Germany’s Dresdner Bank Reports 5.5 Percent Drop In Operating Profits
BERLIN (AP) _ Dresdner Bank AG on Wednesday said operating profit fell 5.5 percent for the first half of 1995 compared with the same period last year.
Germany’s second largest bank had operating profits of $702.6 million. The bank said net interest income _ the difference between interest earned from loans and interest paid for customer deposits _ fell 3.6 percent, partly because of increased competition.
Administrative expenses were up 6.6 percent, the bank said. But trading profits rose 52 percent to $233.6 million from a year ago and loans were up 5.5 percent to $189.2 million.
Juergen Sarrazin, chief executive officer, said the weak U.S. dollar and volatile international currency markets have led to ``downward revisions in prognoses on German economic growth.″
Still, Dresdner forcasts that Germany’s moderate recovery will continue, with gross domestic product growing by 2.5 percent this year.
Sarrazin predicted Dresdner’s profits would be ``satisfactory″ in the second half.
Dresdner expects its June acquisition of British investment bank Kleinwort Benson Group Plc to contribute to profits this year, he said.
The bank also plans to expand its investment banking activities in the United States and Asia and could make further acquisitions in connection with the strategy, Sarrazin said.