pbb has maintained its positive business performance during the second quarter of 2015. Pre-tax profit (unaudited, consolidated figures in accordance with IFRS) was up 36% year-on-year, to €61 mln (Q2 2014: €45 mln). In the first half of 2015, pbb realised a profit before taxes of €112 mln, which was also a significant improvement year-on-year (H1 2014: €83 mln). Return on equity before taxes increased from 4.9% in the first half of 2014 to 6.5% in the period under review. pbb's profit after taxes was €88 mln (H1 2014: €74 mln); earnings per share stood at €0.65 after six months. In a competitive environment, pbb also boosted its new business during the first half of the year, to €6 bln (H1 2014: €4.3 bln). The results for the first six months of 2015 support the full-year guidance: pbb anticipates pre-tax profit slightly above the adjusted level for 2014 (€174 mln).
Andreas Arndt, Co-CEO and CFO of pbb Deutsche Pfandbriefbank, said: "During the first half of 2015, pbb continued to markedly increase new business whilst maintaining its conservative risk profile. 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."
pbb increased its new business (including extensions for more than one year) in both strategic business segments: with total new business of €6 bln, it achieved the highest six-month figure since the bank's re-start in 2009. New business of €3.2 bln originated during the second quarter was also up from the previous year (Q2/2014: €2.7 bln). In the Real Estate Finance segment, pbb generated new business of €5.2 bln during the first half of the year (H1 2014: €3.7 bln) – 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. 45% of new business was originated in Germany, followed by the Nordic countries (19%) and the United Kingdom (14%). Whilst the increase in pbb's Public Investment Finance segment, to €0.8 bln in the first six months of the year, was moderate in absolute figures (H1 2014: €0.6 bln), new business in the second quarter (€0.6 bln) was considerably stronger than in the first. In Public Investment Finance, 61% of new business originated was accounted for in France, and 39% in Germany.
Thanks to its unchanged, comfortable liquidity position and a marked reduction in total assets, pbb adjusted its funding activities accordingly, with a volume of €2.2 bln (H1 2014: €3.1 bln) in new long-term funding raised during the first half of 2015. Of the aggregate amount, Pfandbrief issues (with an average maturity of 17.4 years) ac-counted for approximately €0.7 bln (H1 2014: €2.2 bln/9.1 years), promissory note loans and bearer bonds accounted for €1.5 bln (with an average maturity of 4.4 years – H1 2014: €0.9 bln/5.4 years). Deposit volumes at pbb direkt, pbb's online offer for overnight and term deposits for private investors, have reached €2 bln. The majority of deposits are term deposits with an average term of more than 3 years.
Consolidated total assets of the pbb Group (in accordance with IFRS) declined from €74.9 bln as at 31 December 2014 to €69.6 bln 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 ma-turities.
Source: Deutsche Pfandbriefbank
