In the future, Deutsche Pfandbriefbank AG intends to focus even more on its core business of commercial real estate financing. The bank therefore decided in March to combine the business in public investment financing with the value portfolio and thus transfer it to a non-core area. In the course of this, the brokerage business for loans to municipalities and municipalities of Capveriant, a joint subsidiary of pbb and Caisse des Dépôts for the brokerage of municipal loans, is to be given to other hands or discontinued in the short term. Concrete talks are under way. By merging the PIF and VP areas into a non-core area, securities with a positive earnings contribution of EUR 8 million could be reduced.
Capveriant is a credit platform supported by the Deutsche Pfandbriefbank and the French Caisse des Dépôts Group, which aims to bring lenders and municipalities in Europe together. France’s Caisse des Depots (CDC) acquired a stake in Capveriant just two years ago.
It is not clear whether the demands of the hedge fund Petrus Advisors were met. The activist investor, who claims to have a stake of almost 3 percent in pbb, had accused the institute of “significant strategic weaknesses” because too much capital was used below the cost of capital. The goal of the bank itself is to generate a return on equity before taxes of at least 10 percent by 2026.
Taking into account the full recognition of the bank levy for the year as a whole, pbb achieved pre-tax earnings of EUR 32 million in the first quarter after EUR 42 million in the same period of the previous year.
2023-05-15 11:38:22
#pbb #sells #Capveriant
