Q4 2024 Deutsche Pfandbriefbank AG Earnings Call Transcript
Key Points
- Deutsche Pfandbriefbank AG (PBBGF) achieved a significant increase in profit before tax, rising by more than 15% to EUR 104 million in 2024.
- The company successfully reduced risk costs by around 20%, with a notable 35% reduction in the second half of 2024.
- Operating income reached the upper end of guidance at EUR 544 million, demonstrating strong financial performance.
- The bank maintained a strong capital position with a CET1 ratio of 16.8% under the new FIRBA Basel four regulations.
- Deutsche Pfandbriefbank AG (PBBGF) initiated a share buyback program and proposed a dividend, indicating confidence in its financial health and commitment to shareholder returns.
- The new business volume in 2024 was below expectations, declining to EUR 5.1 billion from EUR 7.2 billion in 2023.
- Despite the reduction, risk costs remained at an elevated level, indicating ongoing challenges in managing credit risk.
- Net interest and commission income decreased by EUR 15 million to EUR 470 million, reflecting challenges in maintaining revenue streams.
- The NPL (Non-Performing Loan) portfolio increased by EUR 387 million to EUR 1.9 billion, highlighting ongoing credit quality issues.
- The company's operating income was down EUR 59 million year over year, partly due to the absence of one-off income that benefited the previous year.
Yeah, ladies and gentlemen, a very warm welcome to our analyst call. Together with my colleague, our CFO; Marcus Schulte. I will take you through the preliminary fix and facts and figures for the financial year 2024. As usual, that is based on the IFRS figures, for PBB Group. As always, there will be plenty of time after that for your questions. And, we are looking forward to those.
Ladies and gentlemen, 2024 was a challenging, eventful, and sometimes turbulent year. At the end of it though, we look at a successful year for [Deutsche vanbank]. Certainly, the market environment has been difficult. One can see that looking at our own commercial real estate index, PBBIX that we published on the February 20. Although markets clearly show that they have reached the bottom.
There are equally only minor signs of a short term full market recovery. Despite these market conditions, we remain focused and delivered on our key targets. We ended 2024 with a significantly improved profit. And lower risk costs. At the same time, we
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