The Watchdog

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JANE BURGERMEISTER REPORT:’Germany’s DEPFA profits soar thanks to deals in covered bonds: Irish tax payers’ millions?’

Germany’s DEPFA profits soar thanks to deals in covered bonds: Irish tax payers’ millions?

Deutsche Hypo Real Estate (HRE) Group, which comprises the Irish DEPFA group, posted 163 million euro in profit before taxes versus a loss of 324 million euro in the first quarter 2011 – and most of that proft came from Depfa covered bonds dealings presumably paid for by Irish tax payers because no property company is making a profit in this downturn.

„At € 118 million, this effect was particularly pronounced at the DEPFA sub-group, where the profit from the repurchase of covered bonds in particular was offset by a € 19 million loss realised upon the sale of assets no longer included in cover. Including these non-recurring effects, the DEPFA sub-group posted € 125 million i profit before taxes (Q1 2010: € -117 million); like the HRE Group overall, the subgroup has therefore been profitable for the second quarter in a row.“

http://www.hyporealestate.com/eng/pdf/110520_Q1_final_e.pdf

So Depfa has somehow magically swung from a loss of 117 million euros in Q1 2010 to a profit of 118 million euros this quarter in spite of a crushing property downturn – thanks to the Irish tax payers presumably.

HRE – which incidentally are also the intials of the Holy Roman Empire — has cost German tax payers billions in the financial crisis subprime fraud. The shareholders were paid tax money for paper fractional reserve banking losses engineered on the balance sheet by manipulating the property values using the fair value accounting system.

The Federal Republic of Germany, acting through the Financial Market Stabilization Fund (SoFFin), is intending to submit a voluntary public takeover offer to the shareholders of Hypo Real Estate AG (HRE). – The offer price of EUR 1.39 per HRE share represents a premium of approximately 10% to the statutory minimum offer price of EUR 1.26. – This provides an opportunity for HRE shareholders to sell their investment at an attractive price. – SoFFin is aiming to acquire 100% of the outstanding shares – though no minimum acceptance level. – This takeover offer is an important step towards stabilising the German financial market.

http://www.finanznachrichten.de/nachrichten-2009-04/13594184-soffin-announces-voluntary-public-takeover-offer-for-hre-at-a-price-of-eur-1-39-per-hre-share-007.htm

Including these non-recurring effects, the DEPFA sub-group posted € 125 million in profit before taxes (Q1 2010: € -117 million);

-The level of results was supported by non-recurring effects, such as the early redemption of liabilities.

-At EUR118 million, this effect was particularly pronounced in the DEPFA sub- group, where the profit from the repurchase of covered bonds in particular was offset by a EUR19 million loss realized upon the sale of assets no longer included in cover.

-Including these non-recurring effects, the DEPFA sub-group posted EUR125 million in profit before taxes, up from a loss of EUR117 million.

http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201105200401dowjonesdjonline000278&title=hypo-real-estate-backs-11-outlookswings-to-1q-pretax-profit

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May 24, 2011 - Posted by | Internationally significant information, Jane Burgermeister Report

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