content_image/73034.jpg
## Segment reporting after the transfer of business acti- vities of Dresdner Bank to the IRU (reporting structure 2004) 

At the beginning of 2003, the Institutional Restructuring Unit (IRU) commenced its activities. To this segment were trans- ferred the non-strategic domestic and foreign loan portfolios, the private equity business as well as selected restructuring ac- tivities of Dresdner Bank. This way, we eased the pressure on the company’s operating segments Private & Business Clients (PBC), Corporate Banking and Dresdner Kleinwort Wasserstein (DrKW). Looking ahead to the 2004 reporting, we provide a commentary here according to the new structure. 

## Segment reporting after the transfer of business activities of Dresdner Bank to the IRU as of December 31, 2003 

<img src='content_image/73034.jpg'>

1) Other = Corporate items and corporate investments of Dresdner Bank as well as consolidations 2) 

Total = Dresdner Bank contribution to banking business of Allianz Group 

## Private & Business Clients (reporting structure 2004) 

In a fiercely contested market, the Private & Business Clients di- vision of Dresdner Bank recorded operating income of some 3 billion euros. This amount divides up almost equally between net interest income and net fee and commission income. How- ever, developments differed: net fee and commission income im- proved due to a successful brokerage business and the success- ful cooperation between Allianz and Dresdner Bank. Both rev- enues and profit improved. In contrast, net interest income con- tracted because the market allowed only lower margins in the deposit business. Administrative expenses were significantly re- duced thanks to rigorous cost management and further staff re- ductions, especially in the back office area. By continuously cleaning-up the loan portfolio, we lowered the loan loss provi- sions strongly to 247 million euros. Overall, the Private & Busi- ness Clients segment recorded an operating result of 248 mil- lion euros. After taking other income and expenses into account (essentially restructuring expenses of 174 million euros), earn- ings after taxes were 53 million euros. 

## Corporate Banking (reporting structure 2004) 

In persistently difficult economic conditions, the Corporate Banking division of Dresdner Bank recorded operating income of 1.1 billion euros, with all earnings components – in spite of declining risk weighted assets – showing a stable trend. The projects to streamline the support and service functions that were almost entirely implemented in the year under review, led to a significant decline in administrative expenses to 0.5 billion euros. In response to a new record in company insolvencies, loan loss provisions were raised to 118 million euros. Overall, the operating result climbed to 447 million euros. After other income/expenses, especially restructuring expenses of 90 mil- lion euros, earnings after taxes were 208 million euros. 

