Oct. 8 (Bloomberg) -- Pbb Deutsche Pfandbriefbank, the core business of Hypo Real Estate Holding AG, raised its 2013 profit target by 50 percent, helped by a gain in new business.
The company, based in Munich, raised the full-year pretax profit target to at least 150 million euros ($204 million) from 100 million euros, it said in a statement today. It reported a pretax profit of 124 million euros in 2012.
Chief Executive Officer Manuela Better is selling the lender’s Dublin-based Depfa Bank Plc unit, which is closed to new business, to meet European Union conditions for Hypo Real Estate’s government bailout. By the end of 2015, she also needs to find a buyer for Pbb Deutsche Pfandbriefbank, which combines most of the continued business of Hypo Real Estate.
For the third quarter, the company expects pretax profit of more than 60 million euros after the impact from the valuation of derivatives was more than offset by a property sale. The lender, which is scheduled to report quarterly earnings on Nov. 12, had a 60 million-euro first-half profit.
New business in real estate finance and public investment finance rose 50 percent to about 2 billion euros in the third quarter, the company said, adding that it also expects strong new business development in the current three-month period.
Hypo Real Estate received EU approval in 2011 for a bailout, with Germany injecting 10 billion euros and state and financial institutions providing credit lines and debt guarantees of as much as 142 billion euros to save the lender.
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