(by Ameli Berksman)

HVB, second-largest bank in Germany, revealed disappointing results this Thursday, saying its profit dropped 97% to €6million as opposed to €196million a year ago.

The company will strive to cut its costs in addition to the already achieved 2.5% reduction in operating expenses in an attempt to increase the profitability of its core German business.

The bank was forced to admit that it was not likely to achieve its €1.4-1.7billion operating profit target. The financial results were affected by the dismal performance of its investment banking division, weak trading trends in line with the subdued reports of the financial services market by Switzerland’ Credit Suisse and France’s BNP Paribas.

Quarterly profits dropped as a result of lower trading income and interest income combined with the increase in bad debt charges.