing during the first half of 2009, the excess liquidity had a slightly negative effect on net interest income. Thus far, Aareal Bank has coped well with the consequences of the worst recession in recent decades. Even though at ? 42 million (Q2 2008: ? 20 million), allowance for credit losses in the second quarter of 2009 was higher than in the same period of the previous year, it remained at a manageable level. The increase over the previous quarter (Q1 2009: ? 37 million) was in line with the normal fluctuation range. Aareal Bank affirmed its forecast regarding allowance for credit losses for the full year, and expects a figure at the upper end of the projected target corridor of ? 90 million to ? 150 million for 2009. Given the prevailing market environment, it is however impossible to fully exclude unexpected losses. "Even though Aareal Bank has not been spared from the effects of the recession, we consider the moderate increase in allowance for credit losses as renewed evidence of the high quality of our financing portfolio. Moreover, the solid results generated in Structured Property Financing show that there is a future for the segment's business model: provided that it is being sustainably managed ? as Aareal Bank does ? it also provides stable and reliable results in a cyclical downturn", Schumacher commented.

    Consulting/Services: satisfactory development

    At ? 7 million, operating profit in the Consulting/Services segment for the second quarter was considerably higher than the ? 1 million reported in the previous quarter, which was burdened by non-recurring charges. However, it was down on the second quarter of the previous year (? 11 million). Against the background of low margins in the deposit-taking business due to market developments, and the prevailing economic environment, the segment?s performance was satisfactory overall. Net commission income amounted to ? 46 million in the second quarter, up ? 2 million on the previous quarter. This represented a decline of ? 2 million on the same quarter of the previous year, largely due to the unfavourable interest rate environment for the deposit-taking business with the institutional housing industry. The volume of deposits placed by this client group remained stable, at an average ? 4.2 billion during the second quarter. The Aareon AG subsidiary increased its profit contribution in the second quarter of 2009 over the first quarter, in line with expectations. Capacity adjustments to the Blue Eagle product line ? which resulted in expenditure recognised in first-quarter results ? were completed at the end of the second quarter. While Aareon?s revenue from products implemented with its existing client base remained stable in the second quarter, revenue from new client business was slightly lower than in the same period of the previous year. This was primarily attributable to perceptible client reticence regarding large SAP-based projects. "Despite the burdens placed upon it by the unfavourable interest rate environment and the impact of recession, the Consulting/Services segment did well overall, thus affirming its position as a reliable source of income for Aareal Bank Group, even during a challenging period", Schumacher explained.

    Solid refinancing situation and good capitalisation

    Aareal Bank Group successfully continued its funding activities during the second quarter, thus further expanding its good liquidity situation. The bank raised ? 1.9 billion in long-term funds between April and June, with mortgage bonds accounting for ? 1.6 billion and uncovered issues for ? 0.3 billion. Aareal Bank invests available liquidity in a conservative manner and ensures quick access, in order to provide continued financing support to its existing clients as well as being well-equipped to deal with a potential deterioration of the financial and economic crisis. As at 30 June 2009, Aareal Bank?s Tier 1 ratio ? measured in accordance with the Credit Risk Standardised Approach (CRSA) ? was 10.4%, which is high by international standards.

    Notes to consolidated results

    Net interest income for the second quarter of 2009 was ? 114 million (Q2 2008: ?114 million), and therefore ? 228 million in the first half of the year (H1 2008: ? 221 million). Net interest income after allowance for credit losses for the first half of the year totalled ? 149 million (H1 2008: ? 181 million). Net commission income totalled ? 30 million for the second quarter (Q2 2008: ? 35 million), and thus ? 66 million for the first half of the year (H1 2008: ? 68 million). Net commission income for the second quarter includes expenses of ? 6 million for the guarantee facilities extended by SoFFin. Net trading income totalled ? 9 million in the second quarter (Q2 2008: net expense of ? 3 million). As in the first quarter of 2009, the net figure no longer showed any burden due to the financial markets crisis. Net trading income of ? 25 million for the first half of 2009 was attributable mainly to the measurement of stand-alone derivatives. In addition to offsetting effects ? in part from the measurement of interest rate and currency derivatives employed as economic hedges ? the positive result was due to a recovery in the value of credit derivatives (+? 18 million), especially in the second quarter. Despite the difficult market environment, Aareal Bank managed to post a slightly positive result from non-trading assets (? 1 million) in the second quarter of 2009. This reflects the conservative risk policy the bank has pursued in the past, and the quality of its existing securities portfolio. The result of ?? 16 million for the first half of 2009 is mainly attributable to the restructuring of the securities portfolio that was undertaken in the first quarter. Administrative expenses in the Group amounted to ? 88 million in the second quarter, and ? 178 million in the first half-year. The net figure for the first half was thus almost unchanged from the same period of the previous year, despite special charges of ? 6 million incurred by Aareon AG and additional expenditure sustained in conjunction with the consolidation of Sylogis.com. This continues to reflect pursuance of the Group?s strict cost discipline. Net other operating income/expenses posted a positive balance of ? 1 million for the second quarter (Q2 2008: ? 16 million). First-half net other operating income and expenses of ?? 5 million includes project expenditure (including legal and advisory costs) of ? 6 million that were incurred in the first quarter in conjunction with the support measures agreed upon between SoFFin and the Aareal Bank. Last year?s figure included, amongst other things, non-recurring income of ? 7 million from the Interhotel exposure. Consolidated operating profit for the second quarter of 2009 totalled ? 25 million (Q2 2008: ? 48 million). Taking into consideration ? 1 million in income taxes and ? 5 million in income attributable to non-controlling interests, consolidated net income after non-controlling interests stood at ? 19 million. After deduction of the return on the SoFFin silent participation (which was recognised in the second quarter for the first time), consolidated net income stood at ? 7 million. Aareal Bank's consolidated operating profit for the first half of 2009 totalled ? 42 million (H1 2008: ? 75 million). Taking into consideration taxes of ? 7 million and income attributable to non-controlling interests of ? 9 million, net income attributable to shareholders of Aareal Bank AG amounted to ? 26 million. After deduction of the return on the SoFFin deposit, consolidated net income stood at ? 14 million.

    Outlook: the environment remains challenging

    Because of the current challenging market environment, characterised by continued uncertainty, it remains impossible to make any substantiated earnings forecast for the full year 2009. However, Aareal Bank continues to adhere to its key projections for important indicators communicated to date. The Management Board continues to expect consolidated net interest income to range between ? 420 million and ? 440 million for the year as a whole. Given the general economic developments, allowance for (expected) credit losses will clearly exceed the previous year's figures, but will remain manageable, within the communicated range of ? 90 million to ? 150 million. As already indicated towards the end of the first quarter, the full-year figure is expected to reach the upper end of the range. It is, however, impossible to exclude additional impairments from unexpected losses for 2009. Administrative expenses are expected in the region of ? 360 million. Adjusted for non-recurring effects and the impact of the first-time consolidation of Sylogis.com, this would represent only a minor increase over the previous year. From today's perspective, new business generated in the Structured Property Financing segment is expected to range between ? 2 billion and ? 3 billion. Aareal Bank's particular focus is on extensions of existing exposures, and on financing requirements of existing clients. Aareal Bank expects net commission income in the Consulting/Services segment to rise again in the second half of the year, and especially during the fourth quarter ? due to rising revenues generated by Aareon through the new Wodis Sigma product line. However, due to intensified margin pressure in the deposit-taking business, the Management Board has further adjusted projections for pre-tax profits in this segment. From today?s perspective, this will lead to lower returns of roughly ? 10 to ? 15 million compared with first-quarter projections. The forecast for the operative segment result before taxes and non-recurring effects has therefore been reduced from around ? 40 million to between ? 25 and ? 30 million, depending on interest rate developments.
    ]]>     News Home News Portal Press News Press News Portal IR News IR Tue, 11 Aug 2009 07:30:00 +0200 http://www.aareal-bank.com/en/press/press-release/aareal-bank-group-reports-robust-business-development-during-the-second-quarter-of-2009/     Aareal Award of Excellence 2010 has commenced http://feedproxy.google.com/~r/aareal/news/en/~3/UEPBWuJCNgk/ EBS Real Estate Management Institute and Aareal Bank again offer the research prize for scholarly... EBS Real Estate Management Institute and Aareal Bank again offer the research prize for scholarly work in real estate economics. Wiesbaden, 22 June 2009 ? Aareal Bank AG and the Real Estate Management Institute (REMI) of the European Business School (EBS) are offering the Aareal Award of Excellence in Real Estate Research for the third time. The annual research prize honours academically-outstanding work in real estate research and is again worth 12,000 Euro. This year, academic papers/theses on the three subjects real estate finance products and ratings; real estate investment products; real estate and demography can be submitted. The following categories are eligible for entry: Bachelor/Master/Diploma theses and doctoral dissertations and research papers from all types of tertiary education (universities, universities of applied science and vocational academies). Deadline for the award in 2010 is 18 December 2009. The exact conditions of entry are at aareal-award.com.

    Research to recognise market trends early

    This year too, the Aareal Award of Excellence in Real Estate Research is being offered at international level. That underscores the international gearing of the awarders: Aareal Bank, one of the leading international property specialists, is on the market in Europe, US and Asia and has local market expertise in more than 25 countries. Dr Wolf Schumacher, Chairman of the Management Board at Aareal Bank AG explains: "We want to foster up-and-coming talent with the Aareal Award of Excellence; to support research; network research and teaching at international level and identify market trends early." EBS REMI has an international orientation and more than 150 partner institutions in the tertiary education sector around the world. It aims to offer training and continuing education at the highest level in real estate economics and to promote research at the same time. The head of the institute, Prof Dr Nico Rottke explained: " We see the joint award as a key contribution for committed and, especially, young real estate researchers around the world to get involved in research and to take part in the future of the property industry." Media partners for the 2010 Aareal Award are the "Immobilien-Manager" and "REurope" magazines.These trade journals support the jury in defining the topics for the prize competition.

    Aareal Award ceremonies 2010

    An independent jury of more than 30 international professors chooses the best work from among all submitted. The Aareal Award of Excellence in Real Estate Research will be awarded on 26 February 2010 at the 11th EBS real estate congress on the Schloss Reichartshausen campus of the European Business School in Oestrich-Winkel. Further information at: www.rem-institute.org and www.aareal-award.com.
    ]]>     News Home News Portal Press News Press Mon, 22 Jun 2009 10:00:00 +0200 http://www.aareal-bank.com/en/press/press-release/aareal-award-of-excellence-2010-has-commenced/     Aareal Bank successfully issues ? 500 million mortgage bond http://feedproxy.google.com/~r/aareal/news/en/~3/ZEhH62jVDw4/ Wiesbaden, 4 June 2009 ? Aareal Bank successfully placed a ? 500 million, 3 1/4 year mortgage bond... ]]> News Home News Portal Press News Press News Portal IR News IR Thu, 04 Jun 2009 10:31:00 +0200 http://www.aareal-bank.com/en/press/press-release/aareal-bank-successfully-issues-500-million-mortgage-bond/ "The Spirit of Money" exhibition: satirical comments on the topic of "Money" - The Aareal Bank caricature collection has been opened in the Wilhelm-Busch-Museum http://feedproxy.google.com/~r/aareal/news/en/~3/AXnoVkCZsv0/ Hanover/Wiesbaden, 18 May 2009. The Wilhelm-Busch-Museum, Hanover, opened the "Spirit of Money"... "The Spirit of Money":
    the Aareal Bank caricature collection in the Wilhelm-Busch-Museum in Hanover
    17 May - 2 August 2009 Opening hours of the Wilhelm-Busch-Museum:
    Tuesday to Sunday and on public holidays: 11 am to 6 pm Address:
    Georgengarten, 30167 Hannover
    Tel.: +49 511 16 99 99-11/16 The Wilhelm-Busch-Museum
    The body responsible for the Wilhelm-Busch-Museum/Deutsches Museum für Karikatur und kritische Grafik in Hanover is the Wilhelm-Busch-Gesellschaft, founded in 1930, a registered association under private law with ca 2,500 members. The task and aim of the association is to collect the work of Wilhelm Busch, to give it scholarly treatment and to make it accessible to the public; further, to foster the development of caricature and graphic artworks containing social criticism as a recognised branch of the fine arts.  
    ]]>     News Home News Portal Press News Press Mon, 18 May 2009 09:22:00 +0200 http://www.aareal-bank.com/en/press/press-release/the-spirit-of-money-exhibition-satirical-comments-on-the-topic-of-money-the-aareal-bank-caricature-collection-has-been-opened-in-the-wilhelm-busch-museum/     Aareal Bank Group remains profitable in the first quarter of 2009 http://feedproxy.google.com/~r/aareal/news/en/~3/1sQ_IsPkBpI/ Profit before taxes of ? 17 million for the first quarter of 2009, despite the financial markets...
  • Profit before taxes of ? 17 million for the first quarter of 2009, despite the financial markets and economic crisis
  • Both segments of Aareal Bank Group remain profitable
  • Outlook regarding key financial indicators for 2009 affirmed
  • Dr Wolf Schumacher, Chairman of the Management Board: "We are in a good position to perform well throughout 2009."
    • Wiesbaden, 12 May 2009 ? Aareal Bank Group successfully held its course during the first quarter of 2009, in a market environment that continued to be challenging. In spite of the ongoing crisis affecting financial markets and the economy, the international property specialist continued to be profitable during the first three months of the year ? once again, this applies to both the Structured Property Financing and the Consulting/Services segments. The Group posted a profit before taxes of ? 17 million, compared to ? 27 million in the first quarter and ? 11 million in the fourth quarter of 2008. Aareal Bank Group is therefore one of the few banks, both in Germany and abroad, to have achieved a positive result in all quarters since the outbreak of the financial markets crisis in summer of 2007. Bearing in mind the difficult market environment, the positive quarterly result can be attributed to two aspects: on the one hand, Aareal Bank Group operates a sustainable business model that is based on the two strong segments of Structured Property Financing and Consulting/Services. On the other hand, Aareal Bank pursues a conservative business policy that is built on an appropriate ratio of risks and returns and is focused on sustainability. "Having seen the performance during the first quarter, we remain convinced that Aareal Bank Group is well-positioned to deal with the challenges presented by the market environment", said Dr Wolf Schumacher, Chairman of the Management Board of Aareal Bank. "We are in a good position to perform well in the current financial year. Aareal Bank is fundamentally healthy and operates a coherent, sustainable business model", Schumacher commented on the quarterly results. "Aareal Bank is well positioned to deal with the challenges ahead ? not least thanks to the agreement with the German Financial Markets Stabilisation Fund (SoFFin) on strengthening our capital base plus a guarantee facility for uncovered issues, which was finalised in March. At the same time, this will provide a good starting point for the post-crisis period", Schumacher added.

    Structured Property Financing: net interest income increases

    During the first quarter of 2009, Aareal Bank Group adhered to its policy in generating new business in the Structured Property Financing segment, where it imposed strict requirements in terms of quality and return. It also concentrated on transactions with attractive risk/return profiles. Aareal Bank concentrated predominately on its existing client base and on loan extensions for active financing projects. New business amounted to ? 510 million and is therefore in line with the target figure of ? 2 billion to ? 3 billion for the year 2009 as a whole. Despite the ongoing turbulence on financial markets, Aareal Bank succeeded in increasing net interest income, from ? 92 million in the first quarter of 2008, to ? 102 million. The increase of approx. 11% over the previous year is largely attributable to a better interest rate environment and higher margins. Aareal Bank increased its allowance for credit losses to ? 37 million in the first quarter of 2009 (Q1 2008: ? 20 million), as the bank adjusted its projection for the full year towards the upper end of its forecast range of ? 90-150 million, to reflect economic development. Nonetheless, at current levels, the allowance for credit losses is manageable for Aareal Bank.

    Consulting/Services: robust development despite difficult market environment

    The Consulting/Services segment performance continued to be robust overall, without being directly affected by the financial markets crisis. Deposits taken from the bank's institutional housing clients remained largely stable, averaging just under ? 4 billion in the first quarter. As expected, however, the further drop in interest rates in the first quarter burdened net interest income generated from the deposits of institutional housing clients. As an additional burdening factor, Aareal Bank recognised expenses for capacity adjustments at its Aareon AG subsidiary in this segment, following the successful conclusion of developing its SAP-based property management software Blue Eagle, as well as for the discontinuation of non-core activities. The resulting aggregate non-recurring charges of ? 6 million were recognised in income for the first quarter. Moreover, the economic slowdown caused some of Aareon's clients to be clearly reluctant regarding new investment. Given that this trend was evident in lower Aareon revenues during the first quarter, projections regarding full-year consultancy revenue were adjusted as a precautionary measure. Revenue from products already implemented on client systems is not exposed to the economic slowdown: these products continue to provide a stable, crisis-proof contribution to results. Due to the effects described above, operating profit of ? 1 million generated by the Consulting / Services segment was significantly lower than the strong ? 11 million result achieved in the first quarter of 2008.

    Successful benchmark bond ? strengthening the capital base

    Against the background of the continued difficult market situation, Aareal Bank took advantage of the SoFFin guarantee facility for the first time in March 2009, successfully placing a ? 2 billion government-guaranteed benchmark bond on the capital market. The strong demand by international investors, who subscribed 52% of the issue, was very positive. Additional unsecured long-term funds in the amount of roughly ? 40 million were raised in the first quarter and approx. ? 250 million in mortgage bonds were issued. SoFFin provided the silent participation to Aareal Bank, as agreed, on 31 March 2009. As a result, Aareal Bank's Tier 1 ratio under the Credit Risk Standard Approach (CRSA) rose to 10.2% at the end of the first quarter of 2009 ? a very good level by international standards as well.

    Notes to consolidated results

    Net interest income rose by roughly 7% in the first three months of the 2009 financial year, to ? 114 million (Q1 2008: ? 107 million). The increase is largely attributable to a more favourable interest rate environment, and higher margins on property finance. Taking into consideration the considerably higher allowance for credit losses ? compared to the previous year ? of ? 37 million (Q1 2008: ? 20 million), to reflect the economic environment, net interest income after allowance for credit losses amounted to ? 77 million (Q1 2008: ? 87 million). Net commission income was up by ? 3 million over the same period of the previous year, to ? 36 million (Q1 2008: ? 33 million). The slight fall in revenue in the Consulting / Services segment is offset by higher net commission income earned in the Structured Property Financing segment. Net trading income/expenses of ? 16 million (Q1 2008: -? 22 million) was largely attributable to the valuation of stand-alone derivatives. The positive valuation was accounted for mainly by the changed interest rate environment during the first quarter. The results from non-trading assets of -? 17 million (Q1 2008: ? 9 million) should be seen against the background of the crisis affecting financial markets and further restructuring of the securities portfolio that was undertaken to reflect a conservative risk policy. Administrative expenses of ? 90 million (slightly above the ? 88 million figure reported for the first quarter of 2008) included ? 4 million in expenditure incurred within the scope of capacity adjustments in the Consulting/Services segment, as well as costs of ? 2 million from the discontinuation of non-core activities and expenses incurred for the consolidation of Sylogis.com. Without these special effects, administrative expenses would have been significantly lower, underlining the strict cost discipline Aareal Bank Group continues to maintain. Net other operating income and expenses of -? 6 million (Q1 2008: ? 6 million) includes project expenditure (including legal and advisory costs) incurred in conjunction with the support measures agreed upon between Aareal Bank and SoFFin. On aggregate, the items resulted in consolidated operating profit of ? 17 million. After deduction of ? 6 million in taxes (Q1 2008: ? 9 million) and income attributable to non-controlling interests of ? 4 million (Q1 2008: ? 5 million), consolidated net income attributable to shareholders of Aareal Bank AG for the first three months of 2009 amounted to ? 7 million (Q1 2008: ? 13 million).

    Outlook: well-positioned to meet challenges emerging in the future

    Given the numerous uncertain factors, due to the crisis and prevailing market conditions, it is still impossible to issue a reliable forecast for consolidated results for 2009 as a whole. Aareal Bank affirms its key statements communicated to date regarding key financial indicators: the Management Board expects consolidated net interest income of ? 420-440 million and administrative expenses of approx. ? 360 million (including consolidation effects) for 2009. As expected, full-year allowance for credit losses is likely to be at the upper end of the ? 90-150 million range already forecasted. It is, however, impossible to exclude additional impairments from unexpected losses for 2009. New business generated in the Structured Property Financing segment is expected to range between ? 2 billion and ? 3 billion. As outlined at the Annual General Meeting on 7 May, Aareal Bank is targeting a Consulting/Services segment result before taxes of around ? 40 million for the current financial year, due to the lower interest rate levels and the burdening effects outlined above. The target figure is roughly in line with the very good results posted in the previous year.
    ]]>     News Home News Portal Press News Press News Portal IR News IR Tue, 12 May 2009 07:30:00 +0200 http://www.aareal-bank.com/en/press/press-release/aareal-bank-group-remains-profitable-in-the-first-quarter-of-2009/     Annual General Meeting: Aareal Bank's solid development to continue in the 2009 financial year http://feedproxy.google.com/~r/aareal/news/en/~3/kO4fTkWJnFs/ In spite of the persisting financial markets crisis and the aggravating recession, Aareal Bank...
  • In spite of the persisting financial markets crisis and the aggravating recession, Aareal Bank continues to post positive results in both segments in the first quarter 2009
  • In the 2008 financial year, consolidated profit before taxes amounted to ? 117 million
  • Dr. Wolf Schumacher at the Annual General Meeting: "Our successful business model offers excellent medium- to long-term opportunities."
    • Wiesbaden, 7 May 2009 - Although the market environment continues to be burdened by the financial markets crisis, Aareal Bank will remain on track, even in the current financial year. ?From today's perspective, Aareal Bank Group continued to post positive results during the period from January to March 2009, as it did in every quarter since the onset of the financial markets crisis - and this applies to both of our business segments, Structured Property Financing and Consulting/Services", Dr. Wolf Schumacher, Chairman of the Management Board, emphasised at today's Annual General Meeting in Wiesbaden. Aareal Bank will publish final first-quarter results on 12 May 2009. Given the many uncertain factors affecting the markets as a consequence of the crisis, it is still impossible to issue a serious forecast for consolidated results for 2009 as a whole. Aareal Bank affirms its key statements regarding the performance for the year as a whole. Consolidated net interest income is expected to range between ? 420 million and ? 440 million, whereas administrative expenses (adjusted for consolidation effects) are expected to amount to approximately ? 360 million. From today's perspective, allowance for credit losses, as expected, is very likely to reach the upper end of the ranges' forecast of ? 90 million to ? 150 million. New business generated in the Structured Property Financing segment is expected to range between ? 2 billion and ? 3 billion and was fully on track after the first quarter. Aareal Bank will put particular focus on extensions of existing exposures, and on the financing requirements of existing clients. The Consulting/Services segment continued to show a robust development, being less directly affected by the financial markets crisis, as Dr Schumacher went on to explain. However, the extremely low interest level is supposed to burden the segment result as expected. On the other hand, Aareal Bank's results have been burdened by measures to adjust staffing levels in this area, particularly at its subsidiary Aareon due to the successful conclusion of the SAP-based 'Blue Eagle' property management software development. Another burden on the results has been incurred by measures directed towards the discontinuation of non-core activities. The non-recurring charge resulting from these measures amounting to ? 6 million is recognised in income for the first quarter 2009. Thirdly, the general economic slowdown lead to a certain reluctance among Aareon's clients vis-à-vis new investment. Given that this trend was evident during the first quarter of this year, Aareal Bank has diligently adjusted its projections regarding consultancy revenue for the year as a whole. Products already implemented on Aareon's clients? systems are not exposed to the current economic slowdown and continue to provide a stable, crisis-proof contribution to results. "Due to the effects mentioned above, we have readjusted our original planning for the segment result before taxes ranging from ? 50 million to ? 60 million to approximately ? 40 million, thus nearly matching previous year's excellent level", Dr. Schumacher illustrated.

    Successful development in the 2008 financial year

    In spite of the adverse market conditions, Aareal Bank concluded the 2008 financial year with a good result. The consolidated profit before taxes amounted to ? 117 million. Adjusted for non-recurring effects, the figure was ? 153 million, and thus almost matched the strong result (? 159 million) posted for the previuos year. Even in the fourth quarter 2008 which was an extremely challenging period for the banking sector, Aareal Bank achieved a profit before taxes of ? 11 million. Against the background of the financial markets crisis, Dr. Schumacher assessed last year's results to be very satisfying. Nevertheless, the Bank will not distribute a dividend for 2008. The agreement with the German Financial Markets Stabilisation Fund (SoFFin) entered into in February 2009, on the basis of which SoFFin had provided Aareal Bank with ? 525 million in capital by way of silent participation and had extended a framework guarantee facility with a total volume of up to ? 4 billion for new unsecured issues, stipulates that the distribution of dividends shall be suspended in the years 2008 and 2009.

    "Aareal Bank is in a good position to perform well in the current financial year."

    Dr Schumacher said that Aareal Bank is well prepared to meet the challenges of the coming years. "Even during the current crisis affecting financial markets and the economy, Aareal Bank has shown that it is a fundamentally sound company, with a profitable business and a coherent business model. Despite the severe crisis and distortions on the financial markets and the resulting economic slowdown which has become evident recently, we ended the year with a result that can be considered a very good one, given the circumstances. We are also in a good position to perform well in the current financial year", Dr Schumacher explainded. According to the Chairman of the Management Board, Aareal Bank has addressed all challenges resulting from the crisis that are currently foreseeable. In particular, the Bank has retained its full operational capacity to act. "Not least thanks to SoFFin support, our successful business model offers excellent medium- to long-term potential and opportunities", Dr Schumacher concluded. Notes to editorial offices Once the votes on the individual agenda items are cast and the Annual Meeting's has ended, Aareal Bank will publish the voting results on its homepage www.aareal-bank.com.
    ]]>     News IR News Press News Portal IR News Portal Press News Home Thu, 07 May 2009 11:30:00 +0200 http://www.aareal-bank.com/en/press/press-release/annual-general-meeting-aareal-bank-s-solid-development-to-continue-in-the-2009-financial-year/     Aareal Bank Group remains on track in a challenging market environment http://feedproxy.google.com/~r/aareal/news/en/~3/VlOL9ql1F-0/ Successful 2008 financial year: consolidated net income before taxes of ? 117 million affirmed by...
  • Successful 2008 financial year: consolidated net income before taxes of ? 117 million affirmed by audited figures; Aareal Bank profitable in all quarters
  • SoFFin support secures Aareal Bank's proven business model for the long term, preserves funding flexibility, and prepares the bank for future challenges
  • Projections for key financial indicators 2009 affirmed, despite further economic slowdown
  • Dr Wolf Schumacher, Chairman of the Management Board: "The bank has retained its capacity to act, even in a difficult market environment."
    • Wiesbaden, 27 March 2009 ? Based on the solid results posted for the last year, despite massive market distortions, Aareal Bank Group is confident of being able to hold its course in a market environment that continues to be challenging. "Our performance during the extremely challenging year 2008 has demonstrated the feasibility and sustainability of our business model. The primary objective for 2009 is to continue mastering the crisis affecting financial markets and the economy", explained Dr Wolf Schumacher, Chairman of the Management Board of Aareal Bank AG, at the bank's press conference to present the financial statements in Frankfurt. "Not least thanks to the support measures agreed upon with the German Financial Markets Stabilisation Fund ("SoFFin"), we are in an excellent position to achieve that objective", he added. On 15 February 2009, Aareal Bank had announced its decision to utilise the German government support programme for the banking sector. This preventive move was designed to secure the bank's successful future, on the basis of its proven business model, to prepare for any uncertainties ahead, and to secure a good starting point for the post-crisis period. Under the agreement, SoFFin will provide a ? 525 million silent participation and extend a guarantee facility  covering unsecured securities issues of up to ? 4 billion. The agreement with SoFFin has since been finalised, and is now being implemented. The silent participation, which bears interest at 9%, is expected to be contributed on 31 March 2009. Moreover, Aareal Bank has already used the framework guarantee agreed upon, having successfully placed a debut ? 2 billion state-guaranteed benchmark bond on 17 March 2009 that met with strong response by German and international investors. "This has already shown that our decision to seek support under the government support programme was right", Schumacher added. "We thus avoided any competitive funding disadvantages for the bank. At the same time, this successful bond issue has already covered a major part of our funding requirements for the full year 2009. This means that Aareal Bank Group retains full flexibility and capacity to act in its business of providing finance to its clients."

    Successful financial year 2008 despite financial and economic crisis

    Aareal Bank Group continued its successful business performance in 2008, a year of great turbulence for the entire financial sector. Based on audited figures, the Group ended the 2008 financial year with a profit before taxes of ? 117 million; the previous year?s figure of ? 380 million was heavily influenced by positive one-off effects totalling ? 221 million. Adjusted for these special items, the pre-tax profit of ? 153 million in 2008 almost matched the results achieved in 2007 (? 159 million). Aareal Bank Group experienced particularly robust growth in consolidated net interest income, which was up close to 15%, from ? 411 million to ? 472 million. Higher margins from new business more than compensated for a slight drop in property finance volumes. This item also reflects the more favourable interest rate environment. After inclusion of allowance for credit losses amounting to ? 80 million (2007: ? 77 million), the Group reported consolidated net interest income after allowance for credit losses of ? 392 million (2007: ? 334 million). This represents an increase of some 17%. Net commission income increased year-on-year by ? 8 million to ? 150 million. The Consulting/Services and Structured Property Financing segments both contributed to this rise. Net trading income improved from ? -26 million in 2007 to ? -23 million in 2008; the figure reflects continued market distortions resulting from the financial markets crisis. The positive effect of hedging transactions was offset by the negative effect of the reduced valuation of financial instruments in the trading portfolio and increased current securitisation expenses. Results from non-trading assets were negative, at ? -95 million. This figure is the consequence of measures to restructure our investment portfolio in line with our conservative risk policy designed to reduce the volatility of results. The 2007 figure of ? 206 million was largely influenced by extraordinary income of ? 153 million from the disposal of our holdings in Immobilien Scout GmbH. Administrative expenses were down ? 14 million, or just under 4%, to ? 347 million, a reflection of strict cost discipline at Aareal Bank Group. Group net income after minority interests was ? 60 million, down from a 2007 figure of ? 290 million that was heavily shaped by one-off effects. Both of Aareal Bank Group?s business segments contributed to the very good results for 2008 in the face of difficult market conditions. In the Structured Property Financing segment, Aareal Bank continued to pursue a highly selective new business strategy based on quality and earnings, while also focusing on financing activities with attractive risk/return profiles. In view of the changed business environment, on the back of the economic and financial crisis that worsened as the year progressed, new business was allowed to decline from ? 11.7 billion to ? 5.5 billion. Given the difficult market conditions in 2008, Aareal Bank considers this volume satisfactory. Allowance for credit losses for the segment remained essentially unchanged, at ? 80 million (2007: ? 77 million), a reflection of Aareal Bank's high-quality credit portfolio. The fall in the segment result before taxes, from ? 197 million to ? 73 million, is primarily a result of the financial markets crisis and its impact on net trading income and results from non-trading assets which could not be offset by a sharp rise in net interest income. In addition, 2007 results were influenced by one-off effects. The Consulting/Services segment delivered stable earnings in 2008. Operating profit came in at ? 44 million, some 50% higher than last year?s adjusted figure of ? 30 million. Profits after taxes for the segment totalled ? 30 million (2007: ? 172 million incl. extraordinary income). Aareon AG, a wholly-owned subsidiary of Aareal Bank AG, consolidated its market position in the financial year 2008 as the leading IT consulting and systems house in the property sector. It also reported origination successes across all product lines. Aareal Bank was also able to expand its market share in the Institutional Housing Business. Deposits taken from the commercial housing sector averaged ? 4.3 billion over the course of 2008. In spite of the ongoing financial markets crisis, this was only slightly below the previous year's average level of ? 4.5 billion and serves to further underscore the faith that clients place in the financial performance and stability of Aareal Bank.

    Outlook for 2009 affirmed

    The macro-economic environment has deteriorated further in 2009: researchers now expect economic performance in key markets to decline to a much stronger extent than anticipated only a few weeks ago. It is still too early to talk about an overall improvement on financial markets: in particular, very high volatility is likely to remain prevalent. As a result, it is still impossible to make concrete forecasts for business performance and results for the year 2009 as a whole. Even though the business environment has deteriorated further, Aareal Bank currently maintains its projections for key financial indicators in 2009, as published in February. The Management Board anticipates net interest income to range between ? 420 million to ? 440 million. Compared to the previous year's result, the figure will be burdened by the planned reduction in new business originated in Structured Property Financing. From today's perspective, new business will range between ? 2 billion and ? 3 billion, with a predominant focus on business with the existing client base and existing financings. Whilst the allowance for credit losses will be markedly higher than in 2008, the Management Board expects it to remain at a manageable level of between ? 90 million to ? 150 million. "Despite the further deterioration in the economic outlook, we envisage being able to remain within this range", Schumacher said. In the Consulting/Services segment, the Group envisages a continuation of the positive performance seen over recent years, with further earnings increases; performance will depend upon interest rate developments going forward. "Our short-term focus is on strengthening and protecting our tried-and-tested, successful business model. Thanks to our stronger capital base and the enhanced funding flexibility, we see ourselves in a good position to succeed", Schumacher explained. "Backed by the agreement with SoFFin, Aareal Bank is well positioned to deal with the challenges ahead and has also secured a good starting point for the post-crisis period. We will see major opportunities to return to profitable growth over the medium to long-term horizon: for instance, we are observing a re-entry of property investors with a long-term view. This will lead to a rise in market quality, and to an improvement in the risk/return ratio of the financings. Moreover, we expect competitive pressures to abate as some competitors withdraw from the commercial property finance market or cut back their relevant business lines", Schumacher added. "The bank will remain a reliable partner for its clients, and a secure employer. We are highly confident that Aareal Bank will once again create value for its shareholders in the future", he summarised.

    Aareal Bank

    Aareal Bank AG is one of the leading international specialist property banks. The Aareal Bank share is included in Deutsche Börse's small-cap SDAX index. Aareal Bank operates on three continents: leveraging its successful European business model, the bank has established similar platforms in North America and in the Asia-Pacific region. It provides property financing solutions in more than 25 countries.
    ]]>     News Home News Portal Press News Press News Portal IR News IR Fri, 27 Mar 2009 07:30:00 +0100 http://www.aareal-bank.com/en/press/press-release/aareal-bank-group-remains-on-track-in-a-challenging-market-environment/     Declaration of Undertaking pursuant to Art. 1 section 10 (2) in conjunction with Art 2. section 2 FMStG (only in German) http://feedproxy.google.com/~r/aareal/news/en/~3/57DbwHklMvw/ Verpflichtungserklärung nach Artikel 1 § 10 Abs. 2 in Verbindung mit Artikel 2 § 2 des Gesetzes zur... Verpflichtungserklärung nach Artikel 1 § 10 Abs. 2 in Verbindung mit Artikel 2 § 2 des Gesetzes zur Umsetzung eines Maßnahmenpakets zur Stabilisierung des Finanzmarktes vom 17. Oktober 2008, BGBl. I S. 1982 (?FMStG?) gegenüber dem Finanzmarktstabilisierungsfonds, vertreten durch die Finanzmarktstabilisierungsanstalt 1. Präambel Die Aareal Bank AG (?Bank?) ist im Handelsregister des Amtsgerichts Wiesbaden unter HRB 13184 eingetragen und geschäftsansässig Paulinenstraße 15, 65189 Wiesbaden. Gegenstand des Unternehmens ist der Betrieb von Bankgeschäften, mit Ausnahme des Investmentgeschäfts gemäß § 1 Abs. 1 Satz 2 Ziffer 6 KWG, von Finanz- und sonstigen Dienstleistungen sowie die Förderung internationaler Wirtschaftsbeziehungen. Das Pfandbriefgeschäft ist auf die Ausgabe von Hypothekenpfandbriefen gemäß § 1 Abs. 1 Satz 2 Nr. 1 PfandBG und von Öffentlichen Pfandbriefen gemäß § 1 Abs 1 Satz 2 Nr 2 PfandBG beschränkt. Die Bank beabsichtigt, Maßnahmen nach den §§ 6 und 7 des Gesetzes zur Errichtung eines Finanzmarktstabilisierungsfonds (?FMStFG?), beschlossen als Artikel 1 FMStG, in Anspruch zu nehmen. Der Finanzmarktstabilisierungsfonds (?Fonds?) beabsichtigt, der Bank, wie in dem ?Rahmenvertrag zur Gewährung von Stabilisierungsmaßnahmen zwischen dem Fonds und der Bank (?Rahmenvertrag?) vereinbart, eine Rekapitalisierung in Höhe von ? 525.000.000 (in Worten: fünfhundert und fünfundzwanzig Millionen Euro) durch Leistung einer stillen Einlage zu gewähren (?Stille Einlage?). Die Leistung der Stillen Einlage dient gemäß § 7 Abs. 2 Satz 2 FMStFG i.V.m. § 3 Abs. 2 Satz 2 Nr. 2 der Verordnung zur Durchführung des Finanzmarktstabilisierungsfondsgesetzes vom 20. Oktober 2008, veröffentlicht im elektronischen Bundesanzeiger vom 20. Oktober 2008 (?FMStFV?), dem Interesse des Bundes an der Sicherstellung einer angemessenen Eigenmittelausstattung der Bank. Der Fonds beabsichtigt nach den Vereinbarungen des Rahmenvertrags ferner, der Bank Garantien in Höhe von bis zu ? 4.000.000.000 (in Worten: vier Milliarden Euro) zu gewähren (?Garantiegewährung?). Die Garantiegewährung dient gemäß § 6 Abs. 1 Satz 1 FMStFG i.V.m § 2 Abs. 1 Satz 1 FMStFV der Behebung potentieller Liquiditätsengpässe der Bank sowie ihrer Unterstützung bei ihrer weiteren Refinanzierung am Kapitalmarkt. 2. Bedingungen und Auflagen In dem Rahmenvertrag hat der Fonds mit der Bank für die Laufzeit der Stabilisierungsmaßnahmen eine Reihe von Bedingungen und Auflagen vereinbart. Allgemeine Bedingungen und Auflagen betreffen solche zur Eigenmittelausstattung, zur Geschäftspolitik der Bank, zur Erstellung eines Berichts über die Durchführung der Stabilisierungsmaßnahmen und zu einem Werbeverbot. Besondere Bedingungen und Auflagen für die Rekapitalisierung mittels der Stillen Einlage betreffen solche zur Kreditvergabepolitik, zu den Vergütungssystemen des Konzerns, zu den Vergütungen der Führungskräfte des Konzerns und Organmitgliedern der Bank sowie zu Dividenden, sonstigen Ausschüttungen und Aktienrückkäufen. Weitere Bedingungen und Auflagen betreffen Überprüfungs-, Berichts- und Informationspflichten der Bank, Informations- und Prüfungsrechte des Fonds und des Bundesrechnungshofs sowie die Pflicht zur Abgabe dieser Verpflichtungserklärung. Änderungen der Bedingungen und Auflagen sowie weitere Bedingungen und Auflagen sind nach näherer Maßgabe des Rahmenvertrags vorbehalten. Dies vorausgeschickt, verpflichtet sich die Bank gegenüber dem Fonds nach Maßgabe des Rahmenvertrags, dem Vertrag über die Errichtung einer stillen Gesellschaft und dem Vertrag über die Übernahme von Garantien, die jeweils vom 12. März 2009 datieren, zu folgenden Bedingungen und Auflagen: (a) Dividendenzahlungen und Aktienrückkauf (i) Die Bank wird in den Geschäftsjahren 2009 und 2010 keine Dividenden für das jeweils vorangegangene Geschäftsjahr zahlen. (ii) Des Weiteren wird die Bank in den Geschäftsjahren 2009 und 2010 außer zu Sanierungszwecken ihr Kapital nicht herabsetzen, keine Aktien oder sonstige Bestandteile der haftenden Eigenmittel der Bank (außer im Rahmen des § 71 Abs. 1 Nr. 2, 4 (Einkaufskommission) oder 7 AktG) selbst oder durch verbundene Unternehmen zurückkaufen und keine sonstigen, vertraglich oder gesetzlich nicht geschuldeten Leistungen an Aktionäre in ihrer Eigenschaft als solche oder deren Mutterunternehmen leisten. (b) Kreditvergabepolitik Für den Zeitraum, bis sämtliche Zahlungspflichten der Bank aus und im Zusammenhang mit dem Vertrag über die Errichtung einer stillen Gesellschaft vollständig erfüllt oder auf andere Weise vollständig beendet worden sind, verpflichtet sich die Bank nach näherer Maßgabe des Rahmenvertrags dem Kreditbedarf der inländischen Wirtschaft bei der gewerblichen Immobilienfinanzierung, insbesondere kleiner und mittlerer Unternehmen, Rechnung zu tragen und diesen Kredite zu marktüblichen Konditionen anzubieten. (c) Vergütungssysteme und Vergütungen Für den Zeitraum, bis sämtliche Zahlungspflichten der Bank aus und im Zusammenhang mit dem Vertrag über die Errichtung einer stillen Gesellschaft vollständig erfüllt oder auf andere Weise vollständig beendet worden sind, verpflichtet sich die Bank nach näherer Maßgabe des Rahmenvertrages (i) die Vergütungssysteme des Konzerns insbesondere auf ihre Anreizwirkung und Angemessenheit zu überprüfen und erforderlichenfalls nach Maßgabe des Rahmenvertrages zu ändern und insbesondere (ii) nach Maßgabe des Rahmenvertrages sicherzustellen, dass die monetäre Vergütung der derzeitigen und künftigen Organmitglieder der Bank für die Geschäftsjahre 2009 und 2010 einen Betrag von EUR 500.000 brutto pro Jahr und Organmitglied im Hinblick auf die Tätigkeit für den Konzern nicht übersteigt. (d) Geschäftspolitik Für den Zeitraum, bis sämtliche Zahlungspflichten der Bank aus und im Zusammenhang mit dem Vertrag über die Errichtung einer stillen Gesellschaft vollständig erfüllt oder auf andere Weise vollständig beendet worden sind, sowie für die Laufzeit der Garantiegewährung verpflichtet sich die Bank nach näherer Maßgabe des Rahmenvertrages sicherzustellen, dass die Bank und die ihr nachgeordneten Unternehmen eine umsichtige, solide und an dem Prinzip der Nachhaltigkeit ausgerichtete Geschäftspolitik betreiben. 3. Veröffentlichung Die Bank wird diese Erklärung unverzüglich auf ihrer Homepage und im elektronischen Bundesanzeiger veröffentlichen und diese Erklärung ihren Aktionären dauerhaft und in geeigneter Form zugänglich machen. 4. Recht, salvatorische Klausel, Schriftform Diese Verpflichtungserklärung unterliegt deutschem Recht. Sollten Verpflichtungen dieser Erklärung ganz oder teilweise unwirksam oder unvollständig sein oder werden, so wird hierdurch die Wirksamkeit der übrigen Bestimmungen nicht berührt. Anstelle der unwirksamen oder unvollständigen Bestimmung tritt eine Regelung, die dem wirtschaftlichen Zweck der unwirksamen Bestimmung in rechtlich zulässiger Weise am nächsten kommt bzw. die Bestimmung in Übereinstimmung mit dem mutmaßlichen Parteiwillen so gut wie möglich ergänzt. Änderungen, Ergänzungen oder die Aufhebung dieser Verpflichtungserklärung (einschließlich dieser Bestimmung selbst) bedürfen der Schriftform, soweit nicht nach zwingendem Recht eine strengere Form (z.B. notarielle Beurkundung) erforderlich ist. Der Schriftform genügt eine Übermittlung per Telefax (nicht aber eine sonstige telekommunikative Übermittlung) oder ein Briefwechsel. Die elektronische Form (z.B. E-Mail) ersetzt die Schriftform nicht. Diese Verpflichtungserklärung wird von sämtlichen Mitgliedern des Vorstands im Namen der Aareal Bank AG mit Zustimmung des Aufsichtsrates abgegeben. Wiesbaden, den 12. März 2009 Dr. Wolf Schumacher (Vorsitzender des Vorstands) Norbert Kickum Hermann J. Merkens Thomas Ortmanns  
    Die Verpflichtungserklärung als pdf-Datei
    ]]>     News IR Fri, 20 Mar 2009 15:36:00 +0100 http://www.aareal-bank.com/en/press/press-release/declaration-of-undertaking-pursuant-to-art-1-section-10-2-in-conjunction-with-art-2-section-2-fmstg-only-in-german/     Aareal Bank, Aareal Holding and SoFFin conclude definite agreements http://feedproxy.google.com/~r/aareal/news/en/~3/B6m-TQF_fsM/ Silent participation by SoFFin to be implemented shortly Aareal Bank issues first...
  • Silent participation by SoFFin to be implemented shortly
  • Aareal Bank issues first government-guaranteed benchmark bond
  • Aareal Holding and SoFFin sign ancillary voting agreement as announced
    • Wiesbaden, 17 March 2009 - Following the agreement entered into between Aareal Bank AG and the German Financial Markets Stabilisation Fund ("SoFFin") dated 15 Feburary 2009, the contracts have now been signed. Aareal Bank had made preventive use of the German Government's programme to ensure the long-term future of its sustainably profitable business model and to be well-prepared for the imponderabilities of the economic and financial market crisis. The ? 525 million silent participation by SoFFin which carries an interest rate of 9% p.a., is set to be implemented at Aareal Bank by the end of this month. Taking into account the silent participation from SoFFin, which is fully eligible for inclusion in tier 1 capital, Aareal Bank's pro-forma tier 1 ratio will be ca 10% at the end of Q1 2009 under the Credit Risk Standard Approach. In addition to the silent participation, the agreement stipulates the granting of a guarantee facility of up to ? 4 billion for unsecured issues of Aareal Bank. Today for the first time, Aareal Bank Group has made use of the guarantee facility by placing its first guaranteed benchmark bond for a volume of ? 2 billion with domestic and foreign investors. The bond has a term of three years and a coupon of 2.625 per cent. In relation to the issue price of 99,843 per cent, this equates to a spread of 38 bp over mid-swap. The transaction was conducted by a consortium of Bayern LB, Deutsche Bank, Dresdner Kleinwort, DZ Bank, HSBC and Unicredit (HVB). The investors' heavy interest was reflected by the fact that the order book volume was already ? 3 billion after only one hour and that it was closed after only 2.5 hours with a high number of orders totalling more than ? 4.4 billion. The strong demand of international investors who took up 52 per cent of the issue, was particularly pleasing. "This successful issue means that we have succeeded in making Aareal Bank better-known on international capital markets and in broadening our investor base. We have fully achieved the goals we set us for this transaction", explained Thomas Ortmanns, the Aareal Bank AG board member responsible for capital markets. In the context of the definite conclusion of the contracts between Aareal Bank Group and the German Financial Markets Stabilisation Fund, the Fund and Aareal Bank's anchor shareholder Aareal Holding Verwaltungsgesellschaft mbH ("Aareal Holding") have entered into the voting agreement to maintain Aareal Holding's blocking minority as announced in Aareal Bank's ad-hoc disclosure dated 15 February 2009. In this way, shareholder structure stability and the independence of Aareal Bank Group have been ensured. SoFFin's wish to guarantee a blocking minority of the holding for the duration of the silent participation has thus been met. A corresponding voting rights notification pursuant to section 21 (2), 22(2) WpHG on the allocation of the voting rights of the Federal Republic of Germany through SoFFin of 37.23% has been disclosed separately pursuant to the provisions of WpHG. With reference to the agreements concluded with SoFFin, the Chairman of the Management Board at Aareal Bank AG, Dr. Wolf Schumacher, explains: "We have taken a proactive decision to access the government?s stabilisation fund in order to maintain our successful business model in an environment characterised by dramatic changes. We explicitly welcome the ancillary agreement entered into between Aareal Holding and SoFFin which contributes to this. The state will not gain any influence on Aareal Bank's strategy and operating business nor does it intend to exert any influence on either. Aareal Bank will continue to be a 100 per cent privately owned institute and on the basis of its sustainably proven business model which will remain effective without any changes, it will be able to remain on track successfully, strengthened by a stable shareholder structure." Aareal Bank Aareal Bank AG is one of the leading international specialist property banks. Aareal Bank operates on three continents: leveraging its successful European business model, the bank has established similar platforms in North America and in the Asia-Pacific region. It provides property financing solutions in more than 25 countries.
    ]]>     News Home News Portal Press News Press News Portal IR News IR Tue, 17 Mar 2009 16:33:00 +0100 http://www.aareal-bank.com/en/press/press-release/aareal-bank-aareal-holding-and-soffin-conclude-definite-agreements/     "Aareal Award of Excellence in Real Estate Research" awarded for the second time http://feedproxy.google.com/~r/aareal/news/en/~3/It1mX_s2kMY/ Prize winner honoured for superior scientific endeavour in real estate economics / international... Prize winner honoured for superior scientific endeavour in real estate economics / international competition for the first time Wiesbaden, 27 February 2009 - The Real Estate Management Institute (REMI) of the European Business School and Aareal Bank AG have awarded the Aareal Award of Excellence in Real Estate Research for the second time. The annual research prize honours academic excellence in real estate economics. It was open to international competition for the first time this year and is worth ? 12,000. The award ceremony took place on the campus of the European Business School in Oestrich-Winkel during the Congress "Economy versus ecology ? environmental efficiency in the German Real Estate Industry?" An independent jury assessed this year's excellent work in the areas of real estate financing, real estate risk management and energy management in the real estate sector. The first prize in the category PhD/Research was taken by Nils Kok, Netherlands, for his work "Corporate Governance and Sustainability in Global Property Markets". The other awards in this category went to Dr. Felix Schindler ("Immobilienmärkte - eine globale Analyse ihres Kapitalmarkt¬verhaltens" ? Property Markets - a Global Analysis of Their Capital Markets Characteristics) and Tobias Pfeffer ("Performance of REITs - A Sector- and Company-based Analysis of Links and Time Lags between Real Estate Markets Cycles, Earnings and Pricing of REITs"). The prizes in the category Master-/Bachelor Theses were taken by Maximilian Brauers for his work "Preisblasen auf Immobilienmärkten und die Rolle der Geldpolitik" ? Price Bubbles on Property Markets and the Role of Monetary Policies) (ranked no 1) as well as Desirée Springmann ("Analysis of Real Estate Performance Measures in the Context of Real Estate Cycles") and Miriam Waibel ("Nachhaltigkeitszertifikate bei der Bewertung von Büroimmobilien" - Sustainability Certificates for the Valuation of Office Properties). Dr Wolf Schumacher, Chairman of the Management Board of Aareal Bank AG said: "Comparing notes with science supports us more than ever in looking for the best solutions for the future." He added that Aareal Bank's commitment highlighted its goal of promoting young scientists and networking international science and teaching. "On this basis we can be a key step ahead of the competition - an advantage both for our customers and staff".

    Link between theory and practice

    "Research and science must not stand apart from actual practice: Comprehensive, applied basic research enables us to put what we actually do on a sound theoretical footing" explained the head of REMI, Prof. Nico Rottke. "The Aareal Award creates an incentive for up and coming talent to get involved in research." He said that it was REMI's task to offer state-of-the-art training and continuing education in real estate research at the highest level and to foster that research at the same time. REMI is looking to lay the foundation for real estate sector growth and success by gearing itself internationally to an interdisciplinary approach and a strictly practical orientation. Aareal Bank AG has sponsored a professorship at the REMI since 2006 and has strengthened the cooperation with the Award since 2008. Dr Wolf Schumacher: "Two partners have found each other here who match very well in terms of their desire to innovate in their respective areas and in terms of their international orientation. In our view REMI is a valuable interface to the academic insights of real estate research. We as a bank and the sector as a whole profit from that."

    Topics next year

    Media partners for the Award are the "Immobilien Manager" and "REurope" magazines. These trade journals support the jury in defining the topics for the prize competition. Scientific papers/theses can be submitted until the start of January 2010 for next year's Award. The rules for participation can be found under www.rem-institute.org (click on: "Forschung" and then on "Aareal Award of Excellence"). The award ceremony is on 26 February 2010. (To editors: photos of the award ceremony are available on request)
    ]]>     News Home News Portal Press News Press Fri, 27 Feb 2009 12:00:00 +0100 http://www.aareal-bank.com/en/press/press-release/aareal-award-of-excellence-in-real-estate-research-awarded-for-the-second-time/     Aareal Bank Group posts solid results for the financial year and the fourth quarter of 2008, despite the financial market crisis ? agreement with the German Financial Markets Stabilisation Fund ("SoFFin") is set to further strengthen the company http://feedproxy.google.com/~r/aareal/news/en/~3/IjdzUgcMiko/aareal-bank-group-posts-solid-results-for-the-financial-year-and-the-fourth-quarter-of-2008-despite-the-financial-market-crisis-agreement-with-the-german-financial-markets-stabilisation-fund-soffin-is-set-to-further-strengthen-the-c 2008 profit before taxes of ? 117 million (based on preliminary, unaudited figures) - positive...
  • 2008 profit before taxes of ? 117 million (based on preliminary, unaudited figures) - positive result also in the fourth quarter
  • Aareal Bank safeguards its sound and proven business model by tapping the German government's stabilisation fund
    • Strengthening of the capital base through a ? 525 million silent participation by SoFFin - Tier 1 ratio to rise significantly 
    • SoFFin guarantee facility for new issues with a maximum maturity of three years and a total volume of up to ? 4 billion 
    • Business model validated: no changes to corporate governance
    • Aareal Holding supports measures, remains anchor shareholder with current of shares - voting agreement to be concluded by SoFFin and Aareal Holding, to maintain Aareal Holding's blocking minority
  • CEO Dr Wolf Schumacher: "We are taking proactive measures to ensure we will weather future challenges and emerge strengthened as we continue to follow our successful business model - in the interest of our clients, investors and employees."
    • Wiesbaden, 15 February 2009 - Aareal Bank Group posted a solid result for the 2008 financial year, in spite of the severe turmoil on financial markets and the palpable economic slowdown. Even amid the pressures from the crisis, profit before taxes according to preliminary, unaudited figures amounted to ? 117 million. In the fourth quarter of 2008, the most challenging quarter the financial sector has seen in decades, Aareal Bank Group posted a profit before taxes of ? 11 million. This means that Aareal Bank Group has remained profitable in every quarter since the onset of the financial market crisis in summer 2007, on a Group level as well as in each of its two business segments, Structured Property Financing and Consulting/Services. To ensure the long-term future of its sustainably profitable business, Aareal Bank Group has entered into an agreement with the German Financial Markets Stabilisation Fund ("SoFFin") on a comprehensive set of measures. In accordance with this agreement, SoFFin will make
    ? 525 million in capital available to Aareal Bank by way of a perpetual silent participation. The silent participation will bear interest of 9% p.a. In addition, SoFFin will grant Aareal Bank a guarantee facility for new, unsecured issues with a maximum maturity of 36 months for a total volume of up to ? 4 billion. CEO Dr Wolf Schumacher's comment: "Aareal Bank Group is sound and has a coherent, sustainable business model. This is evident in our solid performance in the past financial year, which is also recognised by SoFFin. We have provided sufficient proof that we are able to overcome serious challenges such as the international financial markets crisis, and can do so using our own resources. Nevertheless, we have taken a proactive decision to access the government's stabilisation fund in order to further strengthen our solid base, and to maintain our successful business model in an environment characterised by dramatic changes," Schumacher explains. ?In doing so, we are ensuring a level playing field for Aareal Bank as it competes with German and international banks that have been shored up with government aid. At the same time, we are making adequate preparations to weather future challenges, while maintaining flexibility in our funding operations and our operational capacity to act for the remainder of the crisis affecting financial markets and the economy. By taking these steps, Aareal Bank will also be in a good position to take advantage of an economic and financial-market recovery," Schumacher underlined. Capital strengthening by way of silent participation protects shareholder interests Taking into account the silent participation by SoFFin which is fully recognised as Tier 1 capital, Aareal Bank's Tier 1 ratio increased significantly. Excluding the silent participation, the ratio stood at 8.0% at the end of 2008. After strengthening its capital base, Aareal Bank now matches the level of many international competitors (who have already recapitalised), and meets the market requirements which have increased over the course of the financial markets crisis. The strengthened capital base will also allow Aareal Bank to mitigate the impact of a recession looming in key markets. The terms of the silent participation are economically viable for the company and reflect the fact that Aareal Bank is a fundamentally sound bank. The coupon is equivalent to approx.
    ? 47 million before taxes in annual interest payable. The financial burden (taking into account the reinvestment) will be approx. ? 16 million. The bank is committed to repay the silent participation as soon as possible. To that end, the Management Board will decide on feasible scenarios based on the prevailing general market situation. The bank has a variety of repayment options at the discretion of the Management Board, subject to regulatory approval. This recapitalisation in form of a silent participation considers the interests of shareholders as it avoids a dilution of existing shareholdings. Aareal Holding Verwaltungsgesellschaft mbH, a major shareholder of Aareal Bank, has expressed its full support for the bank's move. Aareal Holding has committed that it will not reduce its 37.23% stake during the entire term of the silent participation. A voting agreement will be concluded by SoFFin and Aareal Holding, to maintain Aareal Holding's blocking minority. This will ensure the stability of the shareholder structure and the independence of Aareal Bank Group, with Aareal Holding as an anchor shareholder. Refinancing options through guarantee facility The guarantee facility agreed upon with SoFFin for new issues of debt securities with a maximum maturity of 36 months provides the bank with a solid base for its refinancing, broadening the bank's funding flexibility, as a lender to its existing client base, in the years to come. Aareal Bank will pay SoFFin a commitment fee of 0.1% p.a. of the undrawn amount of the guarantee facility. The drawdown fee for guarantees used will be 0.5% p.a. for terms up to one year and 0.948% p.a. for terms beyond one year. Thanks to its sound funding base, Aareal Bank is in no rush to utilise the guarantee facility. The timing and volume of potential debt securities issues will depend on the prevailing market situation and the general environment. Proven business model will remain unchanged Beyond the applicable legal provisions, SoFFin has not set additional conditions for Aareal Bank Group. In particular, there will be no state influence on the company's corporate governance, nor will any changes be required to its proven business model. In the interest of a quick repayment of the silent participation, Aareal Bank will not distribute any dividends for the 2008 and 2009 financial years. Should Aareal Bank distribute dividends at a later point in time during the term of the silent participation, the coupon of the silent participation will increase on a pro rata basis, by 0.5 percentage points for each ? 0.25 in dividends per share. The Management Board anticipates that these measures will allow Aareal Bank Group to emerge strengthened from the financial and economic crisis. "Aareal Bank Group is well prepared to meet the challenges of the coming years. Utilising the government's stabilisation fund ensures our company's stability and competitiveness as well as its continued success in the medium term and beyond," emphasised Schumacher. "This is a good move for the bank, its clients, investors and employees." Successful financial year 2008 despite financial and economic crisis Aareal Bank Group continued its successful business performance in 2008, a year of great turbulence for the entire financial sector. Based on preliminary unaudited figures, the Group ended the 2008 financial year with a profit before taxes of ? 117 million; the previous year's figure of ? 380 million was heavily influenced by positive one-off effects totalling ? 221 million. Adjusted for these special items, the pre-tax profit of ? 153 million in 2008 almost matched the results achieved in 2007 (? 159 million). Aareal Bank Group experienced particularly robust growth in consolidated net interest income, which was up close to 15%, from ? 411 million to ? 472 million. Higher margins from new business more than compensated for a slight drop in property finance volumes. This item also reflects the more favourable interest rate environment. After inclusion of net loan loss provisions amounting to ? 80 million (2007: ? 77 million), the Group reported consolidated net interest income after risk provisions of ? 392 million (2007: ? 334 million). This represents an increase of some 17%. Net commission income increased year-on-year by ? 8 million to ? 150 million. The Consulting/Services and Structured Property Financing segments both contributed to this rise. Net trading income improved from ? -26 million in 2007 to ? -23 million in 2008; the figure reflects continued market distortions resulting from the financial market crisis. The positive effect of hedging transactions was offset by the negative effect of the reduced valuation of financial instruments in the trading portfolio and increased current securitisation expenses. Results from non-trading assets were negative, at ? -95 million. This figure is the result of measures to restructure our investment portfolio in line with our conservative risk policy designed to reduce the volatility of results. This also includes valuations of investments. The 2007 figure of ? 206 million was largely influenced by extraordinary income of ? 153 million from the disposal of our holdings in Immobilien Scout GmbH. Administrative expenses were down ? 14 million, or just under 4%, to ? 347 million, a reflection of strict cost discipline at Aareal Bank Group. Group net income after minority interests was ? 60 million, down from a 2007 figure of ? 290 million that was heavily shaped by one-off effects. Both of Aareal Bank Group's business segments contributed to the very good results for 2008 in the face of difficult market conditions. In the Structured Property Financing segment, Aareal Bank continued to pursue a highly selective new business strategy based on quality and earnings, while also focusing on financing activities with attractive risk/return profiles. In view of the changed business environment, on the back of the economic and financial crisis that worsened as the year progressed, new business was allowed to decline from ? 11.7 billion to ? 5.5 billion. Given the difficult market conditions in 2008, Aareal Bank considers this volume satisfactory. Net loan loss provisions for the segment remained essentially unchanged, at ? 80 million (2007: ? 77 million), a reflection of Aareal Bank's high-quality credit portfolio. The fall in the segment result before taxes, from ? 197 million to ? 73 million, is primarily a result of the financial market crisis and its impact on net trading income and results from non-trading assets which could not be offset by a sharp rise in net interest income. In addition, 2007 results were influenced by one-off effects. The Consulting/Services segment delivered stable earnings in 2008. Operating profit came in at ? 44 million, some 50% higher than last year's adjusted figure of ? 30 million. Profits after taxes for the segment totalled ? 30 million (2007: ? 172 million incl. extraordinary income). Aareon AG, a wholly-owned subsidiary of Aareal Bank AG, consolidated its market position in the financial year 2008 as the leading IT consulting and systems house in the property sector. It also reported origination successes across all product lines. Aareal Bank was also able to expand its market share in the Institutional Housing Business. Deposits taken from the commercial housing sector averaged ? 4.3 billion over the course of 2008. In spite of the ongoing financial market crisis, this was only slightly below the previous year's average level of ? 4.5 billion and serves to further underscore the faith that customers place in the financial performance and stability of Aareal Bank. Notes on the preliminary Income Statement for the fourth quarter of 2008 In the fourth quarter of 2008 - the most challenging the banking sector has seen in decades - Aareal Bank Group also posted a profit. Group net income after minority interests totalled ? 4 million. According to preliminary figures, [consolidated] net interest income in the final quarter of 2008 rose to ? 134 million (Q4 2007: ? 109 million). Higher margins from new business more than offset a slight decrease in volume from property financing. Net interest income also benefited from a favourable interest rate environment. Net loan loss provisions remained stable at ? 20 million, in spite of a deteriorating macroeconomic environment compared to previous quarters. Net commission income rose significantly, from ? 37 million to ? 48 million. At ? -23 million, net trading income remained close to the Q4 2007 figure of ? -20 million, a reflection of the challenging market conditions that continue to persist. Results from non-trading assets in the fourth quarter was ? -59 million (? 18 million). The negative balance was the result of measures to restructure our investment portfolio in line with our conservative risk policy designed to reduce the volatility of results, and of mark-to-market effects. Administrative expenses totalled ? 86 million, which represents a slight reduction over the previous year (? 88 million). Taking into account net other operating income and expenses amounting to ? 17 million (? -9 million), fourth quarter operating income was ? 11 million, down from ? 16 million reported in Q4 2007. Outlook Aareal Bank Group enjoyed a satisfactory start to 2009 with operating business at normal levels in January. Aareal Bank Group anticipates the decline in new business volume in the Structured Property Financing segment to have a negative impact on net interest income for the current year. From today's perspective, new business will range between ? 2 billion and ? 3 billion, with a predominant focus on business with the existing client base. The Management Board expects loan loss provisions to remain at a manageable level, and expects administrative expenses (after consolidation effects) to remain roughly unchanged year-on-year. Aareal Bank Group expects the positive performance in the Consulting/Services segment to continue this year, with a further rise in profit. It is not possible to give a reliable, comprehensive forecast for Group results at this time in light of the ongoing crisis affecting financial markets and the global economy.
    ]]>     News Home News Portal Press News Press News Portal IR News IR Sun, 15 Feb 2009 15:14:00 +0100 http://www.aareal-bank.com/en/press/press-release/aareal-bank-group-posts-solid-results-for-the-financial-year-and-the-fourth-quarter-of-2008-despite-the-financial-market-crisis-agreement-with-the-german-financial-markets-stabilisation-fund-soffin-is-set-to-further-strengthen-the-c     Announcement in accordance with § 15 WpHG - Aareal Bank Group posts solid results for the financial year and the fourth quarter of 2008, despite the financial market crisis ? agreement with the German Financial Markets Stabilisation Fund ("SoFFin") http://feedproxy.google.com/~r/aareal/news/en/~3/jaSiuGzm16U/announcement-in-accordance-with-15-wphg-aareal-bank-group-posts-solid-results-for-the-financial-year-and-the-fourth-quarter-of-2008-despite-the-financial-market-crisis-agreement-with-the-german-financial-markets-stabilisation-fund-s 2008 profit before taxes of ? 117 million (based on preliminary, unaudited figures) ? positive...
  • 2008 profit before taxes of ? 117 million (based on preliminary, unaudited figures) ? positive result also in the fourth quarter
  • Strengthening of the capital base through a ? 525 million silent participation by SoFFin ? Tier 1 ratio to rise significantly
  • SoFFin guarantee facility for new issues with a maximum maturity of three years and a total volume of up to ? 4 billion
  • Business model validated: no changes to corporate governance
  • Aareal Holding supports measures, remains anchor shareholder with current amount of shares ? voting agreement to be concluded by SoFFin and Aareal Holding, to maintain Aareal Holding's blocking minority
    • Wiesbaden, 15 February 2009 ? Aareal Bank Group posted a solid result for the 2008 financial year, in spite of the severe turmoil on financial markets and the palpable economic slowdown. Even amid the pressures from the crisis, profit before taxes according to preliminary, unaudited figures amounted to ? 117 million; the previous year's figure of ? 380 million was heavily affected by one-off effects of ? 221 million. In the fourth quarter of 2008 Aareal Bank Group posted a pre-tax profit of ? 11 million. For the full year, Group net income after minority interest stood at ? 60 million (? 290 million), and ? 4 million for the fourth quarter. This means that Aareal Bank Group has remained profitable in every quarter since the onset of the financial market crisis, on a Group level as well as in each of its two business segments, Structured Property Financing and Consulting/Services. To ensure the long-term future of its sustainably profitable business and to help get through the very difficult market environment, Aareal Bank Group has entered into an agreement with the German Financial Markets Stabilisation Fund ("SoFFin") on a comprehensive set of measures. In accordance with this agreement, SoFFin will make ? 525 million in capital available to Aareal Bank by way of a perpetual silent participation. In addition, SoFFin will grant Aareal Bank a guarantee facility for new, unsecured issues with a maximum maturity of 36 months for a total volume of up to ? 4 billion. Taking into account the silent participation by SoFFin which is fully recognised as Tier 1 capital, Aareal Bank's Tier 1 ratio increased significantly. Excluding the silent participation, the ratio stood at 8.0% at the end of 2008. After strengthening its capital base, Aareal Bank now matches the level of many international competitors (who have already recapitalised), and meets the market requirements which have increased over the course of the financial markets crisis. The terms of the silent participation are economically viable for the company and reflect the fact that Aareal Bank is a fundamentally sound bank. The silent participation will bear interest of 9% p.a., which is equivalent to approx. ? 47 million before taxes in annual interest payable. The financial burden (taking into account the reinvestment) will be approx. ? 16 million. The bank is committed to repay the silent participation as soon as possible. To that end, the Management Board will decide on feasible scenarios based on the prevailing general market situation. The bank has a variety of repayment options at the discretion of the Management Board, subject to regulatory approval. This recapitalisation in form of a silent participation considers the interests of shareholders as it avoids a dilution of existing shareholdings. Aareal Holding Verwaltungsgesellschaft mbH has committed that it will not reduce its 37.23% stake during the entire term of the silent participation. A voting agreement will be concluded by SoFFin and Aareal Holding, to maintain Aareal Holding's blocking minority. This will ensure the stability of the shareholder structure and the independence of Aareal Bank Group, with Aareal Holding as an anchor shareholder. The guarantee facility agreed upon with SoFFin provides the bank with a solid base for its refinancing, broadening its funding flexibility in the years to come. Aareal Bank will pay SoFFin a commitment fee of 0.1% p.a. of the undrawn amount of the guarantee facility. The drawdown fee for guarantees used will be 0.5% p.a. for terms up to one year and 0.948% p.a. for terms beyond one year. The timing and volume of potential guaranteed debt securities issues will depend on the prevailing market situation and the general environment. Beyond the applicable legal provisions, SoFFin has not set additional conditions for Aareal Bank Group. In particular, there will be no state influence on the company's corporate governance, nor will any changes be required to its proven business model. In the interest of a quick repayment of the silent participation, Aareal Bank will not distribute any dividends for the 2008 and 2009 financial years. Should Aareal Bank distribute dividends at a later point in time during the term of the silent participation, the coupon of the silent participation will increase on a pro rata basis, by 0.5 percentage points for each ? 0.25 in dividends per share. Outlook The Management Board anticipates that these measures will allow Aareal Bank Group to emerge strengthened from the financial and economic crisis. The company enjoyed a satisfactory start to the current year, with operating business at normal levels in January. Aareal Bank Group anticipates the decline in new business volume in the Structured Property Financing segment to have a negative impact on net interest income for the current year. From today's perspective, new business will range between ? 2 billion and ? 3 billion, with a predominant focus on business with the existing client base. The Management Board expects loan loss provisions to remain at a manageable level, and expects administrative expenses (after consolidation effects) to remain roughly unchanged year-on-year. Aareal Bank Group expects the positive performance in the Consulting/Services segment to continue this year, with a further rise in profit. It is not possible to give a reliable, comprehensive forecast for Group results at this time in light of the ongoing crisis affecting financial markets and the global economy.
    ]]>     News Home News Press News Portal Press News Ad-hoc News Portal IR News IR Sun, 15 Feb 2009 15:00:00 +0100 http://www.aareal-bank.com/en/press/press-release/announcement-in-accordance-with-15-wphg-aareal-bank-group-posts-solid-results-for-the-financial-year-and-the-fourth-quarter-of-2008-despite-the-financial-market-crisis-agreement-with-the-german-financial-markets-stabilisation-fund-s     Aareal Bank Group posts good results, despite the financial markets crisis http://feedproxy.google.com/~r/aareal/news/en/~3/9q_xKGjtkAg/ Pre-tax profit of ? 31 million for the third quarter of 2008; ? 106 million (? 122 million...
  • Pre-tax profit of ? 31 million for the third quarter of 2008;
    ? 106 million (? 122 million adjusted for non-recurring effects) for the first nine months
  • Third-quarter net interest income up 17% year-on-year
  • Allowance for credit losses remains stable
  • Sound liquidity status, backed by adequate capital base
    • Wiesbaden, 11 November 2008 ? Aareal Bank posted positive results for the third quarter of 2008, in spite of the escalating crisis affecting global financial markets. Profit before taxes amounted to ? 31 million. Adjusted for non-recurring effects attributable to the financial markets crisis, the Q3 result was ? 41 million, exceeding both the previous quarter (Q2 2008: ? 38 million) and the third quarter of the previous year (Q3 2007: ? 32 million). Third-quarter Group net income after minority interest was ? 15 million. This means that Aareal Bank Group has posted positive results in each quarterly reporting period since the onset of the financial market crisis. Financial performance Consolidated net interest income rose by 17% year-on-year during the third quarter, to ? 117 million (Q3/2007: ? 100 million), thanks to a higher level of risk-weighted assets and increased margins. With allowance for credit losses stable, at ? 20 million (in line with the two preceding quarters), net interest income after allowance for credit losses was ? 97 million, up from ? 81 million for the third quarter of 2007. Net commission income totalled ? 34 million, compared to ? 32 million in the same period of the previous year. Net trading income/expenses of ? 25 million reflected the impact of hedge transactions, and must be seen as a very satisfactory figure for the third quarter of 2008. The net figure included ongoing expenditure for securitisation transactions (?? 2 million), and write-downs on a bond issued by Lehman Brothers (?? 7 million); these items were offset by ? 34 million in income from hedge transactions, whereby the corresponding negative results were reflected in the results from non-trading assets. At ?? 37 million, results from non-trading assets for the period under review were dominated by the current market turbulence. (The ? 162 million figure reported in the same period of the previous year included ? 153 million in non-recurring income from the sale of the stake in Immobilien Scout GmbH.) The figure includes ? 15 million in write-downs on equity holdings, which we recognised in income rather than in the revaluation surplus. Against the background of the deterioration of the financial markets crisis, the International Accounting Standards Board (IASB) adopted amendments to standards IAS 39 and IFRS 7 ("Reclassification of Financial Assets"), which the European Union approved in October. In particular, the amendments provide for the option to reclassify certain non-derivative financial assets within the measurement categories pursuant to IAS 39, with retrospective effect from
    1 July 2008, and subject to certain conditions. Aareal Bank Group opted for reclassification, and now carries certain securities (which were previously measured at market value) at amortised cost. This approach is based on the fact that no active market existed for these securities during the third quarter of 2008. Had these assets not been reclassified, third-quarter income would have been reduced by ? 17 million and the burden on the revaluation surplus would have amounted to ? 39 million. Aareal Bank would still have posted a noticeable profit for the third-quarter even if it had not used the reclassification option. The net relief on third-quarter results was only ? 2 million, with ? 17 million attributable to accounting relief options offset by ? 15 million in write-downs on equity holdings. The overall direct burden on third-quarter income resulting from the financial markets crisis amounted to ? 10 million. Aareal Bank has not exercised the 'fair value option' which permits the carrying of liabilities at market value; this is in line with its previous financial statements. At ? 84 million, administrative expenses were not only markedly lower year-on-year (Q3 2007: ? 93 million), but also improved on the low figure posted for the previous quarter (Q2 2008: ? 89 million). This highlights Aareal Bank Group?s continued strict cost discipline. Net other operating income/expenses was ?? 5 million, compared to a ? 10 million deficit the year before. The net figure includes ? 8 million in provisions recognised for measures to enhance the efficiency of loan processing in our German business. On balance, consolidated operating profit for the third quarter amounted to ? 31 million (Q3 2007: ? 221 million, including non-recurring income of ? 153 million from the sale of the stake in Immobilien Scout GmbH, plus ? 63 million from the Interhotel transaction). After deduction of ? 11 million in income taxes and ? 5 million in income attributable to minority interests, consolidated net income after minority interests amounted to ? 15 million (Q3 2007: ? 183 million). Operating profit before taxes and minority interests for the first nine months of the financial year was ? 106 million; adjusted for non-recurring effects, it was ? 122 million. Consolidated net income after minority interests was ? 56 million. Segment performance Aareal Bank maintained a new business policy ? strictly focusing on quality ? in its Structured Property Financing segment. New business generated during the period under review was ? 2.1 billion, bringing the total figure for the first three quarters of 2008 to ? 5.0 billion (9m 2007: ? 8.8 billion). Net interest income was ? 99 million, compared to ? 95 million in the previous quarter, and ? 83 million in the third quarter of 2007. Financing volumes remained virtually unchanged year-on-year: as at 30 September 2008, the volume of property financing under management amounted to ? 23.7 billion (30 Sep 2007: ? 23.7 billion), despite the sale of a residential financing portfolio sized at ? 1.5 billion to Deutsche Postbank AG. The Consulting/Services segment, serving the institutional housing sector, once again showed a strong performance, delivering the ninth consecutive positive quarterly contribution. At ? 11 million, operating profit was in line with the previous two quarters. The result ? adjusted for the non-recurring income of ? 153 million from the sale of the Immobilien Scout stake ? was increased by ? 7 million over the same quarter of the previous year. Sound liquidity status, backed by adequate capital base Aareal Bank Group continues to maintain sound liquidity, despite the current tensions on financial markets. During the first nine months of the 2008 financial year, the Group raised long-term funds totalling ? 2.3 billion. The property financing portfolio to be refinanced totalled ? 23.0 billion as at 30 September 2008 (30 Sep 2007: ? 22.1 billion). With ? 19.8 billion in long-term funding and very stable deposit volumes from the German institutional housing sector of
    ? 4.5 billion, Aareal Bank's liquidity profile is comfortable indeed. Aareal Bank thus considers its capital base to be appropriate ? also against the background of current developments in the banking sector. The bank?s tier 1 ratio, in accordance with the German Banking Act (Credit Risk Standard Approach ? ?CRSA?), was 8.0% as at 30 September 2008, based on ? 23.4 billion in risk-weighted assets (30 Jun 2008: ? 22.0 billion). Operating business within budget, despite the financial markets crisis ?Aareal Bank?s conservative business model, incorporating the two pillars of Structured Property Financing and Consulting/Services, has proved to be correct and sustainable ? particularly during the current crisis", said Dr Wolf Schumacher, Chairman of the Management Board of Aareal Bank AG.

    "We remain convinced that Aareal Bank Group is well-positioned. In spite of the crisis affecting financial markets, our operating business is within budget after the first nine months of the year. Nevertheless, as the dramatic market distortions seen over recent weeks have shown, the current environment does not permit any reliable forecast for the year 2008 as a whole", Schumacher added. Aareal Bank Aareal Bank AG is one of the leading international specialist property banks. The Aareal Bank share is included in Deutsche Börse's mid-cap MDAX index. Aareal Bank operates on three continents: leveraging its successful European business model, the bank has established similar platforms in North America and in the Asia-Pacific region. It provides property financing solutions in more than 25 countries.
    ]]>     News Home News Portal Press News Press News Portal IR News IR Tue, 11 Nov 2008 00:01:00 +0100 http://www.aareal-bank.com/en/press/press-release/aareal-bank-group-posts-good-results-despite-the-financial-markets-crisis/     Aareal Bank opens representative office in Shanghai http://feedproxy.google.com/~r/aareal/news/en/~3/dipOfrvhMmM/ Wiesbaden, 10 September 2008 ? Regulatory authorities in China have approved the opening of an... Aareal Bank Aareal Bank AG is one of the leading international specialist property banks. The Aareal Bank share is included in Deutsche Börse's mid-cap MDAX index. Aareal Bank operates on three continents: leveraging its successful European business model, the bank has established similar platforms in North America and in the Asia-Pacific region. It provides property financing solutions in more than 25 countries.
    ]]>     News Home News Portal Press News Press Wed, 10 Sep 2008 00:00:00 +0200 http://www.aareal-bank.com/en/press/press-release/aareal-bank-opens-representative-office-in-shanghai/     Aareal Bank Group remains on course in the 2008 financial year http://feedproxy.google.com/~r/aareal/news/en/~3/wXiIayOx0_E/ Significant improvement in second quarter operating profit compared with the first quarter Sharp...
  • Significant improvement in second quarter operating profit compared with the first quarter
  • Sharp increase in net interest income
  • Positive development continues in Consulting/Services segment
    • Wiesbaden, 12 August 2008 ? Aareal Bank Group?s positive development continues during the course of the 2008 financial year, despite the persistently challenging market environment. In the second quarter of 2008 the international property specialist posted operating profit of ? 48 million (Q2 2007: ? 53 million), after ? 27 million in the first quarter of 2008. Supported by an increase in lending volume and higher margins over the same period of the previous year, consolidated net interest income posted a particularly positive development, rising by 9.6% from ? 104 million to ? 114 million. In the Structured Property Financing segment, where it pursues a strict new business policy that focuses on quality and return, Aareal Bank benefited from the successful geographical diversification achieved within the scope of its three-continent strategy. Against the background of the current difficult market environment, Aareal Bank is aiming principally at expanding the interest-bearing business in Structured Property Financing, in order to further increase net interest income in this segment: in the second quarter of 2008, it rose by 6.7% to ? 95 million (Q2 2007: ? 89 million). The Consulting/Services segment continued to perform well. The previous quarter?s result (Q2 2007), which was defined by a ? 5 million positive one-off effect from the shareholding in Immobilien Scout GmbH (which has been disposed of in the meantime), was almost matched in the second quarter of 2008, without the benefit of any non-recurring income. At ? 11 million, the segment result before taxes was almost at the level of the same quarter of the previous year (Q2 2007: ? 12 million). The greater importance of the segment as a stable source of income, particularly during turbulent times on capital markets, is reiterated once again by the rise in operating profit to ? 22 million in the first half of this year, up from ? 19 million in the same period of the previous year. The segment is therefore within the target range to meet the forecast for the year as a whole; that is to say, operating profit of ? 40 to 50 million. Consolidated administrative expenses fell in the second quarter, to ? 89 million from ? 91 million in the same period of the previous year, and in the first half-year from ? 180 million to ? 177 million ? this is a reflection of the strict cost discipline Aareal Bank Group continues to pursue. Dr Wolf Schumacher, Chairman of the Management Board of Aareal Bank, commented on the results of the first six months: ?Aareal Bank Group is well on track in a market environment that remains difficult. Our solid business policy and business model comprising two strong pillars has proven successful in the course of the current financial year as well. Unlike many other international financial institutions, we have achieved a positive result in all quarters since the outbreak of the financial market crisis.? Group profitability: stable allowance for credit losses and administrative expenditure Net interest income for Aareal Bank Group for the second quarter of 2008 was ? 114 million, and therefore ? 221 million in the first half of the year (H1 2007: ? 202 million). Allowance for credit losses of ? 20 million in the second quarter was within the scope of our planning, and was slightly lower than the corresponding figure for the same quarter of the previous quarter (Q2 2007: ? 22 million). Net interest income after allowance for credit losses for the first six months was ? 181 million, compared with ? 158 million for the first half of 2007. This equates to an increase of 14.6%. Six-month allowance for credit losses stood at ? 40 million in 2008, after ? 44 million in the first half of 2007. At ? 35 million, net commission income in the second quarter was just short of the figure for same period of the previous year (Q2 2007: ? 36 million). A lower net figure in the Structured Property Financing segment was offset by an increase in the Consulting/Services segment. Net commission income totalled ? 68 million for the first half of the year (H1 2007: ? 73 million). Net trading income/expenses, which was burdened by the financial crisis in the three previous quarters, was minus ? 3 million for the period between April and June (Q2 2007: ? 5 million). Developments in the first quarter of 2008 reflected a charge of approx. ? 16 million, due to lower market-to-market valuations of asset-backed securities (ABS issues), in net trading income. There were no write-downs on ABS securities in the quarter under review, nor were there any defaults or rating downgrades on the portfolio with a residual nominal value of ? 616 million (after scheduled redemptions). Net trading income also regularly includes ongoing expenditure for the bank's own securitisation transactions; as in the first quarter, these amounted to roughly ? 2 million in the second quarter. The remaining balance of ? 1 million was attributable to stand-alone derivatives, bank bonds, government bonds issued by EU member states, interest payments, and currency effects. Net trading income for the first half of 2008 was minus ? 25 million, after a plus of ? 7 million in the first six months of 2007 achieved before the outbreak of the financial markets crisis.  The result from non-trading assets was minus ? 8 million in the second quarter (Q2 2007: ? 14 million). The decline was due mainly to the sale of securities held in the investment portfolio. The result from non-trading assets for the first half-year therefore stands at ? 1 million, compared with ? 26 million for the same period of the previous year. Administrative expenses in the Group amounted to ? 89 million in the second quarter, and ? 177 million in the first half-year. Net other operating income/expenses posted a positive balance of ? 16 million for the period from April to June, after minus ? 2 million in the same quarter of the previous year. Income of ? 7 million (Q2 2007: ? 2 million) from the Deutsche Interhotel investment is also reflected in this item, with an additional ? 3 million recognised in the result from investments accounted for using the equity method. On balance, consolidated operating profit for the second quarter amounted to ? 48 million (Q2 2007: ? 53 million). After deduction of ? 16 million in income taxes and ? 4 million in income attributable to minority interests, consolidated net income after minority interests amounted to ? 28 million. Aareal Bank's operating profits totalled ? 75 million in the first half of 2008, after ? 132 million for the same period of the previous year, which was defined by non-recurring income. Consolidated net income after minority interests was ? 41 million in the first six months, compared with ? 89 million for the same period of the previous year. Structured Property Financing: expanding the interest-bearing business Notwithstanding the difficult environment on a number of important markets that were affected by the financial markets crisis, Aareal Bank succeeded in expanding its interest-bearing business further. The property financing portfolio under management was ? 24.2 billion as at 30 June 2008, corresponding to an increase of 0.8% from year-end 2007. This increase was also supported by solid new business, which amounted to ? 1.8 billion in the second quarter and ? 2.9 billion in the first half-year. The bank continued to expand its international financing business, which now accounts for 73% of the total loan portfolio. The entire sales structure is being aligned to the three-continent strategy, where the activities of related economic regions are aggregated into regional sales centres ('hubs'). A new hub for Central and Eastern Europe (CEE) is being established in Warsaw, which should further enhance Aareal Bank?s market position in this region defined by strong growth. The establishment of our representative office in Moscow, which commenced operations on 1 July 2008, should also contribute to this expansion. During the period under review, Aareal Bank continued its strategy of focusing on its core business, whereby it disposed of a portfolio of residential property loans totalling around ? 1.47 billion to Deutsche Postbank AG. Aareal Bank has concentrated on commercial property finance since 2002. The successful transaction has reduced roughly 84% of the bank?s residential property loan portfolio. Consulting/Services: stable and positive sources of income In the second quarter of 2008, Aareal Bank Group continued to strengthen its position as market leader for integrated payment systems for the property management sector. In the first half-year, the bank acquired eight additional users ? managing a total of 40,000 rental units between them ? as new clients for the BK 01 payments system. The positive trend in the business development of Aareon AG, a leading European systems house for the commercial housing sector, also continued during the second quarter. The successful realignment of the segment and investments made in new products in recent years are increasingly paying off ? across all business units. The marketing of the Blue Eagle property software followed up on the sales successes realised in the previous quarter. The Consulting/Services segment generated stable sources of income that remained largely immune from the turbulences on the financial markets. Refinancing: comfortable liquidity situation Aareal Bank?s liquidity profile remains comfortable. Aareal Bank Group successfully shaped its scope for refinancing on the capital market, even in the difficult market environment experienced in 2008. The bank raised a total of around ? 1.7 billion in long-term funds during the first half-year: ? 1.2 billion in the second quarter of 2008 alone. The property financing portfolio to be refinanced totalled ? 23.0 billion as at 30 June 2008. With ? 20.1 billion in long-term funding and very stable deposit volumes from the institutional housing sector of ? 4.5 billion, Aareal Bank's liquidity profile is comfortable indeed. Outlook: developments in line with projections in the latter course of the year The impact of the crisis affecting financial markets and accelerating inflationary pressures will continue to burden the world economy throughout the remainder of this year, extending into the start of 2009. This makes it generally more difficult to deliver forecasts. Backed by the good results for the first half-year, Aareal Bank Group remains cautiously optimistic for the remainder of the year as well. Dr Wolf Schumacher, Chairman of the Management Board summarised thus: ?We sincerely believe that Aareal Bank Group?s strategy of focusing consistently on two core segments has proven to be correct and sustainable. Aareal Bank is well positioned to continue successfully along the path upon which it has embarked, even in the current market environment. Given no further major distortions on the financial markets, we continue to believe that operating profit in 2008 will match that of the previous year?. Aareal Bank Aareal Bank AG is one of the leading international specialist property banks. The Aareal Bank share is included in Deutsche Börse's mid-cap MDAX index. Aareal Bank operates on three continents: leveraging its successful European business model, the bank has established similar platforms in North America and in the Asia-Pacific region. It provides property financing solutions in more than 25 countries.
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