Aareal Bank AG

Investor Presentation • Nov 7, 2024

9M 2024 results 7th November 2024

Dr Christian Ricken (CEO) Andy Halford (CFO) Christof Winkelmann (CMO)

Agenda

▪ Highlights

• Financial Performance
• Business Development
• Funding, Liquidity & Capital
• Outlook
• Appendix

Highlights

Maintaining strong performance, 9M operating profit up significantly

19% increase in nine month cumulative operating profit to € 261 mn

Strong contributions from both business segments

Increase in new business - particularly renewals - with good margins

Non-performing loans actively managed down

Loan loss charges excluding US offices at normal level

Strong capital and liquidity and 2024 funding already complete

Full year profit outlook confirmed even after absorbing likely efficiency charges

Aareon gain on sale to be booked in the fourth quarter

Full year net income likely to be around € 2.2 bn

Group structure Two strong segments

Diversified business model - strong operating resilience

Structured Property Financing (SPF)

• Supporting our clients with large-sized commercial property investments
• Focus on hotel, logistics, shopping centres / retail, alternative residential properties and office buildings

Banking & Digital Solutions (BDS)

• Leading provider of payment transaction services to the German housing industry
• Process optimisation of payment and business transactions
• Rental deposit and guarantee management

Agenda

• Highlights
• Financial Performance
• Business Development
• Funding, Liquidity & Capital
• Outlook
• Appendix

Financial Performance - Group Profit & Loss

9M operating profit up 19%

Profit & loss (€ mn)	9M '23	9M '24	∆ 9M '24/'23
Net interest income (NII)	734	792	8%
s Net commission income (NCI) n o	30	-1	-
erati Admin expenses p	-248	-253	2%
o g Others n	20	11	-45%
ui n Loan loss provision incl. FVPL nti	-316	-288	-9%
o m c Operating profit o	220	261	19%
s fr Income taxes ult	-66	-76	15%
Consolidated net income s e R from continuing operations	154	185	20%
1) Return on equity (RoE)	6.0	7.4
Consolidated net income from discontinued operations	-50	-161
Consolidated net income	104	24
Net income attributable to ordinary shareholders of Aareal Bank AG	96	37

1) After tax, annualized

• NII up 8%
  • Increased average loan portfolio
  • Good margins on lending business
  • Diversified funding mix at improved spreads
  • Payment business of BDS
• Positive NCI offset by fees paid to paymenttransaction-JV ("First Financial Software"), established with Aareon
• Admin expenses largely stable
• LLP down 9%, but, as expected, still at elevated level from ongoing challenges in the US office market
• Operating profit (€ 261 mn) up 19%, both segments contributing similarly
  • SPF: € 136 mn (9M/23: € 100 mn)
  • BDS: € 125 mn (9M/23: € 120 mn)
• Consolidated net income from discontinued operations includes costs relating to the sale of Aareon
• Gain on sale will be recognised in Q4

Financial Performance

Leveraging business model on stable cost base

1) Segment SPF & BDS excluding bank levy/deposit guarantee scheme

Up 8%

• Increase based on
  • Increased average loan portfolio
  • Good new business margins
  • Diversified funding mix at improved spreads
  • Positive interest rate effects on BDS deposits
• FY NII above last years' level expected

Largely stable

• Decrease in Q1 due to reduced bank levies offset by one-off effects in Q2
• Cost/income ratio (CIR)1) of 32% (9M/23: 31%) at benchmark leading level
• One-off charges for efficiency enhancement measures in Q4

Financial Performance LLP (incl. FVPL) charge down 9%

LLP already down on last year but still at an elevated level

• Total LLP of € 288 mn (9M/23: € 316 mn) includes € 31 mn FVPL (9M/23: € 54 mn)
• 9M LLP reflects
  • Costs of active NPL management
  • € 35 mn net additions to management overlays (aggregated management overlays at € 60 mn)

Ongoing challenges in the US office market

• US office charge represents 60% of total ytd charge (incl. management overlay)
• Rest of portfolio on normal level with risk costs of ~45 bps1)

7

Agenda

• Highlights
• Financial Performance
• Business Development
• Funding, Liquidity & Capital
• Outlook
• Appendix

Strong Q3 new business mainly driven by renewals

Confirming YE portfolio target of € 33-34 bn

• Portfolio highly diversified by region and property type, primarily in major global metropolitan areas
  • No Signa loan exposure
  • Virtually no developments
  • Limited exposure in Germany (~7% of CREF portfolio)
  • No exposure to Russia, China, Middle East
• Financing of refurbishments to foster green transition
• Green loan volume of € 6.0 bn (12/23: € 4.8 bn)

Asset quality improved by strict low-risk focus on new business

Loan-to-value (LTV)1) by property type

%	12 '20	12 '21	12 '22	12 '23	09 '24
Hotel	62	60	56	54	52
Logistics	56	55	52	55	56
Office	58	58	57	62	63
Retail	61	59	56	58	55

Performing portfolio yield-on-debt (YoD)

Yield-on-debt (YoD) 1) by property type

%	12 '20	12 '21	12 '22	12 '23	09 '24
Hotel	3.0	5.0	9.0	10.6	10.8
Logistics	9.2	8.7	9.0	9.3	10.0
Office	8.1	7.6	6.9	7.5	7.6
Retail	8.8	9.1	9.8	11.3	12.2

Ongoing challenges in the US market, rest of the portfolio performing well

US office: Still challenging

• No newly acquired business in 2024
• Concentrating on high quality class A properties in A markets
• New York represents ~45% of the US office portfolio, rest largely spread throughout major US cities

• 80% of portfolio has a (layered) LTV < 60%
  • (Layered) LTV 80 100%: 4% (€ ~100 mn)
  • (Layered) LTV above 100%: none

European office portfolio performing well

Note: others including countries with a portfolio below € 100 mn

2) Including undrawn commitments

• No new office NPLs in Europe since 2022
• French office portfolio mainly in Paris
  • High share of planned refurbishments into green assets (~1/3 of total French office portfolio)
• UK portfolio mainly in London city centre, no Canary Wharf
• Structural differences European vs US office markets
  • Different interest rate environment
  • Lower vacancy rates in European markets
  • Longer investment horizons in Europe
  • Tighter interest rate hedges in Europe
  • Higher equity share / limited subordinated debt structures in Europe resulting in lower LTVs
  • Longer commuting time and larger homes in the US, European cities offer larger mix of attractive areas to live and work
  • Subleasing not common in Europe

¹⁾ Excluding undrawn commitments

NPLs further reduced by ongoing active management

Ongoing active NPL management

• Resolution of already announced € ~300 mn without further P/L charge
• Up to € ~500 mn NPLs prepared for resolution
• Two exposures moved into NPL in Q3
• NPL-portfolio, outside US office, significantly reduced from € 1.6 bn in 12/21 to € 0.5 bn 09/24
• NPE ratio as of 09/24 acc. to EBA methodology1): 3.0% (12/23: 3.4%)
• Coverage ratio (incl. FVPL) of 30% (12/23: 24%)

Banking & Digital Solutions

High deposit base stable

1) Average on annual / YtD-basis

• Segment NII increased vs. 9M/23
  • Deposit volume above earlier expectations of € ~13 bn
  • Normalised interest rate environment
• Segment NCI decreased vs. 9M/23
  • Commission income (CI) increase offset by fees paid to First Financial Software (9M/24: € 29 mn)
  • First Financial Software already attracting new clients to secure and enhance deposits for the Bank

Agenda

• Highlights
• Financial Performance
• Business Development
• Funding, Liquidity & Capital
• Outlook
• Appendix

Successfully diversified funding activities / 2024 funding plan fulfilled

• Solid liquidity ratios:
  • NSFR 122%1)
  • LCR 250%2)
• Deposits from housing industry stable at € 13.7 bn3)
• € 3.6 bn retail term deposits through cooperation with Raisin, slightly above the target volume of € 3.5 bn (12/23: € 2.6 bn), ~97% with a maturity ≥ 2 years

2) Q3 average

18

• 2024 funding plan fulfilled
  • Tier 2 benchmark after absence from market in over a decade successfully placed
  • Inaugural green senior non-preferred benchmark, with strong performance in the secondary market
  • Three benchmark Pfandbriefe, thereof one in 10/24
• 2025 focus on
  • Pfandbrief benchmark issuance
  • Further deposit optimisation; no significant Senior unsecured needs
  • Additional funding and capital management activities depending on market conditions

Funding & Liquidity Strong Mortgage Cover Pool and Aaa Rating for Pfandbriefe

As at 30.09.2024

Pfandbrief funding cornerstone of wholesale issuance

• Cover pool of € 16.8 bn incl. € 0.7 bn substitute assets diversified over 19 countries
• High quality assets: first-class mortgage loans (mortgage-lending-value 55.6%)
• Mortgage-lending-value with high discount from market-value
• Avg. LTV of the mortgage cover pool 34.7%
• Moody´s has calculated a 'Aaa' supporting overcollateralisation ratio of 16.0% on a PV basis
• Over-collateralisation on a PV basis as of 30.09.2024: 19.4%
• High diversification within property types and countries

Capital Solid capital ratios

• B4 CET1 (phase-in) remaining resilient at 19.3%
• B4 CET1 (fully phased) ratio at 15.2%1) (12/23: 13.4%). Strong increase in 9M/24 mainly resulting from first-time adoption of the SME factor within the B4 CRSA
• T1-Leverage ratio at 6.8%1) (12/23: 6.6%)

1) (Proforma) Ratios solely based on continuing operations according to IFRS 5. Capital ratios (phase-in) as at 30.9.24 acc. COREP stood at 16.9% (CET1), 18.9% (T1), 23.2% (TC)

2) Based on the European Commission's final version for implementation of Basel IV (CRR III) on the Regulation 2024/1623 of 31 May 2024

20 3) B4 (phase-in) capital ratios are based on RWA calculation taking the higher-of RWAs from Advanced Internal Rating Based Approach (A-IRBA) and B4 Revised Credit Risk Standard Approach (CRSA@50% output floor)

Agenda

• Highlights
• Financial Performance
• Business Development
• Funding, Liquidity & Capital
• Outlook
• Appendix

Outlook 2024 Confirming operating profit target range

		METRIC	2023	OUTLOOK 2024
	Structured Property Financing	▪ REF Portfolio ▪ New business	€ 32.9 bn € 10.0 bn	34 bn1) € 33 - € 9 - 10 bn
k n a B	Banking & Digital Solutions	▪ Deposit volume	€ ~13.6 bn	€ >13 bn
	Operating profit (EBT)		€ 221 mn	€ 250 - 300 mn
n o e Net capital gain from sale of approx. € ~2 bn ar A

Net capital gain from sale of approx. € ~2 bn

OUTLOOK 2024

Group net income € ~2.2 bn

Confirming operating profit target range based on a strong operating performance after expected one-off charges for efficiency enhancement measures in Q4 ➢

1) Subject to FX development

Key takeaways

Appendix Business Development

Segment SPF: CREF portfolio by country

€ 31.6 bn well diversified

1) Including undrawn commitments, performing only

Segment SPF: CREF portfolio by property types

€ 31.6 bn well diversified

Appendix Funding, Liquidity & Capital

Funding & Liquidity Comfortable liquidity position

Balance sheet as at 30.09.2024: € 46.6 bn (31.12.2023: € 46.8 bn)
€ bn 55
50
45 3.6 (4.0) Money Market 8.2 (7.3)	2.0 (3.5) Money Market (incl. inst. client's deposits) 3.6 (2.6) Deposits from retail clients
40 Treasury portfolio	12.5 (12.7) Deposits from
35 31.6 (32.5) Commercial real estate 30 finance portfolio	housing industry
25	24.8 (24.2) Long-term funds and equity
20	▪ 20.9 (20.5) Long-term funds − 13.0 (12.9) Pfandbriefe
15 10	− 7.9 (7.7) Senior ▪ 0.9 (0.7) Subordinated capital
5	▪ 3.0 (3.0) Shareholders' equity
2.6 (3.9) Other assets1) 3.2 (3.0) Other assets1)	3.7 (3.8) Other liabilities
0 Assets	Liabilities & equity

1) Other assets includes € 0.1 bn private client portfolio and WIB's € 0.2 bn public sector loans

Diversified funding sources and distribution channels

Strong deposit franchise reduces dependence on capital markets

Deposit base consistently increased

• Total deposit base with three strong pillars significantly improved over time
• Granular and sticky Housing Industry (BDS) deposit structure from ~4,000 clients managing more than 9 mn units
• Retail clients as additional source for term deposit introduced in 2022 anticipating expected decrease of Institutional Clients deposits caused by reform of the German deposit protection

1) Average on annual / YtD-basis

2) Initial contractual maturity, > 9 month

Treasury portfolio of € 8.0 bn ensures comfortable liquidity buffer

As of 30.09.2024 – all numbers refer to nominal amounts 1) Composite Rating

MREL capacity well above regulatory requirements

• Senior Preferred have significant protection from subordinated liabilities and own funds
• Run-down of subordinated liabilities well manageable, after 5 years cet.par. still comfortably complying with requirements
• (Subordinated) MREL ratios as at 30.06.2024:

%	TREA	LRE
Actual	46.10	14.55
Requirements1)	24.07	7.94

1) (Subordinated) MREL Requirements coming in effect in 2025

2) Based on 2025 requirements in relation to current RWAs (phase-in) and leverage ratio exposure

Funding & Liquidity Rating profile

Financial Ratings
Fitch Ratings		Moody's
Issuer default rating (Stable)	BBB	Issuer rating (stable)	Baa1
Short-term issuer rating	F2	Short-term issuer rating	P-2
Deposit rating	BBB+	Senior preferred	Baa1
Senior preferred	BBB+	Senior non preferred	Baa3
Senior non preferred	BBB	Bank deposit rating	Baa1
Viability rating	BBB	BCA	Ba1
Subordinated debt (Tier 2)	BB+	Mortgage Pfandbriefe	Aaa
Additional Tier 1	BB

	ESG-Ratings
MSCI		A
ISS-ESG		prime (C)
Sustainalytics		Low (20-10)
CDP		Managment Level B

Financial Ratings

▪ Ratings reflect strong credit profile based on solid capital and liquidity position

ESG-Ratings

Aareal's ESG performance has been rewarded by the rating agencies:

▪ MSCI:

"A" Rating shows strong ESG Performance in the upper midfield in relative comparison to our industry peers

▪ ISS ESG:

Prime Status confirms ESG performance above sector-specific Prime threshold

• Sustainalytics: "Low" risk classification", Rank 214 of 1043 in Sector Banks, 15 of 105 in Thrifts and Mortgages
• CDP:

Management Level B in CDP's Climate Change survey, affirms Aareal addressed the environmental impacts of its business and ensures good environmental management

Note: ESG-Ratings and Benchmarks as of 18/10/2024

Capital SREP (CET 1) requirements

Appendix ESG

ESG is fundamental to our business and therefore, part of our corporate strategy

Supporting our clients on their "Road to Paris"

We are fostering the transition… …because it is important to us

• Deep integration of ESG into business, credit, investment, risk and funding strategies
• Comprehensive Green Finance and Green Funding frameworks in place
• Continuously leveraging our Green product portfolio
• Consistently positive ESG-rating results rewarding Aareal's ESG performance
• We are aware of our responsibility for the environment and strive to make a positive contribution to a green future
• Our aim is to integrate ESG considerations into all business decisions
• We are committed to transparency, integrity and continuous improvement and to working together with our clients for a sustainable world

ESG in our daily business

Sustainability at the core of our decisions since Q2 2021

ESG in our lending business ESG in our funding activity

Aareal Bank "Green Finance Framework – Lending" put into place

• Aareal Bank's Green Finance Framework Lending confirmed through a Second Party Opinion (SPO) by Sustainalytics
• Ambition to extend ESG assessment in our day-to-day lending activities
• Explicit customer demand for Aareal Bank's green lending approach identified internationally and interest is high for the new product
• Green lending within a regularly updated framework provided

Aareal Bank "Green Finance Framework – Liabilities" forms basis for Green Bonds

• In addition to the lending framework, Aareal Bank has implemented an accompanying and regularly updated liability-side / use-of-proceeds framework - confirmed through SPO by Sustainalytics - that allows issuance of green financing instruments
• "Green Finance Framework Liabilities" is intended to not only reflect our sustainable lending activities but also our strategic approach towards sustainability
• Bond issuances under this framework invite open discussion and engagement with investors on the progress we have made and, on the path, forward

Continue to enlarge climate transparency in the portfolio

• Portfolio transparency and data accumulation significantly improved for both existing and new lending and to be continued
• Aareal Bank involved in international initiatives to calculate financed emissions (PCAF)

Aareal's 'credible and impactful' Green Finance Framework

Aareal Green Finance Framework (GFF) in place
Green Property Financing: Requirements to qualify as green property (as set out below under "Eligibility criteria") ▪ Meets EU Taxonomy criteria and / or ▪ Certified with an above-average ratings and / or ▪ Classified as nearly zero-energy building (nZEB) / thresholds as defined in Aareal GFF			+	Green Loan Rider: Customer of a Green Loan agrees to Maintaining "Aareal Green Finance Framework" requirements during the term of the loan			Green Loan: Combination of ▪ Green property1) and ▪ Agreement
Eligibility category Eligibility criteria (alternatives)
Green Buildings	1. EU taxonomy compliant: Buildings meet the EU Taxonomy criteria according to the EU Commission Delegated Regulation, Chapter 7.7 "Acquisition and ownership of existing buildings"	2. Green building certification: ▪ BREEAM: "Very Good" and above ▪ LEED: "Gold" and above ▪ DGNB: "Gold" and above ▪ Green Star: "5 Stars" and above ▪ NABERS: "4.5 Stars" and above ▪ HQE: "Excellent" and above ▪ Energy Star. "80" or above				3. Energy efficiency: Classified as a nearly zero-energy building (nZEB) and / or property falls below the maximum energy reference values 75 kWh/m² p.a. Residential 140 kWh/m² p.a. Office, Hotel, Retail 65 kWh/m² p.a. Logistics
Energy efficiency upgrades	1. EU taxonomy compliant: Modernisation measures meet the EU Taxonomy criteria acc. EU Commission Delegated Regulation3)	2. Upgrade to Green Building: Completion of the measure brings the property up to the green building standard defined above.		3. Energy efficiency improvement: Completion of the measure results in an energy efficiency improvement of at least 30%.

1) All buildings within a financing have to qualify as green buildings according to Aareal GFF

2) Partnership for Carbon Accounting Financials

3) Chapter 7.2 "Renovation of existing buildings"

34% of CREF portfolio classified as Green Property Financings

€ 10.8 bn1) or 34% of total CREF portfolio fulfilling Aareal's Green Finance Framework and are classified as "Green Property Financings", thereof

• € 5.8 bn included in green asset pool for underlying of Green bond issues
• € 5.0 bn green property financings not (yet) included

1) CREF excluding business not directly collateralized by properties Portfolio data as at 30.09.2024 – ESG Data as at 30.09.2024

2) Valid certificate is documented

40

Internal

Clients

On the "Road to Paris" we are supporting our clients and enhancing Short-term ambition 2024 Mid-term ambition Expansion of Green Financing: + € 1.5 bn Successes in 2023 Green Loan volume € 4.8 bn € ~6-7 bn total Green Loan volume1) by 2026

Publish PCAF report on financed emissions in `24 / Provide further transparency for CREF portfolio

additional Green Loans1)

+ € 0.5 bn green long-term funding in 2024

Further develop ESG products

Deep ESG integration in business, credit, investment, risk and refinancing strategies and decision-making process

ESG continues to be part of our Management Board's variable remuneration

• additionally, workforce's variable remuneration is partly linked to ESG since 2023

Limiting our own Greenhouse Gas emissions

Carbon-neutrality through compensation of our business operations worldwide

1) Assuming current Green Finance Framework (vintage 2023)

(as per 31.12.2023)

Green Funding volume € 1.0 bn green bonds + € 0.4 bn green CPs (as per 31.12.2023)

Continuously leverage our Green Asset Pool for long-term funding

Consistently positive rating results

Rewarding Aareal's ESG performance

Note: Results and Benchmarks as of 18/10/2024

Appendix ADI of Aareal Bank

Interest payments and ADI of Aareal Bank AG

Available Distributable Items (as of end of the relevant year)

	31.12. 2020	31.12. 2021	31.12. 2022	31.12. 2023
€ mn Net Retained Profit ▪ Net income ▪ Profit carried forward from previous year ▪ Net income attribution to revenue reserves	90 90 - -	96 30 66 -	61 61 - -	452 391 61 -
+ Other revenue reserves after net income attribution	840	840	936	936
= Total dividend potential before amount blocked1)	930	936	997	1.388
./. Dividend amount blocked under section 268 (8) of the German Commercial Code ./. Dividend amount blocked under section 253 (6) of the German Commercial Code	320 43	386 36	466 24	487 6
= Available Distributable Items1)	566	515	507	895
+ Increase by aggregated amount of interest expenses relating to Distributions on Tier 1 Instruments1)	21	20	21	29
= Amount referred to in the relevant paragraphs of the terms and conditions of the respective Notes as being available to cover Interest Payments on the Notes and Distributions on other Tier 1 Instruments1)	588	535	529	924

Appendix Group Results

Aareal Bank Group

Results 9M 20241)

	01.01.- 30.09.2024	01.01.- 30.09.2023	Change
€ mn
Net income from continuing operations
Net interest income	792	734	8 %
Loss allowance	257	262	-2%
Net commission income	-1	3 0
Net derecognition gain or loss	1 9	1 8	6 %
Net gain or loss from financial instruments (fvpl)	-51	-58	-12%
Net gain or loss from hedge accounting	2	-2
Net gain or loss from investments accounted for using the equity method	-	2
Administrative expenses	253	248	2 %
Net other operating income / expenses	1 0	6	67%
Operating profit from continuing operations	261	220	19%
Income taxes	7 6	6 6	15%
Consolidated net income from continuing operations	185	154	20%
Net income from discontinued operations	-161	-50	222%
Consolidated net income	2 4	104	-77%
Consolidated net income attributable to non-controlling interests	-37	-13	185%
Consolidated net income attributable to shareholders of Aareal Bank AG	6 1	117	-48%

1) In accordance with IFRS 5, net income from discontinued operations is disclosed separately; the previous year's figures have been adjusted

Aareal Bank Group

Results 9M 2024 by segments1)

	Financing	Structured Property	Banking & Digital Solutions	r	A Consolidation/ a Reconciliation e		Aareal Bank Group
	01.01.- 30.09. 2024	01.01.- 30.09. 2023	01.01.- 30.09. 2024	01.01.- 30.09. 2023	01.01.- 30.09. 2024	01.01.- 30.09. 2023	01.01.- 30.09. 2024	01.01.- 30.09. 2023
€ mn
Net interest income	589	564	203	170	0	0	792	734
Loss allowance	257	262	0	0			257	262
Net commission income	2	6	-3	2 4	0	0	-1	3 0
Net derecognition gain or loss	1 9	1 8					1 9	1 8
Net gain or loss from financial instruments (fvpl)	-50	-58	-1	0			-51	-58
Net gain or loss from hedge accounting	2	-2					2	-2
Net gain or loss from investments
accounted for using the equity method				2				2
Administrative expenses	180	173	7 3	7 5			253	248
Net other operating income / expenses	1 1	7	-1	-1	0	0	1 0	6
Operating profit from continuing operations	136	100	125	120	0	0	261	220
Income taxes	3 6	2 8	4 0	3 8			7 6	6 6
Consolidated net income from continuing operations	100	7 2	8 5	8 2	0	0	185	154
Net income from discontinued operations					-161	-50	-161	-50
Consolidated net income	100	7 2	8 5	8 2	-161	-50	2 4	104
Allocation of results
Cons. net income attributable to non-controlling interests	0	0	0	0	-37	-13	-37	-13
Cons. net income attributable to shareholders of Aareal Bank AG	100	7 2	8 5	8 2	-124	-37	6 1	117

1) Presentation in line with the structure prescribed by IFRS 5

Aareal Bank Group Results1) - quarter by quarter

	Structured Property Financing					Banking & Digital Solutions					Consolidation / Reconciliation					Aareal Bank Group
	Q3	Q2	Q1	Q4	Q3	Q3	Q2	Q1	Q4	Q3	Q3	Q2	Q1	Q4	Q3	Q3	Q2	Q1	Q4	Q3
	2024			2023		2024			2023			2024		2023			2024		2023
€ mn
Net interest income	194	192	203	212	199	68	70	65	68	59	0	0	0	0	0	262	262	268	280	258
Loss allow ance	94	80	83	179	102	0	0	0	0	0	0	0				94	80	83	179	102
Net commission income	1	2	- 1	0	5	0	- 2	- 1	9	8	0	0	0	0	0	1	0	- 2	9	6
Net derecognition gain or loss	10	6	3	5	6											10	6	3	5	6
Net gain / loss from fin. instruments (fvpl)	-22	-11	-17	-13	-17	0	0	- 1	0	0						-22	-11	-18	-13	-17
Net gain or loss from hedge accounting	- 6	0	8	3	- 2											- 6	0	8	3	- 2
Net gain / loss from investments acc. for using the equity method				1						2									1	2
Administrative expenses	48	72	60	58	53	25	24	24	35	23	0	0				73	96	84	89	76
Net other operating income / expenses	2	9	0	-11	0	0	0	- 1	- 1	0	0	0	0	0	0	2	9	- 1	-12	0
Operating profit from continuing operations	37	46	53	-40	36	43	44	38	41	46	0	0	0	0	0	80	90	91	1	82
Income taxes	9	15	12	16	0	14	14	12	12	15						23	29	24	28	18
Consolidated net income from continuing operations	28	31	41	-56	33	29	30	26	29	31	0	0	0	0	0	57	61	67	-27	64
Net income from discontinued operations											-25	-142	6	-29	-18	-25	-142	6	-29	-18
Consolidated net income	28	31	41	-56	33	29	30	26	29	31	-25	-142	6	-29	-18	32	-81	73	-56	46
Cons. net income attributable to non-controlling interests	0	0	0	- 1	0	0	0	0	0	0	- 7	-32	2	- 9	- 4	- 7	-32	2	-10	- 4
Cons. net income attributable to ARL shareholders	28	31	41	-55	33	29	30	26	29	31	-18	-110	4	-20	-14	39	-49	71	-46	50

1) Presentation in line with the structure prescribed by IFRS 5

Appendix Definitions and contacts

Definitions

New Business	=	New business = Newly acquired business + renewals
Common Equity Tier 1 ratio	=	CET 1 Risk weighted assets
CIR	=	Admin expenses (excl. bank levy, et al.) Net income
Net income	=	Net interest income + Net commission income + Net derecognition gain or loss + Net gain or loss from financial instruments (fvpl) + Net gain or loss on hedge accounting + Net gain or loss from investments accounted for using the equity method + Net other operating income / expense
Net stable funding ratio	=	Available stable funding Required stable funding
Liquidity coverage ratio	=	Total stock of high quality liquid assets Net cash outflows under stress
Earnings per share	=	operating profit ./. income taxes ./. income/loss attributable to non controlling interests ./. AT1 coupon Number of ordinary shares
Yield on Debt	=	NOI x 100 (Net operating income, 12-months forward looking) (without developments) Outstanding incl. prior/pari-passu loans
CREF-portfolio	=	Commercial real estate finance portfolio excl. private client business and WIB's public sector loans
REF-portfolio	=	Real estate finance portfolio incl. private client business and WIB's public sector loans
Exposure (performing)	=	Maximum [actual commitment (performing) or Outstanding (performing)]

Contacts

Jürgen Junginger

Head of Investor Relations Managing Director Phone: +49 611 348 2636 juergen.junginger@aareal-bank.com

Sebastian Götzken

Director Investor Relations Phone: +49 611 348 3337 sebastian.goetzken@aareal-bank.com

Carsten Schäfer

Director Investor Relations Phone: +49 611 348 3616 carsten.schaefer@aareal-bank.com

Ralf Löwe

Head of Treasury Managing Director Phone: +49 611 348 3001 ralf.loewe@aareal-bank.com

Christopher Linnert

Head of Funding Director Treasury Phone: +49 611 348 3889 christopher.linnert@aareal-bank.com

Sandro Wieandt

Assistant Vice President Treasury Phone: +49 611 348 3883 sandro.wieandt@aareal-bank.com

Disclaimer

© 2024 Aareal Bank AG. All rights reserved.

This document has been prepared by Aareal Bank AG, exclusively for the purposes of a corporate presentation by Aareal Bank AG.

This presentation may contain forward-looking statements. Forward looking statements are statements that are not historical facts; they include statements about Aareal Bank AG's beliefs and expectations and the assumptions underlying them; and they are subject to known and unknown risks and uncertainties, most of them being difficult to predict and generally beyond Aareal Bank AG's control. This could lead to material differences between the actual future results, performance and/or events and those expressed or implied by such statements.

Aareal Bank AG assumes no obligation to update any forward-looking statement or any other information contained herein.

This presentation is provided for general information purposes only. It does not constitute an offer to enter into a contract on the provision of advisory services or an offer to purchase securities.

As far as this presentation contains information from third parties, this information has merely been compiled without having been verified. Therefore, Aareal Bank AG does not give any warranty, and makes no representation as to the completeness or correctness of any such information or opinion contained herein. Aareal Bank AG accepts no responsibility or liability whatsoever for any expense, loss or damages arising out of, or in any way connected with, the use of all or any part of this presentation.

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