Aareal Bank Group consolidated net income after minority interests was 51 million for the first six months of 2006. This corresponds to an increase of 6 million or 13% - over the same period of the previous year.
"The results for the first half of 2006 are characterised by a strong pickup in new
business generated, thanks to the targeted strengthening of sales units in our core
markets", Dr. Wolf Schumacher, Chairman of the Management Board of Aareal Bank,
commented when presenting the six-month figures. He added that "having generated
profits for three quarters now, Aareal Bank Group is well on its way to restore its ability
to pay dividends for the full year."
New commitments of 4.3 billion in the first half of the year with international
business accounting for an 80% share, or 3.4 billion exceeded the very good result
achieved in the corresponding period of the previous year by 1.4 billion, or around
50%. New business in Germany was remarkable, at just under 1 billion. On a pro-rata
basis, total new business generated is already above the projected total for 2006 as a
The Consulting/Services segment was also profitable during the first six months: its
result after taxes and minority interest income improved to 3 million. The conceptional
redesign of the subsidiaries Aareon AG, Aareal First Financial Solutions AG, and the
bank's Institutional Housing Business which was initiated at the beginning of the year
has meanwhile been completed. Implementation is showing initial signs of success,
as highlighted by Schumacher: "The overall target for the Institutional Housing Business
is to generate a significant contribution of around 40 to 50 million to the Group's pretax
result by 2008."
Source: Aareal Bank