Hypo Real Estate, the holding company that owns German lender Deutsche Pfandbriefbank, has reported that its pre-tax losses dropped from EUR 5.3 bn in 2008 to EUR 2.2 bn last year.
Hypo Real Estate, the holding company that owns German lender Deutsche Pfandbriefbank, has reported that its pre-tax losses dropped from EUR 5.3 bn in 2008 to EUR 2.2 bn last year.
The publication of the 2009 figures follow the unexpected resignation of CEO Axel Wieandt after a clash with the German bank rescue fund Soffin about the management of the nationalised property lender.
The result was affected mainly by further provisions for losses on loans and advances as well as costs of the external liquidity support. Operating revenues have increased by EUR 1 bn from minus EUR 585 mln to EUR 419 mln.
The main factors, Hypo said, were the much less negative net trading income (minus EUR 154 mln) and net income from financial investments which broke even. Operating revenues in 2009 were considerably affected by costs of EUR 741 mln for guarantees in connection with the necessary liquidity support provided by the Soffin and the German government. This figure includes a performance-linked charge of EUR 229 mln.
Manuela Better, Chief Risk Officer and interim CEO of HRE said: 'We have stabilised the Group in 2009 and have considerably reduced the losses. Our strategic priorities for 2010 are to continue establishing Deutsche Pfandbriefbank on the market, to continue reducing the balance sheet total, to establish a deconsolidated environment for the transfer of non-strategic business activities and the successful completion of the EU proceedings.'
