Aareal Bank's Nine-Month Operating Profit Increases by 19%

Aareal Bank AG has reported a 19% increase in operating profit for the first nine months of 2024, totaling €261 million, compared to €220 million in the same period last year. Both its Structured Property Financing and Banking & Digital Solutions segments contributed significantly to this growth. Despite challenges in the US office market, risk provisions decreased by 9% while net interest income increased by 8% to €792 million.

The bank achieved notable success in its property finance business during the third quarter and increased its focus on green financings, now amounting to €6 billion. The sale of its software subsidiary Aareon led to a substantial net gain, positioning the bank’s consolidated net income for 2024 at approximately €2.2 billion.

Efficiency enhancements are set to begin in the fourth quarter, with the bank confirming its operating profit target range between €250 million and €300 million for the full year. Aareal Bank maintains a strong capital base, with a CET1 ratio of 19.3% and fulfilling its 2024 funding plan through successful bond placements.