Deutsche Postbank International S.A. once again increased its earnings in fiscal 2003. In the context of only hesitant recovery on the financial markets, the Luxembourg-based subsidiary of Deutsche Postbank AG increased its profit before tax by almost 2% to some €22.8 million. “We improved again despite the difficult environment because we implemented further administration streamlining measures and further reduced allowances for losses on loans and advances by improving risk management. This was also supported by the bank supervisory body in Luxembourg, which enabled a high level of flexibility with the outsourcing regulations”, explains Christoph Schmitz, Managing Director of Deutsche Postbank International.

The bank was unable to escape the negative market environment in terms of net interest income and net fee and commission income. As a result, net interest income was down almost 19% on the previous year, to €24 million, and net fee and commission income fell by some 6.5% to €11.5 million. At €2.2 million, net income from financial transactions was down 2% on the previous year. The cautious lending policy had a positive impact that led to a reduction of €3.6 million in provisions for losses on loans and advances. Administrative costs fell 14% on the previous year, to €16 million.

Postbank is active in the Private Customers, Corporate Customers and Treasury operating areas in Luxembourg. In addition to Deutsche Postbank International S.A., Postbank is represented by its own branch and three asset management companies in the banking center of Luxembourg. At the end of 2003, 143 people were employed in Postbank's Luxembourg-based operating areas.