FRANKFURT: The German Postbank, now owned by Deutsche Bank, posted Thursday a sharp increase in 2010 net profit and said its earnings would continue to improve "step by step" this year and next.
Postbank, which has the country's biggest retail banking network, said net profit jumped to 138 million euros ($190 million), from 76 million euros a year earlier.
Pre-tax profit recovered from a 2009 loss of 398 million euros to show a positive 315 million euros, a statement said, with operations underpinned for the most part by interest revenues.
Investment activites continued to show losses however, owing to depreciations booked on derivative credit products, the bank said.
Postbank has been cleaning out its portfolio of risky assets since the global financial crisis worsened in late 2008.
Last year, provisions taken against potential losses declined by a welcome 17.2 percent to 561 million euros.
Deutsche Bank, the biggest German bank, now owns almost 52 percent of Postbank and has included its results in overall group earnings as of December.
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