Frankfurt - Germany's Postbank AG reported Wednesday a 21 per cent drop in second-quarter earnings on the back of writedowns stemming from the global financial crisis.

Net income dropped to 119 million euros (186 million dollars) from 151 million euros a year ago after Postbank booked write downs totalling 143 million euros.

Postbank's parent, the German mail and logistics group Deutsche Post AG, is considering selling off the group later this year amid speculation that it could eventually form part of a new financial powerhouse in Germany.

This would also comprise two of Germany's other leading banks, Dresdner and Commerzbank.

Postbank shares jumped by 5.0 per cent to 47.33 euros with the group confirming its business outlook for the year of a pre-tax profit of between 1.1 and 1.2 billion euros.

The group's second-quarter pre-tax profit slumped 27 per cent to 171 million euros. Trading income during the latest quarter dropped 46 per cent to 58 million euros with the bank setting aside 86 million euros in the event of loan defaults. (dpa)