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Aareal Bank Group continues its successful development during the second quarter of 2014 (news with additional features)

DGAP-News: Aareal Bank AG / Key word(s): Half Year Results/Quarter
Results
Aareal Bank Group continues its successful development during the
second quarter of 2014 (news with additional features)

12.08.2014 / 07:01

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Aareal Bank Group continues its successful development during the second
quarter of 2014

- Consolidated operating profit of EUR 65 million

- Consolidated net interest income rises to EUR 169 million; increase
reflects higher lending volume in particular

- Forecast for 2014 consolidated operating profit raised slightly, to
between EUR 380 million and EUR 400 million

Wiesbaden, 12 August 2014 - Aareal Bank Group successfully concluded the
second quarter of the 2014 financial year, in a still challenging market
environment characterised by further intensified competition. At EUR 65
million, consolidated operating profit was markedly higher - as expected -
than in the same period of the previous year (Q2 2013: EUR 45 million). The
results for the first quarter of 2014, which totalled EUR 217 million, can
only be comparable to a limited extent - due to factors including the
non-recurring negative goodwill of EUR 152 million (after measurement
adjustments) from the acquisition of COREALCREDIT BANK AG ("Corealcredit").
Aareal Bank Group's consolidated profit rose to EUR 34 million in the
second quarter (Q2 2013: EUR 21 million).

Since the start of the second quarter, the figures from the operating
business of Corealcredit, which was acquired as at 31 March 2014, have been
included in consolidated income. These impact mainly on net interest
income, and administrative expenses. In addition to the larger credit
portfolio, Aareal Bank's second-quarter net interest income also benefited
from the effects of early loan repayments. Overall, consolidated net
interest income in the second quarter of 2014 rose markedly, to EUR 169
million (Q2 2013: EUR 126 million).

At EUR 32 million, Aareal Bank's consolidated allowance for credit losses
during the second quarter was lower than in the preceding quarter (EUR 37
million), and thus remained within the pro-rata forecast range of EUR 100
million to EUR 150 million for the full financial year.

New business originated in the Structured Property Financing segment during
the second quarter was EUR 2.6 billion, thus clearly exceeding the figure
for the first quarter (Q1 2014: EUR 1.6 billion). As at the beginning of
the year, the volume of loans set for renewal was lower during the second
quarter, too: accordingly, the share of newly-originated loans remained at