DVB Bank : posts consolidated net loss (preliminary and not yet certified)

Ad-hoc disclosure

DVB Bank posts consolidated net loss (preliminary and not yet certified)

Frankfurt/Main, 2 March 2017 - DVB Bank SE (ISIN DE0008045501), the international transport finance specialist, reported a consolidated net loss before taxes of €135.3 million for 2016 (previous year: consolidated net income of €46.1 million). Since DVB Bank SE, the parent company of the

DVB Bank Group, did not generate a net retained profit during the financial year, no dividends will be paid.

DVB generated a healthy level of new business in our Transport Finance divisions, contributing to a sound operational performance in our core business. As at 31 December 2016, the Bank's new business in Shipping Finance, Aviation Finance, Offshore Finance and Land Transport Finance comprised 157 transactions with an aggregate volume of €6.5 billion - compared to 190 transactions with an aggregate volume of €7.2 billion during the previous year.

Net interest income rose by 13.8%, from €183.7 million to €209.0 million, due to new business originated.

Allowance for credit losses increased to €381.4 million (previous year: €141.5 million), largely required for legacy exposures in the Shipping Finance portfolio and for financings in the Offshore Finance portfolio.

New allowance recognised for credit losses totalled €523.7 million, €344.7 million of which in Shipping Finance. Conversely, allowance for credit losses of €139.1 million was reversed (of which €114.8 million in Shipping Finance). Total allowance for credit losses (composed of specific and portfolio-based allowance for credit losses and provisions) increased from €291.8 million to €633.1 million as at 31 December 2016.

As a consequence of higher allowance for credit losses, net interest income after allowance for credit losses was down from €42.2 million to €-172.4 million.

Net fee and commission income, which primarily includes fees and commissions from lending business as well as asset management and Corporate Finance advisory fees, developed favourably, rising by 15.4% to

€119.2 million (previous year: €103.3 million

Results from investments in companies accounted for using the equity method increased from €3.9 million to €9.6 million.

Net other operating income/expenses rose from €14.7 million to €99.6 million. Net other operating income increased from €52.7 million to €198.8 million, and included a €150.0 million contribution to income by

DZ BANK AG Deutsche Zentral-Genossenschaftsbank, Frankfurt am Main.

General administrative expenses declined by 1.9% to €177.5 million (previous year: €180.9 million). Staff expenses decreased by 0.7%, from €104.2 million to €103.5 million. At €68.5 million, non-staff expenses were 4.6% below the previous year's level (previous year: €71.8 million).

Net result from financial instruments in accordance with IAS 39 (comprising the trading result, the hedge result, the result from derivatives entered into without intention to trade, and the result from investment securities) - which is generally volatile - amounted to €-2.7 million (previous year: €70.8 million). In the previous year, the result from investment securities had included substantial non-recurring income generated by the Bank's Aviation Investment Management, due to the disposal of a stake in Wizz Air Holdings Plc.

Consolidated net income/loss before taxes totalled €-135.3 million (previous year: €46.1 million) and consolidated net income/loss (after taxes) amounted to €-138.7 million (previous year: €45.6 million).

At €29.2 billion, the business volume in 2016 was up 3.5% on the previous year (previous year:

€28.2 billion) - due to currency translation effects. Besides total assets of €27.7 billion (previous year:

€26.6 billion), the business volume includes irrevocable loan commitments of €1.5 billion (previous year:

€1.6 billion). DVB's nominal volume of customer lending (aggregate of loans and advances to customers, guarantees and indemnities, irrevocable loan commitments, and derivatives) rose by 2.4%, to €25.9 billion (previous year: €25.3 billion), also reflecting currency translation effects.

The key financial indicators which DVB Bank Group uses to manage its business reflected the regressive business performance: return on equity (before taxes) stood at -10.8% (previous year: 0.8%), the cost/income ratio at 44.3% (previous year: 55.3%) and risk-adjusted Economic Value Added totalled

€-249.0 million (previous year: €-86.8 million).

DVB discloses capital ratios determined on the basis of Basel III (Advanced Approach) and after appropriation of profits: on this basis, the common equity tier 1 ratio amounted to 13.2% (previous year: 16.3%), whilst the total capital ratio was 20.7% (previous year: 22.4%).

Contact:

Elisabeth Winter

Head of Group Corporate Communications Managing Director

Phone: [phone]

E-mail: [e-mail]