Pbb’s new lending down on cautious approach

The German bank expects a strong final quarter to push new lending volumes to the lower end of the €10bn to €11bn range for 2018.

Germany’s Pbb Deutsche Pfandbriefbank’s commercial real estate finance new lending accounted for €5.9 billion in the first nine months of the year, which is 15 percent down year-on-year.

The decrease is the result of “growing competition” along with the bank’s “conservative approach” in terms of risk in the light of “a well-advanced real estate cycle”, a spokesperson told Real Estate Capital.

In 2017, pbb achieved record new lending volumes at €10.7 billion, with Q4 being its strongest quarter ever, with €3.8 billion worth of fresh business.

For this year, the bank expects to generate new lending volumes at the lower end of the €10 billion to €11 billion range, as it projects a strong Q4 in terms of fresh business.