Deutsche Pfandbriefbank reports profit following US market exit

Deutsche Pfandbriefbank has reported a return to profitability in the second quarter, following its strategic withdrawal from the US commercial real estate market. The bank recorded 10 million euros in profit before taxes and net income for the quarter, a significant turnaround from the 266 million euro net loss reported during the same period last year.

While the net interest income decreased from 104 million euros to 81 million euros due to the absence of US operations, the bank noted that no further risk costs were incurred in the US. Provisions for loan losses were limited to 11 million euros.

CEO Kay Wolf stated that the bank's transformation is on track, highlighting that new business is growing significantly and profitably. In the first half of the year, new business totaled 3.1 billion euros, an 18 percent increase compared to the previous year. The bank maintains its full-year target for new business between 7.5 billion and 8.5 billion euros and aims for a pre-tax profit of 30 to 40 million euros by 2026.