GARCHING (dpa-AFX) – The Deutsche Pfandbriefbank sees a little more light at the end of the tunnel after a difficult year. “We do not yet see a lasting turnaround, but we see a floor with positive commercial activity,” said the boss of the commercial real estate financier, Kay Wolf, during the presentation of quarterly results on Wednesday in Garching, near Munich. In the third quarter, the bank made a net profit of 37 million euros, almost five times more than a year earlier. This was mainly due to a significant drop in provisions for impending loan losses.
The financial institution’s revenues, however, amounted to 147 million euros, or around 6% less than last year at the same period. In fact, the establishment has reduced its activities due to the difficult situation in commercial real estate and is parting ways with doubtful loans. In the first nine months, the bank recorded 2.5 billion euros in new business, significantly lower than the 4.2 billion a year ago. Wolf believes the institution is now on track to meet its goal of returning to higher profits by 2027./stw/stk
Belgium
