Frankfurt am Main, 10th of November 2008

Dresdner Bank impacted by financial market crisis

• Value adjustments in the trading book
• Positive operating result for Private & Corporate Clients business
• Core capital ratio remains solid at 8.1 per cent
• Product line "dresdner bank direct24" has 500,000 customers

The tightening of the capital market crisis impacted Dresdner Bank's results in the first nine months of 2008. Value adjustments from trading activities amounted to €2.1 billion. In addition, loan impairment losses were required in the amount of €226 million. This caused the operating result to fall to minus €1.7 billion. After adjustment for the effects of the financial market crisis, Dresdner Bank generated a positive operating result from its ongoing business of around €600 million in the first three quarters of 2008.

Dresdner Bank's healthy core business is reflected in its net interest and current income, which increased both in the Private and Corporate Clients business and in Investment Banking. The Dresdner Bank Group's total net interest and current income at the end of September 2008 was around €2 billion.

The impact of the capital market crisis again made itself felt on net fee and commission income, which fell by €463 million to €1.7 billion.

The effects of the financial market crisis impacted net trading income in particular. In the first three quarters of 2008, the figure decreased by €1.9 billion year-on-year to minus €1.5 billion. The main reasons for the decline were value adjustments on collateralised debt obligations (CDOs) and US residential mortgage-backed securities (US RMBSs), as well as effects in connection with monoliners.

Overall, total operating income decreased to €2.2 billion.

Costs, risk and capital

Total operating expenses fell in the first nine months of 2008 by 4.0 per cent, to €3.6 billion. This related both to total staff costs and to non-staff operating costs. Loan impairment losses rose by €261 million to €337 million.

All in all, the Bank is reporting a loss of €2.4 billion, after a profit of €858 million a year ago. The positive effect on the result from the reclassification of assets amounted to €415 million.

After 9.3 per cent at the end of June 2008 and 9.1 per cent at year-end 2007, Dresdner Bank had a competitive core capital ratio of 8.1 per cent as at 30 September, despite the effects of the financial market crisis.

The Private & Corporate Clients (PCC) division was impacted by clients' markedly cautious approach to securities transactions due to the uncertainty on the capital markets. This led to a decrease in operating income of roughly 7 per cent, to €2.5 billion. Costs were slightly lower, and the operating profit fell by 27 per cent to €458 million. However, PCC generated a return on risk-adjusted capital (RoRAC) of 21.9 per cent.

The number of customers increased by more than 100,000 to 6.6 million in the period from January to September 2008. The new "dresdner bank direct24" product line contributed significantly to this. At early November it was being used by more than 500,000 customers, around a quarter of whom are new customers. With its market-leading conditions, the product line has resulted in a deposit volume of €8.3 billion.

The operating income of the Investment Banking division was negative at €275 million, due to the high level of value adjustments in the trading book. At lower costs and an increased loan impairment loss the operating loss totalled to €2.2 billion. A number of the investment bank's core business areas increased their income despite the financial market crisis: Global Loans & Transaction Services, which comprises Cash Management and International Products, among other things, recorded growth of €33 million to €424 million. Fixed Income, Currencies & Commodities expanded its income by a third, to €844 million.

(in € million)		1 Jan.–31 Sept.			1 Jan.–31 Sept.			Change
		2008			2007			€ million			Percent
Net interest and current income		2,042			2,386			-344			-14.4
Net fee and commission income		1,733			2,196			-463			-21.1
Net trading income		-1,527			386			-1,913
Other operating income		0			0
Operating income		2,248			4,968			-2,720			-54.8
Administrative expenses		3,574			3,774			-200			-5.3
Other operating expenses		55			7			48			> 100.0
Operating expenses		3,629			3,781			-152			-4.0
Loan loss provisions		337			76			261			> 100.0
Operating result		-1,718			1,111			-2,829
Result from financial investments		-160			216			-376
Restructuring charges		17			16			1			6.3
Profit/loss before taxes		-1,895			1,311			-3,206
Tax expense		427			405			22			5.4
Profit/loss after taxes		-2,322			906			-3,228
Profit attributable to minority interests		48			48			0			0.0
Net profit/loss for the period		-2,370			858			-3,228
		Ratios
Cost-Income-Ratio		161.4 %			76.1 %
Return-on-risk-adjusted capital (RoRAC)		-44.3 %			11.9 %
Core capital ratio *)		8.1 %			9.1 % **)
Total capital ratio *)		13.4 %			13.8 % **)
Risk-weighted assets *)		104,577			123,115 **)			-18,538			-15.1
Employees (FTE)		25,393			26,309 **)			-916			-3.5

^*)  2008 according to Basel II, 2007 according to Basel I
**) As at 31 December 2007.

Note:
The figures shown in this press release refer only to the Dresdner Bank sub-group in accordance with IFRS. The figures for the Dresdner Bank sub-group according to IFRS are not identical to those published by Allianz for the banking segment, in which Allianz banking activities are summarised.

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