pbb: more new business with lower margins
Deutsche Pfandbriefbank (pbb) concluded 29 real estate financing transactions in the first quarter with a volume of €1.9bn, €200mn of which were extensions. This exceeded the previous year’s new business by 12%. The average gross margin, however, dropped from 155 to 130 basis points. pbb says that this was due to an increased share of conservative financing. The bank did a large amount of business in Germany (51%) and France (26%), as well as office (55%) and residential real estate (22%) transactions. In contrast, shares declined for properties in the UK (6%) and in Central and Eastern Europe (1%), as did logistics properties (4%). The new business mix is expected to normalize in the second quarter, with margins higher once again. Net interest rose by over 8% to €116mn due to higher interest income from the loan portfolio, which grew by €1bn, and from shrinking refinancing costs. Earnings before tax were at €48mn, near last year’s level. These figures confirm pbb’s forecast of €170mn to €190mn for the year.
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