Aareal Bank Posts Loss In Q4, FY20; Declares Dividend; Sees Profit In FY21; Backs FY23 Profit View

Aareal Bank AG (AAALF.PK) reported Wednesday that its fourth-quarter consolidated net loss allocated to ordinary shareholders amounted to 93 million euros, compared to income of 38 million euros a year ago.

The consolidated operating loss was 99 million euros, compared to operating profit of 62 million euros a year ago. Loss allowance due to Covid-19 amounted to 177 million euros, higher than prior year’s 35 million euros.

Net interest income in the final quarter amounted to 139 million euros, up from 130 million euros last year.

In fiscal 2020, attributable net loss was 90 million euros or 1.50 euros per share, compared to a profit last year. Net interest income was 512 million euros, lower than the prior year.

Further, the company announced that a total dividend distribution of 1.50 euros per share is planned in two stages in 2021 for the 2020 financial year, subject to approval by the Supervisory Board and a commensurate economic situation.

A dividend proposal of 0.40 euro per share is intended to be submitted to the Annual General Meeting in May.

Looking ahead, for fiscal 2021, Aareal Bank expects a clearly positive consolidated operating profit in a range of between 100 million euros and 175 million euros, despite high loss allowance. Earnings per share is expected to be in the region between 0.70 euro and 1.50 euros.

Net interest income is expected to rise to between 550 million euros and 580 million euros.

Further, the company confirmed 300 million euros target for consolidated operating profit in 2023.

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