|1 Jan - 31 Dec 2019||1 Jan - 31 Dec 2018|
|Operating profit (€ mn)||248||316|
|Consolidated net income (€ mn)||163||226|
|Consolidated net income allocated to|
ordinary shareholders (€ mn)1)
|Cost / income ratio (%)2)||41.0||40.4|
|Dividende per share (€)3)||2.00||2.10|
|Earnings per ordinary share (€)1)||2.42||3.48|
|RoE before taxes (%)1)||8.7||11.6|
|RoE after taxes (%)1)||5.7||8.3|
|31 Dec 2019||31 Dec 2018|
|Statement of financial position|
|Property finance (€ mn)4)||25,882||26,395|
|Equity (€ mn)||2,861||2,928|
|Total assets (€ mn)||41,137||42,687|
|Risk-weighted assets (€ mn)||11,195||13,039|
|Common Equity Tier 1 ratio (CET1 ratio) (%)||19,6||17.2|
|Tier 1 ratio (T1 ratio) (%)||22,3||19.5|
|Total capital ratio (TC ratio) (%)||29,9||26.2|
|Common Equity Tier 1 ratio (CET1 ratio) (%) – Basel IV (estimated)6)||13,5||13,2|
|Senior Non Preferred8)||Baa1||Baa1|
|Bank deposit rating||A3||A3|
|Mortgage Pfandbrief Rating||Aaa||Aaa|
|Issuer default rating||A-||A-|
|Senior Non Preferred||A-||A-|
|ISS-ESG||prime (C+)||prime (C)|
1) The allocation of earnings is based on the assumption that net interest payable on the AT1 bond is recognised on an accrual basis.
2) Structured Property Financing segment only
3) 2019: Proposal to be submitted to the Annual General Meeting
4) Excluding € 0.4 billion in private client business (31 December 2018: € 0.6 billion) and € 0.4 billion in local authority lending business by the former Westdeutsche ImmobilienBank AG (WestImmo) (31 December 2018: € 0.5 billion)
5) When calculating own funds, annual profits were taken into account, based on the Management Board‘s proposal for appropriation of profits for the 2019 financial year, and incorporating the pro-rata accrual of net interest payable on the AT1 bond. The appropriation of profits is subject to approval by the Annual General Meeting. The expected relevant impact of the TRIM exercise on commercial property financings, and of the SREP recommendations concerning the NPL inventory as well as the ECB's NPL guidelines for exposures newly classified as NPLs, were taken into account for determining regulatory indicators.
6) Underlying estimate, given a 72.5 % output floor based on the final Basel Committee framework dated 7 December 2017. The calculation of the material impact upon Aareal Bank is subject to the outstanding EU implementation as well as the implementation of additional regulatory requirements (CRR II, EBA requirements etc.).
7) Moody’s terminology: ”Senior Unsecured”; the rating for the Debt Issuance Programme was discontinued in February 2020
8) Moody’s terminology: ”Junior Senior Unsecured”; the rating for the Debt Issuance Programme was discontinued in February 2020
9) The ratings reported as at 31 December 2018 were published on 21 January 2019. The ratings reported as at 31 December 2019 were published on 10 January 2020. On 4 March 2020, Fitch Rating announced its intention to review the rating of banks, including that of Aareal Bank. This review is related to the introduction of revised bank rating criteria by Fitch Ratings (published on 28 February 2020).
10) Please refer to our website (www.aareal-bank.com/en/responsibility/reporting-on-our-progress/) for more details.
This report contains rounded numbers, which may result in slight differences when aggregating figures and calculating percentages.