Pbb Deutsche Pfandbriefbank saw pre-tax profit rise 42% to EUR 30 mln in the second quarter of 2012 from EUR 21 mln in the first three months of the year. For the first six months, pre-tax profit - according to IFRS guidelines - amounted to EUR 51 mln.
Pbb Deutsche Pfandbriefbank saw pre-tax profit rise 42% to EUR 30 mln in the second quarter of 2012 from EUR 21 mln in the first three months of the year. For the first six months, pre-tax profit - according to IFRS guidelines - amounted to EUR 51 mln.
The Munich-based bank is maintaining its full-year target for pre-tax profit in a range of EUR 100-140 mln. It is also maintaining its forecast of EUR 8 bn in new business for 2012 despite a further decline in the second quarter.
New business fell by 12% in Q2 to EUR 0.7 bn from EUR 0.8 bn in the first quarter following a slowdown at the end of 2011 due to the uncertain funding climate. However, margins increased in both the real estate finance and public investment finance divisions to more than 240 basis points and 140 bps respectively. In full-year 2011, margins were around 205 bps for real estate finance and around 105 bps for public investment finance.
Barring any major changes to the market environment, the bank anticipates a ‘marked increase’ in new business during the second half of the year. In July, the bank originated new business of EUR 0.6 bn according to preliminary figures with overall business activities increasing significantly.
Commenting on the results, CEO Manuela Better said the first-half performance was in line with expectations. ‘We aim to boost new business during the second half of the year. Thanks to our success on the funding markets during the first half of 2012, we have sufficient liquidity at our disposal to retain a comfortable liquidity position in the event of a marked increase in new business.’
