Deutsche Pfandbriefbank AG (pbb) comments on public letter by Petrus Advisers


pbb has taken note of the letter published today by Petrus Advisers. As a leading European specialist bank for commercial real estate financing and public investment finance, pbb is committed to creating sustainable business success and enhancing value for all shareholders and stakeholders. 

Thanks to its thoroughly calibrated strategy balancing the interests of all stakeholders, investors and clients as well as regulators, pbb has demonstrated a strong operational performance since its IPO and has a strong balance sheet. This even applies for recent years in a more challenging market environment. As a result, pbb was able to deliver to its shareholders an average dividend yield of around 7.5% p.a. since its IPO in 2015, which is well above market average. In total, dividends paid out amount to more than EUR 700 million which is almost 50 % of the bank’s IPO valuation.

In March 2022 the Management Board has announced three strategic initiatives: (1) pbb intends to grow its core portfolio organically. (2) pbb will further expand its ESG offering. Today, pbb is already a leading bank in green unsecured funding. By 2025, 30% of the financed properties shall be green. (3) pbb will continue to digitize, and execute on the management’s strategy, thus further increasing efficiency. Furthermore, the bank plans to enhance growth beyond balance sheet income and is currently setting up the new business area “Real Estate Investment Management”. At the time of publication of the full-year results on March 9, pbb will announce how it will expand these strategic initiatives to further strengthen profitability.

The Management and Supervisory Board of pbb continue to maintain an active and open dialogue with all shareholders and welcome constructive input towards the common goal of enhancing value for all its shareholders and stakeholders.