Aareal Bank AG, a German financial institution, announced on Thursday that its consolidated net income for the first half of the year increased to €128 million, compared to €90 million from the previous year, after accounting for taxes of €53 million.
The bank's operating profit surged by 31% to €181 million in the first half, driven by robust income growth.
Net interest income for the half-year period saw an 11% rise, reaching €530 million from the previous €476 million. This growth was attributed to an expanded credit portfolio, favorable margins on new business, and a stable deposit-taking segment.
Provisions for risk amounted to €163 million for the first half, up from €160 million last year, primarily due to loan defaults related to US office properties.
Looking forward, Aareal Bank anticipates consolidated net income of approximately €2.2 billion for the full year 2024. The bank confirmed that it remains on course to achieve its target operating profit of between €250 million and €300 million in 2024.
