Munich, 26 February 2021 – Deutsche Pfandbriefbank AG (pbb) closed the financial year 2020 with a pre-tax profit of €154 million (unaudited consolidated figures in accordance with IFRS) as per its preliminary results, exceeding analysts' expectations in the consensus. The good result was based on an increase in net interest and commission income to €485 million (2019: €464 million) and stable administrative expenses of €204 million (2019: €202 million), while risk costs rose significantly to €126 million (2019: €49 million). The latter item was dominated by model-based provisions (stages 1 and 2) for conceivable credit risk due to the COVID-19 pandemic; in addition, loan loss provisions were increased for UK retail properties that had already been provisioned in stage 3 but which saw a further decline in property valuations.
In mid-December 2020, the ECB issued a recommendation that banks under its supervision should limit their dividend payments made before September 30, 2021. Based on good 2020 results and subject to ECB’s approval and requirements, the Management and Supervisory Boards of pbb will propose to shareholders to distribute a dividend of €0.26 € per dividend-bearing share, which is the maximum amount under ECB’s present recommendation. ECB further announced its intention to repeal the recommendation on September 30, 2021 in the absence of materially adverse developments. Pending this review, pbb will consider whether further dividend payments will be possible. pbb continues to adhere to its long-term oriented dividend policy with a payout ratio of 50% plus a special dividend of 25%.
Following a strong fourth quarter, pbb originated new business of €7.3 billion in commercial real estate finance on a full-year basis (2019: €9.0 billion; in each case including extensions beyond one year).
The Management Board will publish the preliminary consolidated financial statements for the financial year 2020 on 4 March 2021 during its Annual Press Briefing.
Media Contact
Walter Allwicher, +49 89 2880-28787, walter.allwicher@pfandbriefbank.com
pbb Deutsche Pfandbriefbank (www.pfandbriefbank.com) is a specialist lender for commercial real estate finance and public investment finance in Europe and the United States of America. pbb is a major issuer of Pfandbriefe, which makes it also an important player in the European covered bond markets overall. pbb is listed on the Frankfurt Stock Exchange.