German property lender Aareal Bank has raised its new business target for 2013 after a strong performance in 2012.
German property lender Aareal Bank has raised its new business target for 2013 after a strong performance in 2012.
Aareal reported €6.3 bn of new business in its Structured Property Financing segment in 2012 - exceeding its own target of between €4.5 bn to €5.5 bn. The bank has raised its target for 2013, and is now forecasting between €6 and €7 bn in new business this year.
In view of the new business environment In the Structured Property Financing segment, the bank plans to focus its lending operations to an even greater extent on high-margin business. The emphasis will be on loans with low LTV ratios of 60 to 70%, and on exposures eligible for inclusion in cover asset pools.
Aareal said it will also intensify cooperations with other lenders within the scope of club deals and syndications.
In its earnings presentation, the banks said it expects 2013 consolidated operating profit to match last year's level, and potentially hit the figure for 2011 depending on market developments.
Full-year operating profit came to €176 mln last year versus €185 mln in 2011. Consolidated net income fell 9% to €85 mln compared to the previous year's figure.
