Hypo Real Estate has reported a net loss after tax of EUR 382 mln for the first quarter of 2009. The struggling German property financier attributed the swing to a pre-tax loss of EUR 406 from a pre-tax profit of EUR 190 mln in the year-earlier period to the crisis in the international capital, financing and real estate markets, as well as the costs of liquidity support.
Hypo Real Estate has reported a net loss after tax of EUR 382 mln for the first quarter of 2009. The struggling German property financier attributed the swing to a pre-tax loss of EUR 406 from a pre-tax profit of EUR 190 mln in the year-earlier period to the crisis in the international capital, financing and real estate markets, as well as the costs of liquidity support.
The bank almost collapsed in the latter part of 2008 but was saved by a EUR 50 bn bailout by the German government and the private sector. Since then, Hypo has received billions of euros in further guarantees from the German bank stabilisation fund Soffin to allow it to continue operating. The German government is aiming to nationalise Hypo, but the move is being opposed by some of the bank's key shareholders.
Noting that market conditions continued to pose a major challenge, Hypo CEO Axel Wieandt said good progress was being made with the restructuring of the group. 'Moreover, we have written new business of EUR 600 mln in the field of real estate financing in the first quarter. For the most part this involved business with existing clients,' he added.
