Aareal
22.02.2011
Aareal Bank Group posts markedly higher results for the 2010 financial year
- Consolidated operating profit up by 54 per cent, to € 134 million
- New business generated in the Structured Property Financing segment grows from € 3.8 billion to € 6.7 billion
- Performance of the Consulting/Services segment remains on track
- Strong fourth quarter – consolidated operating profit of € 40 million
- CEO Dr Wolf Schumacher: "We once again proved our strength throughout 2010 – building the foundations for further expansion of our excellent market position in the years to come."
Wiesbaden, 22 February 2011. Aareal Bank Group posted good results for the 2010 financial year, in a market environment that remained challenging. According to preliminary, unaudited figures, consolidated operating profit amounted to € 134 million, up 54 per cent year-on-year. Aareal Bank Group had in fact already achieved its original target - to beat the previous year's figure of € 87 million - after the end of the third quarter 2010. The strong performance was maintained during the fourth quarter, with consolidated operating profit rising to € 40 million - a 74 per cent increase compared with the fourth quarter of the previous year. At the same time, 2010's fourth quarter results were the highest quarterly figures that the Group had posted for two and a half years.
Looking at full-year results, Aareal Bank Group not only clearly outperformed its operating profit target, but also exceeded its projections for other key financial indicators. For instance, consolidated net interest income of € 509 million - up 11 per cent year-on-year - was markedly higher than the 460-480 million range projected. At the same time, allowance for credit losses of € 105 million was below the € 117 to 165 million range budgeted for the 2010 financial year. At € 6.7 billion, new business originated in the Structured Property Financing segment significantly exceeded the target corridor of € 4 billion to € 5 billion; compared to 2009, new business was up by 74 per cent. At € 26 million, operating profit for the Consulting/Services segment was in line with projections, despite the unfavourable interest rate levels for the deposit-taking business.
Dr Wolf Schumacher, Chairman of Aareal Bank's Management Board, explained: "The results for 2010 show that we once again performed well, in a market environment that continued to be challenging, thereby proving the strength and soundness of our business model. We are thus in a very good position to leverage market opportunities to grow our lending business, in order to further expand our excellent market position to provide for profitable growth in the years to come."