Weak dollar hits Bundesbank as profits plunge

The Bundesbank said its full year 2003 net profit plunged to €248 million from €5

The Bundesbank said its full year 2003 net profit plunged to €248 million from €5.324 billion the previous year as the weak dollar lowered the value of its equity holdings.

The bank had announced last year that 2002 net profit was €5.4 billion but today it disclosed the figure had been restated to €5.324 billion.

The bank said it also had to take a €2.3 billion writedown for the business year 2003 due to the lower valuation of its equities portfolio.

Of the €2.3 billion writedown, €1.7 billion alone was attributed to lower valuation of dollar-denominated securities holdings.

READ MORE

AFP