PRESS RELEASE : Aareal Bank announces adverse non-recurring tax effect and informs about preliminary results for the second quarter

DGAP-News: Aareal Bank AG / Key word(s): Miscellaneous 
Aareal Bank announces adverse non-recurring tax effect and informs about preliminary results for the second quarter 
2021-08-02 / 18:39 
The issuer is solely responsible for the content of this announcement. 
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Aareal Bank announces adverse non-recurring tax effect and informs about preliminary results for the second quarter 
- Despite further burdens, second-quarter consolidated operating profit presumably rises markedly to EUR41 million (Q2 
2020: EUR2 million) 
- Aareal Bank affirms forecast for the full-year consolidated operating profit of between EUR100 million and EUR175 million 
- Tax rate of around 55 per cent on average expected for 2021 
Wiesbaden, 2 August 2021 - As part of a review of a prior fund investment which was sold in 2012, new findings emerged 
which have a negative impact on Aareal Bank's results for the 2021 financial year amounting to an additional EUR11 
million burden to be recorded in net other operating income for the second quarter of 2021 and a further EUR26 million to 
be recognised in the tax position for the 2021 financial year. Aareal Bank will recognise the corresponding provisions 
in the second quarter of 2021 and adjust the expected tax rate for the full year. 
Taking this non-recurring effect into consideration, the preliminary operating profit for the second quarter of 2021 
will presumably amount to EUR41 million, significantly above the results of the same quarter of the previous year, which 
had also been affected by the pandemic (Q2 2020: EUR2 million). Without the additional tax burdens, the preliminary 
operating profit would have amounted to EUR52 million. 
Compared to Q2/2020, overall profit increased by 14 per cent in the second quarter of 2021. Net interest income 
markedly increased to EUR142 million (Q2 2020: EUR122 million) and reached its highest level in almost four years. Net 
commission income stood at EUR59 million, also clearly exceeding the previous year's level (Q2 2020: EUR54 million) thanks 
to continuing revenue growth at Aareon. 
At EUR33 million, loss allowance during the second quarter of 2021 remained significantly lower than in the same period 
of the previous year (Q2 2020: EUR48 million), as expected. Due to non-recurring and growth-driven effects, 
second-quarter administrative expenses amounted to EUR118 million, in line with expectations (Q2 2020: EUR109 million). 
New commercial property financing business continued to develop dynamically during the second quarter. At around EUR2.2 
billion it increased by approximately 70 per cent in comparison to the second quarter of 2020, leading to an increase 
of the portfolio to EUR28.5 billion, in line with expectations (Q2 2020: EUR26.3 billion ). 
Despite comprehensive consideration of the adverse non-recurring effect, Aareal Bank confirms the previously 
communicated expectations regarding operating profit for the year 2021 as a whole in a range between EUR100 million and 
EUR175 million. 
The expected tax rate however will rise during the current financial year. Based on the mid-point of the expected range 
for operating profit, it should amount to approx. 55 per cent. In case operating profit should trend to the upper end 
of the target corridor, the expected tax rate would be around 50 per cent respectively around 60 per cent in case of a 
trend to the lower end of the range, in both cases corresponding to the relative share of non-tax-deductible components 
of the results. 
Contacts 
Margarita Thiel 
Phone: [phone] 
Mobile: [phone] 
[e-mail] 
Yannick Houdard 
Phone: [phone] 
[e-mail] 
About Aareal Bank Group 
Aareal Bank Group, headquartered in Wiesbaden, is a leading international property specialist. It provides smart 
financings, software products, and digital solutions for the property sector and related industries, and is present 
across three continents: Europe, North America and Asia/Pacific. Aareal Bank AG, whose shares are included in Deutsche 
Börse's SDAX index, is the Group's parent entity. It manages the various entities organised in the Group's three 
business segments: Structured Property Financing, Banking & Digital Solutions, and Aareon. The Structured Property 
Financing segment encompasses all of Aareal Bank Group's property financing and funding activities. Here, the Bank 
supports its clients in making large-volume commercial property investments. The investment properties mostly comprise 
office buildings, hotels, shopping centres, logistics and residential property, as well as student apartments. In the 
Banking & Digital Solutions segment, Aareal Bank Group supports businesses from the housing, property management and 
energy industries as a digitalisation partner - combining extensive advisory services and product solutions with 
traditional corporate banking services and deposit-taking. Its subsidiary Aareon, the leading supplier of ERP software 
and digital solutions for the European property sector and their partners, represents the third business segment. 
Aareon offers reliable, pioneering solutions in the fields of consulting, software and services to optimise 
IT-supported business processes, and to extend business models. The Aareon Smart World digital platform links 
businesses from the housing industry and related sectors with customers, staff and business partners, as well as 
connecting technical devices in apartments and buildings. 
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2021-08-02 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. 
The issuer is solely responsible for the content of this announcement. 
The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. 
Archive at www.dgap.de 
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Language:     English 
Company:      Aareal Bank AG 
              Paulinenstr. 15 
              65189 Wiesbaden 
              Germany 
Phone:        [phone] - 0 
Fax:          [phone] - 2332 
E-mail:       [e-mail] 
Internet:     www.aareal-bank.com 
ISIN:         DE0005408116 
WKN:          540811 
Indices:      SDAX 
Listed:       Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, 
              Hamburg, Munich, Stuttgart, Tradegate Exchange; Stockholm 
EQS News ID:  1223444 
 
End of News   DGAP News Service 
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1223444 2021-08-02

 
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(END) Dow Jones Newswires

August 02, 2021 12:39 ET (16:39 GMT)