IKB Deutsche Industriebank AG (IKBDF.PK) posted a consolidated loss of 517 million euros for the 2011/12 financial year versus last year's profit of 21 million euros, particularly as a result of fair value losses due to European debt crisis.
Loss for the year primarily reflects the sharp rise in risk premiums for European government bonds in light of the escalating sovereign debt crisis in the euro zone. Extraordinary factors and remeasurement effects that had a positive impact on earnings in the previous year turned negative in the 2011/12 financial year, outweighing the earnings components from the Bank's core business.
Consolidated net loss adjusted for extraordinary factors narrowed to 58 million euros from the previous year's 140 million euros.
Net interest income for the year grew to 154 million euros from 144 million euros a year ago.
Provisions for possible loan losses fell to 26 million euros from 79 million euros last year, due to the strong economic development, particularly in Germany.
Further, the Board of Managing Directors is maintaining its target of generating an operating profit in the medium term, thereby creating scope for the further strengthening of its tier I capital.
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by RTT Staff Writer
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