Earnings before taxes in the third quarter amounted to 75 million euros.
(Photo: dpa)
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Deutsche Pfandbriefbank AG stops refinancing hotels and shopping centers. The risks here are particularly high due to the corona crisis and looming sales losses due to government lockdown measures.
“PBB has not made any new commitments for shopping centers and hotels that are particularly affected by the virus pandemic since the second quarter,” the company announced on Wednesday when it presented its nine-month figures. In addition, the Pfandbriefbank made further valuation haircuts for British shopping centers in the loan portfolio, which was reflected in increased risk provisioning.
In the wake of the pandemic, “investor and rental demand has fundamentally clouded over, the hotel and retail sub-markets, with the exception of food retail, are particularly affected,” the Pfandbriefbank continued. In this environment, the bank is even more selective.
Earnings before taxes in the third quarter amounted to 75 million euros, compared to 70 million euros a year earlier. Risk provisioning rose from 10 to 14 million euros. The company does not issue a specific annual forecast.
Pfandbriefbank shares climbed up to 5.5% in early trading in Frankfurt.
The Association of German Pfandbrief Banks, of which more than 40 members also include the Deutsche Bank AG counts, had only warned of the negative effects of the corona crisis this week. “The price dynamics for commercial real estate have come to a standstill,” it said at the presentation of the latest real estate price index. Restrictions on public life would have a dampening effect.
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