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Aareal Bank Group publishes Annual Report 2014 (news with additional features)

DGAP-News: Aareal Bank AG / Key word(s): Final Results
Aareal Bank Group publishes Annual Report 2014 (news with additional
features)

27.03.2015 / 08:32

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Aareal Bank Group publishes Annual Report 2014

Wiesbaden, 27 March 2015 - Aareal Bank Group published its Annual Report
2014 today. In addition to information on the Bank's business model and its
activities in the two business segments, the Annual Report also includes
audited consolidated financial statements in accordance with IFRSs and the
Bank's Group Management Report for 2014.

Based on audited results, consolidated operating profit was EUR 436
million, and therefore more than double the previous year's level (2013:
EUR 198 million). This marked rise can be attributed to a strong
operational performance, as well as a positive non-recurring effect in the
amount of EUR 154 million from the acquisition of COREALCREDIT BANK AG
(Corealcredit), a transaction that was closed on 31 March 2014. Adjusted
for this effect, consolidated operating profit amounted to EUR 282 million,
in line with the preliminary figures communicated during the annual press
conference on 25 February 2015. The Bank thus ended the 2014 financial year
with a record result.

Aareal Bank intends to allow its shareholders to adequately participate in
consolidated profit generated during the 2014 financial year. As announced
during February's annual press conference, the Management Board and the
Supervisory Board will propose a 60 per cent increase in the dividend -
from EUR 0.75 to EUR 1.20 per share - to the Annual General Meeting of
Aareal Bank AG, which will be held on 20 May 2015. This equals a
distribution ratio, adjusted for the negative goodwill from the acquisition
of Corealcredit, of about 50 per cent. Aareal Bank thus adheres to its
dividend policy, according to which approximately 50 per cent of
consolidated profit (determined in accordance with IFRSs) after servicing
hybrid capital instruments, will be distributed - to the extent that this
is consistent with the Bank's long-term and sustained business development.
As with the negative goodwill resulting from the acquisition of
Corealcredit in 2014, the expected negative goodwill resulting from the
acquisition of Westdeutsche Immobilienbank AG ("WestImmo") would not be
included in the calculation of potential dividend payments for the 2015