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BERLIN - THE German bank Postbank announced on Monday an emergency capital increase worth up to one billion euros (S$1.88 billion) to replenish it balance sheet which has been hit by the international financial crisis.
Postbank said it had lost 449 million euros before taxes in the third quarter of 2008. Investments with the failed US investment bank Lehman Brothers cost the German bank 364 million euros, a statement said.
Postbank will take another 65 million euros in charges owing to the falling value of its stock portfolio, 47 million euros on its credit portfolio and 201 million euros on investments in financial derivatives that are at the heart of the crisis.
The bank said it would not pay a dividend in 2008.
Parent group Deutsche Post will cover all of the capital increase, which it said would cost a maximum of one billion euros.
The operation is to be finalised in the fourth quarter, with new shares costing 18.25 euros apiece.
Deutsche Post said the planned sale of a 29.75 percent stake in Postbank was 'not put in question' by the operation.
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