FRANKFURT, Jan 9 - Deutsche Postbank expects to report a big 2008 loss after it eliminated its stocks portfolio at the end of last year, triggering large hidden losses, the German retail bank said on Friday.

Postbank, in which Germany’s biggest lender Deutsche Bank is taking an initial stake of just under 30 per cent, said the ”very negative” capital markets in the fourth quarter and ratings reviews of its structured finance investments could also have a big impact on earnings.