Deutsche Postbank is its provision for credit losses
Posted by admin | Under business opportunity, business success, facts, management, marketing Wednesday Aug 4, 2010Deutsche Postbank reported a pretax profit above expectations in the second quarter, supported by higher interest income and lower losses in subprime, but the banking group has increased its reserves for potential losses on credit.
The chief executive, Stefan Jutte said in a statement it expected that the result does not reach the second half than the first, while ensuring that the full year will be positive.
The action took 0.64% to 25.30 euros at 8:05 GMT.
The first German retail bank by number of customers has also abandoned its goal of profitability in the medium term due to uncertainties still hang on the evolution of banking regulation.
Deutsche Postbank posted a pretax profit of 94 million euros in the second quarter, against a loss of 29 million a year earlier.Analysts had expected a profit of 77.9 million.
These results echo those reported by other retail banks such as Societe Generale, BNP Paribas and HSBC, which illustrate the recovery of the banking sector.
Earlier this year, Deutsche Postbank had said it expected a return on equity after tax of 13% over the medium term, a goal well below that of some of its rivals such as Deutsche Bank.
Deutsche Postbank has narrowly passed the stress tests that have imposed the European authorities, showing a Tier 1 ratio by 0.6 percentage point higher than the 6% threshold required under the most brutal scenario imagined by the regulator .
RESERVES INCREASE
Postbank said Wednesday that this ratio showed late June to 7.3%, a level identical to the one she posted late March.
She reiterated that she would continue to undertake the necessary measures to achieve a ratio of 9.5% by end 2012.
The net interest emerged, up 18% to 671 million euros in the second quarter, while provisions for credit losses were recorded at 175 million euros against 120 million a year ago.
Asset write-downs related to subprime mortgages fell to 174 million euros in the second quarter against 431 million a year earlier.
In late July, the group said it had an exposure of 7.9 billion euros in sovereign debt.Postbank had an exhibition of 500 million euros in loans Portuguese, Italian loans to 4.6 billion, 300 million to the Irish debt, $ 1.3 billion to 1.2 billion debt to Greek and Spanish government bonds .