WIESBADEN (dpa-AFX) - Aareal Bank Group (AAALF.PK) reported that its preliminary 2018 consolidated net income allocated to ordinary shareholders amounted to 208 million euros compared to 191 million euros, prior year. Earnings per ordinary share was 3.48 euros compared to 3.20 euros. Including the non-recurring effect of 55 million euros from the acquisition of Düsseldorfer Hypothekenbank, consolidated operating profit for Aareal Bank Group for the 2018 financial year totalled 316 million euros, compared to 328 million euros in 2017.
Net interest income in the 2018 financial year was 535 million euros, compared to 584 million euros in the previous year, and within the company's forecasted range. The company said the year-on-year decline was attributable, in particular, to the planned reduction of WestImmo and Corealcredit portfolios. Including the net derecognition gain, net interest income amounted to 559 million euros during the 2018 financial year compared to 634 million euros, prior year.
For the fourth-quarter, including the non-recurring effect of 55 million euros from the acquisition of Düsseldorfer Hypothekenbank, consolidated operating profit for Aareal Bank Group totalled 117 million euros, after 66 million euros in the same quarter of 2017. Net interest income was at 135 million euros, flat year-on-year.
For the full year 2019, Aareal Bank expects consolidated operating profit to be in a range between 240 million euros and 280 million euros; range in line with the previous year's level, adjusted for the positive nonrecurring effect related to the acquisition of DHB. The Bank expects RoE before taxes of between 8.5 percent and 10 percent for the current financial year, with earnings per share approximately between 2.40 euros and 2.80 euros. Aareal Bank expects Group net interest income (excluding net derecognition gain) to be in a range of 530 million euros to 560 million euros.
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