FRANKFURT, March 29 German property lender
Aareal Bank may pay shareholders a special dividend
because the acquisition of Corealcredit has bolstered
its capital, its finance chief said in a Saturday newspaper
Chief Financial Officer Josef Merkens told daily
Boersen-Zeitung the lender now has more capital than it needs
for its business after the acquisition put its Tier 1 capital
ratio at 12.4 percent.
"If we have excess capital in the longer term we will return
it to shareholders if we do not need it for our balance sheet
and no further acquisitions are planned," he said.
He declined to say how much Aareal could pay out.
Aareal's management will decide whether to pay a special
dividend once the lender has repaid the state aid it received
during the financial crisis in the form of so-called silent
The company said last month it planned to issue hybrid
capital - additional Tier 1 capital, or AT1 - in the second half
of the year that would enable it to repay German bank rescue
In his interview with Boersen-Zeitung, Merkens said Aareal
would like to issue the hybrid capital in the second quarter.
He said issuance depended on German authorities issuing new
guidance on the tax conditions that would apply to the AT1
"That has been taking longer than we expected," he said.
Aareal received 525 million euros ($722 million) in a form
of debt-equity hybrid called a "silent participation" at the
height of the crisis, of which 300 million has yet to be repaid.
($1 = 0.7271 Euros)
(Reporting by Maria Sheahan; Editing by Sophie Hares)