Deutsche Pfandbriefbank AG provisions for Heta debt securities covered by a letter of indemnity issued by the Austrian federal state of Carinthia in the 2014 financial statements, taking a charge against income of EUR 120 million

MUNICH--()--Pursuant to a Management Board resolution taken on 6 March 2015, Deutsche Pfandbriefbank AG (pbb) has provisioned its receivables portfolio against Heta Asset Resolution AG (Heta), which has a nominal amount of EUR 395 million. The Bank's decision was taken in response to recent moves by the Austrian financial markets supervisory authority (FMA), and the Austrian federal government. On 1 March 2015, FMA issued a notice by which FMA deferred the maturity of debt securities (including coupon payments) issued by Heta until 31 May 2016. Heta is a wind-down entity owned by the Republic of Austria. pbb's receivables against Heta are covered by a letter of indemnity issued by the Austrian federal state of Carinthia.

The provision has burdened income by EUR 120 million. Preliminary pre-tax profit for 2014 - a financial year characterised by strong new business and a marked improvement in operating profitability - would have amounted to EUR 174 million. Due to the extraordinary burden, pre-tax profit (in accordance with IFRS) for 2014 is expected to decline to approximately EUR 54 million.

     
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:

info@pfandbriefbank.com

Internet:

http://www.pfandbriefbank.com

ISIN:

DE0008053331, Eine vollständige Übersicht der Eigenemissionen der Deutsche, Pfandbriefbank AG (ISIN, Börse, Segment) finden Sie unter, http://www.pfandbriefbank.com/investor-relations/pflichtveroeffentlichungen/ad-hoc-mitteilungen.html

WKN:

805333, Eine vollständige Übersicht der Eigenemissionen der Deutsche, Pfandbriefbank AG (ISIN, Börse, Segment) finden Sie unter, http://www.pfandbriefbank.com/investor-relations/pflichtveroeffentlichungen/ad-hoc-mitteilungen.html

Listed:   Regulated Market in Frankfurt (Corporate Bonds), Munich, Stuttgart; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover; London, Mailand, Paris, Luxemburg, SIX
 

Contacts

Deutsche Pfandbriefbank AG
Reiner Barthuber, +49 (0) 89 2880 28 201

Contacts

Deutsche Pfandbriefbank AG
Reiner Barthuber, +49 (0) 89 2880 28 201