Munich, 27 July 2021 - Deutsche Pfandbriefbank AG (pbb) generated consolidated pre-tax profit of €62 million during the second quarter of 2021, clearly ahead of the figure for the same quarter of the previous year and for the first quarter 2021 (preliminary, unaudited figures in accordance with IFRS; Q2 2020: €28 million, Q1 2021: €52 million). Profit before taxes for the first half of the year rose to €114 million, up from €30 million for the first six months of 2020. Based on the good business development during the first half of the year, pbb today raised its guidance for the full year 2021 substantially, despite some remaining uncertainty regarding potential risk provisioning requirements in the second half of 2021. The Bank now anticipates pre-tax profit of between €180 million and €220 million, above its previous guidance of at least €155 million. Profit before taxes for 2020 totalled €154 million.
In the first half of 2021, pbb increased the aggregate of net interest and commission income to €251 million (H1 2020: €230 million); it also realised higher prepayment fees, which brought net income from realisations to €38 million (H1 2020: €16 million). Loan loss provisions of €33 million were markedly lower than in the previous year (H1 2020: €70 million), whilst general administrative expenses rose slightly, to €102 million (H1 2020: €97 million).
Most income and expense items were stable during the second quarter of 2021, compared to the first quarter. However, pbb increased its loan loss provisions to €23 million (Q1 2021: €10 million); while only minor expenses were recognised for the bank levy and similar dues. The bank levy, which is recognised for the full year in the first quarter, had burdened first-quarter results for 2021 with €28 million.
New real estate finance business continued to develop favourably: pbb originated €3.8 billion in the first half of 2021 (H1 2020: €2.7 billion, in each case including extensions by more than one year), with stable average gross margins on new business. Due to higher undrawn commitments and pre-payments, the volume of the commercial real estate finance portfolio declined to €26.8 billion (year end2020: €27.0 billion).
pbb will publish its interim report for the first half of the year on 11 August 2021.
Walter Allwicher, +49-89-2 88 02 87 87, firstname.lastname@example.org
pbb Deutsche Pfandbriefbank (www.pfandbriefbank.com) is a specialist lender for commercial real estate finance and public investment finance in Europe and the United States of America. pbb is a major issuer of Pfandbriefe, which makes it also an important player in the European covered bond markets overall. pbb is listed on the Frankfurt Stock Exchange.