pbb doubles pre-tax profit in the third quarter of 2013
• Pre-tax profit rises from € 31 million (Q2 2013) to € 62 million
• Third-quarter new business grows to € 2.1 billion, up 50% year-on-year
• After the first nine months, pre-tax profit and new business volume already at full-year level 2012
(firmenpresse) - Munich, 12 November 2013 – pbb Deutsche Pfandbriefbank significantly boosted results and new business in the third quarter, maintaining its positive business performance. Pre-tax profit (in accordance with IFRSs) doubled to € 62 million (Q2 2013: € 31 million). Meanwhile, at € 122 million, pre-tax profit for the first nine months of the year has already reached the full year level 2012 (FY 2012: € 124 million). Expected negative effects incurred during the third quarter, as a result of adjusting the valuation of derivatives to changed market conventions, and higher expenditure related to the termination of servicing for FMS Wertmanagement were more than compensated for by a gain from the sale of a restructured property. New business was up 50% year-on-year, to € 2.1 billion in the third quarter (Q3 2012: € 1.4 billion). Having originated aggregate new business of € 5.5 billion in the first nine months, pbb exceeded the volumes posted during the same period of the previous year by 90% and also already reached 2012’s full-year level of € 5.6 billion. The bank affirmed its full year target, which it had raised to a minimum of € 150 million in early October.
Manuela Better, CEO of pbb Deutsche Pfandbriefbank, said: “pbb Deutsche Pfandbriefbank continues to progress well. We also anticipate strong new business in the fourth quarter. Having discontinued the servicing function for the FMS Wertmanagement portfolio - which we serviced successfully for the last three years -, we now focus exclusively on our core business as a specialist lender for real estate finance and public investment finance.”
Real Estate Finance accounted for € 4.6 billion of the total € 5.5 billion new business during the first nine months (including extensions beyond one year); € 0.9 billion was originated in Public Investment Finance. pbb underscored its special role for real estate financing in its German home market, which accounted for 53% of aggregate new business – followed by pbb's other core markets in Central and Eastern Europe (15%), and in France and the UK (12% each). In Public Investment Finance, the bank originated new business in the amount of € 466 million (49%) in France, followed by Germany (€ 359 million or 38%) and Finland (€ 125 million or 13%).
During the first nine months of the year, the bank raised long-term funding of € 7 billion, compared to € 5.7 billion during the same period of the previous year. The average term of newly-raised funds was more than 6 years, whereby especially the average terms of unsecured funding continued to develop favourably
(9m 2013: 4.9 years; 9m 2012: 3.5 years).
Income statement (IFRS)
pbb's core business is lending, with income reported predominantly in net interest income, which rose to € 79 million in the third quarter, up from € 74 million in the previous quarter. This shows that the bank continuously replaces existing low-margin exposures with more profitable new business.
At € 9 million, (Q2 2013: € 3 million), net provisions for losses on loans and advances remained at a low level. New provisions recognised related to only a few individual cases.
General administrative expenses were up slightly from the previous quarter, at € 84 million (Q2 2013: € 80 million). The increase reflected higher expenses incurred in connection with the termination of servicing for FMS Wertmanagement, effective 30 September 2013, and the transfer of this function to FMS Wertmanagement´s own service entity. The bank's strict cost management regime is evident when comparing the figure for the first nine months of 2013: general administrative expenses of € 240 million were down 5% year-on-year
(9m 2012: € 253 million).
The balance of other operating income/expenses was € 24 million (Q2 2013:
€ 24 million), and was mainly attributable to income from servicing for FMS Wertmanagement.
Net trading income of € -51 million in the third quarter was significantly burdened by effects from the valuation of derivatives: specifically, the changeover from using 3-month/6-month Euribor curves to value derivatives to date, to a daily overnight index swap curve – in line with changed market conventions – had a negative effect, as had the termination of a derivatives contract. These effects led to an aggregate burden of € 55 million.
A gain of € 92 million from the sale of a restructured property was the main item within net income from financial investments, which totalled € 97 million
(Q2 2013: nil).
Total assets
Consolidated total assets of the pbb Group (in accordance with IFRS) amounted to € 74.9 billion as at 30 September 2013 (30 June 2013: € 83.8 billion). Within the framework of the transfer of assets to FMS Wertmanagement in October 2010, real estate loans included in pbb's Pfandbrief cover assets pools were transferred synthetically. This sub-participation, which was necessary to comply with the rules governing the cover assets pool, was terminated in August 2013, in connection with the separation of pbb and FMS Wertmanagement, leading to a € 6.4 billion reduction in total assets. Total assets also declined due to market-induced effects.
Unternehmensinformation / Kurzprofil:
PresseKontakt / Agentur:
Media contacts:
Walter Allwicher, +49 89 2880 28787, walter.allwicher(at)pfandbriefbank.com
Oliver Gruß, +49 89 2880 28781, oliver.gruss(at)pfandbriefbank.com
Datum: 12.11.2013 - 09:18 Uhr
Sprache: Deutsch
News-ID 315135
Anzahl Zeichen: 5639
contact information:
Kategorie:
Financial Services & Insurance
Typ of Press Release: Finanzinformation
type of sending: Veröffentlichung
Date of sending: 12.11.2013
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