GARCHING (dpa-AFX) - Deutsche Pfandbriefbank is preparing for even less in 2023 after a drop in profits in the past year. Pre-tax profit is expected to fall from the latest 213 million to 170 to 200 million euros due to higher investments, the SDax-listed commercial real estate financier announced in Garching near Munich on Thursday. By 2026, however, the pre-tax return on equity is expected to rise from the latest 6.3 percent to more than 10 percent. "The solid operating performance and comfortable capitalization give us the opportunity to invest more in the strategic development of the bank this year," said CEO Andreas Arndt.

In the past year, the bank's pre-tax profit fell 12 percent to 213 million euros due to declining prepayment fees. Net income fell 18 percent to 187 million euros. Shareholders are to receive a dividend of 95 cents per share, after the bank had paid out 1.18 euros for 2021./stw/mis