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Garching (dpa) - According to the Deutsche Pfandbriefbank (pbb), the true extent of the corona damage on the real estate market will only become apparent in the second half of the year.
"Then there will probably be significant effects on the letting situation and real estate prices," said CEO Andreas Arndt on Thursday in Garching.
The manager named many factors as reasons: expected bankruptcies, higher unemployment, leave of absence, vacancies and fewer government aid payments for the companies in combination with working in the home office, reduced travel and the growth of online trading.
The main business of the Pfandbriefbank is the financing of commercial real estate, the second pillar is public financing.
The cautious bank boss pulled the rip cord a year ago on two types of property that were particularly badly affected by the lockdowns: "We have stopped new financing for hotels and shopping centers since the first quarter."
Pbb recorded a corona-related slump in 2020.
The net profit fell compared to the previous year from 179 to 117 million euros.
One of the main reasons was the provision for possible loan losses.
The board of directors put aside 126 million euros for this, in 2019 it was 49 million euros.
Arndt assumes, however, that there will be less need for additional risk provisioning this year.
The bank expects seven to eight billion euros in new business, less than in 2019 before the crisis, but slightly more than in 2020.
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© dpa-infocom, dpa: 210304-99-685612 / 2
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