Germany · Delayed Price · Currency is EUR Deutsche Pfandbriefbank AG Earnings Call Transcripts
Fiscal Year 2025
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2025 saw a major transformation with a strategic U.S. exit, heavy de-risking, and a EUR 250 million pre-tax loss. Despite a 23% rise in new business, profitability was impacted by restructuring costs. 2026 guidance targets a return to profit, with a focus on cost discipline and portfolio growth.
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Transformation and de-risking efforts continue, with new business up 60% year-over-year and a strong capital base, but market challenges and U.S. exit one-offs led to a nine-month pre-tax loss. Full-year 2025 guidance anticipates a wide range of outcomes, with adjusted pre-tax earnings expected between EUR 50–105 million.
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Transformation advanced with the Deutsche Investment Group acquisition and U.S. market exit, resulting in a one-off €340 million charge and a reported H1 2025 loss. Excluding this, underlying profitability and capital ratios remain solid, with a strong focus on European growth and fee income.
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Solid Q1 2025 results with €28M pretax profit, improved cost efficiency, and strong core business performance. U.S. market volatility prompts a review of U.S. operations and share buyback timing, while European markets show stabilization and strategic progress continues.
Fiscal Year 2024
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Operating result rose 2.4% to EUR 425 million, with strong cost discipline and improved margins. Risk provisions remain elevated but are declining, and the bank is on track to meet full-year guidance while advancing its diversification and efficiency strategy.
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Strategy 2027 aims to boost profitability and resilience by diversifying the core real estate finance portfolio, expanding fee-based business, and focusing on cost efficiency. Targets include 8% ROTE, a cost-income ratio below 45%, and a minimum 50% payout, with a strong emphasis on ESG and selective growth in Europe and the U.S.
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Profitability maintained with EUR 47 million pre-tax profit in H1 2024, driven by higher NII and margin discipline, despite elevated risk provisions. Liquidity and capital positions remain strong, with further risk provisioning declines and portfolio stabilization expected in H2.