German property bank PBB posts drop in Q2 profit, rise in provisions

FRANKFURT (Reuters) -Deutsche Pfandbriefbank (PBB), one of Germany’s top property financiers, posted a fall in second-quarter profit and an increase in risk provisions as it navigates troubles in the real-estate industry, figures on Wednesday showed.

PBB said that it expects the commercial property market, whose troubles on both sides of the Atlantic plunged the bank into turmoil earlier this year, to “enter calmer waters” during the second half of 2024.

The bank’s quarterly profit was 11 million euros ($12.09 million), compared with 42 million euros a year earlier, while provisions for loan losses rose to 56 million euros from 19 million euros last year.

The bank earlier this year got cuts to its credit rating, and its shares and bonds dropped sharply as fears of a widening property crisis took hold.

($1 = 0.9098 euros)

(Reporting by Tom Sims and Alexander HuebnerEditing by Ludwig Burger and Miranda Murray)