Deutsche Postbank Profit Climbs, Sidesteps Subprime
Deutsche Postbank largely avoided the subprime crisis and lifted net profit by a quarter last year to 870 million euros, mainly due to tax rule changes, Germany's biggest retail bank said on Friday.
Postbank, which is set to be sold this year, came away lightly from the subprime crisis, which rival Commerzbank said earlier in the week cost it almost 1 billion euros ($1.46 billion) in 2007.
The Bonn-based lender said the credit crunch would only cost it 112 million euros in write-downs. Investors had been worried that the fallout from the subprime crisis would also suck in Postbank.
Interest income from the bank's bread-and-butter lending business rose slightly last year to 2.24 billion euros, while the money it set aside for bad debts, at 338 million euros, remained steady.
Postbank has been put up for sale by owner Deutsche Post. Rivals such as Deutsche Bank have already signaled their interest.
Postbank said it planned to leave its dividend unchanged at 1.25 euros per share for 2007.