Bank Aareal projects strong profit growth for 2024

Bank Aareal announced a strong revenue performance enabling active risk management for the year 2023, with a consolidated operating profit amounting to €149 million. Despite multiple challenges, the financial institution forecasts a significant increase in its consolidated operating profit for 2024, with projections between 300 and 350 million euros.

In 2023, the bank recorded dynamic revenues, increasing by 31%, reaching a record level of almost 1.3 billion euros. This growth was supported by net interest and fee income also at record levels. These performances made it possible to offset substantial risk provisions, in particular due to non-performing loans in the office real estate sector in the United States.

Additionally, Aareon, a subsidiary of Aareal, posted a significant increase in adjusted EBITDA of 33%, reaching €100 million, despite an operating loss of €72 million following investments. The focus was on reducing non-performing loans and increasing future profitability.

The bank prides itself on its diversified business model which enables active risk management and robust revenue development, despite an unfavorable market environment, particularly in the United States. The objective is to continue working on a sustainable increase in profitability in 2024.