Deutsche Pfandbriefbank AG / Key word(s): Dividend/Forecast 11.11.2016 18:10 Disclosure of an inside information according to Article 17 MAR, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Special dividend - outlook for 2017 The Management Board and Supervisory Board of Deutsche Pfandbriefbank AG ("pbb") are considering a proposal to the Annual General Meeting 2017 - subject to compliance with all legal and regulatory requirements or developments - to distribute for the financial year 2016 a special dividend from the Heta gain in addition to the distribution according to its communicated dividend policy. From pbb's point of view, this does not imply a fundamental change to its dividend policy, which provides for a dividend proposal in the amount of 40%-50% of consolidated profit after taxes (in accordance with IFRS) and which the Management Board will review as soon the impact of a changed regulatory environment can be perceived. pbb anticipates consolidated profit before taxes for 2016 (in accordance with IFRS) between EUR 280 million and EUR 290 million. Excluding the net non-recurring effects of EUR 117 million in the third quarter of 2016 (EUR 132 million in income from Heta, against which pbb has recognized EUR 15 million in provisions and expenses as precautionary measure), pbb expects 2016 operating profit before taxes to the tune of EUR 170 million, in line with original expectations. The Management Board anticipates a higher tax burden for the full year 2016 than in first three quarters, due to valuation losses on deferred tax assets from losses carried forward, as well as additional tax payments that are due following a tax audit. This should translate into a notional IFRS Group tax rate of around 35%. The Company is aiming for consolidated profit before taxes (in accordance with IFRS) between EUR 150 million and EUR 170 million for the year 2017. Contact: Walter Allwicher +49 (0) 89 2880 28 787 11.11.2016 The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de --------------------------------------------------------------------------- Language: English Company: Deutsche Pfandbriefbank AG Freisinger Strasse 5 85716 Unterschleissheim Germany Phone: +49 (0) 89 2880 28 201 Fax: +49 (0) 89 2880 22 28 201 E-mail: [email protected] Internet: http://www.pfandbriefbank.com ISIN: DE0008019001, Die internationalen Wertpapierkennnummern (ISIN) weiterer von der Deutsche Pfandbriefbank AG ausgegebener Finanzinstrumente sind abrufbar auf der Website der Deutsche Pfandbriefbank AG unter https://www.pfandbriefbank.com/investor-relations/pflichtver oeffentlichungen/ad-hoc-mitteilungen/liste-weiterer-finanzin stumente.html. The International Securities Identification Numbers (ISINs) of further, financial instruments issued by Deutsche Pfandbriefbank AG are available on Deutsche Pfandbriefbank's Investor Relations website under https://www.pfandbriefbank.com/en/investor-relations/mandato ry-publications/ad-hoc-announcements/list-of-further-financi al-instruments.html WKN: 801900 Indices: MDAX Listed: Regulated Market in Frankfurt (Prime Standard), Munich, Stuttgart; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover; London, Mailand, Paris, Luxemburg, SIX End of Announcement DGAP News-Service ---------------------------------------------------------------------------