German mortgage lender Deutsche Pfandbriefbank (PBB) has announced it will stick to its 2015 privatisation timetable as its restructuring is nearing an end.
Bailed-out Hypo Real Estate (HRE), which owns the lender, must find a buyer for Deutsche Pfandbriefbank and its Depfa unit to meet European Union conditions for the company’s government bailout. Both an outright sale and a stock market listing are being considered.
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Chief executive Manuela Better said that the bank expects to double its profitability by the end of next year. "The funding of the current portfolio is secured," she added.
The lender reported results that exceeded targets for both profit and new business in 2013.
Deutsche Pfandbriefbank also wants to increase its return on equity from the 3.7% expected for 2014 to 8% in 2015, said chief financial officer Alexander von Uslar. Hypo Real Estate received a 10bn ($13.8bn) capital injection and 145bn ($200.9bn) in liquidity guarantees when nationalised after the downfall of Lehman Brothers.
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