Aareal Bank Reports Strong 2025 Operating Performance Within Guidance
Aareal Bank has released its 2025 full-year results, showing robust operational performance. The adjusted operating profit before strategic measures reached €381 million, remaining within the targeted range.
Wiesbaden, Germany – Aareal Bank continued its positive business development in the 2025 fiscal year. The bank's adjusted operating profit before strategic measures stood at €381 million, within its target range. In addition, the bank incurred €55 million in additional expenses as part of repositioning its US business, aimed at accelerating the reduction of US office property loans.
The remaining adjusted operating profit was €326 million, on par with the previous year. The Banking & Digital Solutions (BDS) segment delivered a significant earnings contribution, with total deposit volumes increasing to €17.8 billion. Meanwhile, new business in property financing hit a record €12.4 billion, and the bank's overall risk provisioning decreased considerably.
Costs were reduced by eight percent, leading to a cost-income ratio of 33 percent. The bank's capital position strengthened, with its common equity tier 1 (CET1) ratio rising to 15.5 percent. The Aareal Ambition strategy is reported to be on track.
Looking ahead to 2026, Aareal Bank anticipates its adjusted operating profit to reach approximately €400 million. The bank also aims to reduce its non-performing loan (NPL) portfolio to below €1 billion. A return on equity target of around 13 percent by 2027 is supported by a stronger focus on BDS and the US business repositioning.