(Updates with revenue in second, new business in fourth paragraph.)
Nov. 15 (Bloomberg) -- Hypo Real Estate Holding AG, the German government-owned lender bailed out during the financial crisis, reported its fourth consecutive quarterly profit on higher revenue.
Pretax profit of 36 million euros ($49 million) compared with a loss of 408 million euros a year earlier, the Munich- based lender said in a statement today. Operating revenue of 152 million euros compared with negative revenue of 244 million euros a year ago.
Hypo Real Estate became fully owned by the German government after the lender received 10 billion euros of capital and as much as 142 billion euros in credit lines and debt guarantees from the state and financial institutions to save it from collapse in 2008. The bank, whose implosion was Germany’s biggest bank failure since World War II, won European Union approval for the bailout earlier this year.
Pretax profit at the pbb Deutsche Pfandbriefbank “core bank” unit declined to 43 million euros in the quarter from 119 million euros last year, the company said. New real estate and public finance business of 1.6 billion euros in the quarter brought the figure to 5.7 billion euros, the lender said.
The 2011 new business target of up to 8 billion euros is “still achievable, subject to an appropriate market environment,” Chief Executive Officer Manuela Better said in the statement.
Hypo Real Estate last year transferred about 176 billion euros in assets to the FMS Wertmanagement bad bank, which is in charge of winding down the assets over the course of 10 years.
--With assistance from Mariajose Vera in Munich and Aaron Kirchfeld in Frankfurt. Editors: Jon Menon, Francis Harris
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