DGAP-News

Aareal Bank announces adverse non-recurring tax effect and informs about preliminary results for the second quarter

DGAP-News: Aareal Bank AG / Key word(s): Miscellaneous Aareal Bank announces adverse non-recurring tax effect and informs about preliminary results for the second quarter 02.08.2021 / 18:39 The issuer is solely responsible for the content of this announcement. Aareal Bank announces adverse non-recurring tax effect and informs about preliminary results for the second quarter

- Despite further burdens, second-quarter consolidated operating profit presumably rises markedly to €41 million (Q2 2020: €2 million)

- Aareal Bank affirms forecast for the full-year consolidated operating profit of between €100 million and €175 million

- Tax rate of around 55 per cent on average expected for 2021

Wiesbaden, 2 August 2021 - As part of a review of a prior fund investment which was sold in 2012, new findings emerged which have a negative impact on Aareal Bank's results for the 2021 financial year amounting to an additional €11 million burden to be recorded in net other operating income for the second quarter of 2021 and a further €26 million to be recognised in the tax position for the 2021 financial year. Aareal Bank will recognise the corresponding provisions in the second quarter of 2021 and adjust the expected tax rate for the full year.

Taking this non-recurring effect into consideration, the preliminary operating profit for the second quarter of 2021 will presumably amount to €41 million, significantly above the results of the same quarter of the previous year, which had also been affected by the pandemic (Q2 2020: €2 million). Without the additional tax burdens, the preliminary operating profit would have amounted to €52 million.

Compared to Q2/2020, overall profit increased by 14 per cent in the second quarter of 2021. Net interest income markedly increased to €142 million (Q2 2020: €122 million) and reached its highest level in almost four years. Net commission income stood at €59 million, also clearly exceeding the previous year's level (Q2 2020: €54 million) thanks to continuing revenue growth at Aareon.