|1 Jan - 30 Jun 2020||1 Jan - 30 Jun 2019|
|Operating profit (€ mn)||13||122|
|Consolidated net income (€ mn)||16||81|
|Consolidated net income allocated to|
ordinary shareholders (€ mn)1)
|Cost / income ratio (%)2)||58.6||56.9|
|Earnings per ordinary share (€)1)||0.11||1.20|
|RoE before taxes (%)1) 3) 4)||0.0||8.8|
|RoE after taxes (%)1) 3) 4)||0.5||5.7|
|30 Jun 2020||31 Dec 2019|
|Statement of financial position|
|Property finance (€ mn)5)||25,571||25,882|
|Equity (€ mn)||2,847||2,861|
|Total assets (€ mn)||45,322||41,137|
|Risk-weighted assets (€ mn)||11,702||11,195|
|Common Equity Tier 1 ratio (CET1 ratio) (%)||19.8||19.6|
|Tier 1 ratio (T1 ratio) (%)||22.4||22.3|
|Total capital ratio (TC ratio) (%)||29.5||29.9|
|Common Equity Tier 1 ratio (CET1 ratio) (%) – Basel IV (estimated)7)||14.2||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 June 2020: including dividends for 2019 (in line with original proposal for appropriation of profits) and interim profits for 2020, and incorporating the pro-rata accrual of net interest payable on the AT1 bond. 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.
7) 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.).
8) 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.
9) 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.
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.