Dresdner Bank AG
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Dresdner Bank: Cost savings take effect, loan loss provisions increased
Ad-hoc-announcement transmitted by DGAP.
The issuer is solely responsible for the content of this announcement.
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Dresdner Bank: Cost savings take effect, loan loss provisions increased
The Board of Managing Directors of Dresdner Bank AG has submitted preliminary
key financial data for the year ended December 31, 2001 to today’s meeting of
the Supervisory Board. According to these figures, the Dresdner Bank Group will
disclose a profit after taxes of EUR 186 million against the background of the
developments on the international capital markets (previous year: EUR 1.7
billion).
The Board of Managing Directors intends to propose a dividend of EUR 0.70 per
share to the Supervisory Board. This corresponds to a reduction of around 25
percent as against last year.
The following table shows the preliminary key financial data for fiscal 2001
(unaudited) in detail:
– in millions of euros- 2001 2000 in % y/y
Net interest and current income 4.364 4.312 + 1,2
Loan loss provisions – 1.893 – 1.586 + 19,4
Net fee and commission income 3.841 4.291 – 10,5
Net trading income 1.526 1.329 + 14,8
Administrative expenses – 8.682 – 7.652 + 13,5
Net income from investment 2.101 2.257 – 6,9
securities
Other income/expense, net – 484 – 310 + 56,1
Earnings before extraordinary 773 2.641 – 70,7
factors
Extraordinary expenses for – 620 – 1.028 – 39,7
restructuring and integration
Pre-tax profit 153 1.613 – 90,5
Income tax expense 33 129 – 74,4
Profit after taxes 186 1.742 – 89,3
The Supervisory Board meeting to approve the annual financial statements will be
held on April 9, 2002.
Frankfurt, February 13, 2002
Dresdner Bank AG – Board of Managing Directors
end of ad-hoc-announcement (c)DGAP 13.02.2002
Issuer’s information/explanatory remarks concerning this ad-hoc-announcement:
The results of operations, i.e. aggregate net interest income, net commission
income and net trading income, declined by 2 percent year-on-year. This includes
extraordinary effects caused by the first-time application of IAS 39.
After adjustment for first-time consolidation and other extraordinary factors,
administrative expenses increased year-on-year by 5 percent. This compares with
an average annual increase in costs of 15 percent in the last five years. It
shows that the cost-cutting measures introduced in May 2000 and further
intensified in 2001 are starting to take effect. The turnaround has begun. By
the end of 2001, roughly 4,000 jobs had been shed as part of the cost-cutting
program, which – including the measures announced in May 2000 – will see a total
reduction in the workforce of 7,800. 1,700 jobs were cut in the second half of
2001 alone. The number of German branch offices declined by 183 to 803 in 2001.
Loan loss provisions were lifted to total roughly EUR 1.9 billion. Loans to
middle-market US companies extended in the mid-nineties play a major role here.
Dresdner has been systematically streamlining this portfolio since May 2000, and
was able to reduce it by 20 percent in 2001.
The pre-tax profit, including net income from investment securities, amounted to
EUR 153 million. This includes integration and restructuring costs of around
EUR 620 million.
Cautionary Note Regarding Forward-Looking Statements
Certain of the statements contained herein may be statements of future
expectations and other forward-looking statements that are based on management’s
current views and assumptions and involve known and unknown risks and
uncertainties that could cause actual results, performance or events to differ
materially from those expressed or implied in such statements. In addition to
statements which are forward-looking by reason of context, the words “may, will,
should, expects, plans, intends, anticipates, believes, estimates, predicts,
potential, or continue” and similar expressions identify forward-looking
statements. Actual results, performance or events may differ materially from
those in such statements due to, without limitation, (i) general economic
conditions, including in particular economic conditions in the Allianz Group’s
core business and core markets, (ii) performance of financial markets, including
emerging markets, (iii) the frequency and severity of insured loss events, (iv)
mortality and morbidity levels and trends, (v) persistency levels, (vi)
interest rate levels, (vii) currency exchange rates including the Euro – U.S.
dollar exchange rate, (viii) changing levels of competition, (ix) changes in
laws and regulations, including monetary convergence and the European Monetary
Union, (x) changes in the policies of central banks and/or foreign governments,
(xi) the impact of our acquisition of Dresdner Bank, including related
integration issues, and (xii) general competitive factors, in each case on a
local, regional, national and / or global basis.
The matters discussed in this release may also involve risks and uncertainties
described from time to time in Allianz AG’s filings with the U.S. Securities and
Exchange Commission. Allianz AG assumes no obligation to update any forward-
looking information contained in this release.
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WKN: 535000; ISIN: DE0005350003; Index:
Listed: Amtlicher Handel in Berlin, Bremen, Düsseldorf, Frankfurt, Hamburg,
Hannover, München, Stuttgart; EUREX; Amsterdam; Antwerpen; Brüssel; Luxemburg;
Paris; Tokio; Wien; Swiss Exchange;
131329 Feb 02
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