Aareal Bank Strengthens Strategic Flexibility with Loan Impairment Charges

Aareal Bank AG has reported strong operational performance with an adjusted operating profit before management actions of €303 million for the first nine months of 2026. The bank has recognized additional loan impairment charges of €160 million to enhance resilience and strategic flexibility, reducing the adjusted operating profit to €143 million.

The bank's funding, liquidity, and capital positions remain solid, with deposits from the housing industry reaching record levels. New property finance business continues to offer favorable risk-return profiles. The cost/income ratio remains healthy at 31%, and an adjusted return on equity target of 13% for 2027 is confirmed.

Aareal Bank is focused on reducing non-performing loans and has maintained a strong liquidity position, with a CET1 ratio of 15.4% as of September 30, 2026. In recent months, the bank successfully raised €2.2 billion through capital market transactions, including green finance activities.