Deutsche Pfandbriefbank AG

Latest Results (07.11.2025):

Deutsche Pfandbriefbank AG’s interim financial results for the first half of 2025 reveal a challenging period, marked by a steep turnaround in profitability. The bank reported a loss before tax of €249 million and a net loss of €242 million, compared to profits in the same period last year. Increased risk provisioning, which hit net income from risk provisioning at –€323 million, was a major factor behind the decline. Operating income decreased to €206 million and net interest income also fell, partly due to a lower average volume of real estate finance, despite an improvement in the portfolio margin. In contrast, regulatory capital ratios, such as the CET1 ratio, showed resilience with an increase to 15.3%.

Earnings Decline

In the interim period ending 30 June 2025, Deutsche Pfandbriefbank AG experienced a significant deterioration in profit performance, with a shift from a profit before tax of €47 million in the first half of 2024 to a loss of €249 million in the current period, largely driven by heightened risk provisioning.

Risk Provisioning Impact

Risk provisioning worsened notably, with net income from risk provisioning reaching –€323 million compared to –€103 million in the prior period, a key contributor to the bank’s overall downturn in earnings.

Operational Performance and Interest Income

Operating income fell to €206 million, and net interest income declined to €211 million, influenced by a decrease in the average volume of real estate finance financing, despite a partially offsetting improvement in portfolio margins.

Strength in Capital Ratios

Amid the challenging earnings landscape, regulatory capital measures remained robust, with the CET1 ratio increasing from 14.4% to 15.3%, underscoring a solid capital base as the bank navigates current market challenges.