While banks across the U.S. and European Union reported record-high losses in 2008, the national Bundesbank of Germany registered an $8 billion profit last year.

Bundesbank president Axel Weber disclosed on Tuesday in a press conference the large profit enjoyed by the bank, which is a 50 percent increase compared to 2007. Weber said the higher profit came even if there was a substantial hike in reserves.

The profit will accrue to the federal government of Germany, which is looking for funds to finance deficit spending to battle the effect of the global economic crisis through bailout packages for German banks and other industries.

The bulk of Bundesbank's profit were earned from interest payments by other German banks.

The good news was balanced by bad news as Germany's export earnings went down by 20.7 percent in January. Imports also declined by 12.9 percent. Because of the economic slow down Germany forecasts a 2.25 percent contraction in its economy for 2009.