DGAP-Adhoc: Dresdner Bank's preliminary results impacted massively by financial crisis

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 
---------------------------------------------------------------------------