pbb boosts CRE lending by 40% to €5.2bn for 1H 2015

pbb Deutsche Pfandbriefbank, which successfully floated last month, increased new real estate lending by 40% to €5.2bn for the first half of 2015, compared to €3.7bn for the same period last year.

Almost half of the new lending, 45%, was originated in Germany, followed by the Nordic countries on 19% and the UK on 14%.

This was done “in spite of competitive pressure and without sacrificing its strict risk criteria – for instance, the average loan-to-value ratio of 64% was in line with the level for the full year 2014,” said the bank.

“During the first half of 2015, pbb continued to markedly increase new business whilst maintaining its conservative risk profile,” said Andreas Arndt, co-chief executive and chief financial officer at pbb.

“With further improved results, pbb has continued its stable operating performance of the past few years. We believe we are well on track for the full year 2015.”

The results are in line with wider sentiment among lenders in the European lending market who say the first half of 2015 has been an exceptionally busy period.

The German bank’s public investment finance division raised €0.6bn in new business for the first half of the year. The bank has been particularly active in France with 61% of new public investment lending originating there.

It provided a €100m loan package to Paris regeneration firm SEMAPA for its Paris Rive-Gauche development on the bank of the Seine and recently provided a €40m facility to French developer Sadev 94 for infrastructure works at its Ivry Confluences regeneration scheme.

Together with real estate, pbb increased its total new lending business for the first half of 2015 to €6bn – the highest six-month figure since the bank’s re-start in 2009.

However, consolidated total assets declined from €74.9bn as at 31 December 2014 to €69.6bn as at 30 June 2015.

“The decline was due especially to market-induced effects – notably, with regard to higher interest rates – as well as a reduced securities portfolio as a result of portfolio sales and maturities,” said the bank.

pbb reported profit before tax of €61m for Q2 this year, compared to €45m for the same period last year, taking its half year pre-tax profit total for 2015 to €112m.

On July 16, it completed an IPO on the Frankfurt exchange, raising €1.156bn after its shares started trading at €11.45 each, a 6.5% premium over the €10.75 issue price.