Hypo Real Estate Group, posted a net loss of EUR 574 mln for in the third quarter of 2009, marking the German real estate lender's fifth consecutive quarterly loss. The performance in the July to September period brings the banking group's net loss for the first nine months of the year to EUR 1.71 bn. In the same period last year the group suffered a loss of EUR 3 bn and massive state intervention was required to prevent Hypo collapsing in a credit squeeze.
Hypo Real Estate Group, posted a net loss of EUR 574 mln for in the third quarter of 2009, marking the German real estate lender's fifth consecutive quarterly loss. The performance in the July to September period brings the banking group's net loss for the first nine months of the year to EUR 1.71 bn. In the same period last year the group suffered a loss of EUR 3 bn and massive state intervention was required to prevent Hypo collapsing in a credit squeeze.
The banking group was propped up by a EUR 50 bn public-private aid package in October 2008 and has received billions more in aid and guarantees from the German bank stabilisation fund Soffin. Hypo Real Estate carried out a major restructuring over the following year, and in recent months has begun to undertake new lending through its new core bank Deutsche Pfandbriefbank. Total assets have fallen by 11% to EUR 374 bn.
CEO Axel Wieandt, said: 'The result of the first nine months of this year is not satisfactory; however, it is due to the difficult conditions on the market and the special situation of the Group. We still have a long way to go before we will meet our objective - but good progress is being made with the process of restructuring. Conditions on the market will continue to be difficult.'
