Hypo Real Estate Holding AG, the government-aided German commercial real-estate lender, reported a first-quarter loss because of writedowns.
The Munich-based lender posted a net loss of €382 million ($510 million) in the three months to March compared with a profit of €148 million a year earlier, it said in an e- mailed statement today.
Hypo Real Estate avoided bankruptcy after receiving credit lines and debt guarantees of €102 billion from the German government and financial institutions.
Germany’s Soffin bank-rescue fund, which offered €1.39 a share to buy Hypo Real Estate, today announced that 32.3 per cent of investors accepted the offer to May 4th.
“The first quarter of 2009 again posed a major challenge for the group and its employees in market conditions which continued to be difficult,” chief executive Officer Axel Wieandt said in the statement.
We are however, making good progress with restructuring.”
The company had a net trading loss of €162 million after markdowns on collateralized debt obligations and other securities.
Loan-loss provisions rose almost sixfold to €196 million as it set aside more money for possible defaults amid the “deterioration of the global economy.”
Bloomberg