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Aareal Bank AG

Earnings Release • Feb 22, 2011

11_ip_2011-02-22_8da71701-dd1c-47da-8b7d-3d05a8df8f7f.pdf

Earnings Release

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February 22, 2011Dr. Wolf Schumacher, CEO – Hermann J. Merkens, CFO

Agenda preliminary 2010 results

  • Preliminary 2010 results at a glance
  • Segment performance
  • Group capital and funding position
  • Preliminary group figures Q4 2010
  • Asset quality
  • Outlook
  • Appendix
  • Definitions and Contacts

Preliminary 2010 results at a glance

2010 at a glance Aareal Bank's point of view

Positives

  • Stabilisation of major economies
  • Some booming Emerging Market Countries
  • Bottoming out of several CRE-markets
  • Less competition due to withdrawal of competitors
  • -Higher margins
  • More equity in deals

Negatives

  • Euro crises burdens funding markets
  • Inflation fear arises
  • Regulatory environment
  • Macro-economic imbalances

… to be continued in 2011!

Note: All 2010 figures preliminary and unaudited

2010 at a glance Outperforming targets due to operative strength

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Aareal Bank is well positioned to increasingly exploitpresent market opportunities for its credit business

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

Note: All 2010 figures preliminary and unaudited

2010 results at a glance Outperforming 2010-guidance

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Segment performance

Structured property financing New business with attractive risk-return profile

2009 Change 467 410 14% 105 150 -30% -9 1 - Net trading result 8 44 -82%Result non-trad. assets -13 -22 - Admin expenses 217 201 8%Result inv. properties -17 0-

-

61%

  • New business origination clearly outperformed given guidance
  • Share of renewals decreasing
  • Focus on attractive risk-return profile
  • Preferably loans eligible for Pfandbrief cover pool
  • Still focussing on portfolio monitoring and active management

Note: All 2010 figures preliminary and unaudited

-6 -15

108 67

7

Others

Operating profit

Structured property financing Loan loss provisions proves portfolio quality

P&L SPF Segment

Q4 '10Q3 '10 Q2 '10 Q1 '10 Q4 '09

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  • Due to higher margins NII constantly increased
  • Conservative maturity mismatch burdens NII
  • LLP incl. results of investment properties within the guided range
  • € 42 mn of the General Portfolio LLP of € 48 mnswapped into Portfolio LLP, release of € 6 mn
  • Admin expenses incl. higher costs for phantom share program ~€ 6 mn
  • Results from investment properties driven by extraordinary repositioning costs
  • SoFFin burdens segment (~€ 30 mn p.a. guarantee fees, net ~€ 30 mn p.a. SoFFin coupon)

Note: All 2010 figures preliminary and unaudited

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

P&L C/S Segment(industry format) 2010 2009 Change Euro mnSales revenue 199 209 -5%Own work capital 2 2 - Changes in inventory 0 0 - Other operating income 8 7 14% Cost of material purchased 23 25 -8%Staff expenses 100 109 -8%D, A, impairment losses 13 14 -7%Results at equity acc. investm. - 0 - Other operating expenses 47 50 -6%Results from interest and similar 0 0 - Result from ordinaryactivities 26 20 30% Income taxes 8 7 14%Segment result 18 13 38%Segment result attributed tominority interests 2 2 - Consolidated retained profit 16 1145%

IT-Business (Aareon)

  • Solid development of Aareon within guidance due to long term contracts
  • Continuously successful development of Wodis Sigma since introduction in 2009
  • Large scale SAP implementations still suffering from reduced implementation projects as anticipated
  • Acquisition of SG I automatisering BV strengthens the international business of Aareon

Deposit taking business (Aareal Bank)

  • Aareal sustains it's position as the house bank of the German housing sector
  • Longer than originally expected low interest rate environment impacts net interest income
  • Deposits increased to € 4.1 bnon a FY average (~ € 4 bn in 2009)

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

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IT-Business (Aareon)

  • Business targets achieved
  • First time consolidation of SG I automatisering BV effect in Q4:
  • -~€ 5 mn revenues
  • -~€ 3 mn expenses
  • -~€ 2 mn EBIT

Deposit taking business (Aareal Bank)

Deposits increased to € 4.5 bn as at 31.12.2010(€ 3.9 bn as at 31.12.2009)

Group capital and funding position

Solid capital and Tier 1 ratios

Leverage ratio 2)

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

  • 2) Gross IFRS numbers (particularly no netting of derivatives)

  • 12Capital ratios calculated on the basis of current data available to project the 2010 financial statements in accordance with German Commercial law (German GAAP – "HGB")Note: All 2010 figures preliminary and unaudited

  • € 17.695 bn risk weighted assets

  • Good position to achieve at least a target Core Tier 1 ratio acc. Basel III between 8% - 9% by 2013
  • Additionally SoFFin's silent participation is grandfathered until 2018

Refinancing situation 2010Flexible use of unsecured and secured funding

Total funding of € 3.9 bn in FY 2010

  • Pfandbriefe:
  • € 2.4 bn
  • Senior unsecured:
  • -€ 1.5 bn
    • € 2.0 bn SoFFin-Bond 2010 onto own books and therefore not shown

Refinancing situationDiversified funding sources and distribution channels

  • Aareal Bank has clearly reduced its dependency upon wholesale funding
  • At the beginning of 2002, long term wholesale funding accounted for 47% of overall funding volumes – by Dec 31st 2010, this share had fallen to 29% (or even 11% without Pfandbriefe)

Preliminary group figures Q4 2010

Net interest incomeHigher margins "paying off"

  • NII Structured Property Financing

  • NII Consulting / Services

    • SPF-business: Mainly results from higher margins
    • Consulting / Services: Historically low interest rate level still burdens the deposit taking business

Note: All 2010 figures preliminary and unaudited

Loan loss provisionsLoan loss provisions proving high portfolio quality

  • Full year loan loss provisions of € 105 mn stays clearly below thegiven range of € 117 mn to € 165 mn
  • Close monitoring of our loan portfolio and successful restructuring of several NPL cases results in only € 8 mn LLP in Q4
  • € 42 mn of the General Portfolio LLP of € 48 mn swapped into Portfolio LLP, release of € 6 mn
  • LLP within guidance even including burden of € 17 mn in investment properties

Net commission incomeCosts for additional SoFFin guarantee since Q3

  • Net commission income of € 123 mnincluding (or ~ € 153 mn without) costs of the SoFFin guarantee facility in 2010 is a good performance regarding the challenging environment
    • All quarters shown are burdened with ~€ 5 mn costs for the first SoFFin guarantee facility
    • The impact increases to ~€ 10 mnin Q3 and Q4 due to the additional SoFFin guarantee facility drawn at the end of Q2 (onto own book)
  • Positive seasonal effects of Aareon in Q4

Trading, non trading and hedge accountingReflects volatile markets in 2010

Result from the proactive management of our treasury portfolio and our consequently continued de-risking strategy

Note: All 2010 figures preliminary and unaudited

Admin expensesStill under control due to high cost discipline

  • Q4 2010-figures with € 95 mnslightly above the average of the other quarters 2010
  • Effected by first consolidation of Aareon's Dutch acquisition SG I automatisering BV (~€ 3 mn)
  • Admin expenses incl. higher costs for phantom share program (~€ 6 mn)
  • Efficiency measures still keeping the admin expenses under control

Asset quality

Total property finance portfolio High diversification and sound asset quality

Total property finance portfolio NPL-level stabilising with constant coverage ratios

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9
1		 3
5		 5
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
w
a
n
c
e
s		 4
4.
9
%

LLP- and NPL development

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

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

23are allocated specific loans in most cases

Note: All 2010 figures preliminary and unaudited

Western Europe (ex Ger) credit portfolioTotal volume outstanding as at 31.12.2010: € 5.4 bn

Southern Europe credit portfolioTotal volume outstanding as at 31.12.2010: € 4.1 bn

German credit portfolioTotal volume outstanding as at 31.12.2010: € 4.1 bn

Eastern Europe credit portfolio Total volume outstanding as at 31.12.2010: € 2.8 bn

Northern Europe credit portfolio Total volume outstanding as at 31.12.2010: € 2.8 bn

North America credit portfolio Total volume outstanding as at 31.12.2010: € 3.0 bn

Asia credit portfolioTotal volume outstanding as at 31.12.2010: € 1.1 bn

Treasury portfolio€ 12.3 bn of high quality assets

Note: All 2010 figures preliminary and unaudited

Outlook

Outlook and …

2
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),
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(
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)
≥
1
2
%
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a
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m
a
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c
u
e

1) As in 2010, the bank cannot rule out additional allowances for credit losses

… main drivers of RoE improvement

01.01.
31.12.2010		 $01.01 -$
31.12.2009		 Change
Furo em Euro mn
Profit and loss account
Net Interest Income 509 480 115
Allowance for credit losses 105 150 -30%
Net interest income after allow ance for onedit losses. 404 310 30V
Net commission income ŦZ3 133 -96
Net result on hedge accounting и a ٠
Net trading income / expenses s 44 -826
Results form non-trading assets -12 ⋥
Results form companies accounted for at equity Б 400%
Results formingestment properties ৰস ō $\blacksquare$
Administrative expenses 366 381 15
Net other operating income / expenses و۔ -14
Impalment of goodwill с z
Operating Profit 124 ø 64V
howe takes 40 œ 100%
Net Income / loss 84 ē7 40%
Allocation of results
Net hoore / loss attributable to non-controlling interests 18 菅 0%
Net home / loss attributable to shareholders of Aareal Bank AG $\overline{76}$ æ 59%
Appropriation of profits
Siert patheship contribution by SoFFIn 30 z 19%
Consolidated retained profit / accumulated loss 48 $\overline{\mathfrak{D}}$ 100%
36 WA WA Agreal Bank
Group
Note: 68, 2010 figures, preliminary and unaudited

Net interest income stable or slightly increasing until 2012.In normalised markets under pressure due to lower margins.

Loan loss provisions to improve over time

Net commission income to increase driven by international business of Aareon and maturity of SoFFin bonds

Admin expenses decreasing due to efficiency and cost cutting measures

Pre-tax RoE in normalised markets: ≥12%

Appendix

Aareal Bank GroupKey figures 2010

0
1.
0
1.-
3
1.
1
2.
2
0
1
0
Eu
ro
mn		 0
1.
0
1.-
3
1.
1
2.
2
0
0
9
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
0
9		 4
6
0		 1
1
%
for
A
l
low
d
i
los
t
an
ce
c
re
se
s		 1
0
5		 1
0
5		 3
0
%
-
Ne
in
in
f
l
lo
fo
d
i
lo
t
te
t
te
t
re
s
co
m
e
a
r a
an
ce
r c
re
ss
es
w		 4
0
4		 3
1
0		 3
0
%
Ne
iss
ion
inc
t c
om
m
om
e		 1
2
3		 1
3
3		 8
%
-
Ne
l
he
dg
ing
t r
t o
t
es
u
n
e a
cc
ou
n		 -2 2
-		 -
Ne
d
ing
inc
/ e
t
tra
om
e
xp
en
se
s		 8 4
4		 8
2
%
-
Re
l
fro
d
ing
ts
tra
ts
su
m
no
n-
a
ss
e		 -1
2		 2
2
-		 -
fro
for
Re
l
ies
d
i
ts
te
t e
ty
su
m
co
mp
an
a
cc
ou
n
a
q
u		 5 1 4
0
0
%
fro
Re
l
inv
ies
ts
tm
t p
t
su
m
es
en
rop
er		 -1
7		 0 -
A
dm
in
is
ive
tra
t
ex
p
en
se
s		 3
6
6		 3
6
1		 1
%
Ne
he
ing
inc
/ e
t o
t
t
r o
p
era
om
e
xp
en
se
s		 -9 1
4
-		 -
Im
irm
f g
dw
i
l
l
t o
p
a
en
oo		 0 2 -
Op
in
Pr
f
i
t
t
er
a
g
o		 1
3
4		 8
7		 5
4
%
Inc
tax
om
e
es		 4
0		 2
0		 1
0
0
%
Ne
in
/
lo
t
co
m
e
ss		 9
4		 6
7		 4
0
%
io
f r
A
l
lo
t
l
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
8		 1
8		 0
%
/
f
G
Ne
inc
los
i
bu
b
le
ha
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l
de
Aa
l
Ba
k
A
t
t
tr
ta
to
om
e
s
a
s
re
rs
o
rea
n		 7
6		 4
9		 5
5
%
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
ers
co
n		 3
0		 2
6		 1
%
5
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		 4
6		 2
3		 1
0
0
%

Note: All 2010 figures preliminary and unaudited

Aareal Bank Group: Segment Reporting Key figures 2010 by operating units

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

Aareal Bank GroupKey figures Q4 2010

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

Aareal Bank Group: Segment Reporting Key figures Q4 2010

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

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

Str
uct
Fin		 d P
ure
cin
an		 ert
rop
y
g		 Co
ltin
/ S
ice
nsu
g
erv
s		 Co
/
lid
ati
nso
on
Re
ilia
tio
n /
Ot
he
co
nc
r		 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
10		 20
10		 20
10		 20
10		 200
9		 20
10		 20
10		 20
10		 20
10		 200
9		 20
10		 20
10		 20
10		 20
10		 200
9		 20
10		 20
10		 20
10		 20
10		 200
9
Eu
ro
mn
Ne
t in
in
ter
est
com
e		 129 121 111 106 103 0 0 0 0 0 10 10 11 11 12 139 131 122 117 115
e fo
All
red
it lo
ow
anc
r c
sse
s		 8 32 33 32 35 8 32 33 32 35
Ne
t in
in
af
ter
est
ter
co
me		 121 89 78 74 68 0 0 0 0 0 10 10 11 11 12 131 99 89 85
all
fo
red
it l
ow
an
ce
r c
oss
es		 80
Ne
t c
mis
sio
n in
om
com
e		 1
-		 5
-		 1 4
-		 2 49 39 43 45 50 11
-		 10
-		 12
-		 11
-		 -13 37 24 32 30 39
Ne
lt o
n h
edg
ing
t re
unt
su
e a
cco		 4
-		 2
-		 2 2 1 -4 2
-		 2 2 1
Ne
adi
inc
e /
t tr
ng
om
ex
pen
ses		 13 2 13
-		 6 3 13 2 13
-		 6 3
Re
lts
fro
din
-tra
ts
su
m
non
g a
sse		 23
-		 4
-		 14 0 3
-		 0 1 0 0 -23 3
-		 14 0 3
-
Re
lts
fro
ani
su
m
co
mp
es
ted
fo
r at
uity
acc
oun
eq		 0 0 5 1 0 0 0 5 1
Re
lts
fro
inv
est
nt
su
m
me
rtie
pro
pe
s		 -17 0 0 0 1
-		 -17 0 0 0 1
-
Ad
min
istr
ativ
e e
xpe
nse
s		 56 54 55 52 42 40 35 38 39 42 1
-		 1
-		 1
-		 0 1
-		 95 88 92 91 83
e /
Ne
t o
the
atin
inc
r o
per
g
om
exp
ens
es		 -2 2 7
-		 2
-		 10
-		 0 0 1 0 2
-		 0 1
-		 0 0 0 2
-		 1 6
-		 2
-		 12
-
Imp
airm
of
dw
ill
ent
goo		 0 2 0 0 0 2
Op
tin
rof
it
era
g p		 31 28 25 24 17 9 5 6 6 6 0 0 0 0 0 40 33 31 30 23
Inc
e t
om
axe
s		 8 10 7 7 3 3 1 2 2 2 11 11 9 9 5
Ne
t in
/ l
co
me
oss		 23 18 18 17 14 6 4 4 4 4 0 0 0 0 0 29 22 22 21 18
All
ati
of
lts
oc
on
re
su
e /
Ne
t in
los
ttri
but
abl
e t
com
s a
o
olli
inte
ntr
ts
non
-co
ng
res		 4 4 4 4 4 0 1 0 1 1 4 5 4 5 5
Ne
t in
e /
los
ttri
but
abl
e t
com
s a
o
of
AG
sha
reh
old
Aa
l B
ank
ers
rea		 19 14 14 13 10 6 3 4 3 3 0 0 0 0 0 25 17 18 16 13

Revaluation reserve:Change mainly driven by asset spreads

Note: All 2010 figures preliminary and unaudited

Development property finance portfolio:Diversification continuously strengthened

Property finance under management

Note: All 2010 figures preliminary and unaudited

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

1) Excl. of market risk

2) Exposure to investment shares amounts to € 15 mn

Note: All 2010 figures preliminary and unaudited

Definitions and contacts

Definitions

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
  • Net RoE = Group net income after minority interestsAllocated (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 from 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

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

Alexandra Beust

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

Sebastian Götzken

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

Disclaimer

© 2011 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 ofthe 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.

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