pbb raises guidance for the full year 2019, to a pre-tax profit between €205 million and €215 million


Munich, 7 November 2019 – Following a strong third-quarter performance, with pre-tax profit of €70 million, pbb increased profit before taxes for the first nine months of the year to €187 million (Q3 2018: €49 million / 9m 2018: €171 million; consolidated figures in accordance with IFRS, unaudited). Once again, net interest income had a positive impact: thanks to an increased strategic portfolio as well as lower funding costs, the net figure for the first nine months showed a slight increase. Higher net income from realisations – primarily due to considerably higher prepayment fees – added to the picture. As expected, higher income was accompanied by slightly higher general and administrative expenses, which increased in particular due to regulatory projects. Risk provisioning for the first nine months was in line with the previous year’s levels, reflecting pbb's consistent policy of applying conservative valuations in connection with measurement changes related to shopping centres in the United Kingdom.

On this basis, and especially in view of the fourth quarter, pbb resolved today to further raise its 2019 full-year guidance and now aims to achieve a pre-tax profit between €205 million and €215 million. In its most recent guidance, pbb had anticipated pre-tax profit at the upper end of the range between €170 million and €190 million, or slightly above.

Similar to the previous year, the raised guidance incorporates for the fourth quarter considerably higher expenditure, together with stable net interest income. In particular, given persistent economic uncertainty, the bank anticipates adjusting risk provisioning. In addition – also in line with the fourth quarter of the previous year – regulatory and investment-related expenses will increase. 

pbb will publish the interim statement for the first nine months of the current financial year on 11 November 2019.

Media contacts
Walter Allwicher, +49 89 2880-28787, walter.allwicher@pfandbriefbank.com