Due to expected sound performance over the first six months of this year, pbb raises 2018 full-year guidance for pre-tax profit to EUR175-195 million

Munich, 4 July 2018 - As the first half of the year is expected to show sound performance, the Management Board of Deutsche Pfandbriefbank AG (pbb) has today raised its original expectations for 2018 consolidated full-year pre-tax profit (IFRS) of between EUR150 million and EUR170 million to between EUR175 million and EUR195 million. The new guidance includes, as planned, increased pressure on net interest income as well as an increase in general and administrative expenses; furthermore, it continues to factor in estimated risk costs for the full year.

pbb expects profit before taxes in the region of EUR120 million for the first half of 2018. For the second quarter of 2018, pbb sees stable net interest income, continued low risk costs and general and administrative expenses on the good previous quarter's level. In addition, a non-recurring effect was recognised from a conditional additional purchase price claim in connection with accepting a buy-back offer for Heta Asset Resolution AG debt securities in 2016.

Compared to the first quarter, new business volume (including extensions of more than one year) rose slightly in the second quarter of 2018. However, due to strong competitive pressure and pbb's selective approach, new business during the first half of the year remained significantly below the previous year's level.

Contact:
Walter Allwicher
Head of Communications
+49 (0) 89 2880 28 787