Aareal Bank posted a consolidated operating profit of €66m in the third quarter, up by more than one-third from Q3 2013. Consolidated profit rose to €36m, up roughly 50 percent year-on-year. Net interest income was up 36 percent y-o-y, hitting €181m. The unexpectedly high effect of early loan repayments had a positive impact on the bank’s third quarter performance. Low funding costs, a marked increase in lending volume and stable lending margins also impacted the figures.
New business originated in the structured property financing segment during the third quarter totaled €3.4bn, increasing the total figure for the first three quarters of 2014 to €7.6bn. Aareal Bank expects aggregate new business to hit €10bn for the year.
“The positive development of our business over the past few months clearly shows that Aareal Bank’s business model is sustainably viable. Our strategy, geared towards long-term profitable growth, has truly paid off, and we are in an excellent position in every respect to continue on our successful path, even in an increasingly competitive environment,” said Dr Wolf Schumacher, chairman of the bank’s management board.
