BayernLB’s Q3 results hit hard by economic downturn

by Richard Kilner

Story link: BayernLB’s Q3 results hit hard by economic downturn

German bank BayernLB has been hit hard by the worldwide economic turbulence, and has posted an operating loss of around €1bn for the third quarter of this year (as the bank warned in late October).

Over the course of the first nine months of 2008 the loss totals €1,674m.

However, despite these losses the bank has stated that its operating customer business has performed to satisfaction, although undoubtedly put in the shade by the enormous economic challenges of the present climate.

Q2 saw the firm in the black and exhibiting a pattern of recovery, which has since been derailed by the sudden and dramatic volatility in the world’s financial markets.

The operating customer business recorded net interest of €1,949m and commission income of €452m, rises of almost 20% and 59% respectively.

Loans and Advances to Customers rose by over 11%, and Customer Deposits were up by more than 7%.