Germany's PBB posts slight quarterly profit gain, risk provisions rise (updated)

Deutsche Pfandbriefbank AG

14/05/2024 06:14

(Updates with details in paragraphs 3-5)
       FRANKFURT, May 14 (Reuters) - Deutsche Pfandbriefbank
 PBBG.DE  (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, figures on Tuesday showed.
    The bank, which earlier this year got cuts to its credit
rating and whose shares dropped sharply as fears of a widening
property crisis took hold, said that growth of non-performing
loans was "moderate" and  that "capital and liquidity resources
remain at a comfortable level".
        It said it would reduce exposure to Britain and the
United States - where it had rapidly expanded at the end of the
last decade - through a transaction of office, home and hotel
financings with a volume of around 900 million euros. 
  
        "We have generated solid earnings in the first quarter,
weathering an ongoing challenging market environment," said
Chief Executive Officer Kay Wolf.
  
        
  
($1 = 0.9274 euros)

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