Dresdner Bank has started off 2006 with clear growth. Operating income rose to 1,853 million euros in the first quarter, up almost 15 percent as against the same quarter of 2005. The operating result improved to 494 million euros, an increase of 303 million on Q1 2005. The return on equity before taxes rose to 35.1 percent.
"We have got off to an extremely good start in the current fiscal year. Our divisions recorded increases in both income and earnings. The bank has shifted up a gear with regard to growth”, said Herbert Walter, Chairman of the Board of Managing Directors of Dresdner Bank. "We are confident that we shall reach our ambitious goals for this year.”
Dresdner Bank’s non-operating result for the first three months of the current year amounted to 393 million euros. This includes gains from the disposal of Munich Re shares and the Bank’s investment in Eurohypo, among other things.
Dresdner Bank’s income before taxes amounted to 887 million euros. Its income after taxes was 662 million euros.
Dresdner Bank lifts income and earnings substantially
Operating income up 15 percent in first quarter / Strong securities and capital markets business / Lower loan loss provisions
Clear increase in all income categories
All income categories benefited from the positive market conditions and increased customer activity. Net interest and current income rose in the first three months by 9.1 percent to 577 million euros.
The positive developments on the international capital markets were reflected in an increase in net fee and commission income of around 19 percent, to 793 million euros. In addition to a clear improvement in income from the Bank’s securities business, fees and commissions from the mergers & acquisitions and underwriting business were a contributory factor here.
In the first three months the Bank generated net trading income of 452 million euros, up more than seven percent on the strong prior-year quarter.
The positive developments on the international capital markets were reflected in an increase in net fee and commission income of around 19 percent, to 793 million euros. In addition to a clear improvement in income from the Bank’s securities business, fees and commissions from the mergers & acquisitions and underwriting business were a contributory factor here.
In the first three months the Bank generated net trading income of 452 million euros, up more than seven percent on the strong prior-year quarter.
Cost-income ratio improved
Due to the encouraging overall trend in income and expenses, the cost-income ratio improved by 6.9 percentage points to 75.1 percent. Loan loss provisions reported a net release of 33 million euros. This reflects the clear improvement in the quality of the loan portfolio.
Both divisions contribute strongly to earnings
In November 2005, Dresdner Bank combined its strategic Personal Banking and Private & Business Banking divisions into the Private & Business Clients (PBC) division, and the Corporate Banking and Dresdner Kleinwort Wasserstein areas into the Corporate & Investment Banking (CIB) division. Both divisions recorded a strong increase in earnings in the first three months.
Herbert Walter: "The bank has shifted up a gear with regard to growth"
Private & Business Clients
In the first three months of 2006, Private & Business Clients almost doubled its operating result year-on-year to 270 million euros. Operating income rose in the same period by 93 million to 892 million euros.
Net fee and commission income rose by a good 21 percent to 541 million euros. The extremely strong showing by the fee and commission business was primarily due to strong demand by private clients for securities and investment products. Strong momentum was also recorded from the sale of Allianz insurance policies via the Bank’s branches and the sale of the Bank’s products via Allianz agencies.
At 338 million euros, net interest and current income remained at the prior-year level. The consumer loans business exhibited encouraging growth.
The cost-income ratio improved by 8.1 percentage points to 68.4 percent as a result of the strong growth in income. Income before taxes jumped around 87 percent to 271 million euros. The return on equity before taxes was 72.3 percent.
Net fee and commission income rose by a good 21 percent to 541 million euros. The extremely strong showing by the fee and commission business was primarily due to strong demand by private clients for securities and investment products. Strong momentum was also recorded from the sale of Allianz insurance policies via the Bank’s branches and the sale of the Bank’s products via Allianz agencies.
At 338 million euros, net interest and current income remained at the prior-year level. The consumer loans business exhibited encouraging growth.
The cost-income ratio improved by 8.1 percentage points to 68.4 percent as a result of the strong growth in income. Income before taxes jumped around 87 percent to 271 million euros. The return on equity before taxes was 72.3 percent.
Corporate & Investment Banking
Corporate & Investment Banking more than doubled its operating result in the first quarter of 2006, lifting it by 156 million to 263 million euros.
Operating income performed particularly well, rising by almost 29 percent to 967 million euros. All income and expense items contributed to this development. Net interest and current income rose by 80 million to 307 million euros thanks to strong business in the field of structured finance. The favourable capital market environment and substantial income from the M&A and underwriting business were the main drivers for the increase of almost 23 percent in net fee and commission income to 239 million euros.
Net trading income rose by a clear 28 percent to 420 million euros. The cost-income ratio declined by four percentage points to 76.3 percent. Income before taxes was 266 million euros, following 122 million in the same quarter of the previous year. The return on equity before taxes was 28.8 percent.
Operating income performed particularly well, rising by almost 29 percent to 967 million euros. All income and expense items contributed to this development. Net interest and current income rose by 80 million to 307 million euros thanks to strong business in the field of structured finance. The favourable capital market environment and substantial income from the M&A and underwriting business were the main drivers for the increase of almost 23 percent in net fee and commission income to 239 million euros.
Net trading income rose by a clear 28 percent to 420 million euros. The cost-income ratio declined by four percentage points to 76.3 percent. Income before taxes was 266 million euros, following 122 million in the same quarter of the previous year. The return on equity before taxes was 28.8 percent.
Hinweis:
Die in dieser Pressemitteilung genannten Zahlen beziehen sich auf den Dresdner-Bank-Teilkonzern gemäß IFRS. Das Zahlenwerk ist vergleichbar mit dem anderer deutscher Banken, die nach IFRS bilanzieren. Die Zahlen für den Dresdner-Bank-Teilkonzern gemäß IFRS sind nicht identisch mit dem von der Allianz veröffentlichten Segment Banking, in dem alle Banking-Aktivitäten der Allianz zusammengefasst sind.
Diese Aussagen stehen, wie immer, unter unserem Vorbehalt bei Zukunftsaussagen, der Ihnen oben rechts zur Verfügung gestellt wird.
Die in dieser Pressemitteilung genannten Zahlen beziehen sich auf den Dresdner-Bank-Teilkonzern gemäß IFRS. Das Zahlenwerk ist vergleichbar mit dem anderer deutscher Banken, die nach IFRS bilanzieren. Die Zahlen für den Dresdner-Bank-Teilkonzern gemäß IFRS sind nicht identisch mit dem von der Allianz veröffentlichten Segment Banking, in dem alle Banking-Aktivitäten der Allianz zusammengefasst sind.
Diese Aussagen stehen, wie immer, unter unserem Vorbehalt bei Zukunftsaussagen, der Ihnen oben rechts zur Verfügung gestellt wird.
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