Deutsche Pfandbriefbank has raised its outlook on pretax profit for 2013 to €150m after a strong increase in new business.
The nationalised German lender had guided profit of around €100m for the year in the light of “uncertain effects from the valuation of derivatives”, but has increased its projection after new business – including real estate finance – reached around €2bn in the third quarter.
In 2012 the bank made a full-year pretax profit of €124m.
This year the bank made a pretax profit of €60m in the first half of 2013, which it expects to beat in Q3, allowing it to match 2012’s full-year results by the end of the third quarter 2013.
In Q3 the volume of real estate finance, including extensions of more than one year, and public investment finance was roughly €2bn – around 50% more than the comparable period of the previous year (Q3 2012: € 1.4bn).
The robust third quarter was also explained by the sale of a restructured office property that the bank took over in 2010, which more than offset the expected negative effects from the valuation of derivatives.
After nine months, the bank’s new business volume almost matches the €5.6bn realised in the full year 2012, and pbb said it expected “strong new business development during Q4 as well”.
Results for Q3 will be published on 12 November 2013.
bridget.oconnell@estatesgazette.com
