Dresdner Bank in the red
Tuesday 03 November 1998
The bank, which bought Kleinwort Benson, the City merchant bank five years ago, had made more than Dm1.79bn in profits in the first half.
Although the results were much worse than the market had been led to expect, analysts welcomed the bank's decision to take big provisions now rather than prolonging the pain. Deutsche Bank, which reported its third quarter figures on Thursday, saw its profits slump to Dm70m but remained in the black.
Dresdner Bank doubled its loan loss provisions to Dm1.3bn in the quarter.
It has written off all of its Dm240m holding in LTCM, although the bank points out that this was balanced by the dividends it had received from its holding before the fund was forced to seek new capital in September.
"All risks foreseeable in the future have been covered including the crisis-hit regions of South East Asia and Russia," a Dresdner statement to shareholders said yesterday.
Of all the major European banks, Dresdner is one of the most heavily exposed to lending in Asia and Latin America and there has been concern that it had not adequately provisioned its risks.
The bank says that while the markets are still hard to predict, it is planning to hold its dividend at last year's level.
Figures for Dresdner Kleinwort Benson, the investment banking arm are not broken out at the quarterly stage.
- 1 British tourists 'murdered' in Thailand: Pair's bloodied bodies found naked on Koh Tao beach
- 2 Vivienne Westwood says 'Yes' to Scottish Independence by declaring: 'I hate England'
- 3 Welcome to Cameroon, where drinking Baileys can lead to imprisonment
- 4 Lego breaks out of the toy box and heads for the gallery
- 5 Vogue under fire for 'Big Booty' article
British tourists 'murdered' in Thailand: Pair's bloodied bodies found naked on Koh Tao beach
Jihadi John': MI5 may have identified Isis militant who killed David Haines but options limited
Vivienne Westwood says 'Yes' to Scottish Independence by declaring: 'I hate England'
David Haines beheading: David Cameron says Britain will hunt down Isis 'monsters' shown in video murdering aid worker
Piers Morgan attempts to save the Union by promising to go back to the US if Scotland votes 'No' to independence
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
The political class is doing what Hitler couldn’t – destroying Britain
Scottish independence: Nationalist leader Jim Sillars threatens pro-union companies with 'day of reckoning' after independence
Scottish independence: Yes campaign feels the heat as Alex Salmond's NHS claims come under furious attack
£23m Birmingham cycle scheme is attacked by Tory councillor for not catering to the elderly
Salmond accused of laughing off national debt with ‘what are they going to do: invade?’ joke
iJobs Money & Business
£280 - £320 per day: Ashdown Group: The Ashdown Group have been engaged by a l...
£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...
£35000 - £38000 per annum + Benefits: Ashdown Group: Training Coordinator / Pl...
Data Governance Manager (Solvency II) – Contract – Up to £450 daily rate, 6 month (may go Permanent)
£400 - £450 Per Day: Clearwater People Solutions Ltd: We are currently looking...