Aareal Bank Group (ARLN) Q3 2026 earnings summary

Executive summary

• 9M adjusted operating profit was €303m before the additional €160m impairment charge and €143m after it; underlying profit was nearly unchanged YoY and remained on track for pre-charge guidance.

• The charge accelerated de-risking and strengthened strategic flexibility; it was not attributed to weaker current portfolio quality.

• Both segments performed strongly, with funding, liquidity and capital positions solid and portfolio repositioning continuing.

Financial highlights

• 9M net interest income rose 4% YoY to €722m from €691m; net commission income was -€10m versus €4m, including ongoing SRT costs.

• Loan impairment charges totaled €365m, including the additional €160m; excluding it, charges were €205m versus €190m in 9M 2025.

• Adjusted administrative expenses were €233m versus €229m; cost/income ratio was 31.4% versus 31.5%.

• Operating profit was €123m versus €281m; net profit was €34m versus €173m.

• Adjusted ROE was 8.0% before the additional charge and 2.0% after it.

Outlook and guidance

• FY26 adjusted operating profit guidance is ~€240m after the charge; pre-charge guidance remains approaching €400m. Adjusted ROE guidance is ~4% after the charge versus ~8% before it.

• Risk costs are expected to normalize from Q4 2026; year-end NPL target is below €1bn and an NPL ratio of 3.0% or below.

• FY26 targets include BDS average deposits of ~€17.5bn and an SPF year-end portfolio of ~€34bn; new business including renewals is expected at the lower end of the €10bn–€12bn range.

• 2027 targets remain adjusted ROE ~13%, cost/income ratio ~30%, fully phased CET1 at least 13.5% and NPL ratio 3% or below.

• Basel IV fully phased CET1 is expected at ~15.5%–16% at year-end.