Deutsche Pfandbriefbank anticipates a “marked increase in new business” during the second half of 2012 after lending €1.2bn (£940m) against European commercial property in the six months to June.
The German bank, one of the most active lenders in the European real estate market, said new business remained “subdued” during the second quarter, when it lent €700m in line with €800m the previous quarter.
ppb’s so-called good bank, spun out of Hypo Real Estate, said its real estate division accounted for 80% of its €1.5bn first-half new business total.
It said: “Barring any major changes to the market environment, the bank anticipates a marked increase in new business during the second half of the year.”
pbb added that in July, after the quarter end, it originated €600,000 of new business, including extensions for more than one year, with overall business activities “significantly increasing” – an encouraging sign for the debt-starved UK property market.
The bank affirmed its full-year guidance of €8bn in new business for 2012, which it has previously stated includes around €6bn to European property.
Last year the bank lent nearly £1bn to UK property, cementing its position as one of 2011’s largest UK property lenders.
Average gross margins generated on new business remained higher than in 2011, with margins in real estate rising to more than 240 basis points in the first half. For the full year 2011 they were around 205 bp.
ppb’s Q2 pretax profit increased to €30m from €21m in Q1.
