Dresdner posts €575m third-quarter loss
by Gill Montia
Story link: Dresdner posts €575m third-quarter loss
Concerns over the global banking industry have been heightened by the news that Desdner, the Allianz-owned German bank, has posted a loss of €575 million as a result of the US sub-prime mortgage crisis and the ensuing chaos on the money markets.
In its statement, Desdner referred to “financial market turbulence” in the third quarter reducing valuations in its trading book for asset-backed securities, by €350 million.
A further €195 million of the losses related to “indirectly affected business lines”.
In recent weeks the values of mortgage-backed securities traded in the wholesale markets have effectively collapsed.
Dresdner has admitted an exposure of €18 billion to asset backed securities but has managed to use hedging methods to limit its exposure to €7.9 billion.
While operating revenues at Dresdner fell by almost a quarter, to €1.2 billion, in the three months to the end of September, the bank achieved a 9.2% increase in fee and commission income during the period, to €689 million.
Yesterday, Merrill Lynch reported that its total exposure to bad debt stood at $27.2 billion, an amount $6.3 billion higher than forecast in October.
At the same time, shares in Barclays and Royal Bank of Scotland continued to perform badly because of fears that large sub-prime losses have yet to be declared.
Add to Bookmarks:
Related stories to: Dresdner posts €575m third-quarter loss»
No comments yet.Leave a comment
Previous: « Vega Fund To Be Investigated For Fraud
Next: Clydesdales profits surge by 16% »
Visited 393 times, 1 so far today