Aareal Bank Reports Strong 2025 Performance with Strategic Repositioning

Aareal Bank AG announced a robust operating performance for the 2025 fiscal year, with adjusted operating profit reaching €381 million, aligning with their target range. The bank undertook significant strategic repositioning in its US business, leading to additional charges of €55 million to expedite the reduction of US office property loans. This repositioning resulted in an adjusted operating profit of €326 million, matching the previous year's level.

The bank's BDS segment contributed significantly with deposits reaching €17.8 billion. New property financing business hit a record €12.4 billion, with loan impairments significantly reduced and a decrease in non-performing loans to €1.1 billion.

Aareal Bank's cost-cutting measures proved effective, reducing expenses by 8% and maintaining a healthy cost/income ratio of 33%. With a CET1 ratio increase to 15.5%, the bank's capitalisation remains solid. Looking ahead to 2026, Aareal Bank anticipates approaching an adjusted operating profit of €400 million.