IKB Deutsche Industriebank saw a net loss of euro540 million ($739.80) in its fiscal first quarter, but said a government rescue package had helped it stabilize.
The Duesseldorf-based bank, which has reported heavy losses from the effects of the sub-prime mortgage crisis, said it saw a 14-percent reduction in net interest income for the April 1 to June 30 period to euro121.2 million ($166.04) from euro140.8 million ($129.90 million) in the same period a year ago.
In February, German Economy Minister Michael Glos, said the German government would provide $1.5 billion to help bail out the IKB.
In terms of an outlook for the rest of the year, IKB said its net assets and financial position have been stabilized as a result of the rescue package.
"The continued development of IKB depends to a large extent on its ability to obtain adequate refinancing," IKB said in a statement issued late Wednesday.
"In addition to the capital increase, a prerequisite for this is that the capital markets, and confidence in banks in general, must return to normal." IKB said it saw largely flat or lower operating income among its segments.