Despite increasing its first quarter pre-tax profits by a sizable 20%, shares in German lender Postbank have fallen by 4%, the Financial Times has reported.
<p>The fall represents the disappointment of the market, which had expected even larger profit growth from the bank. <br /><br />Postbank's pre-tax profits improved to E208 million due largely to a 21.7% growth in revenues for its retail banking arm, which was boosted by the contribution made by the recently-purchased BHW mortgage lender. Total revenues came in just shy of E1 billion at E997 million, a 6.3% increase on the previous year.<br /><br />However, with figures significantly aided by the BHW acquisition and integration, the market has expected Postbank to better the 20% rise it achieved. According to a Reuters poll of analysts, the average expected increase in pre-tax profits was E137 million, while the bank actually delivered E134 million.</p>