Deutsche Pfandbriefbank AG (pbb) is accelerating the execution of its Strategy 2027 by withdrawing from the US market and focusing entirely on Europe. The move is intended to streamline operations and channel resources into more profitable, stable markets. The bank will wind down, securitise, or sell its €4.1 billion US portfolio, which has an average remaining maturity of 2.5 years.
Alongside its geographical refocus, pbb is in advanced talks to acquire a majority stake in a German real estate investment manager with assets under management in the low single-digit billion euro range. This acquisition would significantly strengthen the bank’s ‘pbb invest’ division and broaden its revenue base. The purchase price is expected to fall in the mid double-digit million euro range and would be subject to regulatory approvals, including from BaFin.
Due to expected extraordinary expenses related to the US exit, the bank is suspending its 2025 financial guidance and will issue an update at a later date. However, pbb confirmed that its common equity tier 1 ratio will remain above 14% and that its medium-term targets for 2027 are unchanged.
These steps form part of pbb’s broader effort to transform into a more diversified and profitable institution by concentrating on its core European markets and expanding into investment management.
