DGAP-News

Aareal Bank Group posts record results for the financial year 2014 - proposes dividend increase from EUR 0.75 to EUR 1.20 per share (news with additional features) - Seite 2

million), of which EUR 35 million was generated in the fourth quarter (Q4
2013: EUR 27 million).

The main driver for the positive trend in operating result was yet another
strong increase in net interest income. Both in the fourth quarter and the
full year 2014, net interest income significantly increased on the previous
year's figures, at EUR 194 million and EUR 688 million, respectively (Q4
2013: EUR 147 million; 2013: EUR 527 million). Net interest income in 2014
thus exceeded the target range of EUR 650 million to EUR 680 million, which
had been raised once again in November. Allowance for credit losses of EUR
146 million (2013: EUR113 million) was in the upper half of the
communicated range between EUR 100 million and EUR 150 million, as
expected. New commercial property financing business again developed
successfully: at EUR 10.7 billion (2013: EUR 10.5 billion), it exceeded
both the previous year's figure and the Bank's projection, which had been
raised from between EUR 8 billion and EUR 9 billion to approximately EUR 10
billion.

Return on equity before taxes, excluding the negative goodwill from the
acquisition of Corealcredit, amounted to 11.1 per cent during the year
under review. This represents a significant increase from 7.5 per cent in
2013 and a significant step towards Aareal Bank's medium-term target RoE of
approximately 12 per cent. Aareal Bank affirmed this RoE target, also
including the effects from the acquisition of Westdeutsche ImmobilienBank
AG ("WestImmo"). On 22 February 2015, Aareal Bank announced that it entered
into a sale and purchase agreement to acquire all of the shares of
WestImmo, which specialises in commercial property financing. With the
acquisition of WestImmo - a Pfandbrief issuer with a clear focus on its
core business, whose portfolio supplements Aareal Bank's own activities, in
line with the Bank's strategy - Aareal Bank exploited an attractive
opportunity to execute a value-creating transaction, and to further expand
its position on key target markets.

Aareal Bank aims to ensure that its shareholders participate appropriately
in the very good results posted for the financial year under review.
Therefore, the Management Board and the Supervisory Board will propose to
the Annual General Meeting of Aareal Bank AG, to be held on 20 May 2015, a
60 per cent increase in the dividend per share, from EUR 0.75 to EUR 1.20.
The distribution ratio, adjusted for the negative goodwill from the
acquisition of Corealcredit, of approximately 50 per cent corresponds with