German property lender PBB's 2023 profit plunges, provisions soar (updated)

Deutsche Pfandbriefbank AG

07/03/2024 06:07

(Updates with details from paragraph 3)
       FRANKFURT, March 7 (Reuters) - Deutsche Pfandbriefbank
 PBBG.DE  (PBB), one of Germany's top property financiers,
posted its lowest annual profit and biggest loss for soured
loans since going public, underscoring the severity of a
real-estate slump reeling industry and finance.
    The bank's 2023 profit crumbled to 91 million euros,
compared with 187 million euros a year earlier, while provisions
for loan losses shot up to 212 million euros from 44 million
euros, figures on Thursday showed.
    "PBB is in a far better position than its recent performance
on the capital markets might suggest," it said. 
        "At the same time, we are well aware of the need to win
back trust."
  
        The bank said it won't pay a dividend for 2023, but
forecast 2024 profit to be "significantly higher".
  
        "However, the overall situation remains challenging and
PBB expects prices in the US to decline further in the first six
months of 2024, while price drops in Europe are likely to be
more moderate, as in 2023," the bank said.
  

 (Reporting by Tom Sims, Editing by Rachel More)
 ((Tom.Sims@thomsonreuters.com; +49 30 220 133 645;))