---
title: "PBB Shares Plunge 10.8% After 30--40M 2026 Profit Outlook"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/275938242.md"
description: "Deutsche Pfandbriefbank AG (PBBGF) shares fell 10.8% after the bank issued a disappointing profit outlook for 2026, expecting only 30-40 million euros, significantly below analyst predictions of over 100 million. The decline reflects concerns over the bank's restructuring timeline and high costs from risk transfers related to US commercial real estate exposure. PBB also reported a pretax loss of 250 million for 2025 and indicated no dividend payment for last year. CEO Kay Wolf is leading a strategic shift to focus on European markets and asset management."
datetime: "2026-02-13T19:15:29.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/275938242.md)
  - [en](https://longbridge.com/en/news/275938242.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/275938242.md)
generator: "portal-rs"
---

# PBB Shares Plunge 10.8% After 30--40M 2026 Profit Outlook

Deutsche Pfandbriefbank AG (PBBGF) shares came under heavy pressure after the lender issued a markedly softer profit outlook for 2026, a signal that its restructuring path could take longer than some investors had anticipated. The bank said it expects full-year profit before taxes of between 30 million and 40 million, well below analyst forecasts of more than 100 million. The reaction was swift: the stock fell as much as 10.8% to an all-time intraday low and was still down 9.4% by 2:58 p.m. in Frankfurt, underscoring how sharply expectations may have reset.

Management attributed the muted guidance in part to the high costs associated with a significant risk transfer tied to its efforts to reduce US commercial real estate exposure. In December, PBB accessed the SRT market, with Brookfield-owned Oaktree Capital Management writing protection on a $320 million mezzanine tranche linked to a $2 billion loan portfolio. The deal was priced at a spread of more than 15 percentage points over a borrowing benchmark, according to people familiar with the matter at the time, compared with spreads of less than 10 percentage points for the majority of SRT transactions in the prior 12 months, based on data from Seer Capital Management LP. The bank also cited a sluggish recovery in real estate markets, noting that income lost from its US business will likely only be gradually compensated by new activity in Europe.

The outlook follows a reported pretax loss of 250 million for 2025, which was within the company's forecast range. PBB said it does not see scope for a dividend payment for last year, though it added that conditions for servicing its AT1 instrument are currently in place, with a decision due in April. Chief Executive Officer Kay Wolf is overseeing a strategic overhaul that includes exiting the US roughly a decade after expanding there and refocusing on European markets while expanding into asset management. That earlier US push resulted in a large portfolio of commercial real estate loans, a strategy that later faced pressure as the pandemic reduced office demand and higher interest rates increased financing costs, factors that could continue to shape the bank's earnings trajectory as it attempts to rebuild profitability.

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**