With the ECB having lifted its restrictions on dividend payments by banks under its supervision effective 30 September 2021, the Supervisory Board and Management Board of Deutsche Pfandbriefbank AG (pbb) have carefully considered the Bank's risk situation after the COVID-19 crisis and assessed the possibilities of increasing the previous dividend payment for 2020.

After careful consideration of the prevailing conditions, the management and supervisory boards of pbb have decided to propose to pbb's shareholders, at an extraordinary general meeting (EGM) that has yet to be convened, to distribute a further dividend for the 2020 financial year in the amount of EUR 0.32 per no-par value share entitled to dividends, i.e. a total distribution of around EUR 43 million. Together with the dividend payment for the 2020 financial year of EUR 0.26 per no-par value share entitled to dividends, which was resolved by the annual general meeting on 12 May 2021, this would result in a dividend payment of EUR 0.58.

In line with its long-term dividend strategy and despite the challenging environment due to the COVID-19 pandemic, pbb again achieves a payout ratio for the 2020 financial year of 75%. The EGM, which will have to resolve on the increase of the dividend payment, is expected to take place in December 2021.

As in the past, future dividend distributions will also be subject to the proviso of economic viability and will reflect regulatory requirements as well as prudent distribution policies as required by the ECB.

In March 2020, in view of the onset of the Corona crisis, the ECB had urged all banks under its supervision to suspend the dividend payments they were considering for 2019. In December 2020, the ECB had recommended extreme restraint and initially a cap on dividends for fiscal 2020 in view of the continuing high level of macroeconomic uncertainty. On 23 July 2021, in view of a more relaxed COVID-19 situation, the ECB rescinded this recommendation with effect from September 30, 2021.

Media Contact
Walter Allwicher, +49-89-2 88 02 87 87, walter.allwicher(at)pfandbriefbank.com

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Deutsche Pfandbriefbank AG published this content on 01 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 October 2021 18:41:03 UTC.