Postbank Says First-Quarter Profit Declined 19% on Writedowns

Discussion in 'Stocks' started by ASusilovic, May 8, 2008.

  1. Deutsche Postbank AG, Germany's biggest consumer bank by clients, said first-quarter profit declined 19 percent on writedowns related to the U.S. subprime- mortgage market collapse.

    Net income fell to 116 million euros ($179 million) from 144 million euros a year earlier, the company said in an e- mailed statement today. That beat the 97 million-euro median estimate of 10 analysts surveyed by Bloomberg. Postbank wrote down the value of securities by 174 million euros in the quarter.

    Profit at Postbank declined less than the two domestic rivals Deutsche Bank AG and Commerzbank AG as it benefited from a focus on retail banking, which generates more than 90 percent of total earnings. The Bonn-based bank, with more than 14.5 million customers and 850 branches, is at the center of takeover speculation after majority owner Deutsche Post AG said it is assessing a possible sale.

    ``Underlying profit is stable because the business model doesn't depend on capital markets or the credit cycle,'' Dirk Becker, a Frankfurt-based analyst at Landsbanki Kepler, who recommends investors sell the stock, said before earnings were published. ``Still, the bank had to digest some writedowns.''

    Postbank has declined about 4 percent in Frankfurt trading so far this year, valuing the company at 9.54 billion euros. That compares to an 11 percent decline in the Bloomberg Europe Banks and Financial Services Index of 59 stocks.

    Deutsche Bank is just luring around the corner....


    :D :p :)