Back to all announcements

Dresdner Bank lifts income and earnings substantially

Frankfurt, 12 May 2006

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 Dresdner Bank has started off 2006 with clear growth. Operating income rose to €1,853 million in the first quarter, up almost 15 percent
as against the same quarter of 2005. The operating result improved to €494 million, 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. 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. Its income after taxes was €662 million.

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. 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. 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, up more than 7 percent on the strong prior-year quarter.