Germany’s PBB reports $31.27 million profit in Q1 2024, Real Estate News, ET RealEstate
FRANKFURT: Deutsche Pfandbriefbank (PBB), one of Germany‘s top property financiers, posted a slight rise in first-quarter profit and an increase in risk provisions as it navigates troubles in the real-estate industry.
The bank’s quarterly profit was 29 million euros ($31.27 million), compared with 27 million a year earlier, while provisions for loan losses shot up to 47 million euros from 2 million euros last year, it said on Tuesday.
PBB said it would reduce exposure to Britain and the United States – where it had rapidly expanded at the end of the last decade – through the disposal of office, home and hotel loans worth around 900 million euros.
Private equity giant Blackstone is in talks with PBB to purchase the portfolio, a source familiar with the matter told Reuters. The discussions were earlier reported by Bloomberg.
PBB, which earlier this year saw its credit rating cut and its shares drop sharply as fears of a widening property crisis in the United States and Europe took hold, said that growth of non-performing loans was “moderate” and that “capital and liquidity resources remain at a comfortable level”.
“We have generated solid earnings in the first quarter, weathering an ongoing challenging market environment,” said Chief Executive Kay Wolf.
