(Reuters) -Deutsche Pfandbriefbank, one of Germany’s top property financiers, said on Wednesday that it was withdrawing its full year guidance amid extraordinary expenses from discontinuing its business in the United States. In the longer term, “the freed-up capital shall be used to accelerate bank’s transformation,” the lender said in a statement. PBB said in May […]
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Germany’s PBB withdraws guidance as it winds down US business
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(Reuters) -Deutsche Pfandbriefbank, one of Germany’s top property financiers, said on Wednesday that it was withdrawing its full year guidance amid extraordinary expenses from discontinuing its business in the United States.
In the longer term, “the freed-up capital shall be used to accelerate bank’s transformation,” the lender said in a statement.
PBB said in May that it would not take on new business in the United States as it considered the country too volatile under President Donald Trump.
Wednesday’s decision marks a major strategic shift for PBB. The U.S. is its second biggest market, making up 14% of its loan portfolio.
In February, PBB forecast new business volume of between 6.5 billion and 7.5 billion euros for the 2025 financial year and said it expected its CET1 ratio to exceed 15.5%.
In a separate statement on Wednesday, PBB said it was in advanced negotiations to acquire a majority stake in a real estate investment manager that it did not name, with the euro price expected to be in the “mid-double-digit millions.”
Shares were down 6% in premarket trade at 0615 GMT.
(Reporting by Paolo Laudani in Gdansk, Editing by Friederike Heine)