Deep red figures: debt crisis burdens ikb

Deep red figures: debt crisis burdens ikb

As IKB deutsche industriebank AG reported in dusseldorf on friday, the loss was 517 million euros, compared with a profit of 20 million euros in the previous year. The result mainly reflected the sharp rise in risk premiums for european government bonds, it said. If special factors and valuation effects are excluded, the net loss is reduced from 140 million euros in the previous year to 58 million euros.

The bank’s liquidity position is stable, it said. The bank is reducing non-strategic assets, and federal guarantees have been repaid as planned. Currently, the remaining guarantee volume amounts to a sum of 4.2 billion euros. The original guarantee had been set at 10 billion euros. IKB was the first victim of the financial market crisis in germany: the bank had speculated in US mortgages and had to be rescued by the k, the federal government and other banks in 2007.

The financial investor lone star is still the main owner with around 90 percent of the shares. He had put the bank up for sale in 2010, but to date without success. According to media reports, the french BNP paribas was interested in a takeover. Lone star keeps a low profile. Industry experts, however, consider a sale unlikely at present in view of the situation on the financial markets.

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