On 12 September 2008, Deutsche Post agreed to sell a minority shareholding of 29.75% in Postbank to Deutsche Bank AG. The transaction will be finalised in the first quarter of 2009. We have adapted our reporting structure accordingly: the Pension Service was transferred from the FINANCIAL SERVICES Division to the mail business as they share a regulatory environment that is almost the same. The remaining segment consists only of Postbank and is therefore reported under “discontinued operations”.

Deutsche Postbank AG presents its business performance for the first nine months of 2008 in its own interim report published on 10 November 2008.

Postbank was amongst the many companies to be heavily affected by the global financial market crisis. The impact on the income statement of developments on the capital markets was felt particularly in the third quarter, especially due to the write-down on Postbank’s exposure to investment bank Lehman Brothers. In the first nine months, however, Postbank’s operating profit showed a clear positive trend: in a year-on-year comparison, Postbank registered increases in the key income items of net interest income and net fee and commission income. By contrast, net trading income and net income from investment securities declined significantly as a consequence of the market turbulence. Administrative expenses were reduced thanks to efficiency increases and strict cost management. Despite encouraging growth in the retail loan business and because the economic conditions in Germany have remained comparatively stable to date, allowances for losses on loans and advances were notably under the prior-year level. In a year-on-year comparison, profit before taxes fell by €918 million to €–112 million in the first nine months of 2008.

Against this backdrop, discontinued operations recorded a loss of €106 million in the year under review and thus fell clearly below the prior-year figure of €700 million. Profit/loss from operating activities (EBIT) dropped by 106.3%, from €859 million in the first nine months of 2007 to €–54 million when taxes and net finance costs are applied. Operating business performed well in all major product segments despite a continued difficult climate in the German retail banking business.