Deutsche Pfandbriefbank rises after Citi upgrade

Deutsche Pfandbriefbank AG

10/05/2024 09:52

** Shares in Deutsche Pfandbriefbank (PBB)  PBBG.DE  are up
3% after Citi upgrades the German lender to "neutral" from
"sell" as interest rates in Europe are seen to decline, which
might have a positive impact on real estate outlook
    ** The broker notes also that PBB is increasing its retail
deposit funding, while consensus for the lender's loan loss
provisions reached its base case of about 260 million euros for
2024-25
    ** The broker increased its net profit forecast for 2024-26
by about 10 million euros, mainly due to higher revenues
    ** Citi however notes that challenges remain: PBB's NPLs are
still high with provisions coverage below peer average, and it
also expects a capital decline in 2024
    ** Out of eight analysts that cover PBB, two rate the stock
"strong buy" or "buy,"​ two rate it "hold" and four​ rate the
stock "strong sell" or "sell"


 (Reporting by Eva Orsolya Papp)
 ((evaorsolya.papp@thomsonreuters.com))