FRANKFURT (Reuters) -Deutsche Pfandbriefbank (PBB), one of Germany’s top property financiers, swung to a loss in the second quarter after booking higher risk provisions as it withdraws from the U.S. market, figures on Wednesday showed.
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, and in June it said it was withdrawing its previous financial guidance for the year.
The bank’s quarterly net loss was 266 million euros ($310.79 million), compared with 11 million euros in profit a year earlier, while provisions for loan losses rose to 297 million euros from 56 million euros a year earlier.
“The withdrawal from the US markets will have a considerable negative impact on our result this year,” PBB CEO Kay Wolf said.
The bank said it expected “significant pre-tax profit” in the second half of the year.
($1 = 0.8559 euros)
(Reporting by Tom Sims and Alexander Huebner, editing by Miranda Murray)
