Deutsche Pfandbriefebank, also known as PBB, sought to calm investors' nerves on Thursday by affirming its financial resilience amid the downturn in the U.S. commercial real estate market, despite continued declines in its stock price. I aimed for The sector has recently been plagued by rising interest rates, refinancing challenges and declining office space usage, raising concerns about potential defaults.
PBB, which is part of the SDAX small-cap index with a strong focus on real estate finance, expressed this reassurance in its second extraordinary disclosure in as many days as its equity and fixed income products came under market pressure. The bank previously characterized the current state of the U.S. market as “the most severe real estate crisis since the global financial crisis.”
Furthermore, the recent decline in the stock prices of some regional banks in the United States has reignited concerns about the vulnerability of financial institutions to such situations. Deutsche Bank, another prominent German financial institution, recently increased its allowance for loan losses on U.S. commercial real estate.
PBB revealed that its US real estate market exposure amounts to €5 billion, representing 15% of its total portfolio. The bank said in a recent statement that it has twice its regulatory capital requirements and has not required new unsecured financing for more than six months, ensuring operational stability and strong liquidity. Emphasis on sexual positions.
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The bank reported a liquidity coverage ratio (LCR) of 212%, significantly 112 percentage points above the regulatory mandate of 100%. Additionally, PBB noted that retail deposits are continuously increasing and currently exceed 7 billion euros ($7.53 billion).
As of 2:15 p.m. Japan time on Thursday, PBB stock was down 2.8%, down 27% since the beginning of the year. Meanwhile, PBB's 150 million euro bond due in 2027 was trading at around 58.47 cents, with some intraday fluctuations but down from 70.429 cents since Tuesday's close.
