DGAP-News

Aareal Bank Group continues its successful development during the second quarter of 2014 (news with additional features) - Seite 2

a high level of 63.6 per cent.

"The year-to-date business development shows that Aareal Bank Group has
been holding a steady course - despite the still subdued economic
development, increasing geopolitical imponderabilities, the persistent
low-interest rate environment and intensified competition in commercial
property financing. Our business model is robust and provides a viable
foundation for our ongoing success", said Dr Wolf Schumacher, Chairman of
the Management Board of Aareal Bank.

Structured Property Financing segment: higher lending volume, increased net
interest income

Operating profit in the Structured Property Financing segment was EUR 71
million in the second quarter of 2014, clearly exceeding the previous
year's figure of EUR 50 million. The expected cost increase was offset by
clearly higher net interest income.

Segment net interest income in the period under review was EUR 168 million,
after EUR 124 million in the same period of the previous year. The rise in
net interest income was primarily attributable to the higher lending
volume, resulting from, among other things, the acquisition of
Corealcredit. Net interest income for the second quarter of the year
included EUR 8 million in non-recurring effects from early loan repayments.

Allowance for credit losses was EUR 32 million in the second quarter of
2014, compared with EUR 28 million in Q2 2013. Allowance for credit losses
during the first half of the year totalled EUR69 million (H1 2013: EUR 45
million) and thus remained within the pro-rata forecast range of EUR 100
million to EUR 150 million for the full financial year.

The volume of new business originated in the second quarter amounted to EUR
2.6 billion (Q2 2013: EUR 2.4 billion): a total of EUR 4.2 billion has now
been originated during the first half of 2014 (H1 2013: EUR 4.4 billion).
At EUR 2.7 billion, the volume of new loans originated during the first
half of 2014 was up slightly year-on-year (H1 2013: EUR 2.5 billion). The
second quarter showed a similar development, with newly-originated loans
totalling EUR 1.6 billion (Q2 2013: EUR 1.4 billion). Renewals declined,
however, reflecting a lower volume of portfolio loans set for renewal.
Accordingly, the share of newly-originated loans rose to 63.6% in the first
half of the year (H1 2013: 57.0%).

Consulting/Services segment: volume of deposits remains on a high level

At -EUR 6 million, operating profit in the Consulting/Services segment
during the quarter under review was in line with the level of the first