Aareal Bank AG

Investor Presentation • May 11, 2017

Analyst Conference Call Q1 2017 results

May 11, 2017 Hermann J. Merkens, CEO

Agenda

• Highlights
• Group results at a glance
• Segment performance
• Group results
• B/S structure, capital & funding position
• Asset quality
• Outlook 2017
• Appendix
• Definitions and contacts

Highlights Good start into 2017

Highlights
First-quarter consolidated operating profit of € 71 mn (Q1 2016: € 87 mn) fully in line with expectations
Very robust net interest income, thanks to continued strong margins – year-on-year decline primarily due to the continued reduction of the WestImmo and Corealcredit portfolios
Strong new business originated in the Structured Property Financing segment – very low allowance for credit losses
Further growth in net commission income, due to Aareon's good performance
Increased full-year guidance confirmed: Aareal Bank anticipates consolidated operating profit of between € 310 mn and € 350 mn

Group results at a glance

Group results at a glance Solid quarterly results in line with full year targets

€ mn	Q1 '16	Q2 '16	Q3 '16	Q4 '16	Q1 '17	Comments
Net interest income	180	177	175	169	164	Stable margins, further reduction of CCB and WIB portfolios
Allowance for credit losses	2	29	33	33	2	Seasonally lower, in line with full year target
Net commission income	46	47	44	56	48	Above previous year's high level
Net result from trading / non-trading / hedge acc.	10	691)	12	-5	-4
Admin expenses	146	144	127	130	139	Including European banking levy and Deposit Protection Guarantee Schemes
Others	-1	0	3	28	4
Operating profit	87	120	74	85	71	Solid quarterly results in line with full year targets
Income taxes	27	38	23	44	24	Tax ratio Q1 2017: 34% FY 2017e: 37% due to reversal of CCB provisions
Minorities / AT1	9	9	9	8	9	Savings from redemption of hybrid instrument from Q2 2017 onwards
Consolidated net income allocated to ord. shareholders	51	73	42	33	38
Earnings per share [€]	0.85	1.23	0.70	0.55	0.63

1) Inc. € 61 mn from closing Aqvatrium / Fatburen

Segment performance

Structured property financing Strong US business – stable margins

New business origination € mn Newly acquired business Renewals 622 1,222 552 0 500 1,000 1,500 2,000 Q1 2016 Q1 2017 936 1,774

• Stable margins due to flexible new business allocation
• Newly acquired business:
• Strong US business (~ 60% share)
• Gross margins in Q1 2017 of around 250 bps (~ 220 bps after FX), low LTV's
• Sticking to FY target of 200-210 bps
• € 29.6 bn RE portfolio (of which € 28.0 bn CRE)

1) Incl. renewals

2) Inc. € 61 mn from closing Aqvatrium / Fatburen

Consulting / Services Aareon earnings on high level of previous year

P&L C/S Segment	Q1 '16	Q2 '16	Q3 '16	Q4 '16	Q1 '17
€ mn
Sales revenue	49	52	47	58	54
Own work capitalised	1	2	1	2	1
Other operating income	1	0	2	4	1
Cost material purchased	7	9	8	11	9
Staff expenses	36	35	36	37	35
D, A, impairment losses	3	3	3	2	3
Other operat. expenses	14	15	14	15	15
Others	0	0	0	0	0
Operating profit	-9	-8	-11	-1	-6

• Aareon revenues of € 52 mn (Q1 2016: € 50 mn), EBT of € 7 mn, EBT margin ~13.5%
• Aareon revenues resulting from growth in all product lines, digital products with highest growth rates
• Dutch acquisition of Kalshoven Automation B.V. supporting further international growth
• Deposit volume further increased acc. to Aareal 2020 to Ø of € 10.2 bn in Q1 '17 (Ø of € 10.0 bn in Q4 '16)
• Focussing on further shift into sustainable deposits

Deposit taking business / other activities -20 -15 -10 -5 0 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 € mn -17 -16 Operating profit -16 -14 -13

Group results Q1 2017

Net interest income

Stable margins but further reduction of CCB and WIB portfolios

• Gross margins1) in Q1 2017: ~250 bps, ~220 bps after FX (Q1 2016: ~270 bps, ~230 bps after FX)
• Sticking to FY target of 200-210 bps
• € 9 mn effects from early repayments
• Deposit margins further burdened by interest rate environment
• Aareal Bank already fulfils future NSFR / LCR requirements

NII without effects from derecognition of financial instruments to be reported separately under IFRS 9 starting 2018 Effects from derecognition of financial instruments to be reported separately under IFRS 9 starting 2018 (mainly effects from early repayments)

1) Newly acquired business

Allowance for credit losses (LLP)

Seasonally lower, in line with full year target

• LLP with seasonal effects, in line with reduced full year target
• Conservative lending policies paying off
• No additional burden from Italian portfolio

Net commission income Above previous year's high level

• Stronger Aareon revenues of € 52 mn (Q1 '16: € 50 mn) resulting from growth in all product lines, digital products with highest growth rates
• Dutch acquisition of Kalshoven Automation B.V. supporting further international growth
• Q4 regularly includes positive seasonal effects

Admin expenses Incl. European banking levy and Deposit Protection Guarantee Schemes

Admin expenses in Q1 2017 includes

• € 22 mn for the European bank levy and for the Deposit Protection Guarantee Schemes (both fully booked in Q1)
• € 4 mn for projects and investments (FY 2017 plan: € 30 mn)

B/S structure, capital & funding position

RWA development Successful RWA run down

• Operational risk reduction mainly due to model update caused by regulatory changes
• Operational risk already based on standardised approach
• Credit risk reduction due to further run down of WIB / CCB portfolios

Credit risk Operational risk Market risk

Capital ratios Strong development

• Regulatory uncertainties buffered by very strong capital ratios
• Instruments assumed to mature until 2019 (planning period) are excluded from the fully phased ratios
• Bail-in capital ratio (acc. to our definition): above 8%
• T1-Leverage ratio as at 31.03.2017: 5.9% (fully phased)

Common Equity Tier 1 (CET1) Additional Tier 1 (AT1) Tier 2 (T2)

Asset- / Liability structure according to IFRS As at 31.03.2017: € 46.1 bn (31.12.2016: € 47.7 bn)

Conservative balance sheet with structural over borrowed position Average maturity of long term funding > average maturity of RSF loans

0 5 10 15 20 25 30 35 40 45 50 Assets Liabilities & equity € bn 4.8 (5.2) Other assets1) 28.0 (27.9) Real estate structured finance loan book 10.8 (11.3) Treasury portfolio 28.4 (29.1) Long-term funds and equity 8.9 (9.2) Customer deposits housing industry 3.7 (4.1) Other liabilities 4.1 (4.5) Customer deposits institutional clients of which cover pools 2.5 (3.3) Interbank 1.0 (0.8) Interbank

1) Other assets includes € 1.0 bn private client portfolio and WIB's € 0.6 bn public sector loans

Asset- / Liability structure according to IFRS As at 31.03.2017: € 46.1 bn (31.03.2016: € 51.8 bn)

Conservative balance sheet with structural over borrowed position Average maturity of long term funding > average maturity of RSF loans

1) Other assets includes € 1.0 bn private client portfolio and WIB's € 0.6 bn public sector loans

Capital market funding Sound liquidity position

• Total funding raised in Q1 2017: € 0.9 bn mainly Pfandbriefe (€ 0.8 bn)
• Backbone of capital market funding is a loyal, granular, domestic private placement investor base
• Hold-to-maturity investors: ~ 600
• Average ticket size: ~ € 10 mn
• Fulfilling liquidity KPIs
• NSFR > 1
• LCR >> 1

Refinancing situation

Diversified funding sources and distribution channels

• Aareal Bank has clearly reduced its dependency on wholesale funding
• 2002 long term wholesale funding accounted for 47% of overall funding volumes by 31.03.2017, this share has fallen below 25% (or even below 10% without Pfandbriefe)

As at 31.03.2017

Asset quality

Property finance portfolio1) € 28.0 bn highly diversified and sound

1) CRE-business only, private client business (€ 1.0 bn) and WIB's public sector loans (€ 0.6 bn) not included

Property finance portfolio1) Portfolio details

Spotlight: UK property finance portfolio1) € 3.8 bn (~14% of total portfolio)

1) CRE-business only, private client business (€ 1.0 bn) and WIB's public sector loans (€ 0.6 bn) not included

Spotlight: Turkey property finance portfolio1) € 0.5 bn (~2% of total portfolio)

1) CRE-business only, private client business (€ 1.0 bn) and WIB's public sector loans (€ 0.6 bn) not included

Spotlight: Italian property finance portfolio1) € 3.1 bn (~11% of total portfolio)

1) CRE-business only, private client business (€ 1.0 bn) and WIB's public sector loans (€ 0.6 bn) not included

Spotlight Italy Italian NPL: clear going forward strategy

• Restructuring period: vast majority to be solved till 2020
• Current enforcement period 3-4 years, but improving due to new legislation

All Italian NPL are fully covered despite being in different workout-stages

Property finance portfolio1) Stable NPL volume

1) CRE-business only, private client business (€ 1.0 bn) and WIB's public sector loans (€ 0.6 bn) not included

Property finance portfolio NPL exposure fully covered including collaterals

1) CRE-business only, private client business (€ 1.0 bn) and WIB's public sector loans (€ 0.6 bn) not included

Treasury portfolio € 8.9 bn of high quality and highly liquid assets

Outlook 2017

Outlook 2017 Confirming increased guidance

	2017
Net interest income	 € 620 mn - € 660 mn incl. planned effects from early repayments (€ 35 mn - € 75 mn)
Allow. for credit losses1)	 € 75 mn - € 100 mn
Net commission income	 € 195 mn - € 210 mn
Admin expenses	 € 470 mn - € 510 mn incl. expenses for projects and investments / effects from integration
Operating profit	 € 310 mn - € 350 mn
Pre-tax RoE	 11% - 12.5% (9% - 10.5% excl. one-off from reversal of provisions related to CCB acquisition)
EpS	 € 2.85 - € 3.30
Target portfolio size	 € 25 bn - € 28 bn
New business origination2)	 € 7 bn - € 8 bn
Operating profit Aareon3)	 € 34 mn - € 35 mn

1) As in 2016, the bank cannot rule out additional allowances for credit losses

2) Incl. renewals

3) After segment adjustments

Conclusion Aareal Bank Group well positioned to continue successful development

Key takeaways
Aareal Bank Group remains on course, following solid start into the new year
Consolidated operating profit fully in line with expectations
Increased full-year guidance confirmed

Appendix Aareal 2020

Aareal 2020 – Adjust. Advance. Achieve. Our way ahead

Adjust

Safeguard strong base in a changing environment

• Enhance efficiency
• Optimise funding
• Anticipate regulation

Achieve

Create sustainable value for all stakeholders

• Realise strategic objectives for the Group and the segments
• Consistently implement required measures
• Achieve ambitious financial targets

Aareal 2020 – Adjust. Advance. Achieve.

We successfully started – in our operational business …

	Achievements so far	Focus 2017	Targets 2020 Plus
Structured Property Finance	 US-portfolio enhanced  Non-core assets reduced  Syndication volume increased  Servicing platform, cooperation signed	 Further enhancing of attractive markets, e.g. USA  Further reduction of non-core assets  Further increasing syndication, enhancing investor bases and product scope  Digitalisation of internal processes as well as clients' interface	 Expansion in markets with attractive risk return profile  Strengthened portfolio- and balance sheet management  New (digital) opportunities taken by enhancing value chain
Consulting/ Services	 Core business successfully enhanced  Digital platform developed and new digital solutions launched  International cross-selling increased  Network with start-ups enlarged, first cooperation signed	 Enlarging digital solutions portfolio  Tapping joint markets and customer groups, e.g. utilities and CRE  Intensifying cooperation, in particular with start-ups	 Eco system housing industry and utilities expanded  Existing platform products for the B2C business for the housing industry further developed  Further development of our payment transaction system and IT products as well as enlarging our customer base

As published February 23, 2017

Aareal 2020 – Adjust. Advance. Achieve … and investing in our organisation and IT

Achieve. Keep RoE on an attractive level despite difficult environment

RoE-Development (%)

Further medium-term increase is possible on the basis of a positive development of interest rate levels

Payout ratio 2013 - 2019 2013 48% 51% 52% 60% 70-80% 70-80% Base dividend We intend to distribute approx. 50% of the earnings per ordinary share (EpS) as base dividend Supplementary dividend In addition, we plan to distribute supplementary dividends, from 10% increasing up to 20-30% of the EpS Prerequisites: No material deterioration of the environment (with longer-term and sustainably negative effects) Nor attractive investment opportunities neither positive growth environment 2014 2015 2016 2017 2018 70-80% 2019

1) The future dividend policy applies provided that the dividend payments resulting from it are consistent with a long-term and sustained business development of Aareal Bank AG. In addition, the dividend payments are subject to the proviso that corresponding dividend proposals have been made by the Management Board and the Supervisory Board for the respective year.

As published February 23, 2017

Appendix Group results

Aareal Bank Group Results Q1 2017

	01.01.- 31.03.2017	01.01.- 31.03.2016	Change
	€ mn	€ mn
Profit and loss account
Net interest income	164	180	-9%
Allowance for credit losses	2	2	0%
Net interest income after allowance for credit losses	162	178	-9%
Net commission income	48	46	4%
Net result on hedge accounting	-3	1
Net trading income / expenses	-1	9
Results from non-trading assets		0
Results from investments accounted for at equity		0
Administrative expenses	139	146	-5%
Net other operating income / expenses	4	-1
Operating Profit	71	87	-18%
Income taxes	24	27	-11%
Consolidated net income	47	60	-22%
Consolidated net income attributable to non-controlling interests	5	5	0%
Consolidated net income attributable to shareholders of Aareal Bank AG	42	55	-24%
Earnings per share (EpS)
Consolidated net income attributable to shareholders of Aareal Bank AG1)	42	55	-24%
of which: allocated to ordinary shareholders	38	51	-25%
of which: allocated to AT1 investors	4	4	0%
Earnings per ordinary share (in €)2)	0.63	0.85	-26%
Earnings per ordinary AT1 unit (in €)3)	0.04	0.04	0%

1) The allocation of earnings is based on the assumption that net interest payable on the AT1 bond is recognised on an accrual basis.

2) Earnings per ordinary share are determined by dividing the earnings allocated to ordinary shareholders of Aareal Bank AG by the weighted average of ordinary shares outstanding during the financial year (59,857,221 shares). Basic earnings per ordinary share correspond to diluted earnings per ordinary share.

3) Eanings per AT1 unit (based on 100,000,000 AT1 units with a notional amount of 3 € each) are determined by dividing the earnings allocated to AT1 investors by the weighted average of AT1 units outstanding during the financial year. Earnings per AT1 unit (basic) correspond to (diluted) earnings per AT1 unit.

Aareal Bank Group Results Q1 2017 by segments

	Financing	Structured Property		Consulting / Services	Consolidation/ Reconciliation		Aareal Bank Group
	01.01.- 31.03. 2017	01.01.- 31.03. 2016	01.01.- 31.03. 2017	01.01.- 31.03. 2016	01.01.- 31.03. 2017	01.01.- 31.03. 2016	01.01.- 31.03. 2017	01.01.- 31.03. 2016
€ mn
Net interest income	167	182	0	0	-3	-2	164	180
Allowance for credit losses	2	2					2	2
Net interest income after allowance for credit losses	165	180	0	0	-3	-2	162	178
Net commission income	1	2	45	42	2	2	48	46
Net result on hedge accounting	-3	1					-3	1
Net trading income / expenses	-1	9		0			-1	9
Results from non-trading assets		0						0
Results from investments accounted for at equity				0				0
Administrative expenses	89	95	51	51	-1	0	139	146
Net other operating income / expenses	4	-1	0	0	0	0	4	-1
Operating profit	77	96	-6	-9	0	0	71	87
Income taxes	26	30	-2	-3			24	27
Consolidated net income	51	66	-4	-6	0	0	47	60
Allocation of results
Cons. net income attributable to non-controlling interests	4	4	1	1			5	5
Cons. net income attributable to shareholders of Aareal Bank AG	47	62	-5	-7	0	0	42	55

Aareal Bank Group Results – quarter by quarter

	Structured Property Financing				Consulting / Services				Consolidation / Reconciliation					Aareal Bank Group
	Q1	Q4	Q3	Q2	Q1	Q1	Q4	Q3	Q2	Q1	Q1	Q4	Q3	Q2	Q1	Q1	Q4	Q3	Q2	Q1
	2017	2016	2016	2016	2016	2017	2016	2016	2016	2016	2017	2016	2016	2016	2016	2017	2016	2016	2016	2016
€ mn
Net interest income	167	174	179	181	182	0	0	0	0	0	-3	-5	-4	-4	-2	164	169	175	177	180
Allowance for credit losses	2	33	33	29	2											2	33	33	29	2
Net interest income after
allowance for credit losses	165	141	146	152	180	0	0	0	0	0	-3	-5	-4	-4	-2	162	136	142	148	178
Net commission income	1	5	2	1	2	45	47	39	43	42	2	4	3	3	2	48	56	44	47	46
Net result on hedge accounting	-3	-4	3	0	1											-3	-4	3	0	1
Net trading income / expenses	-1	-2	4	8	9				0	0						-1	-2	4	8	9
Results from non-trading assets		0	5	61	0		1										1	5	61	0
Results from results accounted							0	0	0	0							0	0	0	0
for at equity
Administrative expenses	89	80	77	94	95	51	51	51	51	51	-1	-1	-1	-1	0	139	130	127	144	146
Net other operating income /
expenses	4	26	2	0	-1	0	2	1	0	0	0	0	0	0	0	4	28	3	0	-1
Negative goodwill
Operating profit	77	86	85	128	96	-6	-1	-11	-8	-9	0	0	0	0	0	71	85	74	120	87
Income taxes	26	45	27	41	30	-2	-1	-4	-3	-3						24	44	23	38	27
Consolidated net income	51	41	58	87	66	-4	0	-7	-5	-6	0	0	0	0	0	47	41	51	82	60
Cons. net income attributable to
non-controlling interests	4	3	5	4	4	1	1	0	1	1						5	4	5	5	5
Cons. net income attributable to
shareholders of Aareal Bank AG	47	38	53	83	62	-5	-1	-7	-6	-7	0	0	0	0	0	42	37	46	77	55

Appendix AT1: ADI of Aareal Bank AG

Interest payments and ADI of Aareal Bank AG

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

	31.12. 2016	31.12. 2015	31.12. 2014	31.12. 2013
€ mn
Net Retained Profit  Net income  Profit carried forward from previous year  Net income attribution to revenue reserves	122 122 - -	99 99 - -	77 77 - -	50 50 - -
+ Other revenue reserves after net income attribution	720	720	715	710
= Total dividend potential before amount blocked1)	842	819	792	760
./. Dividend amount blocked under section 268 (8) of the German Commercial Code ./. Dividend amount blocked under section 253 (6) of the German Commercial Code	235 28	287 -	240 -	156 -
= Available Distributable Items1)	579	532	552	604
+ Increase by aggregated amount of interest expenses relating to Distributions on Tier 1 Instruments1)	46	46	57	57
= 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)	625	578	609	661

1) Unaudited figures for information purposes only

Interest payments and ADI of Aareal Bank AG

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

	31.12. 2013	31.12. 2014	31.12. 2015	31.12. 2016
€ mn
Net Retained Profit  Net income  Profit carried forward from previous year  Net income attribution to revenue reserves	50 50 - -	77 77 - -	99 99 - -	122 122 - -
+ Other revenue reserves after net income attribution	710	715	720	720
Total dividend potential before amount blocked1) =	760	792	819	842
./. Dividend amount blocked under section 268 (8) of the German Commercial Code ./. Dividend amount blocked under section 253 (6) of the German Commercial Code	156 -	240 -	287 -	235 28
= Available Distributable Items1)	604	552	532	579
+ Increase by aggregated amount of interest expenses relating to Distributions on Tier 1 Instruments1)	57	57	46	46
= 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)	661	609	578	625

1) Unaudited figures for information purposes only

Appendix SREP

SREP (CET 1) requirements

Demonstrating conservative and sustainable business model

• SREP requirement 2017 conceptual adjusted from CET1 approach to total SREP capital requirements (TSCR) approach
• Corresponding total capital requirement 2017 (Overall Capital Requirement (OCR) incl. buffers, phase-in) amounts to 11.03%. As of 31 Dec 2016 total capital ratio (phase-in) amounts to 27.5%

Pillar 1 Requirement Pillar 2 Requirement Capital Conservation Buffer

Current CET 1 ratio Countercyclical Buffer

1) SREP-CET1 Requirements incl. buffers (Capital Conservation and Countercyclical) As published February 23, 2017

Appendix Development property finance portfolio

Development property finance portfolio1) Diversification continuously strengthened (in € mn)

1) CRE-business only, private client business (€ 1.0 bn) and WIB's public sector loans (€ 0.6 bn) not included

Western Europe (ex Germany) credit portfolio1) Total volume outstanding as at 31.03.2017: € 8.8 bn

1) CRE-business only, private client business (€ 1.0 bn) and WIB's public sector loans (€ 0.6 bn) not included

German credit portfolio1) Total volume outstanding as at 31.03.2017: € 4.4 bn

1) CRE-business only, private client business (€ 1.0 bn) and WIB's public sector loans (€ 0.6 bn) not included

Southern Europe credit portfolio1) Total volume outstanding as at 31.03.2017: € 4.2 bn

1) CRE-business only, private client business (€ 1.0 bn) and WIB's public sector loans (€ 0.6 bn) not included

Eastern Europe credit portfolio1) Total volume outstanding as at 31.03.2017: € 2.3 bn

1) CRE-business only, private client business (€ 1.0 bn) and WIB's public sector loans (€ 0.6 bn) not included

Northern Europe credit portfolio1) Total volume outstanding as at 31.03.2017: € 1.6 bn

1) CRE-business only, private client business (€ 1.0 bn) and WIB's public sector loans (€ 0.6 bn) not included

North America credit portfolio1) Total volume outstanding as at 31.03.2017: € 6.6 bn

1) CRE-business only, private client business (€ 1.0 bn) and WIB's public sector loans (€ 0.6 bn) not included

Asia credit portfolio1) Total volume outstanding as at 31.03.2017: € 0.3 bn

1) CRE-business only, private client business (€ 1.0 bn) and WIB's public sector loans (€ 0.6 bn) not included

Appendix Revaluation surplus

Revaluation surplus

Appendix RWA-split

From asset to risk weighted asset (RWA) Essential factors affecting volume of RWA

Effective date 31/03/2017

1) Amounts to € 34 mn

2) Amounts to € 1 mn

Sustainability Performance

Aareal Bank Group Stands for solidity, reliability and predictability

• 1) Full Basel III implementation, as at 31. 03.2017
• 2) CRE business only, private client business (€ 1.0 bn) and WIB's public sector loans (€ 0.6 bn) not included, as at 31.03.2017
• 3) Mortgage Pfandbriefe and Public-sector Pfandbriefe rated AAA by Fitch; Mortgage Pfandbriefe rated Aaa by Moody's
• 63 4) At our main locations in Wiesbaden and Mainz, selected other German sites as well as at our Stockholm branch

Sustainability data

Extends the financial depiction of the Group

Key takeaways at a glance

Transparent Reporting – facilitating informed investment decisions

• 5 th Report "#THINKING AHEAD. ACTING CONSCIOUSLY." and "SUSTAINABILITY DISCLOSURES 2016" will be published onlion1) on May 11th 2017
• "SUSTAINABILITY DISCLOSURES 2016", structured according to requirements of EU Directive 2014/95/EU "Disclosure of non-financial and diversity information", is based on Global Reporting Initiative (GRI) G4 guidelines, in compliance with "in accordance - core" option
• PricewaterhouseCoopers AG prepared a limited assurance engagement on materiality analysis / selected data

Sustainability Ratings – confirming the company's sustainability performance

oekom research – Aareal Bank Group holds "prime status", ranking among the leaders in its industry [since 2012]

Sustainalytics – Aareal Bank Group was classified as "outperformer", ranking among the best 14% of its industry [as per 03/2017]

CDP – Aareal Bank Group achieved a result of "Management Level B", well above average of peer group Financials (DACH region) / MDAX companies ("Awareness Level C") [Report 2016]

imug – Aareal Bank was rated "positive BBB" in the category "Uncovered Bonds"; the second best result of all 109 rated Financial Institutions [as per 03/2017]

Definitions and contacts

Definitions

• Structured Property Financing Portfolio = Paid-out financings on balance sheet
• New Business = Newly acquired business incl. renewals + Contract is signed by customer + Fixed loan value and margin
• Common Equity Tier 1 ratio = CET1 Risk weighted assets
• Pre tax RoE = Operating profit ./. income/loss attributable to non-controlling interests ./. AT1 cupon Average IFRS equity excl. non-controlling interests, other reserves, AT1 and dividends
• CIR = Admin expenses Net income
• Net income = net interest income + net commission income + net result on hedge accounting + net trading income + results from non-trading assets + results from investments accounted for at equity + results from investment properties + net other operating income
• Net stable funding ratio = ≥ 100% Available stable funding Required stable funding
• Liquidity coverage ratio = ≥ 100% Total stock of high quality liquid assets Net cash outflows under stress
• Bail-in capital ratio = Equity + subordinated capital (Long + short term funding) – (Equity + subordinated capital)
• Earnings per share = operating profit ./. income taxes ./. income/loss attributable to non controlling interests ./. net AT1 cupon Number of ordinary shares
• Yield on Debt = Net operating income (NOI) x 100 Current commitment incl. prior / pari-passu loans

Contacts

• Jürgen Junginger Managing Director Investor Relations 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
• Karin Desczka Manager Investor Relations Phone: +49 611 348 3009 karin.desczka@aareal-bank.com

Disclaimer

© 2017 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. The presentation is intended for professional and institutional customers only.
• It must not be modified or disclosed to third parties without the explicit permission of Aareal Bank AG. Any persons who may come into possession of this information and these documents must inform themselves of the relevant legal provisions applicable to the receipt and disclosure of such information, and must comply with such provisions. This presentation may not be distributed in or into any jurisdiction where such distribution would be restricted by law.
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