Hypo Real Estate yesterday said it expected further heavy losses in the second quarter.
HRE said its profits would be burdened by at least a 'high three-digit million-euro' charge in the second quarter, to reflect further risk provisions on real estate loans.
The stricken lender, on state-backed life support since it nearly collapsed in a liquidity crisis last October, said the new losses were a 'high burden on equity'. The Munich-based lender has lost €5.5bn ($7.7bn) to date.
The statement fuelled speculation of an imminent capital hike. Hypo Real Estate has already received an almost €3bn equity injection by the German government this month.