(Corrects profit increase in first paragraph.)
April 16 (Bloomberg) -- Kreditanstalt fuer Wiederaufbau, Germany’s third-biggest bank by assets, said profit rose 15 percent to 2.4 billion euros ($3.1 billion) in 2012, boosted by interest income.
“KfW’s group profit this year is again on a very high level, it is significantly above the sustainable income potential and cannot be continued into the future,” Ulrich Schroeder, chief executive officer of the Frankfurt-based lender, said in a statement today. “We see sustainable earning level at around 1.2 billion euros.”
Deutsche Bank AG, Germany’s biggest lender based in Frankfurt, had a profit of 611 million euros in 2012 and Commerzbank AG, the second-biggest bank in Europe’s largest economy, reported net income of 6 million euros.
KfW’s net interest income rose to a record 2.9 billion euros in 2012 from 2.4 billion euros. The bank, which is fully state-owned, is rated AAA by Standard & Poor’s.
The bank said it core Tier 1 capital ratio under fully applied Basel III, a measure of financial strength, reached 15.1 percent at the end of the year. Deutsche Bank said yesterday that it reached its target of a Basel III core Tier 1 capital ratio of 8.5 percent at the end of March.
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