Aareal Bank Group fully accounted for the additional risk provisioning, announced at the end of August, in the consolidated income statement for the first nine months of 2004. Accordingly the nine months group net loss amounts to € 115 million and fully lies within the predicted range.
Christof M. Schörnig, Member of the Management Board, responsible for the liability side, pointed out: “In the past, Aareal Bank has already placed great emphasis on further developing its business. However, many of the bank’s achievements in this
respect have been over-shadowed by problems associated with legacy exposure related to German business granted during the 1990s. The impact of most of the implemented measures will be already visible in 2005. Our results will then increasingly reflect our forward-looking property finance business” citing the bank´s 14-year track record of successful financings in its international activities.
At the time of that August statement, Aareal Bank also disclosed plans to virtually separate its non-strategic German legacy portfolio from its profitable, core lending business