Aareal Bank — FY2025 Earnings Presentation
58 slides from Aareal Bank's earnings presentation, Mar 5, 2026
Slide 1: FY 2025 results
FY 2025 results 5th March 2026 Dr Christian Ricken (CEO) Andy Halford (CFO)
Slide 2: Agenda
Agenda 1. Highlights 2. Group Performance 3. Business Segments Performance 4. Funding, Liquidity & Capital 5. Outlook 6. Aareal AMBITION 7. Key Takeaways Appendix
Slide 3: Highlights
Highlights 2
Slide 4: Highlights
Highlights Adjusted operating profit before management actions at € 381 mn - within targeted range Additional charges of € 55 mn to support repositioning of US business Resultant adjusted operating profit of € 326 mn – similar to previous year Strong operating performance by Banking & Digital Soluti
Slide 5: Diversified business model
Diversified business model High operating resilience based on two strong business segments Banking & Digital Solutions Structured Property Financing (BDS) (SPF) Leading provider of payment transaction services to the Financing of large-scale commercial property investments German housing industry BD
Slide 6: Group Performance
Group Performance 5
Slide 7: Group: Profit & Loss
Group: Profit & Loss Adjusted operating profit - similar to previous year Profit & loss (€ mn) 20241) 2025 ∆ Impact of lower interest rates in line with expectations Net interest income 1,060 934 -12% Loan impairment charges significantly down including Net commission income -4 4 additional charges
Slide 8: Business Segments Performance
Business Segments Performance 7
Slide 9: Banking & Digital Solutions: Profit & Loss
Banking & Digital Solutions: Profit & Loss Significant contribution to group profit Profit & loss (€ mn) 20241) 2025 ∆ Impact of lower interest rates in line with expectations Net interest income 269 246 -9% Strong growth of housing industry deposits (up by 8% - average Q4/2025 vs Q4/2024) partially
Slide 10: Banking & Digital Solutions
Banking & Digital Solutions Net interest income above expectations. Administrative expenses tightly controlled. Net interest income Administrative expenses1) € mn € mn -9% -4% 269 246 99 95 2024 2025 2024 2025 Strong deposit growth partially offset expected Actions to enhance efficiency reduced oper
Slide 11: Banking & Digital Solutions: Deposits
Banking & Digital Solutions Strong deposit franchise reduces dependence of capital markets Deposits by quarter1) Average housing industry deposits development by type2) € bn € bn 17.8 13.4 13.6 13.7 14.1 17.1 16.7 17.2 17.4 12.0 5,4 5,3 6,8 7,6 8,6 13,6 13,4 14,0 14,2 14,7 3,1 2,9 0,0 0,1 1,9 2,2 2,
Slide 12: Structured Property Financing: Profit & Loss
Structured Property Financing: Profit & Loss Significantly lower loan impairment charges and admin expenses Profit & loss (€ mn) 20241) 2025 ∆ Impact of lower interest rates in line with expectations Net interest income 791 688 -13% Loan impairment charges significantly down, including the additiona
Slide 13: Structured Property Financing
Structured Property Financing Impact of lower interest rates in line with expectations Net interest income Net interest income: year on year development € mn € mn -13% 791 15 Funding Interest rate level Gross Others loan -33 incl. FX 791 688 688 margin -61 -24 2024 2025 2024 2025 Decrease in net int
Slide 14: Structured Property Financing
Structured Property Financing Significantly lower loan impairment charges and admin expenses Administrative expenses1) Loan impairment charges Additional charges € mn € mn -9% -33% 322 55 244 222 396 267 2024 2025 2024 2025 Efficiency measures paying off: Loan impairment charges before additional ch
Slide 15: Structured Property Financing
Structured Property Financing Strong new business generation with focus on Europe. Office reduced, logistics increased. New business by quarter € bn Newly acquired business 3.9 12.4 10.9 1,2 − Up by € 1.8 bn year on year 4,6 3.8 2,7 4,3 − Conservative average LTV of 57% (2024: 54%) 1,2 − Average mar
Slide 16: Structured Property Financing
Structured Property Financing Portfolio volume in targeted range Real Estate Financing Portfolio € bn 34.3 Portfolio within targeted range of € 34-35 bn 32.9 33.5 0,2 despite € 1.3 bn FX effects 30.9 0,4 0.3 30.0 Highly diversified by region and property type 0,4 0,5 US Office portfolio significantl
Slide 17: Structured Property Financing
Structured Property Financing Non-performing loans reduced to € 1.1 bn. Management actions reinforce confidence in < € 1.0 bn target. NPL volume: US office vs. others NPL ratio: US office vs. others € mn 1,606 1,381 565 1,145 546 513 25,2% 1.041 835 632 <1,000 1,6% 2023 2024 2025 2026e US office oth
Slide 18: Funding, Liquidity & Capital
Funding, Liquidity & Capital 17
Slide 19: Funding & Liquidity
Funding & Liquidity Comfortable liquidity based on diversified funding mix Liability structure Capital market funding activities (12/25) € bn 3% 1% 3.3 2% 0,4 2.7 8% Deposits housing ind.1) Senior Unsecured (SNP) 0,6 0,4 Total 0,1 9% 36% Deposits: Deposits retail (Raisin) Public-sector Pfandbriefe >
Slide 20: Funding & Liquidity
Funding & Liquidity Treasury portfolio of € 9.0 bn ensures comfortable liquidity buffer Treasury portfolio by rating1) Treasury portfolio by asset class BBB: 5% A: 8% Covered Bonds: 30% € 9.0 bn AAA: 55% € 9.0 bn AA: 32% Public Sector: 70% Additional cash shifted into HQLA Strong liquidity profile d
Slide 21: Capital
Capital Solid capital ratios CET1 ratio (fully phased) RWA (fully phased) € bn 15,2% 15,5% 13,3% 13,4% 12,4% 19,9 18,7 18,5 18,9 18,7 12/21 12/22 12/23 12/24 12/25 12/21 12/22 12/23 12/24 12/25 CET1 ratio (fully phased) vs. SREP CET1 requirements CET1 ratio (fully phased) in 2025 further increased t
Slide 22: Outlook
Outlook 21
Slide 23: Outlook 2026
Outlook 2026 METRIC 2025 OUTLOOK 2026 Approaching Adjusted operating profit1) € 326 mn € 400 mn Adjusted Return on equity (RoE)1,2) 4.9% Approaching 8% Banking & Digital Solutions Deposits3) € 17.3 bn € ~17.5 bn Structured REF Portfolio € 34.3 bn € ~34 bn4) Property Financing 1) Adjusted, excluding
Slide 24: Aareal AMBITION
Aareal AMBITION Aareal
Slide 25: Successful launch of Aareal Ambition in 2025
Successful launch of Aareal Ambition in 2025 Strategic targets We are the leading real estate experts with global reach and local expertise. Strengthening SPF BDS the core Deliver focused growth for on- Increase share of wallet and and off-balance sheet business expand into adjacent markets Expandin
Slide 26: Aareal AMBITION: Two growth engines, one bank
Aareal AMBITION: Two growth engines, one bank We will sharpen our focus on SPF and accelerate BDS growth Risk, funding SPF BDS Infrastructure & capital Focus on our Accelerate deposit Strong capital AI and cloud-led competitive strengths growth nationally and generation and solid technology of hospi
Slide 27: SPF: Growth focus on competitive strengths
SPF: Growth focus on competitive strengths Overall volumes to remain stable Grow business in line with competitive strengths at attractive risk-return profiles… KPIs 2027E vs 2025 … globally (incl. the US) in the hospitality sector and On-balance volume € ~34 bn across asset classes in Europe € ~34
Slide 28: BDS: Accelerate deposit growth and expand our product range
BDS: Accelerate deposit growth and expand our product range New customers, new markets, new channels New customers (small property managers, retail), new markets (Netherlands, France, Spain), new channel KPIs 2027E (own retail platform) & new ERP partners vs 2025 Expand customer base with value-adde
Slide 29: Risk, Funding & Capital: Strong capital generation
Risk, Funding & Capital: Strong capital generation Solid capital ratios while further reducing our non-performing assets Strong capital generation supported by continued capital management KPIs 2027E vs 2025 CET1 ratio Further optimize funding sources and risk return (fully phased) ≥13.5% of our tre
Slide 30: Infrastructure: AI and cloud-led transformation
Infrastructure: AI and cloud-led transformation Continued execution of structural cost efficiency measures Continued execution of our efficiency program to streamline operations, digitize processes KPIs 2027E vs 2025 AI and cloud-led technology transformation Adj. CIR1) ~30% for resilient, efficient
Slide 31: Return on equity target in 2027: ~13%
Aareal AMBITION Return on equity target in 2027: ~13% schematic ~13% ~7.5% ~5% RoE 2025 Extra Tax RoE 2025 Improved BDS Standardised RoE reported 1) charges normalization pro-forma risk profile initiatives capital base 2) 2027e 3) US Management actions 1) Post tax, adjusted 2) Standardised 13.5% CET
Slide 32: Ambitious Mid-term Targets
Ambitious Mid-term Targets We continue to be on track to deliver our ~13% RoE target 2027 Financial targets 2027 ~13% ≥13.5% RoE1) CET1 ratio (fully phased) ~30% <3% Cost-Income Ratio2) NPL ratio 1) Post tax, adjusted, based on standardised 13.5% CET1-ratio (fully phased) 31 2) Excluding bank levy/d
Slide 33: Key Takeaways
Key Takeaways Aareal
Slide 34: Key takeaways
Key takeaways Strong operating performance in both business segments Loan impairment charges and costs significantly reduced Management actions to reposition US business Aareal AMBITION well on track, now sharpening the focus ~13% RoE1) target 2027 33 1) Post tax, adjusted, based on standardised 13.
Slide 35: Appendix Asset Quality
Appendix Asset Quality 34
Slide 36: Structured Property Financing: portfolio by country
Structured Property Financing: portfolio by country € 34.1 bn well diversified CREF portfolio 6.346 6.307 (€ mn) 4.175 3.380 2.985 2.281 1.776 2.317 € 34.1 bn 1.602 1.147 641 629 518 (12/2024: € 33.2 bn) US UK FR DE PL ES NL IT CA SE FI BE others LTV1) 66% 54% 58% 55% 56% 56% 53% 55% 58% 58% 49% 52%
Slide 37: Structured Property Financing
Structured Property Financing Continuous focus on risk management Performing portfolio loan-to-value (LTV)1) Performing portfolio yield-on-debt (YoD)2) 58% 8,5% 9,6% 9,6% 9,7% 56% 57% 56% 55% 7,1% 12/21 12/22 12/23 12/24 12/25 12/21 12/22 12/23 12/24 12/25 Loan-to-value (LTV) by property type Yield-
Slide 38: Structured Property Financing
Structured Property Financing US office market remains challenging Performing US office portfolio by top 5 cities Performing US office portfolio by (layered) LTVs (avg. LTV: 75% vs. 75% 12/24) 80 - 90%: 2% >90%: 0% Others: 12% 70 - 80%: 7% Philadelphia: 6% 60 - 70%: 11% San Francisco: 6% € 1.9 bn 50
Slide 39: Structured Property Financing
Structured Property Financing Non-performing loans € <1.0 bn expected in 2026 Non-performing loans Non-performing loans by country € mn € mn France: 8 Germany: 28 Italy: 40 1,606 1,381 € 1,145 mn 1,145 1.000 <1,000 USA: 1.069 2023 2024 2025 2026e Non-performing loans by property type US office NPLs
Slide 40: Aareal's 'credible and impactful' Green Finance Framework
Aareal’s ‘credible and impactful’ Green Finance Framework Sustainable finance activities based on Green Finance Frameworks (Lending & Liabilities) Strategic integration of sustainability across business, credit, funding and risk Green Finance Frameworks validated via Morningstar Sustainalytics SPO A
Slide 41: 42% of CREF portfolio classified as Green Property Financings
42% of CREF portfolio classified as Green Property Financings CREF1) portfolio Green Property Financings2) by property type others: 1% Green Residential: 8% € 14.5 bn € 8.7 bn Properties Green Hotel: 13% Office: 32% 42% Property € 5.8 bn € 14.5 bn Financings Retail: 20% Green Asset Pool Logistic: 26
Slide 42: ESG Rating results rewarding Aareal's sustainability performance
ESG Rating results rewarding Aareal’s sustainability performance CCC B BB BBB A AA AAA since 2024 ‘A’ rating shows solid ESG performance in managing the most significant ESG risks and opportunities relative to industry peers Prime threshold D- D D+ C- C C+ B- B B+ A- A A+ since 2024 Prime Status con
Slide 43: Appendix Funding, Liquidity & Capital
Appendix Funding, Liquidity & Capital 42
Slide 44: Funding & Liquidity
Funding & Liquidity Strong Mortgage Cover Pool and Aaa Rating for Pfandbriefe Cover Pool by Country Share within cover pool Cover Pool by Property Type € mn Others: 1% 4.000 3.610 25% Residential: 10% Hotel: 28% 20% 3.000 2.279 2.096 15% 2.000 1.781 1.824 1.777 Retail: 20% € 18.1 bn 1.298 10% 995 1.
Slide 45: Funding & Liquidity
Funding & Liquidity German Pfandbrief Act provides additional protection Cover mortgage’s loan-to-value ratio ≤ 60% of the Aareal Bank cover pool2) conservatively calculated mortgage lending value1) Market Safety 45% value buffer -65% of MV -69% 35% Safety 100% 60% of Value buffer MLV 25% Mortgage l
Slide 46: Liquidity & Funding
Liquidity & Funding Aareal Bank`s outstanding Pfandbrief Benchmark Transactions Outstanding Pfandbrief Benchmark Transactions Product Ratings1) Currency Volume Maturity Coupon ISIN Pfandbriefe Aaa EUR 750,000,000 02/13/26 3,125% DE000AAR0389 Pfandbriefe Aaa EUR 500,000,000 05/18/26 3.875% DE000AAR03
Slide 47: Funding & Liquidity
Funding & Liquidity MREL capacity well above regulatory requirements MREL capacity vs. requirements (31.12.2025) € mn Senior Preferred have significant protection from subordinated liabilities and own funds 10.000 Run-down of subordinated liabilities well manageable, Subord. Liabilities (1-5y) after
Slide 48: Funding & Liquidity
Funding & Liquidity Ratings reflect strong credit profile based on solid capital and liquidity ratios Financial Ratings ESG-Ratings Fitch Ratings Moody‘s Issuer default rating (positive) BBB Issuer rating (stable) Baa1 MSCI A Short-term issuer rating F2 Short-term issuer rating P-2 ISS-ESG prime (C)
Slide 49: Interest payments and ADI of Aareal Bank AG
Interest payments and ADI of Aareal Bank AG Available Distributable Items (as of end of the relevant year) € mn) 31.12.2022 31.12.2023 31.12.2024 31.12.2025 Net Retained Profit 61 452 2,440 418 Net income 61 391 1,988 -81 Profit carried forward from previous year - 61 452 499 Net income attribution
Slide 50: Appendix Group Results
Appendix Group Results 49
Slide 51: Aareal Bank
Aareal Bank Financial performance 12M 2025 01.01.- 01.01.- € mn 31.12.20241) 31.12.2025 Net interest income 1.060 934 Net commission income -4 4 Loan impairment charges (LICs) -396 -322 Administrative expenses (adjusted)2) -343 -317 Other items 11 27 Adjusted operating profit2) 328 326 Non-recurring
Slide 52: Aareal Bank
Aareal Bank Financial performance 12M 2025 Structured Property Banking & Digital Consolidation Aareal Bank Financing Solutions 01.01.- 01.01.- 01.01.- 01.01.- 01.01.- 01.01.- 01.01.- 01.01.- € mn 31.12.2024 31.12.2025 31.12.2024 31.12.2025 31.12.2024 31.12.2025 31.12.2024 31.12.2025 Net interest inc
Slide 53: Aareal Bank
Aareal Bank Results - quarter by quarter Structured Property Banking & Digital Consolidation Aareal Bank Financing Solutions Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 € mn 2024 2025 2025 2025 2025 2024 2025 2025 2025 2025 2024 2025 2025 2025 2025 2024 2025 2025 2025 2025 Net intere
Slide 54: Appendix Definitions and contacts
Appendix Definitions and contacts 53
Slide 55: Definitions
Definitions New Business = • Newly acquired business + renewals Common Equity Tier 1 ratio = • CET 1 / Risk weighted assets CIR = • Admin expenses (excluding bank levy/deposit guarantee scheme) / Net income • Net interest income + Net commission income + Net derecognition gain or loss + Net gain or
Slide 56: Contacts
Contacts Ralf Löwe Jürgen Junginger Head of Treasury Head of Debt Investor Relations Managing Director Managing Director Phone: +49 611 348 3001 Phone: +49 611 348 2636 ralf.loewe@aareal-bank.com juergen.junginger@aareal-bank.com Christopher Linnert Sebastian Götzken Head of Funding Director Debt In
Slide 57: Disclaimer
Disclaimer © 2026 Aareal Bank AG. All rights reserved. This document has been prepared by Aareal Bank AG, exclusively for the purposes of a corporate presentation by Aareal Bank AG. This presentation may contain forward-looking statements. Forward looking statements are statements that are not histo
Slide 58: Thank you!
Thank you! 57