DGAP-News

Aareal Bank Group: Reversal of provisions set aside within the scope of the acquisition of Corealcredit Bank AG

DGAP-News: Aareal Bank AG / Key word(s): Miscellaneous/Change in Forecast Aareal Bank Group: Reversal of provisions set aside within the scope of the acquisition of Corealcredit Bank AG (news with additional features) 20.04.2017 / 16:06 The issuer is solely responsible for the content of this announcement. Aareal Bank Group: Reversal of provisions set aside within the scope of the acquisition of Corealcredit Bank AG Wiesbaden, 20 April 2017 - Following the final settlement of contractual issues with a third party that were still unsolved at the time Aareal Bank Group acquired Corealcredit Bank AG and following the receipt of tax assessment notices, Aareal Beteiligungen AG (previously Corealcredit Bank AG), a subsidiary of Aareal Bank AG included in the consolidated financial statements of Aareal Bank Group, has reversed provisions of EUR 66 million which are recognised in income. These are offset by corresponding expenses totalling EUR 42 million, of which EUR 16 million will be recognised in operating profit and EUR 26 million in the tax item. The positive effect on consolidated operating profit of Aareal Bank Group in the second quarter of 2017 will thus total EUR 50 million before taxes and EUR 24 million after taxes. For this reason, Aareal Bank AG raises its consolidated operating profit forecast for the current year from between EUR 260 and EUR 300 million, as published on 23 February 2017, to a range between EUR 310 to EUR 350 million. At the same time, the earnings per share forecast for the 2017 financial year is raised from between EUR 2.45 and EUR 2.90 to EUR 2.85 and EUR 3.30. Within the context of announcing the takeover of Corealcredit Bank AG on 22 December 2013, Aareal Bank Group communicated that Corealcredit Bank's legal, tax and credit risks existing at that time have been valued conservatively and comprehensively ring-fenced within the framework of an extensive due diligence. Aareal Bank Group Aareal Bank Group, headquartered in Wiesbaden, is a leading international property specialist. The Group offers smart financings, software products and digital solutions for the property sector and related industries, and is represented on three continents: Europe, North America and Asia. Aareal Bank AG, whose shares are included in Deutsche Börse's MDAX index, is the Group's parent entity. It manages the various entities organised in the Group's two business segments: Structured Property Financing and Consulting /Services. The Structured Property Financing segment encompasses all of Aareal Bank Group's property financing and funding activities. In this segment, the Bank facilitates property investment projects for its domestic and international clients, within the framework of a three-continent strategy covering Europe, North America and Asia. In the Consulting/Services business segment, clients from the European property and energy sectors optimise their business processes and enhance efficiency through Aareal Bank Group's unique combination of specialised banking services and innovative digital products and services.