Yesterday, the Management Board of Deutsche Börse AG decided to include Aareal Bank in the MDAX from 20 September 2002. With its stock exchange trading volume (ranked 56) and market capitalisation in terms of free float (ranked 70), Aareal Bank meets the requirements of the so-called 'rule 110/110'.
Despite the split of the former DePfa Group, which affected the BankÂ's resources, Aareal BankÂ's new business developed in line with forecasts in the first six months of the year. International new business rose by 21.0% to € 2,527 m (previous year: € 2,088 m). New financing was widely diversified and acquired across all the 17 countries in which Aareal Bank operates. New business in Germany was significantly cut down by 55.8% to € 574 m (previous year: € 1,298 m), responding to the market situation in Germany and focussing on profitable client segments in line with its strategy. In terms of structure and earnings potential, the BankÂ's German business is beginning to look very similar to its international business. The new business margins achieved by the Bank in Germany already equal the level of those achieved in international business, whereby the Bank adopted the same prudent risk parameters as for its international business.
Aareal Bank syndicated a financing volume of € 0,9 bn in the first half of the current year (€ 0.5 bn in 2001), of which € 130 m relates to new business generated in the same period. The syndication of existing loans amounted to almost € 770 m. In addition to securitization, syndication is a key element of Aareal BankÂ's strategy to consistently adopt a 'buy and sell' approach to lending. This means that loans acquired do not affect the BankÂ's equity until maturity but are sold on, retaining a margin.
(source: Aareal Bank)
