February 25, 2015Dr. Wolf Schumacher, CEO – Hermann J. Merkens, CFO

LOCAL EXPERTISE

Agenda

Acquisition of Westdeutsche ImmobilienBank AG (WestImmo)
Preliminary 2014 results
Segment performance
B/S structure, capital & funding position
Preliminary group figures 2014
Asset quality
Outlook 2015
Midterm Outlook
Appendix
Definitions and Contacts

Acquisition of WestImmoStrategic rationale

Strategic rationale

Attractive opportunity to pursue inorganic growth

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 and creating 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

Strategic rationale

Business ability even without new business origination

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Acquisition of WestImmoTransaction structure

Transaction structure Attractive terms and conditions

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1)Subject to further adjustments

Acquisition of WestImmoFinancials

Financials

Impact on capital ratios, EpS, and RoE1)

-Allocation of excess capital
RWA increase partly compensated by negative goodwill
Expected pro forma CET1 as at 31.12.2015: 11.8%
Bail in capital ratio expected above target (~8%)

EpS

Transaction is EpS accretive from day 1
Expected cumulative EpS for the next three years > 3 €
Substantial part of the capital currently absorbed by acquired RWA already to be released until 2017
No capital relief from switch of rating model (WestImmo already on AIRBA)

RoE

Transaction in line with mid term RoE target
Pre-tax RoE target confirmed at ~12%
Dividend policy
Reconfirming active dividend policy with payout ratios of ~50% (excl. negative goodwill)

¹⁾Pro forma extrapolated, assumed closing 31.03.2015

FinancialsPurchase price illustration1)

1)Pro forma extrapolated, assumed closing 31.03.2015

Acquisition of WestImmoNext steps

Next steps Closing envisaged for H1 2015

Aareal's new ownership structure

Successful placement underlines confidence in ARL

Highlights 2014

Aareal Bank with an all time high operating profit

Highlights

Aareal Bank concludes 2014 with an all time high operating profit
Group operating profit of € 436 mn above guided range
Tripled consolidated profit of € 294 mn
Pre-tax RoE increased to 11.1% (excl. negative goodwill of Corealcredit acquisition)
Dividend proposal raised from € 0.75 to € 1.20 (~50% payout ratio)
New business origination remains on a high level, compensating effects from early repayments
Successful acquisition and integration of Corealcredit into Aareal Bank Group
ECB's comprehensive assessment confirmed Aareal Bank's capital and financial strength
Full repayment of remaining € 300 mn SoFFin silent participation
Aareal Bank successfully placed € 300 mn additional Tier 1 capital (AT1)

Preliminary 2014 resultsEnvironment 2014

Environment 2014

Our assumptions turned out to be valid

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f C D l i l i l i E B t t t t t t u e o e n a o n p r e s s u r e w e e x p e c o , k k i l d l i t t t t t t t t e e p e y n e r e s r a e s o w a n o s a r a e r n a v e h f h E i t t- t t t m e a s u r e s e r e o r e s o r e r m u r o n e r e s - i l l l i k l l l l. t t r a e s w e y s a y o w a s w e	O / i i i i l h t t t t- t n g o n g q u a n a v e e a s n g v e r y o w s o r e r m : i i h l l d f h E C B t t t t t n e g a v e n e r e s r a e s c a e n g e u r e r – f i h i d f l i d i k i b b b l t t t g n g e a o n a n r s n g a s s e u e s.
S l i h l d i d b t t t g w o r e c o n o m c r e c o v e r y e x p e c e u , d i f f d i E N h A i i l l t t e r e n s p e e n u r o p e o r m e r c a n w , f A i i i l l i t t r e c o e r a s e r, s a n e c o n o m e s c o n n e v w u b f h d l i l l i t t t t t t o g r o r e r e e o p m e n s n c e r a n. w u u v u	S l i h l d i l d d i t g w o r e c o n o m c r e c o v e r y s o w e o w n n H i l l i h d i f f d f i E 2 t t t s w e r e n s p e e o r e c o v e r y n u r o p e , , N h A i d A i t o r m e r c a n a n s a
R l i d i b l t t t e g a o r e n r o n m e n m o r e p r e c a e, u y v Q A R i t t m a y c a u s e s o m e u n c e r a n y.	R l i d i b l t t t e g a o r e n r o n m e n m o r e p r e c a e u y v ( ), b i b l h l l h d b l i h d t p o s s e n e c a e n g e s a e a p s e u w u Q A R d l b h t t t t t a n s r e s s e s r e s u s r o u g m o r e h E b k i t t t t r a n s p a r e n c y o e u r o p e a n a n n g s e c o r.
	U d i d l i i l i k t t n p r e c e n e w g e o- p o c a r s s : ( f l l f l d i h k ). t t t t t n o y e u y r e e c e n e m a r e s

Preliminary 2014 resultsAt a glance

2014 at a glance

Strong performance – dividend proposal: 1.20€

T t a r g e s	G i d a n c e u	M G i d 9 a n c e u -	P l i i r e m n a r y
D i i d d l e n p r o p o s a v	0 % 5 p a ~	i t t o r a o y u	S € 1. 2 0 ( 0 % ) 5 p ~
N i i t t t e n e r e s n c o m e	€ € 6 1 0 6 4 0 m n m n -	€ € 6 5 0 6 8 0 m n m n -	€ 6 8 8 m n
N l l i i t e o a n o s s p r o s o n s v	€ 1 0 0 1 0 5 m n -	€ 1 0 0 1 0 5 m n - ( ) h l f L I P 1 p p e r a u :	€ 1 4 6 m n
N i i i t e c o m m s s o n n c o m e	€ 1 7 0 1 8 0 m n -	€ 1 6 0 1 7 0 m n -	€ 1 6 4 m n
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1 ) N i d i l l t e g a e g o o v w	€ 1 0 5 m n ~	€ 1 2 5 m n	€ 1 4 5 m n
2 ) O f i i t t p e r a n g p r o	€ 3 7 0 3 9 0 m n -	€ 4 2 0 4 3 0 m n -	€ 4 3 6 m n
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P R E t r e- a x o l. d i l l e x c n e g g o o w	9 % ~	1 0 % ~	1 1. 1 %
) 4 N b i i i i t e w u s n e s s o r g n a o n	€ b 8 9 n -	€ b 1 0 n ~	€ b 1 0 7 n
O i f i A t t p e r a n g p r o a r e o n	€ 2 8 m n ~	€ 2 6 m n ~	€ 2 6 m n

1) Adjusted

2) Incl. negative goodwill

3) Earnings per ordinary share

204) Incl. renewals

Q4 2014 results at a glance

Operating profit pushed by strong NII development

	Q 4 2 0 1 4	Q 3 2 0 1 4	Q 2 2 0 1 4	Q 1 2 0 1 4	Q 4 2 0 1 3	C t o m m e n s
€ m n
N i i t t t e n e r e s n c o m e ( l. l l d e x c e a r y u n p a n n e 1) ) t r e p a m e n s y	1 9 4 ( ) 1 7 4	1 8 1 ( ) 1 6 8	1 6 9 ( ) 1 6 1	1 4 4 ( ) 1 4 0	1 4 7 ( ) 1 3 7	S N I I d l d t t t r o n g e v e o p m e n u e o P f l i h € b i / '1 4 5 1 2 3 t t o r o o g r o w : n s n c e C h f l d i € 2 b t t 7 e r e o o r e a c r e n S b l i t a e m a r g n s f L d i t o e r n n g c o s s w u A L M m e a s u r e s
N l l i i t e o a n o s s p r o s o n v S i f i l l p e c c a o w a n c e s f P l i l l t o r o o a o a n c e s w	4 1 6 3 5	3 6 3 3 3	3 2 3 3 -1	3 7 6 3 1	3 9	I l i i h i d t n n e g a n c e w u Q f 1 i l. L I P d j i 0 1. 0 t t 5 n c a c o r a s n g u :
N i i i t e c o m m s s o n n c o m e	4 8	3 7	3 9	4 0	4 8	Q i h l l f f 4 t t w r e g u a r s e a s o n a e e c s
A d i m n e p e n s e s x	1 1 4	1 0 9	1 1 4	1 0 2	9 9	F Y b d d b l & h t t r e n e r e g a o r o e r u y u y f C j i i l d i t t t t p r o e c s, n e g r a o n o o r e a c r e
N i d i l l t e g a e g o o v w				2 ) 1 4 5		G i f i i i l l i d i t t a n r o m n a c o n s o a o n
O f i i t t p e r a n g p r o	8 6	6 6	6 5	2 ) 2 1 9	8 5	P h d b N I I d l t t u s e y s r o n g e v e o p m e n

1) Additional effects exceeding originally planned repayments

2) Adjusted

Structured property financing

New business target overachieved

1) Incl. renewals

2) Additional effects exceeding originally planned repayments

Structured property financing

Strong performance throughout the year

Consulting / Services

Solid in IT & volumes – weak in deposit taking business

P & L C / S S t e g m e n	2 0 1 4	2 0 1 3	C h a n g e
€ mn
S l a e s r e v e n u e	1 8 5	1 8 7	-1 %
O k i l i d t w n w o r c a p a s e	5	4	2 % 5
O h i i t t e r o p e r a n g n c o m e	8	6	3 3 %
C f i l h. t t o s o m a e r a p r c u	2 2	2 2	-
S f f t a e x p e n s e s	1 3 1	1 2 2	7 %
D A i i l t m p a r m e n o s s e s , ,	1 4	1 4	-
O h t e r o p. e x p e n s e s	1 5	0 5	2 %
O h t e r s	0	0	-
i f i O t t p e r a n g p r o	-2 0	-1 1	-8 1 %

Aareon sales revenues € 178 mn (+3%) EBT margin ~15%
Housing industry deposits generate a stable funding base, crisis-proof
Low interest environment burdens segment results

Consulting / Services

Deposit taking business burdens segment performance

Note: All 2014 figures preliminary and unaudited

Consulting / Services

Solid in IT & volumes – weak in deposit margins

P & L C / S S t e g m e n	Q 4 '1 4	Q 3 '1 4	Q 2 '1 4	Q 1 '1 4	Q 4 '1 3
€ m n
S l a e s r e v e n u e	5 2	4 2	4 5	4 6	5 3
O k i l i d t w n w o r c a p a s e	1	2	1	1	1
C h i i t a n g e s n n v e n o r y	0	0	0	0	0
O h i i t t e r o p e r a n g n c o m e	3	2	2	1	4
C f i l h d t t o s o m a e r a p r c a s e u	5	6	5	6	6
S f f t a e p e n s e s x	3 5	3 2	3 2	3 2	3 4
D A i i l t m p a r m e n o s s e s , ,	3	4	3	4	3
R l i i t t t t e s u s a e q u y a c c. n v e s m	-	-	-	-	0
O h i t t e r o p e r a n g e x p e n s e s	1 3	1 2	1 4	1 2	1 3
R l f i t t t e s u s r o m n e r e s d i i l a n s m a r	0	0	0	0	0
i f i O t t p e r a n g p r o	0	-8	-6	-6	2

Unchanged low interest rate environment continues to burden segment results
Deposit volume of the housing industry on high levels
-€ 8.6 bn Ø in 2014
€ 9.1 bn Ø in Q4 2014
The strategic importance of the housing industry deposits as an additional source of funding exceeds the importance of the margins reflected in the segment performance

B/S structure, capital & funding position

Strong capital ratiosIFRS & CRR as at 31.12.2014

Bail-in capital ratio (acc. to our definition): above 8%
Strong capital ratios enable us to take new business on board
Strong capital ratios in line with business model, company size and capital market expectations
Remaining SoFFin silent participation fully repaid without capital increase
AT 1 successfully raised
Leverage ratio as at 31.12.2014: 4.6% (fully phased)
New ECB requirements in line with our capital planning

Expected development of capital ratios1) IFRS & CRR as at 31.12.2014

1) Actual figures may vary significantly from estimates

Asset- / Liability structure according to IFRSAs at 31.12.2014: € 49.6 bn (30.09.2014: € 49.9 bn)

€ bn

3) Interbank includes reverse repos of € 1.3 bn31Note: All 2014 figures preliminary and unaudited

Asset- / Liability structure according to IFRSAs at 31.12.'14: € 49.6 bn (31.12.'13: € 43.0 bn - excl. Coreal)

Conservative balance sheet with structural over borrowed position
Average maturity of long term funding > average maturity of RSF loans
2) Liquidity position exceeds 15% of the total balance sheet. This includes unencumbered
ECB-eligible assets, available excess cash at otherbanks as well as highly liquid government securities
3) Interbank includes reverse repos of € 1.3 bn32

Net stable funding- / Liquidity coverage ratio Fulfilling CRR requirements

Aareal Bank already fulfils future requirements
-NSFR > 1.0
LCR >> 1.0
Basel III and CRR require specific liquidity ratios starting end 2018
Positive effect in 2014 due to changed weighting factors
Small additional funding requirements easily covered by NSFR surplus

Refinancing situation 2014Successful funding activities

Total funding of € 3.9 bn in 2014

Pfandbriefe: € 1.9 bn
Senior unsecured: € 1.1 bn
Subordinated debt (Tier 2): € 0.6 bn
AT1: € 0.3 bn

Backbone of capital market funding is a loyal, granular, domestic private placement investor base

Hold-to-maturity investors: over 600
Average ticket size: € 10 mn

Deposits of the housing industry increased by € 1.4 bn to € 8.6 bn on average in 2014

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 31.12.2014, this share has fallen to ~30% (or even below 10% without Pfandbriefe)

As at 31.12.2014

Net interest incomeStrong development

NII effect from early repayments2)
NII Structured Property Financing

NII Consulting / Services

1) Consolidated since Q2 2014

2) Additional effects exceeding originally planned repayments

Portfolio growth of € 4.5 bn since end of 2013 (thereof € 2.7 bn Corealcredit1)) and still stable margins in the CRE business
Q4 includes additional ~€ 20 mn from early repayments2) (Q3: € 13 mn, Q2: € 8 mn, Q1: € 4 mn, Q4 '13: € 10 mn)
Funding costs decreased throughout 2014
Former central bank liquidity used for strategic ALM measures according to our long term plan, residual amounts switched to reverse repos
NII Consulting / Services further burdened by interest rate environment
Aareal Bank already fulfils future NSFR / LCR requirements

Loan loss provisionsIn line with guidance

2014-LLP within guided range

FY-LLP 2014 of € 146 mn consists of
-€ 78 mn specific allowances
- € 68 mn portfolio allowances due to
- More conservative LIP factor 1
- Weak economic development in southern European countries

Net commission incomeFY slightly below expectations

Strong Aareon revenue regularly pushing Q4
As clients delay forecasted investments in their IT-systems sales revenues slightly below expectations

Admin expensesWithin FY-guidance

2014 admin expenses of € 439 mn within FY-guidance of € 430 mn - € 450 mn
Additionally burdened by regulatoryand other projects
Admin expenses will stabilise on a higher level due to the integration of Corealcredit since Q2

Total property finance portfolio € 29.0 bn highly diversified and sound

Total property finance portfolio Continuing conservative approach

N P L- d L L P d l t a n e e o p m e n v
€ m n	N P L 1) E p o s r e x u	S i f i p e c c 1) A l l o a n c e s w	P f l i t o r o o 2) A l l o a n c e s w
A l B k G 3 0. 0 9. 2 0 1 4 t a r e a a n r o u p a s a	9 6 3	3 3 4	1 1 9
G Q A l B k i l i i i 4 '1 4 t t a r e a a n r o p s a o n n u u	-4 0	-3	0
A l B k G d d i i i Q '1 4 4 t a r e a a n r o u p a o n n	6 3	6	3 5
A l B k G 3 1. 1 2. 2 0 1 4 t a r e a a n r o p a s a u	9 8 6	3 3 7	1 5 4
C i i f i l l t o v e r a g e r a o s p e c c a o w a n c e s	3	4. 2 %
		3 3 7	1 5 4
A l B k G 3 1. 1 2. 2 0 1 4 t a r e a a n r o u p a s a	9 8 6 4 9 1
C i t o v e r a g e r a o i l. f l i l l t n c p o r o o a o a n c e s w	4 9. 8 %

1) Incl. property finance portfolio still on DEPFA's balance sheet

2) Portfolio allowances mainly reflect expected losses which are calculated on the bases of specific loans in most cases

Total property finance portfolio

€ 29.0 bn of high quality real estate assets

NPL and NPL-ratio (since 12.2004)

Total treasury portfolio

€ 11.3 bn of high quality and highly liquid assets

General environment 2015

General environment

Slight world economic recovery will continue but with different regional speed: "did Europe miss the train?"
Low interest rates will continue to burden markets but different development of interest rate levels expected in Europe and the US
Inflation pressure and ECB's QE-program will have an impact on capital markets - especially in Europe: fighting deflation and risking asset bubbles
Euro will further weaken by ECB's monetary programs
Geo-political risks will burden the markets
Regulatory environment becomes more predictable but ECB causes - politically driven - further uncertainties (Still possible challenges, e.g. additional capital requirements resulting from RWA-floors, TLAC1), etc.)

Main takeaways

Further increasing transaction volumes and competition in our lending buckets will burden margins which can only partially be offset by lower funding costs and –structure.Early repayments of high margin loans will continue.

We see moderately increasing property values and stable to slightly positive rents in the majority of European countries but further NPL inflow mainly from our southern European portfolio expected

Aareon with a slightly positive development expected but deposit business will continue to suffer on segment reporting level – deposit volume supports funding and cheapens funding costs on group level

1) Total Loss Absorbing Capacity

Regulatory challenges for banks

Aareal Bank's CRE market expectations

Expected value changes1) in 20152)

1) Here shown average market value changes across all property types and regions

Outlook 2015

Strong operating performance & WestImmo take-over1)

	2 0 1 5
N i i t t t e n e r e s n c o m e	€ 2 0 € 6 0 7 7 m n m n -
2 ) N l l i i t e o a n o s s p r o v s o n s	€ 1 0 0 € 1 0 d i f l i h 5 t t t m n m n e s p e p o r o o g r o w -
i i i N t e c o m m s s o n n c o m e	€ 1 0 € 1 8 0 7 m n -
A d i m n e p e n s e s x	€ € 5 2 0 5 5 0 m n m n - f f i l. l d W I t t t n c o n e- o s r e a e o e s m m o
i i N d l l t e g a v e g o o w	€ 1 0 5 m n ~
O i f i t t p e r a n g p r o	€ € 4 0 0 4 3 0 m n m n -
) 3 E S p	€ € i l. i d i l l 4 8 0 5 2 0 t n c n e g a v e g o o w - € € l. i d i l l 2 3 0 2 7 0 t e x c n e g a v e g o o w -
P R E t r e- a x o	i l. i d i l l 1 6 % t n c n e g a v e g o o w ~ 1 0 % l. i d i l l t e c n e g a e g o o x v w ~
N b i i i i t e s n e s s o r g n a o n w u	€ b € b 6 7 n n -
4 ) O i f i A t t p e r a n g p r o a r e o n	€ 2 7 m n ~

1) Closing as at 31.03.2015 assumed

2) As in 2014, the bank cannot rule out additional allowances for credit losses

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

50Note: All 2014 figures preliminary and unaudited4) After segment adjustments

Midterm outlook

Periods of low interest rates lead to decreasing interest margins

Low interest environment potentially retains in Europe, therefore significant decrease in interest margins still possible

Source: SNL Financial, Japanese Bankers Association

1) All Japanese banks, interest margin calculated as net interest income (before allowance for credit losses) in percentage of financial assets
2) Banks with more than EUR 100 bn Total assets and quarterly financial reporting, interest margin calculated as net interest income (before allowance for credit losses) in percentage of financial assetsNote: All 2014 figures preliminary and unaudited

Midterm outlook

Management options

	M i d t e r m	L t o n g e r m	/ M i i l t t t a n a g e m e n o p o n s a c o n p a n
1) A d j d te C us p re 7 t a e g o r y Ro E 2 0 1 4 ta x	~1 0 %	~1 2 %	O f / i i i d i l i i d i t t t t t p m s a o n n n g s r c r e q p u u u u y L f l i i d d i i t o a n p o r o o s e e p e n n g o n m a r g n z i c o m p r e s s o n
Ne in t te t C re 6 s t a e g o r y inc om e		- -	R W A d L T V d l d d i t a n e v e o p m e n e p e n n g o l i d k t t r e g a o n a n m a r e s u
Lo los C an s t 5 a e g o r y is ion		+	I i A 's f i i b i t t t n c r e a s e n a r e o n p r o c o n r u o n
p rov			K b d l t t e e p c o s a s e n e r c o n r o u
C 4 t a e g o r y Aa re on		o	O i i i f l i l t t t t t t p m s a o n o r e g u a o r y c a p a s r u c u
A dm in / C ex p. 3 t a e g o r y f fe he t ts o r e c		-	f A l i l l i d l i t t g n m e n o r a o c a o n o u n e r y n g c a p d d i h d h l l i e p e n n g o n c a n c e s a n c a e n g e s n k t m a r e s
Un de ly ing r C 2 t a e g o r y i l ta ca p		+ +
Ro E ta p re x C 1 t a e g o r y ta t rg e	~1 2 %	~1 2 %

Optimisation funding structure / liquidity portfolio
Loan portfolio size depending on margin compression
RWA and LTV development depending on regulation and markets
Increase in Aareon's profit contribution
Keep cost base under control
Optimisation of regulatory capital structure
Alignment or allocation of underlying capital depending on chances and challenges in the markets

1) Mainly from unplanned early repayments

Midterm Outlook

Summary, prerequisites and challenges

	2 0 1 7
C E T 1 i t r a o I F R S & C R R f l l h d u y p a s e ( l t o n g e r m ) t t a r g e	1 0 7 5 % > ( b f t. e o r e m g m b f f ) u e r
C I R	4 0 % ~ ( S ) P F
E B T i m a r g n	1 7 5 % > ( A ) a r e o n
P R E t r e- a o x	1 2 % ~
C f i t t o s o e q u y ( ) t n e

Prerequisites

No Eurozone break up
Normalised asset valuations
Healthy world GDP growth beside some European peripherals
Sound regulatory environment
No additional burdens
ECB to keep key interest rates low due to little inflation pressure – therefore short-term Euro interest rates will likely stay low as well

Challenges

According to slide "Regulatory challenges for banks"
-ECB supervision
-Banking resolution
-Basel activities

Aareal Bank GroupKey figures 2014

	0 1. 0 1. - 3 1. 1 2. 2 0 1 4	0 1. 0 1. - 3 1. 1 2. 2 0 1 3	C ha ng e
	€ m n	€ m n
Pr f i d lo t a t o n ss a cc ou n
Ne in inc t te t re s om e	6 8 8	2 5 7	3 1 %
A l low fo d i los t an ce r c re se s	1 4 6	1 1 3	2 9 %
Ne in in f l lo fo d i lo t te t te t re s co m e a r a w an ce r c re ss es	5 4 2	4 1 4	3 1 %
Ne iss ion inc t c om m om e	1 6 4	1 6 5	1 % -
Ne l he dg ing t r t o t es n e ac co un u	5	6 -	-
Ne d ing inc / e t tra om e xp en se s	2	1 8	8 9 % -
Re l fro d ing ts -tr ts su m n on a a ss e	2	8 -	-
Re l fro inv d fo i ts tm ts te t e ty su m es en a cc ou n r a q u	0	0	-
A dm in is ive tra t e xp en se s	4 3 9	3 7 5	1 % 7
Ne he ing inc / e t o t t r o p er a om e xp en se s	6	1 0 -	-
Ne ive dw i l l t g a g oo	1 4 5	-	-
Op in Pr f i t t er a g o	4 3 6	1 9 8	1 2 0 %
Inc ta om e xe s	1 0 1	6 2	6 3 %
in / Ne t lo co m e ss	3 3 5	1 3 6	1 4 6 %
f r A l lo io l t ts ca n o es u
Ne inc / los i bu b le l l ing in t t tr ta to tro te ts om e s a n on -c on re s	1 9	1 9	0 %
Ne inc / los i bu b le ha ho l de f Aa l Ba k A G t t tr ta to om e s a s re rs o re a n	3 1 6	1 1 7	1 7 0 %
Ap ia io f p f i t ts p ro p r n o ro
S So i len h ip i bu ion by F F in t p tn tr t ar er s co n	2 2	2 4	8 % -
Co i in f i / a l da te d ta d t la te d lo ns o re e p ro cc um u ss	2 9 4	9 3	2 1 6 %

Aareal Bank GroupKey figures 2014 by operating units

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

Aareal Bank GroupKey figures Q4 2014

	Qu 4 te ar r	Q 4 te ua r r	C ha ng e
	2 0 1 4	2 0 1 3
	€ m n	€ m n
Pr f i d lo t a t o n ss a cc ou n
Ne in inc t te t re s om e	1 9 4	1 4 7	3 2 %
fo A l low d i los t an ce r c re se s	4 1	3 9	% 5
Ne in in f l lo fo d i lo t te t te t re s co m e a r a w an ce r c re ss es	1 5 3	1 0 8	4 2 %
Ne iss ion inc t c om m om e	4 8	4 8	0 %
Ne l he dg ing t r t o t es u n e ac co un	2	3 -	-
Ne d ing inc / e t tra om e xp en se s	3	4	2 5 % -
Re l fro d ing ts -tr ts su m n on a a ss e	2		-
Re l fro inv d fo i ts tm ts te t e ty su m es en a cc ou n r a q u	0	0	-
A dm in is ive tra t e xp en se s	1 1 4	9 9	1 5 %
Ne he ing inc / e t o t t r o p er a om e xp en se s	-8		-
Ne ive dw i l l t g a g oo			-
Op in Pr f i t t er a g o	8 6	5 8	4 8 %
Inc ta om e xe s	3 9	1 8	1 1 % 7
Ne in / lo t co m e ss	4 7	4 0	1 8 %
A l lo io f r l t ts ca n o es u
/ Ne inc los i bu b le l l ing in t t tr ta to tro te ts om e s a n on -c on re s	5	4	2 % 5
/ f G Ne inc los i bu b le ha ho l de Aa l Ba k A t t tr ta to om e s a s re rs o re a n	4 2	3 6	1 7 %
Ap ia io f p f i t ts p ro p r n o ro
S i len h ip i bu ion by So F F in t p tn tr t ar er s co n	7	4	7 5 %
Co / a l i da d in d f i la d lo te ta t te ns o re e p ro cc um ss u	3 5	3 2	9 %

Aareal Bank GroupKey figures Q4 2014 by operating units

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

Aareal Bank GroupKey figures – quarter by quarter

		St tur ruc Fin	ed P cin an	ert rop y g		Co / Se ult ing rvi ns ce s			Co oli da tio n / ns Re ilia tio co nc n				Aa l B k G rea an rou p
	Q 4	Q 3	Q 2	Q 1	Q 4	Q 4	Q 3	Q 2	Q 1	Q 4	Q 4	Q 3	Q 2	Q 1	Q 4	Q 4	Q 3	Q 2	Q 1	Q 4
	20 14	20 14	20 14	20 14	20 13	20 14	20 14	20 14	20 14	20 13	20 14	20 14	20 14	20 14	20 13	20 14	20 14	20 14	20 14	20 13
Eu ro mn
Ne t in t in ter es co me	194	182	168	143	146	0	0	0	0	0	0	1 -	1	1	1	194	18 1	169	144	147
All fo red it l ow an ce r c os se s	41	36	32	37	39											41	36	32	37	39
Ne t in t in af ter ter es co me	15 3	14 6	13 6	10 6	10 7	0	0	0	0	0	0	1	1	1	1	15 3	14 5	13 7	10 7	10
fo it l all red ow an ce r c os se s												-								8
Ne mi ion in t c om ss co me	1	1	1	1	3	47	36	40	40	47	0	0	2 -	1 -	2 -	48	37	39	40	48
Ne lt o n h ed nti t re su g e a cc ou ng	2	0	1	2	3 -											2	0	1	2	3 -
/ e Ne t tr ad ing in co me xp en se s	3	5 -	2	2	4											3	5 -	2	2	4
Re lts fro rad ing n-t ts su m no as se	2	0	0	0	0											2	0	0	0	0
Re lts fro ult d nte su m res s a cc ou	0	0			0	0										0	0
for uity at eq										0										0
Ad mi nis tra tive ex pe ns es	67	64	68	56	54	48	46	47	46	47	1 -	1 -	1 -	0	2 -	114	109	114	102	99
Ne the ing in / t o rat r o pe co me	-8	4	1	16	1	1	2	1	0	2	1	0	0	0	1	8	2	0	16	0
ex pe ns es		-	-		-						-				-	-	-
Ne ati dw ill g ve g oo				1) 154															1) 154
Op tin rof it era g p	86	74	71	1) 22 5	56	0	8 -	6 -	6 -	2	0	0	0	0	0	86	66	65	1) 21 9	58
Inc e t om ax es	41	23	23	22	18	2 -	2 -	2 -	2 -	0						39	21	21	20	18
Ne t in / l co me os s	45	51	48	1) 20 3	38	2	6 -	4 -	4 -	2	0	0	0	0	0	47	45	44	1) 19 9	40
Al loc ati of lts on re su
Ne t in / l ttri bu tab le to co me os s a
llin int tro sts no n-c on g ere	4	4	4	4	3	1	0	1	1	1						5	4	5	5	4
Ne t in / l ttri bu tab le to co me os s a				1)															1)
G sh ho lde of Aa l B k A are rs rea an	41	47	44	199	35	1	6 -	5 -	5 -	1	0	0	0	0	0	42	41	39	194	36

1) Adjusted

Development property finance portfolioDiversification continuously strengthened (in € mn)

Note: All 2014 figures preliminary and unaudited

Western Europe (ex Germany) credit portfolio Total volume outstanding as at 31.12.2014: € 8.7 bn

German credit portfolio

Total volume outstanding as at 31.12.2014: € 6.0 bn

Southern Europe credit portfolio

Total volume outstanding as at 31.12.2014: € 4.2 bn

Eastern Europe credit portfolio

Total volume outstanding as at 31.12.2014: € 2.6 bn

Northern Europe credit portfolio

Total volume outstanding as at 31.12.2014: € 2.3 bn

North America credit portfolio

Total volume outstanding as at 31.12.2014: € 4.7 bn

Asia credit portfolio

Total volume outstanding as at 31.12.2014: € 0.5 bn

WestImmo at a glance

Asset- / Liability structure according to IFRSPro forma extrapolated as at 31.03.2015: € 8.1 bn

CRE lending portfolio1)

Total volume of € 4.3 bn with average LtV < 60%

Private client loans and Public sector loans1)

P i l i t t r v a e c e n l o a n s	V l f € b l d 1. 6 3 t t t o u m e o n e x r a p o a e a s a A l l f i l h b n o n p e r o r m n g o a n s a v e e e n c a r l f i b i i h t p u r e y p e r o r m n g u s n e s s w a v e r a g O d i 1 0 0 T € 8 % 1 0 0 1 t t 5 5 s a n n g s u : < – , 2 0 0 2 0 T € 4 % 2 0 0 0 4 % 5 5 5 5 : ; : ; < > – – 0 % i B d W b B 5 t t n a e n e r e m e r g a e r n, > u y , f f H i i l d l h l i i h t t t t t t s o r c a e a u s o n a p o r o o n P i l i k f l b k d i t t o e n a r s s r o m c a w a c s r e g a r n B b i b h ) " d f l ü t t e a r e u n g s g e r e n a n a u y r e v W i d f b l h ") i l l b d e r r s e e r n g e n e c o e r e u u w v	1. 0 3 2 0 1 5 d t, v e o u L V 6 0 % t e < 0 T € 2 4 % 1 0 2 0 0 T € 1 0 % 5 : : – , , 0 0 T € 1 % : < H d N R W e s s e n, a n ( ) l d b l d i i b t e v e r y, v e r y o w o u e g a r e a p l f ( "R k f d ü g o a n e e s c o r e r u n g e n v o n i l ( "f h l h f t t o c a o n c a u s e e e r a e b h l l t e s e e r y
P b l i t c s e c o r u l o a n s	f V l € 0 8 b l d 3 t t t o m e o n e r a p o a e a s a u x L i i G t t t o a n s, w a r r a n e s o r g u a r a n e s o e r	1. 0 3 2 0 1 5 b- i b d i m a n s u s o v e r e g n o e s

Treasury portfolio1)

€ 1.2 bn of high quality and highly liquid assets

SoFFin: full repayment of silent participationSupport to Aareal Bank has come to an end

S O b j i f F F i t t e c v e o r o n s u p p o r	G f i l i t t t o v e r n m e n g u a r a n e e a c y
A h h h i h f h f i i l i i i l t t t t t t e a e e g o e n a n c a c r s s n e a r y 2 0 0 9 A l h d d i l b l t a r e a a r a n o n s p p o r a a a e w u v f i h i h k t t t t n e s c o p e o a g o e r n m e n p a c a g e o w v f b i l i h i i l i t t t s a s e e n a n c a s e r v c e s s e c o r. T h b j i h A l 's t t t t t e o e c e a s o p r o e c e a r e a v w f i b l i b l b i i h t t t s s a n a p r o a e s n e s s n a a s a u y u w w f f d i i l k i h i t t t t t t v e r y c u m a r e e n v r o n m e n a e m e A l i d l f i l € 2 3 t t t 7 t a r e a p a a o a o a p p r o m a e m n o x y f S d i i d F F i t t t t t a e n n e r e s a n g a r a n e e e e s o o n. u	V l € b 4 o u m e : n F i b d t r s o n : € b f l l l d i / 2 0 3 2 0 0 9 n u y p a c e n , € i l l d d i / 8 0 0 0 7 2 0 1 1 t t m n p a r a y e n e r e n / € 1. 2 b d 0 3 2 0 1 2 t n m a r e u S d b d e c o n o n : € b b k / 2 0 7 2 0 1 0 t n o n o o w n o o / l d i 0 4 2 0 1 1 t e a r r e e m p o n y ( ) i i l l i 0 0 6 2 0 1 3 t 5 o r g n a m a r n g y u
S i l i i i t t t e n p a r c p a o n
O i i l l € 5 2 5 r g n a v o u m e m n : C ( ) 9 % d d i b l t t o p o n a e c e u : x u G C d f h d E T 1 i l i l d f 2 0 1 t t t 7 r a n a e r e a s c a p a n e n o u N d i i d d d i d 2 0 0 9 2 0 1 0 t o v e n p a y m e n s u r n g a n f d i o r p r e c e n g y e a r s	€ m n 6 0 0 0 0 5 5 -1 0 5 2 5 4 0 0 5 -7 5 3 7 3 0 0 3 0 0 -3 0 0

Additional remuneration: coupon increases on a pro rata basis by 0.5 pp for each ~0.18 € DpS1)
Repaid in three trances 2010, 2011 and 10/2014

1) Adjusted relative to the capital increase

Comprehensive assessment

Comprehensive assessment1) AQR and Stress Test

Definitions

"The comprehensive assessment is a financial health check of 130 banks in the euro area (including Lithuania), covering approximately 85% of total bank assets. It is being carried out by theECB together with the national supervisors. The exercise started in November 2013..."
The comprehensive assessment comprises two main pillars:
an Asset Quality Review (AQR) – to enhance the transparency of bank exposures, including the adequacy of asset and collateral valuation and related provisions
^aStress Test to examine the resilience of banks' balance sheets to stress scenarios, performed in close cooperation with the European Banking Authority (EBA)
Join-up: The quality-assured stress test results have been integrated with the AQR results in a process known as the "join-up". The join-up is what sets the comprehensive assessment apart from any other previous European exercise. It connects and reinforces the point-in-time AQR and the forward-looking stress test, strengthening the overall exercise. Full AQR results are incorporated into stress test results for all banks by adjusting the starting balance sheet positions.

Source: ECB webpage

1) As published October 27, 2014

Results of the AQR and the Stress Test1)

Capital ratios significantly above thresholds

Results

AQR

-Confirms Aareal Bank's asset quality
Marginal adjustments (10 bp) mainly due to haircuts; not considering possible reversal of allowances identified in the course of the review
No reclassifications from performing loans into non-performing loans

Join-up

No Join-up effect incorporation of the AQR results into the stress test leads to no adjustments

Stress test

-In all the years under review Aareal Bank generates positive results
In all the years under review Aareal Bank will be able to pay dividends
- CET1 declines by ~28% or 453 bp from 16.29% to 11.76% (which includes 63 bp from dividends to be distributed)

In all stress scenarios capital ratios are significantly above the respective thresholds

1) As published October 27, 2014

Stress TestResults of simulation

Based on current capital structure

Aareal Bank's CET1 above the respective threshold and the envisaged trigger for a potential AT1 issue

Excluding SoFFin

Including Corealcredit portfolio

been part of the original stress test.

We tried to replicate the ECB test with our

Even after

Repayment of the SoFFin capital of € 300 mn
Under Basel III fully phased
Dividend payments

Assumptions

Pro forma fully phased figures as at 30.09.2014

Corealcredit portfolio to the best of our knowledge but we can not rule out that the stress test results would vary if the Corealcredit portfolio would have

Simulation / Extrapolation of Stress Test results1) Three scenarios

Pro forma assumptions / parameters of the model

The original stress test is calculated on 31.12.2013 / 1.1.2014 basis
The next slide is presenting results of an exercise run by Aareal and therefore is neither authorized nor checked by the ECB in order to translate the stress test results in the following scenarios
Pro forma fully phased figures as of 31.12.2013/01.01.2014 excluding SoFFin(capital - € 300 mn) based on the original stress test 1
Pro forma fully phased figures as of 30.06.2014 excluding SoFFin but including Corealcredit portfolio. We tried to replicate the ECB test with our Corealcredit portfolio to the best of our knowledge but we can not rule out that the stress test results would vary if the Corealcredit portfolio would have been part of the original stress test.2
Pro forma fully phased midterm target figures excluding SoFFin based on internal assumptions about midterm capital, RWA and portfolio development. Hence those figures include management assumptions about the future development of the company and are not based an a static balance sheet used in the ECB stress test. 3

1) As published October 27, 2014

Explanation of the bp deduction variance1)

Pro forma assumptions / parameters of the model

The original ECB Stress Test led to a CET deduction of 453 bp. This reduction is driven by an RWA increase of 33% and a CET decrease of 3.8% at the same time. CET decrease during stress horizon is caused by phase outs, unrealised losses in the AfS portfolio and AIRB shortfall of credit risk adjustments to expected losses. The calculation of the percentage change in CET capital is: 1-((1:1.33)*(1-0.038)) = 28% and 28% * 16.29% = 453 bp
Original starting RWA and original RWA increase (33%) is used. CET is reduced by € 300 mn SoFFin participation. In addition we calculated on a fully phased basis: the starting CET ratio is already fully phased. All other items remain the same. Same mathematics with an CET decrease of 3.0%, which is below 3.8% because no phase outs have to be calculated: 27% CET decrease or 359 bp reduction. 1
Pro forma fully phased numbers as of 30.06.2014 excluding SoFFin but including Corealcredit portfolio. We tried to replicate the ECB test with our Corealcredit portfolio to the best of our knowledge but we can not rule out that the stress test results would vary if the Corealcredit portfolio would have been part of the original stress test. Lower RWA increase mainly driven by the fact that Corealcredit still applies the standard approach: 25% CET decrease leads to a 294 bp reduction. 2

¹⁾ As published October 27, 2014

Explanation of the bp deduction variance1)

Pro forma assumptions / parameters of the model

Pro forma fully phased midterm target figures excluding SoFFin based on internal assumptions about midterm capital, RWA and portfolio development. Hence those figures:

(a) include management assumptions about the future development of the company and (b) are not based an a static balance sheet used in the ECB stress test.

We tried to replicate the ECB test with a portfolio end 2016 to the best of our knowledge but we can not rule out that the results of a stress test with that portfolio as an input would lead to other results than the 24% CET decreaseleading to a 259 bp reduction.

In general, the nominal bp reduction is mainly driven by the ingoing CET ratio whereby a lower ratio leads to a lower nominal bp reduction even if the percentage result is the same. The percentage change of the CET ratio as the stress test result is the better indicator than the nominal bp deduction.

1) As published October 27, 2014

Results of the simulation / extrapolation1)

Conclusion1)

Based on current and future capital structure

Aareal Bank's CET1 will be above all the respective thresholds and the envisaged trigger for a potential AT1 issue

Even after

Repayment of the € 300 mn SoFFin silent participation
Under Basel III fully phased
After potential future capital optimization

1) As published October 27, 2014

AppendixAcquisition of Corealcredit Bank AG

Strategic rationale for acquisition of Corealcredit1) Value enhancing transaction in line with current strategy

The transaction represents an attractive opportunity for Aareal Bank Group to pursue inorganic growth as it is creating shareholder value and EpS accretive from day one

Aareal Bank Group acquires Coreal, which has been successfully realigned and refocused on its core business by its previous owner, in a favourable market environment at a conservative price

Coreal is a well digestible addition to Aareal Bank Group. Legacy risks have been conservatively evaluated and comprehensively ring-fenced

Our mid-term targets and our goal to resume an active dividend policy remain unchanged

With the acquisition of Coreal, Aareal Bank Group further strengthens its position as a leading commercial real estate lender

The acquisition of Coreal from existing excess capital demonstrates the strength and strategic capacity of Aareal Bank Group

1) As published December 2013

Acquisition of Corealcredit1)

Impact on P&L, B/S, Capital ratios, EpS, and RoE

P&L and balance sheet:

Initial consolidation at 31.03.2014: all balance sheet items are inclusive of Corealcredit
The negative goodwill (gain from initial consolidation) reflected in Q1 P&L
Operating results of Corealcredit will be included in Q2 P&L and onwards

Capital ratios:

All cash transaction: RWA increase on group level compensated via negative goodwill and allocation of excess capital
Target range of Tier 1 (11.5-12%)2) before mgmt. buffer and total capital (19%-20%)2) unaffected
Bail in capital ratio expected above target (> 8%)

EpS:

Transaction is EpS accretive from day one
Present value of cumulative EPS for the next three years > € ³3)
Capital currently absorbed by acquired RWA to free up until 2016 for alternative utilisation (allocation or alignment)

RoE:

Transaction in line with mid-term RoE target: midterm pre-tax RoE target confirmed at ~12%

¹⁾ As published December 2013

²⁾ Fully phased incl. IFRS and CRD IV

³⁾ Negative goodwill and additional net income until 2016 including ppa amortisation

Corealcredit purchase price determinationClosing date 31.03.2014

Revaluation surplus

Change mainly driven by asset spreads

Note: All 2014 figures preliminary and unaudited

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

2) Exposure to Retail amounts to € 17 mn
3) Exposure to Sovereigns amounts to € 14 mn

934) Exposure to Financial Interests amounts to € 1 mn5) Exposure to investment shares amounts to € 4 mnNote: All 2014 figures preliminary and unaudited

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

Jürgen Junginger Managing Director Investor Relations Phone: +49 611 348 [email protected]

Carsten Schäfer

Director Investor RelationsPhone: +49 611 348 [email protected]

Sebastian Götzken

Senior Manager Investor RelationsPhone: +49 611 348 [email protected]

Karin Desczka

Investor RelationsPhone: +49 611 348 [email protected]

Disclaimer

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 notbe distributed in or into 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 anyinformation 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.

AI Terminal

Aareal Bank AG

11_ip_2015-02-25_923acdc2-b37e-461c-877f-a5d89b595fcb.pdf

Agenda

Acquisition of WestImmoStrategic rationale

Strategic rationale

Attractive opportunity to pursue inorganic growth

Strategic rationale

Value enhancing transaction in line with business strategy

Strategic rationale

Business ability even without new business origination

Acquisition of WestImmoTransaction structure

Transaction structure Attractive terms and conditions

Acquisition of WestImmoFinancials

Financials

Impact on capital ratios, EpS, and RoE1)

EpS

RoE

FinancialsPurchase price illustration1)

Acquisition of WestImmoNext steps

Next steps Closing envisaged for H1 2015

Aareal's new ownership structure

Successful placement underlines confidence in ARL

Highlights 2014

Aareal Bank with an all time high operating profit

Highlights

Preliminary 2014 resultsEnvironment 2014

Environment 2014

Our assumptions turned out to be valid

Preliminary 2014 resultsAt a glance

2014 at a glance

Strong performance – dividend proposal: 1.20€

Q4 2014 results at a glance

Operating profit pushed by strong NII development

Structured property financing

Structured property financing

Strong performance throughout the year

Consulting / Services

Solid in IT & volumes – weak in deposit taking business

Consulting / Services

Consulting / Services

Solid in IT & volumes – weak in deposit margins

B/S structure, capital & funding position

Strong capital ratiosIFRS & CRR as at 31.12.2014

Expected development of capital ratios1) IFRS & CRR as at 31.12.2014

Asset- / Liability structure according to IFRSAs at 31.12.2014: € 49.6 bn (30.09.2014: € 49.9 bn)

Asset- / Liability structure according to IFRSAs at 31.12.'14: € 49.6 bn (31.12.'13: € 43.0 bn - excl. Coreal)

Net stable funding- / Liquidity coverage ratio Fulfilling CRR requirements

Refinancing situation 2014Successful funding activities

Refinancing situation

Diversified funding sources and distribution channels

Net interest incomeStrong development

NII Consulting / Services

Loan loss provisionsIn line with guidance

2014-LLP within guided range

Net commission incomeFY slightly below expectations

Admin expensesWithin FY-guidance

Total property finance portfolio € 29.0 bn highly diversified and sound

Total property finance portfolio Continuing conservative approach

Total property finance portfolio

Total treasury portfolio

€ 11.3 bn of high quality and highly liquid assets

General environment 2015

General environment

Main takeaways

Regulatory challenges for banks

Aareal Bank's CRE market expectations

Outlook 2015

Strong operating performance & WestImmo take-over1)

Midterm outlook

Low interest environment potentially retains in Europe, therefore significant decrease in interest margins still possible

Midterm outlook

Management options

Midterm Outlook

Summary, prerequisites and challenges

Prerequisites

Challenges

Aareal Bank GroupKey figures 2014

Aareal Bank GroupKey figures 2014 by operating units

Aareal Bank GroupKey figures Q4 2014