Dresdner Bank AG / Preliminary Results 26.02.2009 Release of a Adhoc News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Frankfurt, 26 February 2009 Dresdner Bank's preliminary results impacted massively by financial crisis · High value adjustments and loan impairment losses in 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 EUR2.8 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 6 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 of 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. Contact: Martin Halusa Tel. +49 69 263-50750 Thomas Bonk Tel. +49 69 263-11005 Note: Unless otherwise indicated, the figures given in this press release relate to the Dresdner Bank Group and have been prepared in accordance with the IFRSs. The classification of the figures is comparable with those for other major German banks that apply IFRSs. Note to editors: This press release can be downloaded from: www.dresdner-bank.com/press Cautionary Note Regarding Forward-Looking Statements Certain of the statements contained herein may be statements of future expectations and other forward-looking statements that are based on management's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. In addition to statements which are forward-looking by reason of context, the words 'may', 'will', 'should', 'expects', 'plans', 'intends', 'anticipates', 'believes', 'estimates', 'predicts', 'potential', or 'continue' and similar expressions identify forward-looking statements. Actual results, performance or events may differ materially from those in such statements due to, without limitation, (i) general economic conditions, including in particular economic conditions in core businesses and core markets, (ii) performance of financial markets, including emerging markets, (iii) the extent of credit defaults, (iv) interest rate levels, (v) currency exchange rates including the Euro-U.S. dollar exchange rate, (vi) changing levels of competition, (vii) changes in laws and regulations, including monetary convergence and the European Monetary Union, (viii) changes in the policies of central banks and/or foreign governments, (ix) reorganisation measures and (x) general competitive factors, in each case on a local, regional, national and/or global basis. Many of these factors may be more likely to occur, or more pronounced, as a result of terrorist activities and their consequences. The matters discussed herein may also involve risks and uncertainties described from time to time in Allianz AG's filings with the U.S. Securities and Exchange Commission. The company assumes no obligation to update any forward-looking information contained herein. Preliminary 2008 results (in EUR million) 2008 2007 Change Q42008 Q42007 Change EUR million per cent EUR million per 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 DGAP 26.02.2009 ---------------------------------------------------------------------------
DGAP-Adhoc: Dresdner Bank's preliminary results impacted massively by financial crisis
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