97HF Commerzbk Uk Nt

 
TIDM97HF TIDM97HF 
 
Dresdner Bank AG: 
 
Dresdner Bank's preliminary results impacted massively by financial crisis 
 
 
 
 
 
 
 
26.02.2009 
 
 
 
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*           High value adjustments and loan impairment losses at Investment 
            Banking 
 
*           Additional impact of one-time tax effect 
 
*           Private & Corporate Clients business profitable 
 
 
 
The worsening financial crisis massively affected Dresdner Bank's results last 
year. The total impact in 2008, which was due primarily to value adjustments 
and the need for loan impairments, amounted to EUR6.2 billion. In addition, 
write-downs of deferred tax assets in the amount of approximately EUR1.3 billion 
were incurred in relation to the takeover of Dresdner Bank by Commerzbank. 
According to the preliminary, unaudited figures, Dresdner Bank closed 2008 with 
a loss of EUR6.3 billion, despite the positive result recorded by the Private & 
Corporate Clients business. 
 
 
 
Dresdner Bank's total operating income in 2008 was down by a good 87 per cent 
year-on-year to EUR0.7 billion. This was due to value adjustments, which mainly 
related to portfolios of structured credit products, monoliner hedges and 
structured investment vehicles. Net interest and current income amounted to EUR 
2.8 billion (previous year: EUR3.1 billion). On a like-for-like basis, the 
traditional interest-driven business recorded year-on-year growth of around 6 
per cent. Net fee and commission income fell by slightly less than 24 per cent 
to EUR2.2 billion (previous year: EUR2.9 billion). This was due primarily to 
declining income from the securities business. Because of the value adjustments 
mentioned above, net trading income fell to EUR-4.3 billion (previous year: EUR-0.5 
billion). 
 
 
 
At EUR4.5 billion, administrative expenses were down approximately 5 per cent 
year-on-year. Total staff costs fell by around 8 per cent to EUR2.7 billion. 
Non-staff operating costs recorded a decline of around 4 percent to EUR1.8 
billion. Loan impairment losses amounted to EUR1.7 billion, after net reversals 
of EUR132 million in the previous year. The increase is primarily due to the need 
for additional value adjustments on LBO finance transactions in the fourth 
quarter. 
 
 
 
The operating loss for 2008 amounted to EUR5.6 billion, after an operating profit 
of EUR710 million in the previous year. At EUR3.9 billion, the operating loss for 
Q4 2008 widened by slightly less than EUR3.5 billion year-on-year. 
 
 
 
In the non-operating area, Dresdner Bank generated positive net income from 
financial investments of EUR936 million (previous year: EUR183 million). This was 
due in particular to the sale of equity investments in the course of the 
acquisition of Dresdner Bank by Commerzbank. Dresdner Bank's tax expense 
amounted to over EUR1.5 billion despite the negative result for 2008. This was 
due to the fact that - as a result of the change in ownership - loss 
carryforwards at Dresdner Bank AG can no longer be utilised, leading to 
deferred tax assets having to be written off. 
 
 
 
The Private & Corporate Clients division generated an operating profit of EUR537 
million despite the market turbulence (previous year: EUR862 million). The 
decline was due in particular to lower income from the securities business, 
which led to a EUR354 million drop in net fee and commission income to EUR1.5 
billion. The deposits business  turned in a positive performance, with net 
inflows of more than EUR8 billion in the second half of 2008. 
 
Investment Banking was hit increasingly hard by the financial market crisis in 
the course of 2008. This resulted in an operating loss of EUR6.3 billion 
(previous year: loss of EUR665 million). Net trading income fell by EUR4.2 billion 
to EUR-4.6 billion as a result of market factors and value adjustments. Despite 
the difficult market environment, income growth was generated in Fixed Income 
and in selected business areas of the Global Banking unit. 
 
 
 
Due to the massive impact on earnings, the Dresdner Bank Group's equity 
declined from EUR10.6 billion to EUR2.8 billion. Dresdner Bank's total assets fell 
by 15.8 per cent to EUR421.0 billion. 
 
 
 
The Dresdner Bank Group's core capital ratio as at 31 December 2008 was around 
4.0 per cent, and the total capital ratio was around 8.4 per cent, with 
risk-weighted assets amounting to EUR114.9 billion. After adjustment for the 
transfer of CDOs agreed with Allianz and the silent partner's stake by Allianz 
in the amount of EUR750 million, the Dresdner Bank Group's pro forma core capital 
ratio would be 4.8 per cent. 
 
 
 
Based on the preliminary figures, Dresdner Bank AG's loss for the period 
amounted to EUR6.2 billion. It is to be expected that a net accumulated loss will 
be reported even after the reversal of all reserves. This will lead to a loss 
participation on the part of the outstanding hybrid capital and profit 
participation certificates. 
 
 
 
 
 
Preliminary 2008 results 
 
 
 
                                         Change                      Change 
                                                      Q4    Q4 
(in EUR million)         2008    2007                  2008  2007 
                                         EUR      per                  EUR      per 
                                      million  cent              million   cent 
 
Net interest and 
current income          2,813   3,061    -248  -8.1    771   675      96   14.2 
 
Net fee and 
commission income       2,180   2,866    -686 -23.9    447   670    -223  -33.3 
 
Net trading income     -4,313    -481  -3,832 > 100 -2,786  -867  -1,919  > 100 
 
Other operating 
income                     13       -      13           13     -      13 
 
Total operating 
income                    693   5,446  -4,753 -87.3 -1,555   478  -2,033 
 
Administrative 
expenses                4,539   4,849    -310  -6.4    965 1,075    -110 -10.2% 
 
Other operating 
expenses                   81      19      62 > 100     26    12      14  > 100 
 
Total operating 
expenses                4,620   4,868    -248  -5.1    991 1,087     -96  -8.8% 
 
Loan impairment 
losses                  1,671    -132   1,803        1,334  -208   1,542 
 
Operating loss/profit  -5,598     710  -6,308       -3,880  -401  -3,479  > 100 
 
Net income from 
financial investments     936     183     753 > 100  1,096   -33   1,129 
 
Net income from 
intangible assets         -39       -     -39          -39     -     -39 
 
Restructuring charges       0      50     -50  -100    -17    34     -51 
 
Loss/profit before 
tax                    -4,701     843  -5,544       -2,806  -468  -2,338  > 100 
 
Tax expense             1,535     373   1,162 > 100  1,108   -32   1,140 
 
Loss/profit after tax  -6,236     470  -6,706       -3,914  -436  -3,478  > 100 
 
Profit attributable 
to minority interests      62      60       2   3.3     14    12       2   16.7 
 
Loss/profit            -6,298     410  -6,708       -3,928  -448  -3,480  > 100 
 
                      Indices 
 
Core capital ratio 1)   4.0 %   9.1 % 
 
Total capital ratio 
1)                      8.4 %  13.8 % 
 
Risk-weighted assets 
1)                    114,896 123,115  -8,219  -6.7 
 
Employees (FTEs)       23,295  26,309  -3,014 -11.5 
 
 
 
 
 
 
 
 
1) 2008 according to Basel II, 2007 according to Basel I 
 
 
 
 
 
 
 
Frankfurt, 26th of February 2009 
 
 
 
The Board of Directors 
 
Dresdner Bank AG 
 
 
 
 
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Language:            English 
 
Issuer:              Dresdner Bank AG 
 
                     Juergen-Ponto-Platz 1 
 
                     60301 Frankfurt 
 
                     Germany 
 
Telephone:           +49 (0)69 / 263-50750 
 
Fax:                 +49 (0)69 / 263-15839 
 
E-Mail:              Martin.Halusa@Dresdner-Bank.com 
 
Internet:            www.dresdner-bank.de 
 
 
 
ISIN: GB0004955547, Primary Capital Undated Floating Rate Note issued by 
Dresdner Kleinwort Group Limited 
 
 
 
 
 
END 
 

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