Stop parsing PDFs. Get the API. Request Access

AI Terminal

MODULE: AI_ANALYST
Interactive Q&A, Risk Assessment, Summarization
MODULE: DATA_EXTRACT
Excel Export, XBRL Parsing, Table Digitization
MODULE: PEER_COMP
Sector Benchmarking, Sentiment Analysis
SYSTEM ACCESS LOCKED
Authenticate / Register Log In

Aareal Bank AG

Investor Presentation • Feb 21, 2012

11_ip_2012-02-21_1d2759df-2124-4de4-9b4c-83eb5a123593.pdf

Investor Presentation

Open in Viewer

Opens in native device viewer

February 21, 2012Dr. Wolf Schumacher, CEO – Hermann J. Merkens, CFO

Agenda

  • Economic environment
  • Preliminary 2011 results at a glance
  • Segment performance
  • B/S structure, capital & funding position
  • Preliminary group figures 2011
  • Asset quality
  • Outlook
  • Appendix
  • Definitions and Contacts

Economic environment Aareal Bank's point of view

A
l
f
t
n
a
s
c
o
n
e
r
e
n
c
e
y		 /
(
i
)
0
3
1
1
t
t
e
p
e
c
a
o
n
s
x		 H
2
2
0
1
1
V
l
i
l
i
/
i
i
f
h
t
t
t
t
t
o
a
y
u
n
c
e
r
a
n
e
s
o
e

f
i
i
l
k
t
n
a
n
c
a
m
a
r
e
s
R
i
i
t
a
n
g
a
g
e
n
c
e
s
D
l
t
e
v
e
o
p
m
e
n
l
r
e
a
e
c
o
n
o
m
y		 M
i
i
i
h
t
t
t
t
g
a
n
g
g
r
o
p
r
o
s
p
e
c
s

w
i
i
b
d
2
0
1
1
!
t
t
o
e
c
o
n
n
u
e
n
…		 R
l
i
t
e
g
u
a
o
n,
h
i
i
t
t
a
u
o
r
e
s,
l
i
t
e
e
s,
e
c.
v		 I
l
i
i
t
t
m
p
e
m
e
n
a
o
n
s
s
u
e
s

l
d
u
n
s
o
v
e
C
f
f
l
d
t
t
m
a
e
e
e
c
s

u
u
d
i
b
l
t
u
n
p
r
e
c
a
e
D
i
i
f
i
i
t
t
t
t
s
o
r
o
n
o
c
o
m
p
e
o
n

b
i
l
i
i
t
t
y
s
n
g
e
n
a
o
n
a
c
o
n

In 2011: high market volatility, risks in the financial systems and a slow down of global economies

Preliminary 2011 results at a glance

2011 at a glance Results reflecting operative strength

T
t
a
r
g
e
s		 G
i
d
u
a
n
c
e		 M
G
i
d
9
u
a
n
c
e
-		 P
l
i
i
r
e
m
n
a
r
y
N
i
i
t
t
t
e
n
e
r
e
s
n
c
o
m
e
 €
0
9
5
m
n
>		 €
0
9
5
m
n
>
€
4
5
7
m
n
f
A
l
l
d
i
t
o
w
a
n
c
e
o
r
c
r
e

l
o
s
s
e
s		 €
1
1
0
1
4
0
m
n
-		 €
1
1
0
1
4
0
m
n
-
(
l
d
)
o
w
e
r
e
n
€
1
1
2
m
n
A
d
i
i
i
t
t
m
n
s
r
a
v
e
e
x
p
e
n
s
e
s
 l
i
h
l
€
3
6
6
t
s
g
m
n
y
>		 l
i
h
l
€
3
6
6
t
s
g
m
n
y
>
€
3
8
2
m
n
O
i
f
i
t
t
p
e
r
a
n
g
p
r
o
 €
1
3
4
m
n
>		 €
1
3
4
m
n
>
€
1
8
5
m
n
P
R
E
t
r
e-
a
o

x		 6
1
%
>		 6
1
%
>
8
3
%
N
b
i
i
i
i
t

e
w
u
s
n
e
s
s
o
r
g
n
a
o
n		 €
8
b
7
n
-		 €
8
0
b
7
5
n
-
€
8
0
b
n
O
f
i
C
/
S
t
t
p.
p
r
o
s
e
g
m
e
n
 €
2
6
m
n
>		 l
i
h
l
€
2
6
t
s
g
y
m
n
<		 €
2
0
m
n
-
C
i
l
i
i
d
F
d
i
t
t
a
p
a
s
a
o
n
a
n
u
n
n		 g
S
l
i
d
i
l
i
i
t
t
o
c
a
p
a
p
o
s
o
n
 T
i
i
1
t
e
r
r
a
o

:
C
(
T
i
1
i
t
o
r
e
e
r
r
a
o
e

x		 S
/
)
l.
F
F
i
h
b
i
d
c
o
n
r
s
y
:		 )
1
(
A
I
R
B
A
)
1
6
3
%
(
)
1
1.
3
%
A
I
R
B
A
S
l
i
d
f
i
i
d
o
r
e
n
a
n
c
n
g
a
n

l
i
i
d
i
i
i
t
t
t
q
u
y
s
u
a
o
n		 f
f
f
€
4
3
b
i
d
l
i
b
l
d
d
d
d
i
n
r
a
s
e
e
e
s
e
o
s
e
c
r
e
a
n
n
s
e
c
r
e
n
n
g

;
x
u
u
u
u
u
f
L
i
i
d
i
i
i
l
l
d
1
%
l
b
l
h
t
t
5
t
t
t
q
u
y
p
o
s
o
n
c
e
a
r
y
e
x
c
e
e
s
o
o
a
a
a
n
c
e
s
e
e

1) Advanced internal ratings-based approach (advanced IRBA)

Note: All 2011 figures preliminary and unaudited

2011 results at a glance

Strong Q4-results despite environment and one-offs

Q
4
2
0
1
1		 Q
3
2
0
1
1		 Q
2
2
0
1
1		 Q
1
2
0
1
1		 Q
4
2
0
1
0		 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		 1
4
6		 1
3
3		 1
3
4		 1
3
4		 1
3
9		 C
H
i
h
R
E
i
l
g
e
r
m
a
r
g
n
s
s.
o
e
r

v
w
d
i
i
t
e
p
o
s
m
a
r
g
n
s
€
f
f
i
Q
9
4
2
0
1
1
m
n
o
n
e-
o
s
n
f
A
l
l
d
i
t
o
w
a
n
c
e
o
r
c
r
e
l
o
s
s
e
s		 3
4		 3
6		 2
4		 1
8		 8 f
F
Y
2
0
1
1-
L
L
P
i
h
i
l
d
t
n
o
e
r
e
n
o
w
w
i
d
d
h
i
l
g
u
e
r
a
n
g
e
s
o
w
n
g
n
o
r
m
a
;
l
i
i
t
t
q
u
a
r
e
r
y
v
a
r
a
o
n
N
i
i
t
e
c
o
m
m
s
s
o
n
i
n
c
o
m
e		 4
5		 3
8		 3
1		 3
0		 3
7		 C
f
S
i
b
d
F
F
i
e
a
s
n
g
u
r
e
n
s
r
o
m
o
n
f
i
l
i
i
t
t
g
u
a
r
a
n
e
e
e
e
s
a
r
e
m
a
e
r
a
s
n
g
f
N
l
t
t
e
r
e
s
u
r
o
m
d
i
/
d
i
/
t
t
r
a
n
g
n
o
n-
r
a
n
g
h
d
i
t
e
g
e
a
c
c
o
u
n
n
g		 7
-		 0 6 8
-		 1
4
-		 R
f
l
l
i
l
k
t
t
t
e
e
c
s
v
o
a
e
m
a
r
e
s
A
d
i
m
n
e
x
p
e
n
s
e
s		 1
0
2		 9
3		 9
6		 9
1		 9
5		 S
i
l
l
d
l
t
t
u
n
e
r
c
o
n
r
o

Q
i
l
d
f
f
f
4

n
c
u
e
s
o
n
e-
o
s
o
r
f
f
i
i
e
c
e
n
c
m
e
a
s
r
e
s
y
u
O
f
i
i
t
t
p
e
r
a
n
g
p
r
o		 4
7		 4
7		 4
4		 4
7		 4
0		 O
i
'
l
l
t
n
p
r
e
o
s
q
a
r
e
r
s
e
e
v
u
u
v
d
i
h
l
l
i
i
t
t
e
s
p
e
c
a
e
n
g
n
g
e
n
v
r
o
n
m
e
n

Segment performance

Structured property financing New business with attractive risk-return profile

Structured property financing New business with attractive risk-return profile

Consulting / ServicesSolid in IT & volumes – weak in deposit margins

C
/
S
S
P
&
L
t
e
g
m
e
n
(
i
d
f
)
t
t
n
u
s
r
y
o
r
m
a		 2
0
1
1		 2
0
1
0		 C
h
a
n
g
e
€
m
n
S
l
a
e
s
r
e
v
e
n
u
e		 2
0
3		 1
9
9		 2
%
O
k
i
l
i
d
t
w
n
w
o
r
c
a
p
a
s
e		 2 2 -
O
h
i
i
t
t
e
r
o
p
e
r
a
n
g
n
c
o
m
e		 8 8 -
C
f
i
l
h.
t
t
o
s
o
m
a
e
r
a
p
r
c
u		 2
0		 2
3		 -1
3
%
S
f
f
t
a
e
x
p
e
n
s
e
s		 1
1
2		 1
0
0		 1
2
%
D
A
i
i
l
t
m
p
a
r
m
e
n
o
s
s
e
s
,
,		 1
3		 1
3		 -
O
h
t
e
r
o
p.
e
x
p
e
n
s
e
s		 4
9		 4
7		 4
%
O
h
t
e
r
s		 1 0 1
0
0
%
O
i
f
i
t
t
p
e
r
a
n
g
p
r
o		 2
0		 2
6		 -2
3
%
  • Aareon has constantly improved over the last years
  • Housing industry deposits generate a stable funding base, crisis-proof
  • Low interest environment burdens profitability of the deposit taking business

Consulting / ServicesSolid in IT & volumes – weak in deposit margins

P
&
L
C
/
S
S
t
e
g
m
e
n
(
f
)
i
d
t
t
n
s
r
o
r
m
a
u
y		 Q
'1
4		 Q
'1
1
3		 Q
'1
1
2		 Q
'1
1
1		 Q
'1
1
4
0
€
m
n
S
l
a
e
s
r
e
v
e
n
u
e		 5
6		 5
0		 4
8		 4
9		 5
6
O
k
i
l
i
d
t
w
n
w
o
r
c
a
p
a
s
e		 1 0 1 0 1
C
h
i
i
t
a
n
g
e
s
n
n
e
n
o
r
v
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 2
C
f
i
l
h
d
t
t
o
s
o
m
a
e
r
a
p
u
r
c
a
s
e		 5 5 5 5 7
S
f
f
t
a
e
x
p
e
n
s
e
s		 2
9		 2
7		 2
8		 2
8		 2
7
D
A
i
i
l
t
m
p
a
r
m
e
n
o
s
s
e
s
,
,		 4 3 3 3 3
R
l
i
i
t
t
t
t
e
s
s
a
e
q
a
c
c.
n
e
s
m
u
u
y
v		 - - 1 0 -
O
h
i
t
t
e
r
o
p
e
r
a
n
g
e
p
e
n
s
e
s
x		 1
4		 1
2		 1
3		 1
0		 1
3
R
l
f
i
d
i
i
l
t
t
t
e
s
u
s
r
o
m
n
e
r
e
s
a
n
s
m
a
r		 0 0 0 0 0
O
i
f
i
t
t
p
e
r
a
n
g
p
r
o		 8 5 3 4 9
  • Solid development of Aareon within guidance
  • Deposit volume of the housing industry with € 4.9 bn (Ø Q4) on a high level
  • Lower than originally assumed interest environment burdens segment results vs. plan

B/S structure, capital & funding position

Strong capital ratios & stable capital structure

  • Strong capital ratios in line with business model, company size and capital market expectations
  • Full repayment of remaining SoFFinsilent participation possible without further capital increase

Core Tier 1 Basel III fully loaded1) Temporarily raised to 9% - 10%

Simulation: estimated Basel III effects per 31.12.20112)

1) ex SoFFin and ex hybrids

2) Actual figures may vary significantly from estimates

3) Estimated impact of Basel III implementation due to capital deductions and counterparty credit risk

Note: All 2011 figures preliminary and unaudited

Asset- / Liability structure according to IFRSAs at 31.12.2011: € 41.8 bn (31.12.2010: € 41.2 bn)

Note: All 2011 figures preliminary and unaudited

Asset- / Liability structure according to IFRSAs at 31.12.2011: € 41.8 bn (30.09.2011: € 41.6 bn)

Net stable funding- / Liquidity coverage ratio Within target range

  • Basel III and CRD IV require specific liquidity ratios starting 2018
  • NSFR (net stable funding ratio) reflects long term funding situation
  • LCR (liquidity cover ratio) reflects short term liquidity
  • Aareal Bank almost fulfils future requirements already today
  • NSFR > 0.9
  • LCR >> 1.0

1) ASF: available stable funding2) RSF: required stable funding3) QIS: quantitative impact study

16

Refinancing situation 2011Flexible use of unsecured and secured funding

Refinancing situationDiversified funding sources and distribution channels

  • Aareal Bank has clearly reduced its dependency upon wholesale funding
  • 2002 long term wholesale funding accounted for 47% of overall funding volumes –by 31.12.2011, this share has fallen to 25% (or even below 10% without Pfandbriefe)

As at 31.12.2011

Preliminary group figures 2011

Net interest income

Higher CRE- vs. lower deposit margins, one-offs in Q4

portfolio

business

one-offs

one-offs

NII Consulting / ServicesNII Structured Property Financing

Pushing NII: higher margins from

Weakening NII: low interest rate level continues to burden interest

income from the deposit taking

Structured Property Financing loan

Note: All 2011 figures preliminary and unaudited

Loan loss provisionsFY 2011-LLP at lower end of guided range

  • Close monitoring of our loan portfolio and successful restructuring efforts results in only 48 bp risk costs on average loan book in 2011
  • Full year absolute value of € 112 mn stays at the lower end of the guided range of € 110 mn to € 140 mn, with normal quarterly variation during the year

Note: All 2011 figures preliminary and unaudited

Loan loss provisionsManageable loan loss provisions during the crisis

Despite on-going challenging environment LLP is down to 48 bps in 2011

Note: All 2011 figures preliminary and unaudited

Net commission incomeRelief of costs for SoFFin guarantees materialises

  • Early redemption of the second € 2 bn SoFFin guaranteed bond (held in own books) disburdens NCI starting in Q2 2011, full effect showing in Q3 2011
  • € 800 mn part repurchase of the first € 2 bn SoFFin guaranteed bond disburdens NCI starting in Q3 2011, full effect showing in Q4 2011
  • Last guarantee fee payments of € 3 mn will be made in Q1 2012

Total net commission incomeBurden from fees paid for Soffin guarantees

Trading, non trading and hedge accountingResult reflects volatile markets

  • Trading result reflects
  • Valuation of cross-currency basis swaps and credit derivatives
  • Non-trading result reflects
  • Realised losses due to active management of Treasury portfolio

Trading, non trading and hedge accountingResult reflects volatile markets

Hedge accounting

Non-trading assets

  • Respective high volatility in trading and non-trading assets throughout the year
  • Volatility 2011 on a manageable level

Note: All 2011 figures preliminary and unaudited

Trading result

Admin expensesAdmin expenses still under control

  • Starting in 2011 admin expenses include burden from the German bank levy (~€ 5 mn in 2011)
  • Q4 includes one-offs for efficiency measures

Asset quality

Total property finance portfolio High diversification and sound asset quality

Total property finance portfolio Continuing conservative approach

L
L
P
d
N
P
L
d
l
t
a
n
e
v
e
o
p
m
e
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
€
m
n
A
3
1.
1
2.
2
0
1
0
t
s
a		 9
1
7		 2
6
1		 9
4
U
i
l
i
i
2
0
1
1
t
t
s
a
o
n		 -2
2
1		 -1
3
5		 -
A
d
d
i
i
2
0
1
1
t
o
n		 3
2
8		 1
2
6		 -1
4
A
3
1.
1
2.
2
0
1
1
t
s
a		 8
9
8		 2
2
5		 8
0
C
i
t
o
v
e
r
a
g
e
r
a
o
i
f
i
l
l
s
p
e
c
c
a
o
a
n
c
e
s
w		 2
8.
2
5
2		 8
0
A
t
3
1.
1
2.
2
0
1
1
s
a		 8
9
8		 3
3
2
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		 3
0
%
7.

LLP- and NPL development

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

2) General LLP consists to a high degree of Basel II expected loss which

are allocated specific loans in most cases

Note: All 2011 figures preliminary and unaudited

Western Europe (ex Ger) credit portfolioTotal volume outstanding as at 31.12.2011: € 6.4 bn

Southern Europe credit portfolioTotal volume outstanding as at 31.12.2011: € 4.2 bn

German credit portfolio

Total volume outstanding as at 31.12.2011: € 3.8 bn1)

Eastern Europe credit portfolio Total volume outstanding as at 31.12.2011: € 2.9 bn

Northern Europe credit portfolio Total volume outstanding as at 31.12.2011: € 2.6 bn

North America credit portfolio Total volume outstanding as at 31.12.2011: € 3.5 bn

Asia credit portfolioTotal volume outstanding as at 31.12.2011: € 0.8 bn

Treasury portfolio€ 10.5 bn of high quality and highly liquid assets

Treasury portfolio€ 7.7 bn Public Sector Debtors

S
i
o
v
e
r
e
g
n
€
m
n		 No
in
l
m
a		 Re
lu
io
t
va
a
n
2)
re
s
e
rv
e
G
re
e
c
e		 - - -
Ire
la
d
n		 - - -
I
ly
ta		 1,
1
9
9		 -1
1
9		 -2
7
5
Po
l
tu
r
g
a		 1
0
0		 -4
5		 0
S
in
p
a		 - - -
1
)
S
b-
S
i
o
e
r
e
g
n
u
v
2)
re
s
e
rv
e		 H
i
d
d
e
n
/
re
s
e
rv
e
s
3)
bu
d
r
e
ns		 €
m
n		 No
in
l
m
a		 Re
lu
io
t
va
a
n
2)
re
s
e
rv
e		 H
i
d
d
e
n
/
re
s
e
rv
e
s
3)
bu
d
r
e
ns
G
re
e
c
e		 - - -
Ire
la
d
n		 - - -
I
ly
ta		 - - -
Po
l
tu
r
g
a		 5
5		 -1 -1
7
S
in
p
a		 3
3
7		 -1 -5
2

1) Incl. exposure of € 50 mn which is additionally guaranteed by the Sovereign

2) Incl. securities of the AfS- and the LaR-category after tax

383) Incl. securities of the LaR-category after tax

Treasury portfolio€ 2.4 bn Financials

C
d
B
d
o
v
e
r
e
o
n
s
€
m
n		 No
in
l
m
a		 Re
lu
io
t
va
a
n
1)
re
s
e
rv
e
G
re
e
c
e		 - - -
Ire
la
d
n		 - - -
I
ly
ta		 7
0		 -6 0
Po
l
tu
r
g
a		 6
0		 -2
0		 0
S
in
p
a		 6
1
6		 -1
1		 -3
6
S
i
U
d
e
n
o
r
n
s
e
c
r
e
u
i
H
d
d
e
n
/
re
s
e
rv
e
s
2)
bu
d
r
e
ns		 €
m
n		 No
in
l
m
a		 Re
lu
io
t
va
a
n
1)
re
s
e
rv
e		 i
H
d
d
e
n
/
re
s
e
rv
e
s
2)
bu
d
r
e
ns
G
re
e
c
e		 - - -
Ire
la
d
n		 - - -
I
ly
ta		 3
6		 0 0
Po
l
tu
r
g
a		 - - -
S
in
p
a		 - - -

1) Incl. securities of the AfS- and the LaR-category after tax

2) Incl. securities of the HtM- and the LaR-category after tax

Total Structured Property Financing Portfolio€ 24.2 bn of high quality real estate assets

Spain 1,035 82,1% 65

Outlook

Economic environment Aareal Bank's point of view

Analyst conference 03/11 (expectations)Environment 2012Macroeconomic Deteriorating economic outlook Regulatory Uncertain cumulative effects of the different reform proposals on banks and real economy Political Uncertain political and regulatory framework

Outlook assumptions Influenced by considerable uncertainties (1/2)

M
a
c
r
o

i
e
c
o
n
o
m
c
i
t
e
n
r
o
n
m
e
n
v		 D
i
i
i
l
k
t
t
t
e
e
r
o
r
a
n
g
e
c
o
n
o
m
c
o
u
o
o
S
i
i
f
i
l
d
i
i
i
i
2
0
1
2
t
t
g
n
c
a
n
s
o
w
o
w
n
n
r
e
c
e
s
s
o
n
n
s
o
m
e
c
o
u
n
r
e
s,

,
1
)
i
i
d
i
2
0
1
3
t
t
t
t
s
o
m
e
p
o
s
v
e
r
e
n
s
s
a
r
n
g
F
h
i
f
l
i
l
l
i
E
t
t,
t
u
r
e
r
n
c
r
e
a
s
e
o
u
n
e
m
p
o
y
m
e
n
p
a
r
c
u
a
r
y
n
u
r
o
p
e

T
i
l
l
i
i
i
i
h
i
d
t
t
t,
t
t
e
m
p
o
r
a
r
o
n
e
r
e
s
e
n
r
o
n
m
e
n
n
c
r
e
a
s
e
n
e
m
e
r
m

y
w
v
(
i
d
b
i
i
)
t
s
o
v
e
r
e
g
n
e
c
r
s
s
A
N
D		 A
N
D
R
l
t
e
g
a
o
r
u
y
i
t
e
n
v
r
o
n
m
e
n		 U
i
l
i
f
f
f
h
d
i
f
f
f
l
t
t
t
t
t
n
c
e
r
a
n
c
u
m
u
a
v
e
e
e
c
s
o
e
e
r
e
n
r
e
o
r
m
p
r
o
p
o
s
a
s
b
k
d
l
o
n
a
n
s
a
n
r
e
a
e
c
o
n
o
m
y
R
l
h
k
t
t
e
g
a
o
r
p
a
c
o
r

u
y
w
D
i
i
f
i
i
t
t
t
t
s
o
r
o
n
o
c
o
m
p
e
o
n

I
i
d
i
f
b
k
n
c
r
e
a
s
n
g
a
m
n
e
x
p
e
n
s
e
s
o
r
a
n
s
A
N
D		 A
N
D
P
l
i
i
l
t
o
c
a
i
t
e
n
v
r
o
n
m
e
n		 U
i
l
i
i
l
d
l
f
k
t
t
t
n
c
e
r
a
n
p
o
c
a
a
n
r
e
g
u
a
o
r
y
r
a
m
e
w
o
r
S
S
i
d
b
i
i
F
F
i
I
I
t
o
e
r
e
g
n
e
c
r
s
s
o
n

v

C
i
B
k
l
i
t
t
t
t
a
n
r
e
s
o
o
n
o
s
c
u
n
g
p
r
o
g
r
a
m
s

u

T
i
E
B
A
i
t
t
t
t
t
r
a
n
s
a
c
o
n
a
s
r
e
s
s
e
s
n
g

x

1) IMF, OECD, Oxford Economics

Outlook assumptions Influenced by considerable uncertainties (2/2)

Increasing risks…

  • Increased risks regarding the economic development
  • Lack of economic stimulation in Europe
  • Pressure on real estate prices
  • Market volatilities and risks in the financial system continue to determine the economic environment
  • Further market distortions cannot be ruled out (e.g. caused by the sovereign debt crisis)

Our midsized corporate structure combined with our high flexibility puts us into position to anticipate and quickly implement upcoming market and regulatory requirements

  • Maintaining our very conservative capital base
  • Conservative funding assumptions
  • Continuing shift of liquidity from securities to ECB deposits
  • Lower average entry LTV

Aareal Bank's CRE market expectations

Expected average of market value changes across allproperty types and regions in 20121)

1) The individual market value of a single property may vary, change end 2011 to end 2012

Aareal Bank's CRE market expectations

Expected average of market value changes across allproperty types and regions until 20161)

1) The individual market value of a single property may vary, change end 2011 to end 2016

Outlook

In a very challenging environment a solid performance

2
0
1
2		 2
0
1
3
i
i
N
t
t
t
e
n
e
r
e
s
n
c
o
m
e		 C
i
d
b
l
b
l
2
0
1
1
l
l
d
i
t
t
o
n
s
e
r
a
e
o
e
e
e
o
c
a
o
s

y
w
v
u
u
u
l
i
i
d
i
t
t
q
m
a
n
a
g
e
m
e
n
u
y
N
l
l
i
i
t
e
o
a
n
o
s
s
p
r
o
v
s
o
n
s		 S
i
i
h
h
i
i
i
d
t
t
t
t
a
y
n
g
w
e
p
r
e
v
o
u
s
c
a
u
o
u
s
g
u
a
n
c
e
:

)
1
€
1
1
0
€
1
4
0
m
n
m
n
-
N
i
i
i
t
e
c
o
m
m
s
s
o
n
n
c
o
m
e		 €
1
0
€
1
6
0
d
i
l
d
5
t
t
m
n
m
n
e
p
e
c
e
m
a
n
e
o

x
y
u
-
,
i
b
d
f
S
F
F
i
d
b
d
t
c
e
a
s
n
g
u
r
e
n
r
o
m
o
n
g
u
a
r
a
n
e
e
o
n
s
N
d
i
l
/
l
t
t
t
t
e
r
a
n
g
r
e
s
u
r
e
s
u
s
f
d
i
t
t
r
o
m
n
o
n-
r
a
n
g
a
s
s
e
s		 U
d
i
b
l
/
i
i
f
d
i
t
t
t
n
p
r
e
c
a
e
n
o
m
p
a
r
m
e
n
s
r
o
m
n
o
n-
r
a
n
g

/
d
i
b
l
d
l
l
i
i
t
t
t
t
a
s
s
e
s
e
p
e
c
e
p
o
s
s
m
o
e
r
a
e
o
s
s
r
e
a
s
a
o
n
x
y
A
d
i
m
n
e
x
p
e
n
s
e
s		 R
d
i
d
f
f
i
i
t
t
e
c
o
n
e
o
e
c
e
n
c
m
e
a
s
r
e
s

u
u
y
u
:
€
€
i
l.
G
b
k
i
l
3
5
0
3
6
0
m
n
m
n
n
c
e
r
m
a
n
a
n
n
g
e
v
y
-
f
O
i
i
t
t
p
e
r
a
n
g
p
r
o		 D
i
i
f
h
i
h
l
h
l
l
i
t
t
e
s
p
e
a
s
s
u
m
p
o
n
o
g
y
c
a
e
n
g
n
g

i
l
i
h
l
b
l
2
0
1
1
l
l
t
t
e
n
r
o
n
m
e
n
s
g
e
o
e
e
v
:
y
w
v
N
b
i
i
i
i
t
e
s
n
e
s
s
o
r
g
n
a
o
n
w
u		 R
f
l
i
h
l
i
l
d
i
i
t
t
t
t
t
e
e
c
n
g
e
v
o
a
e
a
n
u
n
c
e
r
a
n
e
n
v
r
o
n
m
e
n
:

€
4
b
€
b
5
5
5
n
n
–
C
/
S
l
i
i
t
o
n
s
n
g
e
r
c
e
s
u
v		 O
2
0
1
1
l
i
l
l
t
n
c
e
a
n
o
p
e
r
a
n
g
e
e

v

In this outlook we have incorporated deteriorated external conditions regarding 2012. But we are at any time able to adapt to changing conditions due to our high flexibility.

1) As in 2011, the bank cannot rule out additional allowances for credit losses

Appendix

Aareal Bank GroupKey figures 2011

0
1.
0
1.-
3
1.
1
2.
2
0
1
1
Eu
ro
mn		 0
1.
0
1.-
3
1.
1
2.
2
0
1
0
Eu
ro
mn		 C
ha
ng
e
Pr
f
i
d
lo
t a
t
o
n
ss
a
cc
ou
n
Ne
in
inc
t
te
t
res
om
e		 5
4
7		 5
0
9		 7
%
A
l
low
for
d
i
los
t
an
ce
c
re
se
s		 1
1
2		 1
0
5		 7
%
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
3		 4
0
4		 8
%
Ne
iss
ion
inc
t c
om
m
om
e		 1
4
4		 1
2
3		 1
7
%
Ne
l
he
dg
ing
t r
t o
t
es
n
e a
cc
ou
n
u		 6 2
-		 -
Ne
d
ing
inc
/ e
t
tra
om
e
xp
en
se
s		 1
4		 8 7
5
%
Re
l
fro
d
ing
ts
tra
ts
su
m
no
n-
a
ss
e		 -2
9		 1
2
-		 -
Re
l
fro
ies
d
for
i
ts
te
t e
ty
su
m
co
mp
an
a
cc
ou
n
a
q
u		 1 5 8
0
%
-
fro
Re
l
inv
ies
ts
tm
t p
t
su
m
es
en
rop
er		 1
0		 1
7
-		 -
A
dm
in
is
ive
tra
t
ex
p
en
se
s		 3
8
2		 3
6
6		 4
%
Ne
he
ing
inc
/ e
t o
t
t
r o
p
era
om
e
xp
en
se
s		 -1
4		 9
-		 -
Im
irm
f g
dw
i
l
l
t o
p
a
en
oo		 0 0 -
Op
in
Pr
f
i
t
t
er
a
g
o		 5
1
8		 1
3
4		 3
8
%
Inc
tax
om
e
es		 5
2		 4
0		 3
0
%
Ne
in
/
lo
t
co
m
e
ss		 1
3
3		 9
4		 4
1
%
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
no
n-c
on
res		 1
9		 1
8		 6
%
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
rea
n		 1
1
4		 6
7		 0
%
5
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
ers
co
n		 2
1		 3
0		 3
0
%
-
Co
l
i
da
d
in
d
f
i
/ a
la
d
lo
te
ta
t
te
ns
o
re
e
p
ro
cc
um
u
ss		 9
3		 4
6		 1
0
2
%

Aareal Bank Group: Segment Reporting Key figures 2011 by operating units

S
tru
c
Pr
op
F
in
an		 d
tu
re
ty
er
in
c
g		 Co
ns
u
Se
rv		 in
/
l
t
g
ice
s		 Co
i
io
/
l
da
t
ns
o
n
Re
i
l
ia
io
t
co
nc
n		 Aa
l
Ba
k
re
a
n
Gr
ou
p
0
1.
0
1.-
3
1.
1
2.		 0
1.
0
1.-
3
1.
1
2.		 0
1.
0
1.-
3
1.
1
2.		 0
1.
0
1.-
3
1.
1
2.		 0
1.
0
1.-
3
1.
1
2.		 0
1.
0
1.-
3
1.
1
2.		 0
1.
0
1.-
3
1.
1
2.		 0
1.
0
1.-
3
1.
1
2.
2
0
1
1		 2
0
1
0		 2
0
1
1		 2
0
1
0		 2
0
1
1		 2
0
1
0		 2
0
1
1		 2
0
1
0
Eu
ro
mn
Ne
in
inc
t
te
t
res
om
e		 5
0
8		 4
6
7		 0 0 3
9		 4
2		 5
4
7		 5
0
9
A
l
low
for
d
i
los
t
an
ce
c
re
se
s		 1
1
2		 1
0
5		 1
1
2		 1
0
5
Ne
in
in
f
l
low
fo
d
i
lo
t
te
t
te
t
re
s
co
me
a
r a
an
ce
r c
re
ss
es		 3
9
6		 3
6
2		 0 0 3
9		 4
2		 4
3
5		 4
0
4
Ne
iss
ion
inc
t c
om
m
om
e		 2 9
-		 1
8
3		 1
7
6		 4
1
-		 4
4
-		 1
4
4		 1
2
3
Ne
l
he
dg
ing
t r
t o
t
es
u
n
e a
cc
ou
n		 6 2
-		 6 2
-
Ne
d
ing
inc
/ e
t
tra
om
e
xp
en
se
s		 1
4		 8 1
4		 8
fro
Re
l
d
ing
ts
tra
ts
su
m
no
n-
a
ss
e		 -2
9		 1
3
-		 1 2
9
-		 1
2
-
Re
l
fro
ies
d
for
i
ts
te
t e
ty
su
m
co
mp
an
a
cc
ou
n
a
q
u		 0 5 1 1 5
Re
l
fro
inv
ies
ts
tm
t p
t
su
m
es
en
rop
er		 1
0		 1
7
-		 1
0		 1
7
-
A
dm
in
is
ive
tra
t
ex
p
en
se
s		 2
1
7		 2
1
7		 1
6
7		 1
5
2		 2
-		 3
-		 3
8
2		 3
6
6
Ne
he
ing
inc
/ e
t o
t
t
r o
p
era
om
e
xp
en
se
s		 1
7
-		 9
-		 3 1 0 1
-		 1
4
-		 9
-
Im
irm
f g
dw
i
l
l
t o
p
a
en
oo		 0 0 0
Op
in
f
i
t
t
er
a
g
p
ro		 1
6
5		 1
0
8		 2
0		 2
6		 0 0 1
8
5		 1
3
4
Inc
tax
om
e
es		 4
6		 3
2		 6 8 5
2		 4
0
in
/
Ne
t
lo
co
me
ss		 1
1
9		 7
6		 1
4		 1
8		 0 0 1
3
3		 9
4
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
no
n-c
on
res		 1
7		 1
6		 2 2 1
9		 1
8
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
rea
n		 1
0
2		 6
0		 1
2		 1
6		 0 0 1
1
4		 7
6

Aareal Bank GroupKey figures Q4 2011

Qu
4
te
ar
r		 Qu
4
te
ar
r		 C
ha
ng
e
2
0
1
1		 2
0
1
0
Eu
ro
mn		 Eu
ro
mn
Pr
f
i
d
lo
t a
t
o
n
ss
a
cc
ou
n
Ne
in
inc
t
te
t
res
om
e		 1
4
6		 1
3
9		 5
%
A
l
low
for
d
i
los
t
an
ce
c
re
se
s		 3
4		 8 3
2
%
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
1
2		 1
3
1		 -1
5
%
Ne
iss
ion
inc
t c
om
m
om
e		 4
5		 3
7		 2
2
%
Ne
l
he
dg
ing
t r
t o
t
es
u
n
e a
cc
ou
n		 4 4
-		 -
/ e
Ne
d
ing
inc
t
tra
om
e
xp
en
se
s		 - 1
3		 -
fro
Re
l
d
ing
ts
tra
ts
su
m
no
n-
a
ss
e		 -1
1		 2
3
-		 2
%
5
-
Re
l
fro
ies
d
for
i
ts
te
t e
ty
su
m
co
mp
an
a
cc
ou
n
a
q
u		 0 - -
Re
l
fro
inv
ies
ts
tm
t p
t
su
m
es
en
rop
er		 3 1
7
-		 -
A
dm
in
is
ive
tra
t
ex
p
en
se
s		 1
0
2		 9
5		 7
%
/ e
Ne
he
ing
inc
t o
t
t
r o
p
era
om
e
xp
en
se
s		 -4 2
-		 1
0
0
%
f g
Im
irm
dw
i
l
l
t o
p
a
en
oo		 0 - -
Op
in
Pr
f
i
t
t
er
a
g
o		 4
7		 4
0		 1
8
%
Inc
tax
om
e
es		 1
3		 1
1		 1
8
%
Ne
in
/
lo
t
co
m
e
ss		 3
4		 2
9		 1
7
%
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
no
n-c
on
res		 5 4 2
5
%
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
rea
n		 2
9		 2
5		 1
6
%
ia
io
f p
f
i
Ap
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
ers
co
n		 5 6 1
7
%
-
Co
l
i
da
d
in
d
f
i
/ a
la
d
lo
te
ta
t
te
ns
o
re
e
p
ro
cc
um
u
ss		 2
4		 1
9		 2
6
%

Aareal Bank Group: Segment Reporting Key figures Q4 2011 by operating units

S
d
tru
tu
c
re
Co
ns
u
Pr
ty
op
er
Se
rv
in
in
F
an
c
g		 l
in
/
t
g
ice
s		 Co
l
i
ns
o
Re
co
nc		 da
io
/
t
n
i
ia
io
l
t
n		 Aa
l
Ba
k
re
a
n
Gr
ou
p
0
1.
1
0.-
3
1.
1
2.
2
0
1
1		 0
1.
1
0.-
3
1.
1
2.
2
0
1
0		 0
1.
1
0.-
3
1.
1
2.
2
0
1
1		 0
1.
1
0.-
3
1.
1
2.
2
0
1
0		 0
1.
1
0.-
3
1.
1
2.
2
0
1
1		 0
1.
1
0.-
3
1.
1
2.
2
0
1
0		 0
1.
1
0.-
3
1.
1
2.
2
0
1
1		 0
1.
1
0.-
3
1.
1
2.
2
0
1
0
Eu
ro
mn
Ne
in
inc
t
te
t
res
om
e		 1
3
6		 1
2
9		 0 0 1
0		 1
0		 1
4
6		 1
3
9
A
l
low
for
d
i
los
t
an
ce
c
re
se
s		 3
4		 8 3
4		 8
Ne
in
in
f
l
low
fo
d
i
lo
t
te
t
te
t
re
s
co
me
a
r a
an
ce
r c
re
ss
es		 1
0
2		 1
2
1		 0 0 1
0		 1
0		 1
1
2		 1
3
1
Ne
iss
ion
inc
t c
om
m
om
e		 5 1
-		 1
5		 4
9		 1
1
-		 1
1
-		 4
5		 3
7
Ne
l
he
dg
ing
t r
t o
t
es
n
e a
cc
ou
n
u		 4 4
-		 4 4
-
Ne
d
ing
inc
/ e
t
tra
om
e
xp
en
se
s		 0 1
3		 0 1
3
Re
l
fro
d
ing
ts
tra
ts
su
m
no
n-
a
ss
e		 -1
1		 2
3
-		 0 0 1
1
-		 2
3
-
fro
for
Re
l
ies
d
i
ts
te
t e
ty
su
m
co
mp
an
a
cc
ou
n
a
q
u		 0 0 0 0
Re
l
fro
inv
ies
ts
tm
t p
t
su
m
es
en
rop
er		 3 1
7
-		 3 1
7
-
A
dm
in
is
ive
tra
t
ex
p
en
se
s		 5
8		 5
6		 4
5		 4
0		 1
-		 1
-		 1
0
2		 9
5
/ e
Ne
he
ing
inc
t o
t
t
r o
p
era
om
e
xp
en
se
s		 6
-		 2
-		 2 0 0 0 4
-		 2
-
Im
irm
f g
dw
i
l
l
t o
p
a
en
oo		 0 0 0 0
Op
in
f
i
t
t
er
a
g
p
ro		 3
9		 3
1		 8 9 0 0 4
7		 4
0
Inc
tax
om
e
es		 1
0		 8 3 3 1
3		 1
1
/
Ne
in
lo
t
co
me
ss		 2
9		 2
3		 5 6 0 0 3
4		 2
9
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
no
n-c
on
res		 5 4 0 0 5 4
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
rea
n		 2
4		 1
9		 5 6 0 0 2
9		 2
5

Aareal Bank Group: Segment Reporting Key figures - quarter by quarter

Str
ed
Pr
tur
ert
uc
op
y
Fin
cin
an
g		 Co
/ S
ltin
ice
nsu
g
erv
s		 Co
lid
ati
/
nso
on
Re
ilia
tio
co
nc
n		 Aa
l B
k G
rea
an
rou
p
Q4 Q3 Q2 Q1 Q4 Q4 Q3 Q2 Q1 Q4 Q4 Q3 Q2 Q1 Q4 Q4 Q3 Q2 Q1 Q4
20
11		 20
11		 20
11		 20
11		 20
10		 20
11		 20
11		 20
11		 20
11		 20
10		 20
11		 20
11		 20
11		 20
11		 20
10		 20
11		 20
11		 20
11		 20
11		 20
10
Eu
ro
mn
Ne
t in
in
ter
est
com
e		 136 123 124 125 129 0 0 0 0 0 10 10 10 9 10 146 133 134 134 139
All
e fo
red
it lo
ow
anc
r c
sse
s		 34 36 24 18 8 34 36 24 18 8
Ne
t in
ter
est
in
af
ter
co
me		 102 87 100 107 121 0 0 0 0 0 10 10 10 9 10 112 97 110 116
all
fo
red
it l
ow
an
ce
r c
oss
es		 131
Ne
mis
sio
n in
t c
om
com
e		 5 4 2
-		 5
-		 1
-		 51 45 43 44 49 11
-		 11
-		 10
-		 9
-		 11
-		 45 38 31 30 37
Ne
lt o
n h
edg
ing
t re
unt
su
e a
cco		 4 2 2 2
-		 4
-		 4 2 2 2
-		 4
-
e /
Ne
t tr
adi
inc
ng
om
ex
pen
ses		 0 20 2 8
-		 13 0 20 2 8
-		 13
Re
lts
fro
din
-tra
ts
su
m
non
g a
sse		 11
-		 22
-		 2 2 23
-		 0 0 0 -11 22
-		 2 2 23
-
Re
lts
fro
ani
su
m
co
mp
es		 0 0 1 0 1 0
ted
fo
uity
r at
acc
oun
eq		 0 0
fro
Re
lts
inv
est
nt
su
m
me		 3 3 2 2 17 3 3 2 2 17
rtie
pro
pe
s		 - -
Ad
min
istr
ativ
e e
xpe
nse
s		 58 54 54 51 56 45 40 42 40 40 1
-		 1
-		 0 0 1
-		 102 93 96 91 95
Ne
the
atin
inc
e /
t o
r o
per
g
om		 -6 2 11
-		 2
-		 2
-		 2 0 1 0 0 0 0 0 0 0 4
-		 2 10
-		 2
-		 2
-
exp
ens
es
of
Imp
airm
ent
dw
ill
goo		 0 0 0 0 0 0 0
Op
tin
rof
it
era
g p		 39 42 41 43 31 8 5 3 4 9 0 0 0 0 0 47 47 44 47 40
Inc
e t
om
axe
s		 10 12 13 11 8 3 1 1 1 3 13 13 14 12 11
Ne
t in
/ l
co
me
oss		 29 30 28 32 23 5 4 2 3 6 0 0 0 0 0 34 34 30 35 29
All
ati
of
lts
oc
on
re
su
Ne
t in
e /
los
ttri
but
abl
e t
com
s a
o
olli
inte
ntr
ts
non
-co
ng
res		 5 4 4 4 4 0 1 0 1 0 5 5 4 5 4
e /
Ne
t in
los
ttri
but
abl
e t
com
s a
o
sha
reh
old
of
Aa
l B
ank
AG
ers
rea		 24 26 24 28 19 5 3 2 2 6 0 0 0 0 0 29 29 26 30 25

Revaluation reserveChange mainly driven by asset spreads

Note: All 2011 figures preliminary and unaudited

Development property finance portfolioDiversification continuously strengthened (in € mn)

Property finance under management

Note: All 2011 figures preliminary and unaudited

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

1) Excl. of market risk

56

2) Exposure to Retail amounts to € 38 mn

3) Exposure to Sovereigns amounts to € 17 mn

4) Exposure to investment shares amounts to € 5 mnNote: All 2011 figures preliminary and unaudited

Definitions and contacts

Definitions

Structured Property Financing Portfolio

  • Paid-out financings on balance sheet
  • Incl. remaining property loans on DEPFA books

New Business

  • Newly acquired business incl. renewals
  • Contract is signed by customer
  • Fixed loan value and margin
  • Core Tier I Ratio = Tier 1 capital ./. hybrids ./. SoFFin silent participation
  • Risk weighted assets
  • Pre tax RoE = Operating profit ./. Net income/loss attributable to non-controlling interests

Allocated (average) equity

Allocated Equity

Average of:

  • Equity (excluding minorities and revaluation surplus but including silent participation by SoFFin) start of period less dividends and
  • Equity (excluding minorities and revaluation surplus but including silent participation by SoFFin) end of period less expected 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

Contacts

Sebastian Götzken

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

Disclaimer

© 2012 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.
  • 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. 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.
  • 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.

More from Aareal Bank AG

Regulatory Filings 2025
Dec 11
Report Publication Announcement 2025
Dec 2
Report Publication Announcement 2025
Dec 2
Report Publication Announcement 2025
Dec 2
Report Publication Announcement 2025
Dec 2
Report Publication Announcement 2025
Dec 2
Report Publication Announcement 2025
Dec 2
Capital/Financing Update 2025
Nov 18
Earnings Release 2025
Nov 13
Regulatory Filings 2025
Nov 13
View all filings →

Talk to a Data Expert

Have a question? We'll get back to you promptly.