|1 Jan - 30 Sep 2020||1 Jan - 30 Sep 2019|
|Operating profit (€ mn)||24||186|
|Consolidated net income (€ mn)||17||121|
|Consolidated net income allocated to|
ordinary shareholders (€ mn)1)
|Cost / income ratio (%)2)||56.1||53.7|
|Earnings per ordinary share (€)1)||0.06||1.80|
|RoE before taxes (%)1) 3) 4)||0.3||9.0|
|RoE after taxes (%)1) 3) 4)||0.2||5.8|
|30 Sep 2020||31 Dec 2019|
|Statement of financial position|
|Property finance (€ mn)5)||26,053||25,882|
|Equity (€ mn)||2,843||2,861|
|Total assets (€ mn)||48,480||41,137|
|Risk-weighted assets (€ mn)7)||11,320||11,195|
|Common Equity Tier 1 ratio (CET1 ratio) (%)||20.4||19.6|
|Tier 1 ratio (T1 ratio) (%)||23.1||22.3|
|Total capital ratio (TC ratio) (%)||30.3||29.9|
|Common Equity Tier 1 ratio (CET1 ratio) (%) – Basel IV (estimated)8)||13.9||13.5|
|Bank deposit rating||A3||A3|
|Mortgage Pfandbrief Rating||Aaa||Aaa|
|Issuer default rating||BBB+||A-|
|Senior Non Preferred||BBB+||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 and Consulting/Services Bank (formerly: Bank division Housing Industry) segments, in line with the strategic development; the previous year's figure was adjusted accordingly.
3) On an annualised basis
4) ”Other reserves” were included in equity, in line with the further development of segment reporting; the previous year's figure was adjusted accordingly.
5) Excluding € 0.4 billion in private client business (31 December 2019: € 0.4 billion) and € 0.3 billion in local authority lending business by the former Westdeutsche ImmobilienBank AG (WestImmo) (31 December 2019: € 0.4 billion)
6) 31 December 2019: excluding dividends for 2019 (in line with original proposal for appropriation of profits) and incorporating the pro-rata accrual of net interest payable on the AT1 bond.
30 September 2020: including dividends for 2019 (in line with original proposal for appropriation of profits) and interim profits for 2020 (after deduction of the pro-rata dividend in line with the dividend policy), and incorporating the pro-rata accrual of net interest payable on the AT1 bond.
The SREP recommendations concerning the NPL inventory and the ECB's NPL guidelines for exposures newly classified as NPLs, as well as the ”CRR Quick fix” as of 30 September 2020, were taken into account. The CET1 ratio, as shown in Aareal Bank’s regulatory report as at 30 September 2020, was 19.8 %, reflecting the fact that on that date, the Bank had not submitted an application for inclusion of profits to the ECB.
7) Due to the impact of Covid-19, at the time of preparing this report, it was not always possible to obtain new appraisals where there were indications for a fluctuation in value. Given the model employed, it was not possible to incorporate anticipated rating changes within the scope of the management overlay for calculating RWAs as at 30 September 2020.
8) 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.).
9) Moody's Investors Service confirmed the issuer rating and bank deposit rating on 21 April 2020. At the same time, Moody’s set the outlook for the issuer rating and bank deposit rating to ”negative”, given deterioration in the operating environment on account of the Covid-19 pandemic.
10) The ratings reported as at 31 December 2019 were published on 10 January 2020. Fitch Ratings had changed the outlook to ”negative” in connection with the introduction of revised bank rating criteria. On 27 March 2020 the rating was changed, as expected. Due to the Covid-19 pandemic, Fitch Ratings lowered its rating outlook to negative (RWN – Rating Watch Negative), also on 27 March 2020.
11) Please refer to our website for more details.
This report contains rounded numbers, which may result in slight differences when aggregating figures and calculating percentages.