Profit after tax rose by 33% compared with the previous year to total 159.5 million euro at year-end. Accordingly, in the year 2000 the Bank clearly beat the hitherto record results posted for 1998 (after deduction of extraordinary income) despite a difficult capital market environment and the collapse of merger talks between Dresdner Bank and Deutsche Bank. On the strength of this success, Dresdner Bank Luxembourg S.A. will, through the distribution of a total of 135 million euro for the year under review, be able to distribute an even higher dividend for 2000 than the dividend of 90 million euro distributed in 1999. It is planned that out of the remaining profit 25 million euro be allocated to the reserves and 0.6 million euro be carried forward. As of 31 December 2000, the Bank’s total assets rose by 0.9 billion euro to 18.6 billion euro.
Commission-generating business and lending activities contributed substantially to the results of the financial year 2000. The Bank’s net interest income, including income on securities, rose during the period under review by 21.3% to total 211.7 million euro. At 89.9 million euro commission income too was well above the previous years’ level of 73.2 million euro. Net profit on financial operations stood at 53.9 million euro, representing an increase of 15.5% over the previous year.
The Global Finance business area improved upon the results of 1999 and posted record results in 2000, thereby underlining the Bank’s leading position in international lending activities. Through its syndicated loans, project finance and structured finance units, Dresdner Bank Luxembourg S.A.’s Global Finance business area is integrated in and acts as a Centre of Competence for the Dresdner Bank Group’s investment banking arm, Dresdner Kleinwort Wasserstein.
The marked increase in assets managed by Dresdner Bank Luxembourg S.A.’s fund administration unit is a reflection of the growth in the Luxembourg investment fund market. The Bank is one of the largest providers of fund administration and custodian bank services in the local financial centre. It acts as a Centre of Competence for this area within the Dresdner Bank Group and has secured the technological basis for continued good earnings in the years to come with the introduction of a new IT-platform.
The highly satisfactory business development can also be seen in the results achieved by the private and individual investors’ advisory which ended 2000 as their most successful year ever.
Benelux region and took over responsibility for directing the bond investment strategy for Dresdner Private Banking International in the year under review.
Finally, a gratifying investment banking profit was achieved with the takeover of Dordtsche Petroleum-Industrie Maatschappij N.V. and Maxwell Petroleum Holding N.V., the most important transaction of this kind in the Netherlands so far.
The Dresdner Bank Luxembourg Group had a total staff of 560 at year-end. This figure includes the personnel of the subsidiaries in Ireland, the Netherlands, and Switzerland, as well as of the Madeira branch, which was established in 2000.