Key Indicators

  1 Jan - 31 Dec 2020 1 Jan - 31 Dec 2019
Results    
Operating profit (€ mn) -75 248
Consolidated net income (€ mn) -69 163
Consolidated net income allocated to
ordinary shareholders (€ mn)1) 
-90 145
Cost / income ratio (%)2) 44.2 37.3
Dividend per share (€ )3) 1.50 -
Earnings per ordinary share (€)1) -1.50 2.42
RoE before taxes (%)1) 4) -4.1 8.9
RoE after taxes (%)1) 4) -3.6 8.8

   

  31 Dec 2020 31 Dec 2019
Statement of financial position    
Property finance (€ mn)5) 27,181 25,882
Equity (€ mn) 2,967 2,861
Total assets (€ mn) 45,478 41,137
     
Regulatory indicators6)    
Risk-weighted assets (€ mn) 12,138 11,195
Common Equity Tier 1 ratio (CET1 ratio) (%)                       18.8 19.6
Tier 1 ratio (T1 ratio) (%) 21.3 22.3
Total capital ratio (TC ratio) (%) 28.0 29.9
     
Common Equity Tier 1 ratio (CET1 ratio) (%) – Basel IV (phased-in)7) 17.3 17.1
     
Employees 2,982 2,788
     
Ratings    
Moody’s8)    
Issuer rating A3 A3
Bank deposit rating A3 A3
Outlook Negative Stable
Mortgage Pfandbrief Rating Aaa Aaa
     
Fitch Ratings9)    
Issuer default rating BBB+ A-
Senior Preferred A- A
Senior Non Preferred BBB+ A-
Deposit ratings A- A
Outlook Negative Negative
     
Sustainability Ratings10)    
MSCI AA AA
ISS-ESG prime (C+) prime (C+)
CDP Awareness
Level C
Awareness
Level 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; in line with common practice in the banking sector, bank levy and contributions to the deposit guarantee scheme are not included;
otherwise, the cost/income ratio would have amounted to 48.1 %. The previous year’s figure was adjusted accordingly.
3) 2020: Dividend payments of € 1.50 for 2020 (to be effected in 2021) would need to be made in two steps. In compliance with the requirements published by the European Central Bank (ECB) on 15 December 2020, the distributable amount is calculated at € 0.40 per share. The Management Board plans to submit a corresponding proposal for the appropriation of profits to the ordinary Annual General Meeting in May 2021. Depending on further economic developments, regulatory requirements, the Bank’s capital position and its risk situation, an extraordinary Annual General Meeting, which could possibly take place during the fourth quarter of 2021, could then decide on the intended remaining payout of € 1.10 per share. 2019: Following a request of the ECB to refrain from distributing dividends, the AGM decided that net retained profit for 2019 be transferred to retained earnings.
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 € 0.3 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 dividend for 2019 from initial proposal on the appropriation of net retained profit and including a pro-rata temporis deferral of net interest on the AT1 bond 31 December 2020: including dividend for 2019 from initial proposal on the appropriation of net retained profit and less a proposed dividend of € 1.50 per share in 2021 and pro-rata temporis deferral of net interest on the AT1 bond. Dividend payments of € 1.50 for 2020 (to be effected in 2021) would need to be made in two steps. In compliance with the requirements published by the European Central Bank (ECB) on 15 December 2020, the distributable amount is calculated at € 0.40 per share.The Management Board plans to submit a corresponding proposal for the appropriation of profits to the ordinary Annual General Meeting in May 2021. Depending on further economic developments, regulatory requirements, the Bank’s capital position and its risk situation, an extraordinary Annual General Meeting, which could possibly take place during the fourth quarter of 2021, could then decide on the intended remaining payout of € 1.10 per share. 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.
7) Underlying RWA estimate, incorporating the higher figure determined using the revised AIRBA or the revised CRSA (phased-in), 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.). The Bank’s Basel IV (fully phased-in) CET1 ratio stood at 13.1 % at the year-end (2019: 13.5 %).
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.