Aareal Bank continues to reduce accounting risks. The MDAX-listed real estate financier from Wiesbaden reports a further reduction in Italian non-performing loans. “Around 140 million euros were sold to investors as part of a sale of receivables,” the company announced on Friday. Aareal Bank does not provide comprehensive information on the financial details of the sale of receivables. According to the company, the transaction will result in expenses of around EUR 10 million, which will be recorded in the balance sheet of the second quarter.
“Despite this additional one-time impact on earnings, Aareal Bank Group expects a slightly positive result for the second quarter,” said the company. The quarterly figures will be presented on August 13.
In mid-2019, Aareal Bank more than halved the volume of non-performing loans in Italy to less than EUR 500 million. The strategy is to be continued: “In a phase of great uncertainty on the real estate and capital markets, we once again succeeded in significantly reducing our credit risks in Italy with absolutely reasonable effort. In this way, we want to reduce risk positions as the year progresses, if there are economically viable options for this, ”announced the company’s CEO, Hermann J. Merkens.
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