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| Aareal Bank Group is well-positioned for the future Wiesbaden-based Aareal Bank Group expects a gradual improvement in the market environment, both during the current year and in 2011. The bank assumes that markets will return to normal again as of 2012. Aareal Bank Group affirmed its outlook for the current year. Accordingly, the property financing specialist – active on three continents – sees good potential for improving consolidated operating profit. Net interest income is expected to increase to between € 460 million and € 480 million. Allowance for credit losses recognised in income is expected to range between € 117 million and € 165 million, which means that it will remain at a clearly manageable level. From today's perspective, new business generated in the Structured Property Financing segment is expected to increase to between € 4 billion and € 5 billion – with a reduction in the share of loan renewals. Operating profit in the Consulting/Services segment is expected to increase slightly over adjusted 2009 operating profit. Consolidated administrative expenses are expected to remain in line with the previous year, reflecting the Group's continued strict cost discipline. Against the background of a sound operating performance and a very satisfactory capitalisation, the Management Board is aiming to already start repaying the silent participation from the German Financial Markets Stabilisation Fund (SoFFin) by early 2011. The Management Board anticipates a further improvement in consolidated operating profit for the 2011 financial year, with both segments expected to contribute to this result. Net interest income is expected to continue to rise next year; at present, allowance for credit losses and administrative expenses are both expected to remain roughly at 2010 levels. Despite the difficult market environment, Aareal Bank Group posted a sound result for the 2009 financial year. Having achieved a positive result in all quarters since the outbreak of the financial markets crisis in summer of 2007, the bank remained on course, even in conditions that continue to remain challenging for the financial services industry. According to the audited figures, Aareal Bank Group concluded the 2009 financial year with a pre-tax result of € 87 million (2008: € 110 million). This means that Aareal Bank will service all of its subordinated refinancing vehicles for the 2009 financial year. This includes the silent participation by SoFFin. write your comments about the article :: © 2010 Construction News :: home page |