(Reuters) -Deutsche Pfandbriefbank (PBB) shares fell further on Tuesday with traders citing no clear driver behind the slump amid markets growing concerned about broader credit conditions.
The German property lender, which earlier this year warned of extraordinary costs linked to winding down its U.S. business, saw its shares drop over 10% at one point on Tuesday, after plunging as much as 16% the previous day.
Kepler Cheuvreux on Tuesday downgraded Pfandbriefbank to “reduce” and lowered its third-quarter and 2025-27 earnings estimates by 5-6%, citing higher funding and risk costs.
“We expect no dividend payments for 2025, making the stock relatively unattractive compared to its European bank peers”.
By 0854 GMT, the stock was down 5.7%, after earlier hitting the lowest level since February 2024’s record lows. PBB has lost over 20% in the last five days, giving it a market value of around $600 million.
After speaking with the company on Tuesday, Citi analysts said that the drop in the share price came without any apparent news, also noting the stock’s limited liquidity.
They said its German-focussed development portfolio in Europe and the U.S. book are two key focus for investors.
PBB reports its results on November 13.
(Reporting by Danilo Masoni, editing by Alun John)
