...In H207 the major German banks Deutsche Bank AG (Deutsche, rated AA\01 ), Commerzbank AG (C ommerz, rated A ), Bayerische Hypo\01 und Vereinsbank AG (H VB, rated A ), Dresdner Bank AG (Dresdner, rated A+ ) and Deutsche Postbank AG (Postbank, rated A ) track record of steadily improving operating profitability was hampered b y the prevailing financial marke t crisis. Benefiting from a benign market environment and a solid operating profitability in the first half of the year, the banks operating profit for FY07 was overall only modestly below FY06 results, despite the negative impact from impairments and mark\01to\01market (MTM) valuation losses on structured credit and lending products booked in H207. Commerz s and HVB s operating profit even increased compared with FY06. However, in light of a further massive widening of credit spreads observed in the first few m onths of 2008 and a market environment that remains...
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