International property lender Aareal Bank has released its nine-month results, showing consolidated net income after minority interests almost quadrupled to a record value of EUR 272 mln. Return on equity after taxes amounted to 31.4%.

International property lender Aareal Bank has released its nine-month results, showing consolidated net income after minority interests almost quadrupled to a record value of EUR 272 mln. Return on equity after taxes amounted to 31.4%.

The bank attributed this 'gratifying result' partly to the sale of its shareholding in Immobilien Scout, which delivered EUR 153 mln, as well as to a EUR 65-mln mark-up on its investment in Deutsche Interhotel. A non-recurring EUR 13 mln tax expense was recognised during Q3, reflecting the re-measurement of deferred tax assets following the German business tax reform of July this year. Reviewing the last nine months the bank noted that International transactions accounted for some 89% of new business.

Dr. Wolf Schumacher, Chairman of the Management Board of Aareal Bank, said that 'against the background of the US sub-prime crisis, which also slowed down international property markets during the third quarter, this result is particularly gratifying. We consider the current market situation as an opportunity to generate new business, on a selective basis, and to grow our balance sheet.' Schumacher listed positive knock-on effects of the crisis as 'a movement towards a more appropriate pricing of credit risks, together with a greater focus on clients' credit rating and on the quality of the financed properties.'