Vienna - Austria-based Erste Group Bank saw its net profits drop 26.5 per cent in the first quarter of 2009, the bank said Thursday, reflecting its high exposure to loans to central and Eastern Europe.

The bank, one of Central and Eastern Europe's biggest lenders, made a net profit of 232.1 million euros (306.7 million dollars) in the first three months of the current year, down from 315.6 million euros in the same period of the previous year.

With the exception of the Ukraine, all of Erste's Central and Eastern European operations were profitable.

Sao Paulo - Brazil's central bank on Wednesday evening cut its Selic benchmark interest rate for a third time to 10.25 per cent from 11.25 per cent, in an attempt to boost growth.

Wellington - New Zealand's central bank slashed its benchmark interest rate Thursday by half a per cent to 2.5 per cent, its seventh cut since July.

The so-called official cash rate (OCR) was already at its lowest mark since it was introduced in 1999 and Reserve Bank governor Alan Bollard signalled that he could keep it at or below the current level until late 2010.

"We consider it appropriate to provide further policy stimulus to the economy," he said. "The OCR could still move modestly lower over the coming quarters."

New York - At least six of the 19 largest US banks need more capital to remain healthy through the recession, according to leaked information from the two-month stress test carried out by the nation's bank regulators, Bloomberg financial news service reported Wednesday.

The infusions could come from extra cash injections from the government, but more likely from converting preferred shares to common equity, the report said, citing people close to the situation.