DGAP-Adhoc: Deutsche Postbank AG: Negative result in the 3rd quarter due to the crisis in the financial markets

Deutsche Postbank AG / Interim Report/Capital Increase

27.10.2008 

Release of a Adhoc News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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These materials are not an offer for sale of securities in the United
States. Securities may not be sold in the United States absent registration
with the United States Securities and Exchange Commission or an exemption
from Registration under the U.S. Securities Act of 1933, as amended.
Deutsche Postbank AG does not intend to register any part of the securities
described herein in the United States or to conduct a public offering of
Shares in the United States.

This communication is only being distributed to and is only directed at
(i)persons who are outside the United Kingdom or (ii) to investment
professionals falling within Article 19(5) of the Financial Services and
Markets Act 2000 (Financial Promotion) Order 2005 (the 'Order') or (iii)
high net worth companies, and other persons to whom it may lawfully be
communicated, falling within Article 49(2)(a) to (d) of the Order (all such
persons together being referred to as 'relevant persons').  The Shares are
only available to, and any invitation, offer or agreement to subscribe,
purchase or otherwise acquire such Shares will be engaged in only with,
relevant persons.  Any person who is not a relevant person should not act
or rely on this document or any of its contents.
Stabilization/FSA.

Ad-Hoc Release
Deutsche Postbank AG: Negative result in the third quarter due to the
crisis in the financial markets / Capital increase through rights offering
planned for 4th quarter 2008 / Deutsche Post AG agrees to guarantee the
entire capital increase at a subscription price of €18.25 per share.
Deutsche Postbank AG reports a third quarter consolidated pre-tax loss in
an amount of €449 million despite continued positive developments in its
operational customer businesses.  As a result, Postbank has recorded a
consolidated pre-tax loss of €112 milion for the first nine months of the
current financial year.
There were continued positive developments in the core operational
components of Postbank’s results, such as interest income, net fee and
commission income and administrative expenses.  Following the significant
worsening of the crisis in the international financial markets during the
third quarter, negative results in net trading income and net income from
investment securities as well as allowances for loan losses, were the
primary  contributors to Postbank’s negative result for the quarter.  Among
other things, Postbank booked losses in the amount of €364 million in the
third quarter related to its exposures to the US investment bank Lehman
Brothers, which now stands under creditor protection.  Writedowns on stock
and investment fund holdings (€65 million) as well as in structured credit
products (€47 million) also impacted results.  Furthermore, Postbank booked
losses of €201 million related to the revaluation of embedded derivatives
in the structured credit portfolio.
The Tier 1 ratio (calculated in accordance with Basel II) declined to 5.5%
as of September 30, 2008, compared to 6.3% on July 30 2008.  The
revaluation reserve, which is taken into account in determining regulatory
capital levels, amounted to negative €1,894 billion after negative €1,566
billion as of June 30, 2008.
The Postbank Management Board will focus the bank’s business model even
more strongly on retail, business and corporate customers and is committed
to adjusting to the changed market environment resulting from the financial
crisis.  In addition, Postbank is planning to substantially strengthen its
capital base.
As a part of its action plan, the Management Board has resolved to conduct
a capital increase in the fourth quarter with the approval of the
Supervisory Board.  The rights offering will fully utilize the authorized
capital approved by the 2006 Annual General Meeting of 54.8 million shares.
The subscription price for the offering has been set at €18.25 per share. 
Further details will be announced at a later date shortly before
commencement of the offering.
Postbank’s majority shareholder, Deutsche Post AG, has irrevocably and
unconditionally committed to Postbank that it will subscribe for the new
shares corresponding to its existing stake of 50 percent plus one share at
the subscription price.  Based on a subscription price of €18.25 per share,
Deutsche Post has further undertaken to purchase any shares from the rights
offering that are not otherwise placed with investors at the subscription
price.

Upon completion of the planned capital increase at a subscription price of
€18.25, Postbank’s Tier 1 ratio would improve to 6.9% (pro forma).  In
order to further stabilize Postbank’s capital base, the Management Board
currently intends to submit a proposal to the shareholders at the next
ordinary shareholders’ meeting in April 2009 to not distribute any
dividends for the 2008 financial year.

Disclaimer:
This document does not constitute a securities prospectus. The securities
prospectus will be published prior to the commencement of the public
offering in Germany. The information legally required to be provided to
investors will only be contained in the securities prospectus. The
securities prospectus will be available free of charge on the website of
Deutsche Postbank AG (http://ir.postbank.de); upon request, printed copies
will be available free of charge at Deutsche Postbank AG,
Friedrich-Ebert-Allee 114-126, 53113 Bonn and from the global coordinator.

Not for release, publication or distribution in the United States or Canada



Contact:
Deutsche Postbank AG
Zentrale
Investor Relations
Friedrich-Ebert-Allee 114-126
53113 Bonn
Deutschland
Telefon: +49 (0) 2 28 9 20-1 80 01
Telefax: +49 (0) 2 28 9 20-1 80 09
E-Mail: ir@postbank.de




DGAP 27.10.2008 
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Language:     English
Issuer:       Deutsche Postbank AG
              Friedrich-Ebert-Allee 114-126
              53113 Bonn
              Deutschland
Phone:        +49 (0)228-920-18001
Fax:          +49 (0)228-920-18009
E-mail:       ir@postbank.de
Internet:     www.postbank.de
ISIN:         DE0008001009
WKN:          800100
Indices:      DAX, MIDCAP, PRIMEALL, CLASSICALLSHARE, CDAX, HDAX
Listed:       Regulierter Markt in Berlin, Frankfurt (Prime Standard),
              Hannover, Düsseldorf, Hamburg, München, Stuttgart;
              Terminbörse EUREX
End of News                                     DGAP News-Service
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