Aareal Bank's Positive Start to 2025 Financial Year

Aareal Bank AG began 2025 on a strong note, reporting a 15% increase in first-quarter adjusted operating profit to €107 million, compared to €93 million in Q1 2024. The net interest income stood at €249 million, reflecting a 7% decrease year-on-year but remaining robust owing to growth in lending volume. Loan impairment charges significantly decreased by 36% to €55 million.

The Bank successfully reduced its non-performing loans and maintained a strong capital position. By quarter-end, the Common Equity Tier 1 ratio increased to 20.6%. Aareal's funding activities yielded €1.4 billion from issued bonds.

In Structured Property Financing, new business rose notably, with margins of 280 basis points and conservative loan-to-value ratios. Meanwhile, client deposits in the Banking & Digital Solutions segment remained high, contributing positively to the net interest income.