DKW helps humble German giant
12 April 2012
LOSSES at Dresdner Bank pushed Germany's biggest financial services group Allianz e356m (£228m) into the red in the second quarter ended June. Despite job losses of 8,000 last year and a further 3,000 announced 10 days ago, which helped Dresdner cut expenses by 13.5% to ee558m, the banking arm made a half-year loss of e1.058bn.
One of the problems was that Allianz inherited some guaranteed bonuses from its takeover of Dresdner and the troubled Dresdner Kleinwort Wasserstein investment banking unit. This has led Allianz to predict that it will fall short of its projected net profit of e3bn this year after losses at the banking arm. Allianz's core insurance business grew by 12%.
