Profits Drop, But Assets Rise At Allianz

Tom Burroughes Editor London 11 November 2008

Profits Drop, But Assets Rise At Allianz

German-listedAllianz Group, which recently agreed to sell offDresdner Bank to rival Commerzbank, said operating profits in the third quarter of 2008 dropped by €1 billion from a year ago to €1 billion.

Dresdner, which is the parent of UK-based private bankKleinwort Benson, was sold in September this year. As a result, Allianz said the sale will be reported under the category of discontinued operations as of 1 September 2008. Discontinued operations accounted for a net loss of €2.6 billion in the third quarter, comprised of a net loss from the bank’s operations of €1.2 billion as well as transaction-based impairments of €1.4 billion.

Across the group as a whole, Allianz said total revenues decreased slightly by 3.8 per cent to €21.1 billion. Quarterly net income from continued operations amounted to €545 million, down from €2.0 billion in the third quarter 2007.

During the first nine months of 2008, Allianz made an operating profit of €6.5 billion, down from €7.7 billion in the same period of 2007. Net income from continued operations amounted to €4.2 billion, compared to €6.1 billion in the same period of last year.

In asset management, operating revenues fell to €698 million in the third quarter from €803 million a year before. Asset management’s operating profit of €186 million was cut by foreign currency and capital market movements, a fall of 44 per cent from the strong third quarter of last year.

Third-party assets under management rose to €754 billion by the end of the third quarter, up from €740 billion at the end of the second quarter. Net inflows amounted to €5.6 billion in the third quarter. A negative capital market effect of €44 billion was more than offset by a positive foreign exchange effect of €53 billion.

Register for WealthBriefing today

Gain access to regular and exclusive research on the global wealth management sector along with the opportunity to attend industry events such as exclusive invites to Breakfast Briefings and Summits in the major wealth management centres and industry leading awards programmes