German property bank PBB posts drop in Q2 profit, rise in provisions (updated)

Deutsche Pfandbriefbank AG

14/08/2024 06:13

(Updates with details in paragraph 2, graphics , background in
paragraph 4)
       FRANKFURT, Aug 14 (Reuters) - Deutsche Pfandbriefbank
 PBBG.DE  (PBB), one of Germany's top property financiers,
posted a fall in second-quarter profit and an increase in risk
provisions as it navigates troubles in the real-estate industry,
figures on Wednesday showed.
    PBB said that it expects the commercial property market,
whose troubles on both sides of the Atlantic plunged the bank
into turmoil earlier this year, to "enter calmer waters" during
the second half of 2024. 
    The bank's quarterly profit was 11 million euros ($12.09
million), compared with 42 million euros a year earlier, while
provisions for loan losses rose to 56 million euros from 19
million euros last year.
    
      The bank earlier this year got cuts to its credit rating,
and its shares and bonds dropped sharply as fears of a widening
property crisis took hold. 
($1 = 0.9098 euros)

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Under pressure    https://reut.rs/4coaeCr
Real-estate concerns    https://reut.rs/3SLZlDJ
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Tom Sims and Alexander Huebner
Editing by Ludwig Burger and Miranda Murray)
 ((Tom.Sims@thomsonreuters.com; +49 30 220 133 645;))