– First-quarter consolidated operating profit of β¬ 43 million
– Core Tier 1 ratio of 11.6 per cent as at 31 March 2012
Aareal Bank Group retained its positive business development during the first quarter of 2012. Consolidated operating profit amounted to β¬ 43 million in the first three months of the financial year β only slightly below the strong figures posted for the first as well as the last quarter of 2011 (β¬ 47 million each). Consolidated net income was β¬ 21 million, compared to β¬ 24 million in the previous quarter, and the same amount in the first quarter of the previous year.
As announced, Aareal Bank responded to the challenging environment by pursuing a cautious liquidity and investment strategy β which burdened net interest income during the period under review. Thanks to the bank’s conservative business policy over the past several years, allowance for credit losses was once again lower than in the same quarter of the previous year (which was already very low), thus remaining at a clearly manageable level. Aareal Bank was very successful in its funding activities, thereby preserving its good liquidity status.
The bank adopted a cautious stance with regard to new business, and concentrated on renewals. “We affirm our target for new business of β¬ 4.5 billion to β¬ 5.5 billion for the full year 2012, and will exploit opportunities in new lending business more vigorously during the remainder of the year”, said Dr Wolf Schumacher, Chairman of the Management Board.
