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Aareal Bank AG

Investor Presentation • Jul 20, 2016

11_ip_2016-07-20_79ca7c93-fc9a-4d6f-b675-e34876c897bf.pdf

Investor Presentation

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Agenda

  • Brief Overview
  • Highlights Q1/16 and Environment
  • Group results Q1 2016 at a glance
  • Segment performance
  • Group results Q1 2016
  • B/S structure, capital & funding position
  • Asset quality
  • Outlook 2016
  • Appendix
  • Definitions and Contacts

Aareal Bank Group

Key messages

  • Aareal is a leading finance and service provider to international property markets offering tailor-made products to a stable customer base worldwide within a two pillar business model focusing on
  • Low-risk commercial real estate finance
  • IT solutions and transaction banking in the German and European housing market

Aareal's balance sheet structure (~€ 52 bn) has a sound structure with a high quality and a well diversified credit portfolio (LTV: 62%), a stable deposit base and a sustainable long-term refinancing base, high liquidity buffers (NSFR: ~ 105%) and low leverage (CET1: 13.2% / TCR: 21.1% / LR: 5.1%)

  • Aareal is #1 provider of ERP solutions for the institutional housing industry in Europe
  • Transaction banking services are provided in Germany for the institutional housing industry plus other related industries
  • Aareal is an independent public listed (MDAX) mid-sized company with high flexibility and adaptability
  • The Aareal business model provides stable revenues and a positive risk management track record even under adverse market environments

Aareal Bank GroupOne Bank – two segments

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Aareal Bank Group

One Bank – two segments – three continents

International property financing in more than 20 countries –Europe, North America and Asia

Structured Property FinanceSpecialist for specialists

Aareal Bank GroupStructured Property Financing

  • Focus on senior lending
  • Cash-flow driven collateralised business with focus on first-ranking mortgage loans
  • Typical products, for example:
  • Single asset investment finance
  • Portfolio finance (local or cross-border)
  • In-depth know-how in local markets and special properties
  • Local expertise at our locations
  • Additional industry expertise (head offices)
  • International experience with employees from more than 30 nations

Consulting / Services

~75% customer overlap with substantial cross-selling effects

Aareal Bank GroupConsulting / Services

Aareon Group:IT Services

  • Market-leading European IT-system house for the (ERP based) management of residential and commercial property portfolios
  • ~ 60% market share in German key market with ~7 mn units under management
  • Comprehensive range of integrated services and consulting

Aareal Bank:Transaction banking

  • Market-leading integrated payment transaction systems for the institutional housing industry
  • Key clients: large size property owners / managers and utility companies
  • ~100 mn transactions p.a. (volume: ~€ 50 bn)
  • Ø deposit volume 2015: € 9.0 bn

Highlights Q1/16 and Environment

Highlights Q1/16Successful start into the financial year

Key facts and figures at a glance

  • Consolidated operating profit increased to € 87 million, up by almost 30% vs. Q1/2015 in challenging competitive environment
  • Successful development in both segments:
  • Robust net interest income and low risk costs in the Structured Property Financing segment
  • Increasing net commission income due to Aareon's positive development gives proof of the Consulting / Services segment's attractiveness and potential
  • Reduction of non-core portfolio proceeding according to plan
  • "Aareal 2020" future program launched successfully

EnvironmentOur actions adjusted to general developments

Expected environment 2016

  • US-recovery is on the way, Europe stuck close to deflation, China's growth rate is shrinking
  • Ongoing geopolitical risks and tensions e.g. in Russia and Turkey
  • Increasing divergences in monetary policy between ECB and FED: but no major weakening of the EUR expected
  • ECB has broadened QE, further steps possible: enormous impact on capital markets - risking asset bubbles and therefore risks from LTVs partly based on extreme low cap rates
  • High liquidity on property market, but decreasing transaction volumes in Q1 2016, stable to moderately increasing property values and rents in most European countries as well as in North America
  • Margins under pressure in particular in Europe, while signs for a stabilizing trend in the US
  • Uncertainties about regulatory requirements
  • ECB indicated to develop macro economic prudential steering tools

Main takeaways

Main focus for new business in markets with attractive risk/return profile like North America

  • In Turkey and Russia only renewals
  • Partly tightened requirements for new business regarding LTV

Regulatory projects in progress

Group results Q1 2016 at a glance

Q1 2016 at a glance

Strong results despite very challenging environment

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Structured property financing New business with focus on US market

Consulting / Services Aareon with increasing EBIT

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  • Aareon sales revenues of € 50 mnclearly above Q1 2015 (€ 45 mn)
  • Aareon EBIT margin at ~14% in line with expectations, reflecting seasonal variation
  • Deposit volume from housing industry of Ø € 9.3 bn on a high level (€ 9.0 bn Ø in Q4/2015)
  • Deposit margins further burden segment result due to even lower interest environment
  • Housing industry deposits generate a stable funding base, crisis-proven
  • Various initiatives and projects with and for our clients of the institutional housing industry

Consulting / Services Aareon with increasing EBIT (vs. Q1 2015)

Group results Q1 2016

Net interest income

Margin pressure defied by flexible new business allocation

1) Additional effects exceeding originally planned repayments

  • Gross margins in Q1 2016 at ~270 bps (~230 bps after FX costs) vs. FY-plan of ~220 bps due to new business allocation towards the US market
  • NII effected by run down of NCA (as planned) and lower effects from early repayments (FY-expectations of € 35 mn vs. € 23 mn in 2015)
  • Q1-portfolio of € 30.1 bn (Q4 2015: € 30.9 bn), thereof € 25.9 bn "ARL stand alone" portfolio in line with 2016-portfolio target of € 25 - 27 bn(Q4 2015: € 26.3 bn)
  • Run down of credit portfolio as planned:
  • CCB: € 1.1 bn (Q4 2015: € 1.3 bn)
  • WIB: € 3.1 bn (Q4 2015: € 3.3 bn)
  • Full contribution of WestImmo since Q3/2015
  • NII Consulting / Services still burdened by interest rate environment
  • Aareal Bank already fulfils future NSFR / LCR requirements

Allowance for credit losses (LLP)

Within seasonal variation

  • LLP with seasonal effects
  • LLP in line with reduced FY-guidance
  • No additional burden from Italian portfolio

Net commission incomeAareon with strong performance in Q1

  • Aareon in line with guidance
  • Q4/2015 with seasonal effects
  • First time consolidation of Aareon's new acquisitions in Q4 2015 (phi-Consulting, Square DMS)

Admin expensesBurdened by FY European bank levy

  • Q1 figures include € 17 mn for the European bank levy for the fiscal year 2016(€ 9 mn in Q1/2015; € 14 mn for FY 2015)
  • Admin expenses include
  • € 10 mn one-offs from integrations as well as from project / investment costs
  • Operating admin expenses for Aareon's new acquisitions phi-Consulting and Square DMS (since Q4/2015)

B/S structure, capital & funding position

RWA development

Successful run down of non core assets

  • Decreasing RWA from planned NCA reduction
  • Increasing RWA partly from higher portfolio risks (e.g. Turkey)

Credit risk core business ARLCredit risk core business WIBCredit risk non core assets WIBCredit risk non core assets CCBOperational riskMarket risk

Capital ratiosStrong development

  • Regulatory uncertainties buffered by very strong capital ratios
  • Instruments assumed to mature 2018 (planning period) are excluded from the fully phased ratios
  • Bail-in capital ratio (acc. to our definition): above 8%
  • T1-Leverage ratio as at 31.03.2016: 5.1%(fully phased)

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

Asset- / Liability structure according to IFRSAs at 31.03.2016: € 51.8 bn (31.03.2015: € 50.9 bn ex. WIB)

1) Other assets includes € 1.4 bn private client portfolio and WIB's € 0.6 bn public sector loans

Asset- / Liability structure according to IFRSAs at 31.03.2016: € 51.8 bn (31.12.2015: € 51.9 bn incl. WIB)

1) Other assets includes € 1.4 bn private client portfolio and WIB's € 0.6 bn public sector loans

Net stable funding- / liquidity coverage ratio Sound liquidity position despite WestImmo takeover

  • Aareal Bank already fulfils future requirements
  • NSFR > 1.0
  • LCR >> 1.0
  • Basel III and CRR require adherence of specific liquidity ratios starting end 2018
  • As intended, additional funding requirements from acquisition of WestImmo covered by NSFR surplus

Refinancing situation Q1 2016Successful funding activities

0,000,200,400,60CB SU Total 0.050.450.5Pfandbriefe Senior unsecured € bn

  • Total funding of € 0.5 bn in Q1 2016: mainly senior unsecured (€ 450 mn)
  • Low Pfandbrief issuance due to acquisition of WestImmo
  • Backbone of capital market funding is a loyal, granular, domestic private placement investor base
  • Hold-to-maturity investors: over 600
  • Ticket size: € 10 mn € 50 mn

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 31.03.2016, this share has fallen below 30% (or even below 10% without Pfandbriefe)

As at 31.03.2016

Property finance portfolio1) € 30.1 bn highly diversified and sound

1) CRE business only, private client business (€ 1.4 bn) and WIB's public sector loans (€ 0.6 bn) not included

2) Performing business only, exposure as at 31.03.2016

Property finance portfolio1) Portfolio details

2) Performing business only, exposure as at 31.03.2016

33

Property finance portfolio

Italian NPLs expected to have peaked in Q4 2015

Property finance portfolio

NPL exposure fully covered including collaterals

Spotlight ItalyItalian NPLs: clear going forward strategy

  • 51% already restructured or agreement in place / planned
  • 30% already in "enforcement"
  • Only 2 deals (19%) in final discussions

All NPLs are fully covered despite being in different workout-stages

Spotlight: UK Property finance portfolio (as at 31.03.2016) € 3.8 bn highly diversified and sound assets (~13% of total CRE portfolio)

Treasury portfolio€ 9.7 bn of high quality and highly liquid assets

Outlook 2016

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1) As in 2015, the bank cannot rule out additional allowances for credit losses

2) Earnings per ordinary share, tax rate of ~31% assumed

3) After segment adjustments

ConclusionAareal Bank Group remains on successful course

Key takeaways at a glance

Aareal Bank Group continues successful development of recent years also in the first quarter of the current financial year, despite an even lower interest rate environment

Target operating profit for the full year confirmed after good start into the 2016 financial year

Exploiting new earnings potential via the "Aareal 2020" program

Strategic background Assumptions

General environment

Tougher competition and changing clients' needs

Volatile markets (interest rates / exchange rates, oil)

Increasingly stringent regulation, historically low interest rate environment

Technological change and digitalisation

Geopolitical risks

As published February 25, 2016

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FOLLOWING PAGES43

Basic planning assumption: high volatility, low growth

Aareal 2020 –Adjust. Advance. Achieve.

Our way ahead

  • Consistently implement required measures
  • Achieve ambitious financial targets

1) Management buffer of 2.25% planned until regulatory environment is sufficiently stable

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25
20
pu
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ry
,		 16

Further enhance agility, innovation and willingness to adapt

As published February 25, 2016

Advance: Consulting / Services.

Leverage position as leading provider of ERP solutions in Europe to achieve future growth

Further develop existing business

Gain new customer groups, tap new markets

  • Expanding "ecosystem housing industry": international cross-selling, develop add-on products for ERP systems and new digital products
  • Utilise existing know-how to expand "ecosystem utilities" by offering specific products (e.g. for transaction services)and IT services / consulting
  • Further development of existing platform products for the management of housing companies for their B2C business
  • Push our payment transaction services and IT products, targeting small-sized housing enterprises and COA-Manager

Further enhance agility, innovation and willingness to adapt

As published February 25, 2016

Achieve. Keep RoE on an attractive level despite difficult environment

Pre-tax RoE 2018 ~ 12%Excess capitalPre-tax RoE 2018 before adjusting capital structure ~ 10% Pre-tax RoE 2015adjusted ~ 10% +/- 1%+/- 1%Further medium-term increase is possible on the basis of a positive development of interest rate levelsAdjusted for (higher than planned) positive one offeffects from early repayments and negative goodwillExpected decline of net interest incomeImprove risk position through cautious risk policySignificant increase Reduce admin expenses by increasing efficiencyRoE of approx. 10% achievable before disbursement of excess capital or potential realisation of investment opportunitiesAdjustment or allocation of underlying capital depending on opportunities and challenges in the markets~10% +~12% +RoE-Development 2015 - 18 2020 Plus -Aareon and commissionincome banking businessAdmin expenses bankAllowance for credit lossesNet interest incomeAs published February 25, 2016

Achieve.Increase payout ratio (up to 80%) and dividend1)

Payout ratio 2013 - 20182013 14 15 16 17 48%51% 52% 201860%70-80% 70-80%Base dividendWe intend to distribute approx. 50% of the earnings per ordinary share (EpS) as base dividendSupplementary dividendIn addition, we plan to distributesupplementary dividends, from 10% increasing up to 20-30% of the EpSPrerequisites: No material deterioration of the environment (with longer-term and sustainably negative effects) Nor attractive investment opportunities neither positive growth environment

As published February 25, 2016

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.

50

Aareal Bank GroupResults Q1 2016

01
.0
1.
-
31
.0
3.
20
16
€
m
n		 01
.0
1.
-
31
.0
3.
20
15
€
m
n		 Ch
an
g
e
Pr
of
it
d
lo
nt
an
ss
a
cc
ou
Ne
t i
t i
nt
er
es
nc
om
e		 18
0		 17
8		 1%
Al
low
fo
dit
lo
an
ce
r c
re
ss
es		 2 18 89
%
-
Ne
t i
t i
af
llo
fo
di
t l
nt
te
er
es
nc
om
e
r a
w
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r c
re
os
se
s		 17
8		 16
0		 11
%
Ne
t c
iss
ion
in
om
m
co
m
e		 46 41 12
%
Ne
ult
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tin
t r
es
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un
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%
-
Ne
di
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/ e
t t
ra
ng
co
m
e
xp
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se
s		 9 7
-
Re
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-tr
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su
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n
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Re
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ed
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qu		 0 0
Ad
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ive
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xp
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se
s		 14
6		 13
2		 11
%
Ne
th
ing
in
/ e
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s		 -1 3
-
Ne
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ill
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Op
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Pr
of
it
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g		 87 67 30
%
Inc
ta
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xe
s		 27 22 23
%
Co
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ed
in
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et
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co
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e		 60 45 33
%
Co
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tri
bu
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int
te
at
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to
tro
ts
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nc
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on
-c
on
g
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es		 5 5 0%
Co
AG
ol
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tri
bu
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f A
l B
k
te
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ta
to
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an		 55 40 38
%
Ea
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(
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S
)
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1)
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f A
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rs
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an		 55 40 38
%
f w
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al
loc
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old
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o
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ry
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s		 51 36 42
%
f w
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A
T1
in
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st
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s		 4 4 0%
2)
Ea
ing
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(
in
€)
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ry
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85		 0.
60		 42
%
3)
Ea
ing
rd
ina
AT
1
it
(
in
€)
rn
s
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ry
un		 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 earningsallocated to AT1 investors by the weighted average of AT1 units outstanding during the financial year. Earnings per AT1 unit (basic)

52correspond to (diluted) earnings per AT1 unit.

Aareal Bank GroupResults Q1 2016 by segments

S
tru
c
Pr
op
F
in
an		 d
tu
re
ty
er
in
c
g		 Co
ns
u
Se
rv		 l
in
/
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s		 Co
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nc		 da
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re
a
Gr		 l
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0
1.
0
1.-		 0
1.
0
1.-		 0
1.
0
1.-		 0
1.
0
1.-		 0
1.
0
1.-		 0
1.
0
1.-		 0
1.
0
1.-		 0
1.
0
1.-
3
1.
0
3.		 3
1.
0
3.		 3
1.
0
3.		 3
1.
0
3.		 3
1.
0
3.		 3
1.
0
3.		 3
1.
0
3.		 3
1.
0
3.
2
0
1
6		 2
0
1
5		 2
0
1
6		 2
0
1
5		 2
0
1
6		 2
0
1
5		 2
0
1
6		 2
0
1
5
€
m
n
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inc
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8
2		 1
7
8		 0 0 2
-		 0 1
8
0		 1
7
8
A
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low
fo
d
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re
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s		 2 1
8		 2 1
8
Ne
in
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r c
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w		 1
8
0		 1
6
0		 0 0 2
-		 0 1
7
8		 1
6
0
Ne
iss
ion
inc
t c
om
m
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2		 4
1		 2 0 4
6		 4
1
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l
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dg
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t r
t o
t
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ac
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un		 1 1
1		 1 1
1
Ne
d
ing
inc
/ e
t
tra
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xp
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se
s		 9 7
-		 9 7
-
fro
Re
l
d
ing
ts
tra
ts
su
m
no
n-
a
ss
e		 0 3
-		 0 3
-
Re
l
fro
inv
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fo
i
ts
tm
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te
t e
ty
su
m
es
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a
cc
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n
r a
q
u		 0 0 0 0
A
dm
in
is
ive
tra
t
e
xp
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se
s		 9
5		 8
4		 5
1		 4
8		 0 0 1
4
6		 1
3
2
Ne
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ing
inc
/ e
t o
t
t
r o
p
er
a
om
e
xp
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se
s		 1
-		 3
-		 0 0 0 0 1
-		 3
-
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ive
dw
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l
l
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a
g
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Op
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f
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t
t
er
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g
p
ro		 9
6		 7
4		 9
-		 7
-		 0 0 8
7		 6
7
Inc
ta
om
e
xe
s		 3
0		 2
4		 3
-		 2
-		 2
7		 2
2
Co
l
i
da
d
in
te
t
ns
o
ne
co
m
e		 6
6		 5
0		 6
-		 5
-		 0 0 6
0		 4
5
A
l
lo
io
f r
l
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ts
ca
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tr
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ns
. n
e
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on
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Co
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le
ha
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Aa
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Ba
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A
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. n
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om
e
a
s
re
rs
o
rea
n		 6
2		 4
6		 7
-		 6
-		 0 0 5
5		 4
0

Aareal Bank GroupResults – quarter by quarter

St
tur
ruc
Fin		 ed
P
cin
an		 ert
rop
y
g		 Co
ult
ns		 ing
/
Se		 rvi
ce
s		 Co
ns
Re
co		 oli
da
ilia
nc		 n /
tio
tio
n		 Aa
rea		 l B
k G
an		 rou
p
Q
1
20
16		 Q
4
20
15		 Q
3
20
15		 Q
2
20
15		 Q
1
20
15		 Q
1
20
16		 Q
4
20
15		 Q
3
20
15		 Q
2
20
15		 Q
1
20
15		 Q
1
20
16		 Q
4
20
15		 Q
3
20
15		 Q
2
20
15		 Q
1
20
15		 Q
1
20
16		 Q
4
20
15		 Q
3
20
15		 Q
2
20
15		 Q
1
20
15
€ m
n
Ne
t in
t in
ter
es
co
me		 182 199 21
4		 192 178 0 0 0 0 0 2
-		 1
-		 0 1
-		 0 180 198 21
4		 19
1		 178
All
fo
red
it l
ow
an
ce
r c
os
se
s		 2 42 37 31 18 2 42 37 31 18
Ne
t in
t in
af
ter
ter
es
co
me		 18
0		 15
7		 17
7		 16
1		 16
0		 0 0 0 0 0 2 1 0 1 0 17
8		 15
6		 17
7		 16
0		 16
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AppendixDevelopment property finance portfolio

Development property finance portfolio

Diversification continuously strengthened (in € mn)

Western Europe (ex Germany) credit portfolio Total volume outstanding as at 31.03.2016: € 9.9 bn

1) Performingbusiness only, exposure as at 31.03.2016

German credit portfolio

Total volume outstanding as at 31.03.2016: € 5.3 bn

1) Performingbusiness only, exposure as at 31.03.2016

Southern Europe credit portfolio

Total volume outstanding as at 31.03.2016: € 4.3 bn

Eastern Europe credit portfolio

Total volume outstanding as at 31.03.2016: € 2.7 bn

1) Performingbusiness only, exposure as at 31.03.2016

Northern Europe credit portfolio

Total volume outstanding as at 31.03.2016: € 2.0 bn

1) Performingbusiness only, exposure as at 31.03.2016

North America credit portfolio

Total volume outstanding as at 31.03.2016: € 5.7 bn

Asia credit portfolio

Total volume outstanding as at 31.03.2016: € 0.4 bn

AppendixAcquisition of WestImmo

Acquisition of WestImmo1): Strategic rationale

Attractive opportunity to pursue inorganic growth

1) As published February 22, 2015

Acquisition of WestImmo1): Strategic rationale

Value enhancing transaction in line with business strategy

Transaction represents attractive opportunity for Aareal Bank to pursue inorganic growth as it is EpS accretive andcreating shareholder value from day one while mid-term targets unchanged

Acquisition using existing excess capital demonstrates strength and strategic capacity while generating further excess capital and therefore dividend distribution potential at the same time

Immediate (inorganic) growth of interest earning asset base in times of increasing competition

Perfect overlap to Aareal's core business further strengthens position as a specialised commercial real estate lender

International well experienced staff and platform maintained despite currently not being allowed to write new business (acc. to EU-regulations) and therefore in run-down mode

High diversification of CRE portfolio and conservative risk profile remains unchanged

Optimisation of capital structure in line with communicated strategy

1) As published February 22, 2015

Acquisition of WestImmo1): Strategic rationaleBusiness ability even without new business origination

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--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- --

Acquisition of WestImmo1): Transaction structure Attractive terms and conditions

Acquisition of WestImmo1): Financials

Impact on capital ratios, EpS, and RoE2)

  • 1) As published February 22, 2015
  • 2)Pro forma extrapolated, assumed closing 31.03.2015

Acquisition of WestImmo1): Financials

Purchase price illustration2)

1) As published February 22, 2015

2)Pro forma extrapolated, assumed closing 31.03.2015

Acquisition of WestImmo1):

Private client loans and Public sector loans2)

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1)
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2) Pro forma extrapolated as at 31.03.2015

Revaluation surplus

Change mainly driven by asset spreads

AppendixCapital ratios, CET1 development and RWA-split

Capital ratiosSREP1) requirements

Main takeaways

  • Aareal Bank's SREP requirement according to ECB notification: 8.75% CET1 including capital conservation buffer
  • Other buffer of 1% (estimated not yet announced); actual countercyclical buffer: 0.02%
  • CET1 ratio of 13.1% (fully phased) as at 31.12.2015: ~330 bps above SREP requirement (including capital conservation buffer AND estimated other buffer)
  • ~330 bps buffer currently available to cover uncertainties coming from regulatory environment

1) Supervisory Review and Evaluation Process (SREP)

From asset to risk weighted asset (RWA)

Essential factors affecting volume of RWA

2) Amounts to € 4 mn

Definitions andcontacts

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 = CET1Risk weighted assets
  • Pre tax RoE = Operating profit ./. income/loss attributable to non-controlling interests ./. AT1 cuponAverage 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 fundingRequired stable funding
  • Liquidity coverage ratio = ≥ 100%Total stock of high quality liquid assetsNet 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 cuponNumber of ordinary shares

Contacts

Disclaimer

© 2016 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 orinto any jurisdiction where such distribution would be restricted by law.
  • 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. Aareal Bank AG has merely compiled the information on which this document is based from sources considered to be reliable – without, however, having verified it. The securities of Aareal Bank AG are not registered in the United States of America and may not be offered or sold except under an exemption from, or pursuant to, registration under the United States Securities Act of 1933, as amended. Therefore, Aareal Bank AG does not give any warranty, and makes no representation as to the completeness or correctness of any 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. The securities of Aareal Bank AG are not registered in the United States of America and may not be offered or sold except under an exemption from, or pursuant to, registration under the United States Securities Act of 1933, as amended.
  • This presentation may contain forward-looking statements of future expectations and other forward-looking statements or trend information that are based on current plans, views and/or assumptions and 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.

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