BayernLB Second-Quarter Profit Surges on Real Estate Unit Sale
Pretax profit rose to 563 million euros ($753 million) from 120 million euros a year earlier, the Munich-based company said in a statement today. The sale of GBW to Patrizia Immobilien AG (P1Z) and a group of insurers, pension funds and savings banks in April resulted in a one-time gain of 351 million euros.
BayernLB, led by Chief Executive Officer Gerd Haeusler, agreed to repay 5 billion euros in state aid that saved it from collapse during the financial crisis and sold GBW and other assets as part of a restructuring agreement with the European Commission. The lender reiterated a target to report a full-year profit, adding that performance in the first half won’t continue in the second as one-time gains won’t be repeated.
BayernLB’s Budapest-based MKB Bank unit, which it has to sell on orders by the European Union by 2016, reported a pretax first-half loss of 108 million euros compared with a loss of 66 million euros in the year-earlier period.
“Developments in Hungary are of key importance for BayernLB,” the lender said in the statement. “The country’s government is toying with the idea of fresh political intervention on foreign currency loans which could severely test the business of banks operating there.”
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