Pbb's new property loans hit record level in 2015

German lender Pbb said new business hit a record of €12 bn in 2015 and is expected to remain around the same level this year.

New business (including extensions by more than one year) rose by 18% year-on-year to €12 bn in 2015, of which €10.4 bn in real estate finance.

The number of transactions reached 180, up from 161 in the previous year. Germany, pbb’s home market, was again the bank's most important market for Real Estate Finance business with Pbb originating 47% of new business in this country, followed by the UK (18%), France and the Nordic countries (10% each), and finally Central and Eastern Europe (7%).

The average loan-to-value ratio for new commitments was 63%, slightly down year-on-year from 64% in 2014.

Pbb increased its consolidated pre-tax profit by 12% to €195 mln in 2015 from €174 mln a year earlier. For the year 2016, pbb expects pre-tax profit slightly below the level seen in 2015.

'A key milestone for 2015 was pbb's privatisation, which we achieved through the flotation. At the same time, pbb generated its highest operating results yet in 2015,' commented Andreas Arndt, pbb's co-CEO and CFO. '2016 will present particular challenges, both in terms of regulation and the market environment. Nonetheless, we expect good pre-tax profits, which however are likely to be slightly lower than the very good figures posted in the previous year.'