Deutsche Pfandbriefbank, or PBB, a German lender focused on real estate, has set aside more money for bad debts as it braces for what it says is the worst decline in commercial property values in 15 years. US Treasury secretary Janet Yellen told lawmakers Tuesday that she had concerns about the exposure of some banks to commercial real estate. Shares of PBB, the second German bank to warn of mounting losses on commercial real estate in two weeks, slid nearly 6% in Frankfurt. Germany’s biggest lender Deutsche Bank said last week that it had allocated €123 million ($133 million) during the fourth quarter of last year to absorb potential defaults on its US commercial real estate loans. It also set aside $552 million in the quarter to absorb potential losses on loans, up sharply from $62 million in the previous quarter.

Source: CNN February 07, 2024 16:37 UTC