UPDATE 1-Deutsche Postbank has Q1 profit as writedowns fall

* Q1 net profit of 96 million euros vs 98 mln year ago

* Q1 risk provisions rise 22 pct to 140 mln euros

* Subprime hit falls to 98 mln from 279 mln euros

(Adds details and background)

FRANKFURT, May 12 (BestGrowthStock) – Deutsche Postbank (DPBGn.DE: ),
Germany’s largest retail bank by clients, said higher deposits
and increased demand for loans, coupled with a lower subprime
related hit, helped it turn a first-quarter profit (Read more your timing to make a profit.).

The swing from a 99 million euro loss in the fourth quarter
mirrors a similar rebound seen in other banks with large retail
operations such as HSBC (HSBA.L: ) and Royal Bank of Scotland
(RBS.L: ). [ID:nLDE64514E] [ID:nLDE645275]

Deposits grew 8 percent year-on-year to 92.6 billion euros
($117.6 billion) even as the number of current accounts remained
constant at around 4.9 million, boosting net interest income by
6 percent to 675 million euros in the first quarter.

Last month the Bonn-based lender pre-released some of its
results when it said it had managed to post a 131 million euro
first-quarter pretax profit. [ID:nLDE63R1L6]

Demand for corporate loans to small and medium-sized
companies jumped by 18 percent year-on-year to 29.9 billion
euros in the first quarter, mirroring increased confidence in
the real economy.

But risk provisions for potential problem loans also rose 22
percent to 140 million euros, reflecting the continued fallout
of the financial crisis.

Writedowns from assets tied to subprime mortgages fell to 98
million euros from 279 million euros in the year-earlier period,
and included a 74 million euro hit from instruments guaranteed
by troubled U.S. insurer Ambac Financial Group (ABK.N: ), the
company said.

Investing Analysis

(Reporting by Edward Taylor; Editing by Michael Shields)

UPDATE 1-Deutsche Postbank has Q1 profit as writedowns fall