After a sharp jump in profit in the first quarter, the institute calculates a significantly higher pre-tax profit for the full year than in the Corona year 2020.
A higher net interest income and lower risk provisioning due to possible loan defaults gave Deutsche Pfandbriefbank a strong profit jump in the first quarter.
The bottom line was a surplus of 42 million euros after two million a year earlier, as the commercial real estate financier listed in the SDax announced on Monday in Munich. The pre-tax profit increased from 2 million to 52 million euros.
For the full year, CEO Andreas Arndt continues to expect a significantly higher pre-tax profit than in the Corona year 2020, when this result slumped to 154 million euros due to high risk provisions for defaulting loans.
“The first quarter confirms our expectation that we will do better in 2021 than in the previous year, although we cannot rule out further risk provisioning in the course of the year due to the consequences of the Covid-19 pandemic,” said Arndt.
In the first quarter, the institute put the bottom line back ten million euros for loans at risk, significantly less than the 34 million a year earlier. New business in commercial real estate financing increased from 1.6 billion to 2.1 billion euros.