PBB Plunges as It Blames SRT Costs for Weak Profit Outlook (2)

Shares in Deutsche Pfandbriefbank AG plummeted after it gave a muted profit outlook for 2026, pointing to the high costs of a significant risk transfer as a key reason.

PBB expects to achieve a full-year profit before taxes of between €30 million ($36 million) and €40 million, it said in a statement on Friday. Analysts had forecast substantially more than €100 million.

The stock dropped as much 10.8%, hitting an all-time intraday low. It was trading 9.4% lower at 2:58 p.m. in Frankfurt.

PBB, an embattled German lender seeking to offload its interests in US commercial real estate debt, ...