Nationalised German real estate lender Deutsche Pfandbriefbank has achieved its first positive quarterly result since Q4 2008 when it almost fell victim to the credit crisis.

Nationalised German real estate lender Deutsche Pfandbriefbank has achieved its first positive quarterly result since Q4 2008 when it almost fell victim to the credit crisis.

The bank booked a pre-tax profit of EUR 119 mln for the third quarter of 2010 compared to a EUR 321 mln loss in the same period last year. The lender also saw its pre-tax losses narrow to EUR 233 mln for the first nine months of 2010 compared to a pre-tax loss of EUR 1.4 bn in the year-earlier period.

The Q3 figures do not take account of the transfer of EUR 173 bn in troubled assets to the government-guaranteed bad bank, FMS Wertmanagement, on 1 October.

On Monday, the supervisory board of Deutsche Pfandbriefbank appointed Manuela Better as chairperson of the management board. She has been serving as interim CEO since March 2010 and had been appointed to the management board in February 2009.

Deutsche Pfandbriefbank is the core strategic bank of listed holding company Hypo Real Estate (HRE) Group. HRE said on Tuesday that it expects the bank 'will continue to be profitable in the fourth quarter of 2010, as well as in the 2011 financial year'.
Lower provisions for losses on loans and advances of minus EUR 17 mln compared to minus EUR 631 mln in Q3 2009 had a positive effect on the overall result. Operative revenues declined in absolute terms, to EUR 241 mln from EUR 390 mln last year.

The bank carried out 51 real estate financing deals with a total volume of EUR 2.4 bn in the first nine months of 2010.

Deutsche Pfandbriefbank was created in June 2009 by the merger of HRE's two subsidiaries, real estate lender Hypo Real Estate Bank and public finances lender Depfa Deutsche Pfandbriefbank.

Its predecessor, Hypo Real Estate Bank, was saved from collapse under the weight of a credit squeeze in October 2008 by a multi-billion public-private bail out in October 2008. Further state support followed and HRE was nationalised in June 2009.

Click on the link below for more information on Deutsche Pfandbriefbank's new lending so far in 2010