- Pre-tax profit up over 2Q16, by more than 30% to €56 million – marked year-on-year increase also in the first half of 2017
- Net interest income with positive development thanks to relatively stable margins in client business and reduced funding costs
- New business of €5 billion in the first half of 2017 higher than the previous year – gross new usiness margin up during the second quarter
- Following a successful first half of the year, pbb now expects pre-tax profit to be at the upper end or slightly above the guidance of €150-170 million
Munich, 14 August 2017 – During the second quarter of 2017, Deutsche Pfand-briefbank (pbb) significantly increased pre-tax profit to €56 million (Q2 2016: €42 million; consolidated figures in accordance with IFRS). The bank also markedly exceeded the previous year’s figure on a half-year basis, with €103 million (6m 2016: €87 million). This performance was driven by a positive development of net interest and commission income, which totalled €105 million in the second quar-ter and €211 million in the first half of the year (Q2 2016: €94 million, 6m 2016: €198 million). As in the prior year, no loan loss provisioning was required during the first half-year. General and administrative expenses rose in line with expectations to €52 million during the second quarter, reaching €102 million for the first six months of the year (Q2 2016: €49 million, 6m 2016: €94 million). This development in par-ticular reflects increasing costs in relation to regulatory demands as well as a tech-nical effect in personnel expenses, which had benefited from the utilisation of provisions in 2016.
New business rose to €5 billion at the end of the first half of the year, slightly ex-ceeding the volume of the same period last year (6m 2016: €4.7 billion; new busi-ness numbers including extension beyond one year). The bank’s strategic portfolio grew by €0.5 billion to €32 billion versus year-end 2016, while the non-strategic portfolio was reduced further – as planned – to €14.6 billion (31 December 2016: €15.8 billion).
Following good results in the first half of the year, pbb now expects pre-tax profit in the full-year of 2017 to be at the upper end or slightly above the guidance of €150-170 million which the bank had stated at the beginning of the year. In terms of new business, pbb confirmed its guidance of a volume between €10.5-12.5 billion. However, given pbb’s consistently risk-conservative approach to new business, an intensely competitive environment, and challenging credit markets, repayments were higher than expected during the first half of the year, whilst loan drawdowns fell short of expectations. Accordingly, the bank no longer expects its strategic fi-nancing volume to grow markedly, but now anticipates a moderate increase.
CEO Andreas Arndt said: “Relatively stable margins in our client business and reduced funding costs produced a positive performance for net interest and com-mission income in the first half of the year. Against this background, pbb is well on track. Material challenges that pbb – as with the industry as a whole – continues to face are the competitive situation and fiercer regulation, inciting higher costs and risk-weighted assets.”
Facts and figures for the first half of 2017 (consolidated figures in accordance with IFRS) are available in the download below.
Media contacts:
Walter Allwicher, +49 89 2880-28787, walter.allwicher(at)pfandbriefbank.com