Weidman explains plummeting Bundesbank profit

Jens Weidmann, president of the Deutsche Bundesbank, today explained the reasons for the large drop in profits for 2011 compared with the year before.

The central bank posted a profit of €600 million ($790 million) in 2011 compared with €2.2 billion in 2010.

"The main reason for the decline in profit is the increase in risk provisioning," said Weidmann at the Bundesbank's annual balance-sheet press conference. The Bundesbank upped its provisions for general risks by €4.1 billion to reach €7.7 bi