Deutsche Pfandbriefbank sees pre-tax profit double in Q3

Deutsche Pfandbriefbank saw its pre-tax profit rise to €62 mln in the third quarter of 2013, up from €31 mln in Q2.

Pre-tax profit for the first nine months of the year has already reached the full-year 2012 level of €122 mln.

The Munich-based lender also said new business grew to €2.1 bn in the third quarter, up 50% year-on-year. The bank originated aggregate new business of €5.5 bn in the first nine months, exceeding the volumes posted in the same 2012 period by 90% and surpassing the full-year 2012 level of €5.6 bn.

'pbb Deutsche Pfandbriefbank continues to progress well. We anticipate strong new business
in the fourth quarter,' said CEO Manuela Better. 'Having discontinued the servicing function for the FMS Wertmanagement portfolio - which we serviced successfully for the last three years, we now focus exclusively on our core business as a specialist lender for real estate finance and public investment finance.'

Real estate finance accounted for €4.6 bn of the total €5.5 bn in new business during the first nine months (including extensions beyond one year); with the remaining €0.9 bn originated in public investment finance.

Germany accounted for 53% of aggregate new business, followed by Pbb's other core markets in Central and Eastern Europe (15%), and in France and the UK (12% each).