Dresdner Bank kicks off 2007 with new business model

Frankfurt - 20 December 2006

• Board of Managing Directors and Company Works Council agree on programme for the future, “Neue Dresdner Plus”

• Overarching program focuses on increased sales power and a product drive

• Leaner structures and processes cut costs

• Dresdner Bank to dispense with issuing separation notices for operational reasons until the end of 2009

Dresdner Bank will be launching its new integrated business model at the start of 2007. The Board of Managing Directors and the Company Works Council have agreed on a reconcilement of interests for the “Neue Dresdner Plus” programme for the future. The comprehensive growth and efficiency initiatives lay the foundations for a sustainable increase in earnings and for the Bank to reach its target return of twelve percent after taxes in 2008.
At the heart of the new structure is an integrated business model comprising three divisions.

• Going forward, the five customer offerings of Personal Banking, Private Banking and Business Banking, along with Private Wealth Management and the middle-market segments of Corporate Banking will be managed as a single division, Private & Corporate Clients. To date, these offerings have been supplied by three different divisions.

• In future, Investment Banking will provide advisory services to German and international large caps with capital market potential and to institutional clients.

• Business processing and internal information technology and human resources services will be bundled in Business Services.

To further increase the Bank’s high level of advisory and product expertise, sales and production will focus systematically on their respective core competencies under the new business model. The overarching “Neue Dresdner Plus” programme aims to drive forward growth and increase efficiency. “We are putting our customers at the heart of our business model by focusing squarely on best-of-breed advisory services and a strong sales force, plus attractive products. To achieve this goal, we are establishing a powerful product factory that is both efficient and innovative. Allowing our customer advisors to focus fully on service will enable us to achieve our growth targets”, said Herbert Walter, Chairman of the Board of Managing Directors of Dresdner Bank. Lean settlement processes will cut costs for the benefit of customers, clearly increase the speed of business processing and improve quality.

As part of the reconcilement of interests, the Board of Managing Directors and the Company Works Council have also reached agreement on the details of the job cuts announced in June and on a social plan. 1,860 full-time positions will be shed at Dresdner Bank AG’s domestic operations in the period up to the beginning of 2009. The agreement between the Management and the Works Council also provides for Dresdner Bank AG to waive 160 job cuts if the relevant annual targets are achieved as planned. Overall, the human resources measures already announced for the Dresdner Bank Group as a whole, involving 2,480 full-time jobs by the end of 2008, will continue to apply.

In addition, the parties have agreed that Dresdner Bank will dispense with issuing separation notices for operational reasons until the end of 2009.
Restructuring charges of EUR 400 million will be incurred in 2006 in connection with the implementation of the measures associated with the programme.

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development