Aug. 14 (Bloomberg) -- German banking stocks dropped, paced by Deutsche Bank AG and Commerzbank AG. ThyssenKrupp AG gained after Credit Suisse Group recommended buying the shares.

The benchmark DAX Index lost 12.75, or 0.2 percent, to 7,461.58 at 12:38 p.m. in Frankfurt, even as 16 of its members rose and 14 fell. The HDAX Index of the country's 110 biggest companies declined 0.2 percent to 3,828.11.

``Financial stocks have been lagging behind the market today,'' said Matthias Jasper, head of equities at WGZ Bank AG in Dusseldorf, Germany. ``We're not out of the woods yet when it comes to subprime.''

Deutsche Bank retreated 1.77 euros, or 1.8 percent, to 95.47 euros. Commerzbank AG, Germany's second-largest lender, lost 13 cents, or 0.4 percent, to 29.75 euros.

UBS AG, Europe's largest bank, said today that profit in the second half of the year may drop if ``turbulent'' market conditions continue.

ThyssenKrupp gained 68 cents, or 1.7 percent, to 40.34 euros after Credit Suisse raised its recommendation on shares of Germany's largest steelmaker to ``outperform'' from ``neutral,'' lifting its price estimate 12 percent to 47 euros apiece.

Hochtief AG declined 1.28 euros, or 1.8 percent to 69.07 euros. Germany's biggest construction company said second-quarter profit dropped 82 percent after it failed to budget fully for increases in cement and steel costs.

The following stocks rose or fell in German markets. Symbols are in parentheses.

AWD Holding AG (AWD GY) gained 24 cents, or 0.9 percent, to 28.09 euros. The financial-services broker said second-quarter profit climbed 36 percent to 16.3 million euros ($22 million), as it sold more retirement products. That beat the 14.8 million-euro median estimate of nine analysts surveyed by Bloomberg.

Deutsche Euroshop AG (DEQ GY) decreased 35 cents, or 1.4 percent, to 24.41 euros. The only publicly traded German real- estate company that invests in shopping centers said second- quarter profit fell 44 percent to 13.5 million euros because of asset sales last year.

Ersol Solar Energy AG (ES6 GY) dropped 1.36 euros, or 1.4 percent, to 64.50 euros. The solar cell maker said second-quarter profit fell 17 percent to 3.66 million euros after it spent more to increase production.

Evotec AG (EVT GY) slid 5 cents, or 1.7 percent, to 2.95 euros after the company that screens and synthesizes chemical compounds said its loss in the second quarter widened to 12.5 million euros from a 7.23 million euros a year earlier.

K&S AG (SDF GY) tumbled 6.71 euros, or 5.9 percent, to 106.26. The world's third-largest producer of potash used in fertilizers said second-quarter net income increased to 42.2 million euros from 39 million euros. Analysts had estimated profit of 44.5 million euros.

Q-Cells AG (QCE GY) advanced 57 cents, or 0.9 percent, to 64.71 euros after the maker of solar cells said second-quarter profit more than doubled to 43 million euros after sales grew outside its home market.

Repower Systems AG (RPW GY) retreated 2.89 euros, or 2.2 percent, to 127. The German wind-turbine builder said first-half profit fell 95 percent to 43,800 euros after delays from suppliers prevented deliveries to customers.

RWE AG (RWE GY) added 48 cents, or 0.6 percent, to 80.28 euros after Merrill Lynch & Co. raised its recommendation on shares of the country's second-largest utility to ``buy'' from ``neutral.''

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By Igor Muller