Deutsche Pfandbriefbank (PBB) Q3 2026 earnings summary

Executive summary

• 9M PBT was €28m versus a €235m loss in 9M 2025; net income was €27m, mainly reflecting materially lower risk-provisioning expense.

• Q3 PBT rose to €12m as operating income increased to €99m; REFS new business expanded, REIS contributed more income, and US exposure continued to decline.

Financial highlights

• 9M operating income fell to €266m from €316m; NII was €245m versus €310m, while net fee and commission income rose to €17m from €4m, partly due to DI Group consolidation.

• 9M risk-provisioning expense was €32m versus €356m; net income was €27m, including €1m income tax expense, and basic EPS was €0.06 versus a loss of €1.83.

• Q3 operating income rose €9m QoQ to €99m, including €80m NII, €12m realisation income and €6m fair-value result and other income.

• Q3 operating expenses were €69m, risk provisioning was €19m and PBT increased €2m QoQ to €12m.

• 9M general and administrative expenses rose to €189m from €173m; total assets were €37.7bn at September-end and equity was €3.1bn.

Outlook and guidance

• 2026 guidance: REFS new business €7.5–8.5bn, financing volume €27–28bn, REIS AuM €3.3–3.7bn, operating income €375–425m, CIR 70–75% and PBT €30–40m.

• Full-year new business volume and PBT were expected at the lower end of guidance; 9M PBT of €28m was also described as within the full-year forecast range.

• Year-end 2026 AuM guidance was €2.9–3.1bn, reflecting prolonged subdued market conditions.

• 2026 risk costs were expected at 25–30 bps; toward 2028, risk costs were projected at 15–25 bps, CIR at 45–50%, and the 8% strategic ROTE target was deferred to 2028.