Deutsche Pfandbriefbank AG

DUS:PBB

Profitability: pbb reported pretax profit of EUR 16 million for the first half of 2026 and EUR 10 million in the second quarter, in line with expectations and full-year guidance.

Business growth: Real Estate Finance Solutions new business volume rose 18% to EUR 3.1 billion in the first half, while the pipeline remained strong at EUR 10.4 billion.

Transformation: The bank continued shifting toward growth asset classes and fee-based income, with hotels, senior living, student housing and data centers representing 23% of second-quarter new business.

U.S. exit: U.S. nonperforming loans fell to EUR 500 million, down more than 40% since the start of the year, putting pbb ahead of schedule toward its EUR 400 million target.

European risks: European NPLs increased by around EUR 200 million in the quarter, driven by three office-related additions. Management described these as individual cases rather than evidence of a broad portfolio problem.

Capital: The CET1 ratio increased by around 120 basis points to 14.6%, helped by regulatory changes and a EUR 1.6 billion reduction in risk-weighted assets.

Outlook: Management expects total NPLs to fall below EUR 2 billion by year-end and expects new business returns of 7% to 8%, corresponding to approximately 220 to 230 basis points of margin.