German property bank Aareal reported that its new business lending rose 10% year-on-year to EUR 3.2 bn during the first half of 2011. According to the bank, newly acquired business more than doubled year-on-year, whilst the share of loan renewals declined significantly.
German property bank Aareal reported that its new business lending rose 10% year-on-year to EUR 3.2 bn during the first half of 2011. According to the bank, newly acquired business more than doubled year-on-year, whilst the share of loan renewals declined significantly.
The highest level of lending, EUR 1.8 bn, came in the second quarter of 20011 despite the worsening sovereign debt issues in Europe and the US. The Q2 figure exceeded the levels for the two previous quarters, EUR 1.4 bn and EUR 1.6 bn respectively.
Europe accounted for 80% of the new business during the first half of 2011. Western Europe saw the most activity, followed by Northern Europe, with Southern and Eastern Europe lagging significantly.
Aareal said that it expected to maintain 'positive business development' during the rest of the year provided the sovereign debt crisis does not deteriorate further. The bank said new business volumes for the full year should increase to EUR 7-8 bn.
The bank said it anticipated allowance for credit losses in a range of EUR 110 mln to EUR 140 mln during the 2011 financial year, but warned it cannot rule out additional allowances for unexpected credit losses.
Consolidated operating profit, Aareal said, came to EUR 44 mln in the second quarter of 2011, exceeding the figure for the same period last year by about 42% and almost matching the result in the period January to end-March this year.
