German Pfandbrief Bank Incurs Triple-Digit Million Loss - Deutsche Pfandbriefbank exits US market with €265M loss, pivots to Europe
Deutsche Pfandbriefbank (pbb) has announced significant losses following its withdrawal from the US banking market. The bank, led by an unnamed CEO, is now refocusing on Europe, opening a new branch in Amsterdam.
pbb's expansion into the US banking market started just before the COVID-19 pandemic. However, the subsequent impact on the US office market led to the shutdown of its US banking operations in 2023. This withdrawal has resulted in heavy losses for the bank. In 2023, pbb expects a pre-tax loss of between €210 million and €265 million due to this decision.
The bank's net losses in the first three quarters of 2023 totalled €227 million, a stark contrast to the profit of €74 million recorded in the same period in 2022. The shutdown of pbb's US banking operations incurred exceptionally high costs of €314 million, contributing significantly to the bank's overall loss.
pbb's CEO, whose name was not mentioned in recent search results, is now steering the bank towards a refocus on the European banking market. The bank's recent opening of a new branch in Amsterdam signals this strategic shift, aiming to leave behind the heavy losses incurred from the US banking withdrawal.
