Aareal Bank, which specializes in the financing of offices and hotels, sees black numbers on the horizon again after a loss last year.
For 2021, an operating result in a range of 100 million to 175 million euros is expected, the institute announced on Wednesday. The risk provisioning for bad loans will probably be below the level of last year, but above the long-term average. The bank is well positioned for the economic recovery phase that will set in this year, said CFO Marc Heß, who is currently representing the sick CEO Hermann Merkens.
In 2020, Aareal Bank slipped into the red due to the corona pandemic. Before taxes there was a loss of 75 million euros after a profit of 248 million euros in the previous year. Risk provisioning amounted to EUR 344 (2019: 90) million. At 7.2 billion euros, the volume of new business did not come close to the previous year’s 7.7 billion euros.
(Reuters)
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