German bank pbb Deutsche Pfandbriefbank has reported a profits surge driven by an almost €1 bn increase in new real estate lending.

German bank pbb Deutsche Pfandbriefbank has reported a profits surge driven by an almost €1 bn increase in new real estate lending.

H1 saw a 38% rise in pre-tax profits to €83 mln from €60 mln in the first half of 2013.

Its new business (including extensions beyond one year) amounted to €4.3 bn, up from €3.4 bn in H1 2013.

The increase was almost entirely due to new real estate loans, which rose to €3.7 bn from €2.8 bn the previous year. More than half of its new loans originated in Germany, with the rest spread across Europe.

It has also altered its funding mix, with the total volume of new long-term funding raised in H1 down to € 3.1 bn from €5 bn the previous year.