Subprime-hit German bank posts loss
Troubled German business lender IKB posted Tuesday a net loss of 965 billion euros (1.5 billion dollars) for its fiscal first half after pulling back from the brink of bankruptcy.
The specialist in loans to small- and medium-sized enterprises, which had postponed the release of results for the period from April to September 2007, had made a profit of 89 million euros in the same period a year earlier.
The bank has suffered very heavy losses in portfolio investments, largely on securities backed by high risk, or subprime, US mortgages on which borrowers have defaulted in large numbers.
IKB reiterated Tuesday its outlook for a loss of 200 million euros in the full year which ended March 2008.
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