Dresdner Bank - Commerzbank International SA

Dresdner Bank Luxembourg S. A. 

Annual Report 2008

Annual Report 2008 

Dresdner Bank Luxembourg S.A.

Dresdner Bank Luxembourg S.A. Annual Report 2008 

2 

Table of Contents 

Foreword of the Management Board 4 

Report of the Supervisory Board 8 

Management Report for Financial Year 2008 16 

Private Wealth Management 

Expansion in the Netherlands – Expansion of Dresdner VPV N.V. 38 

Subsidiaries of Dresdner Bank abroad 40 

Balance sheet as at 31 December 2008 

Report of the Réviseur d’Entreprises 44 

Balance Sheet 46 

Profit and Loss Account 48 

Notes to the Annual Accounts 50

Special Section 

Overview of the Special Sections from 1990 – 2008 70 

Advisory Bank with a Future 72 

Further information about Dresdner Bank Luxembourg S.A. 

Supervisory Board 82 

Management Board 83 

Organisational Structure 84 

Services 85 

Subsidiaries and Branches 86 

Contact 87 

Detailed Directions 88 

This annual report has been translated from the German language. 

In case of discrepancies the german version is binding. 

Table of Contents 

3


4 

Foreword of the Management Board 

Dresdner Bank Luxembourg S.A. – 

still a stable and reliable 

financial partner in 2008 

In 2008, we experienced the impact that close economic integration in a globalised world can bring. 

While the subprime crisis was still regarded as a largely regional problem of the US economy, 

it became clear by autumn 2008 at the very latest that, with the collapse of Lehman Brothers, this 

crisis influenced the entire global economy. Almost from one day to the next, the general economic 

conditions changed worldwide. . From that point on, recession, real estate crisis, financial crisis and 

banking crisis characterize the daily events in the international capital markets. . This was followed 

by extensive intervention of central banks and governments, which set up aid programmes on 

a scale that had previously not been considered possible. 

All of this came along hand-in-hand with a huge loss of confidence by many investors in the quality 

of various financial investment products. Investor behaviour changed abruptly and security became 

a central theme in customer advisory. Against this backdrop again the importance of regularly 

scrutinising advisory and support quality in one’s own company became clear. 

Dresdner Bank Luxembourg S.A. optimises regularly the existing processes in advisory for the 

benefit of its customers. With the introduction of a computer-based system using a theory developed 

by Harry M. Markowitz to map the relation between risk and performance in custodianship 

accounts, we are taking a significant step beyond the requirements for appropriate and investorfocussed 

advisory services, as prescribed by the MiFID financial market directive. 

The culture of excellence, experienced and deep-seated in the more than 40 years since the 

company’s formation, the innovation and focus on the future,, as well as the enormous willingness 

of our highly qualified and dedicated employees, caused Dresdner Bank Luxembourg S.A. a solid 

business performance for 2008 in spite of the difficult market environment. Although the available 

profit of € 346.6 million is affected by the special effects from shareholdings held by the bank, the 

ordinary result from the business activities can be viewed as positive.

We have successfully continued the expansion strategy for Dresdner Bank’s Private Wealth Management 

with the acquisition of two Asset Managers in the Netherlands. Furthermore, new and 

attractive products and solutions have been developed and established for wealthy private clients. 

New markets have been opened up. 

Resumptive, it is justifiable to say that the Luxembourg success story could have been continued – 

Dresdner Bank Luxembourg S.A. was once again awarded the title of best Private Wealth Management 

entity of the Dresdner Bank Group in 2008. 

We rely on quality, competence, individual advisory and the specific advantages of Luxembourg’s 

location – now, as well as in the future. At this point we would like to express our thanks to everyone 

who has contributed to the successful positioning of Dresdner Bank Luxembourg S.A. during 

the past years. Without the confidence of our customers, business partners, supervisory bodies and 

employees, we would not have been able to achieve this success. 

New challenges are coming up to us, which we are pleased to face. The decision announced on 

31 August 2008 by Allianz and Commerzbank to integrate Dresdner Bank into Commerzbank will 

also entail changes for Dresdner Bank Luxembourg S.A. 

The bundling of the proven competence of these two large private banks forms a sound basis for 

the further expansion of the range of innovative financial products and solutions “Made in Luxembourg”. 

Within the framework of the integration project, we will define a sustainable, futureoriented 

business model, which enables us to remain a reliable and stable financial partner at our 

customers’ side. A merger with Commerzbank International S.A. (Luxembourg) is expected to 

take place at the end of 2009. The overriding motto during all the integration activities will be: 

The customer takes centre stage and should call on unaltered the high quality of our services. 

Your Management Board of 

Dresdner Bank Luxembourg S.A. 

Benedikt Buhl 

Chairman of the 

Management Board, 

Chief Executive Officer 

(CEO) 

Arnd Heßeler 

Member of the 

Management Board, 

Chief Financial Officer 

(CFO) 

Joseph Kusters 

Member of the 

Management Board 

Foreword of the Management Board 

5

Report of the 

Supervisory Board 

to the general shareholders’ meeting 

on 11 March 2009 

on the financial year 2008 

7 

Bericht des Aufsichtsrats


8 

Report of the Supervisory Board to the general shareholders’ 

meeting on 11 March 2009 on the financial year 2008 

Financial markets: Global collapse of the financial system impacts 

world's economy 

Recession, real estate crisis, financial crisis, banking crisis – catchwords that characterise the stock 

markets in 2008 Although financial experts were still predicting very positive growth at the beginning 

of 2008, by late summer growth expectations were overshadowed by a massive downward correction. 

This was ultimately reflected in one of the worst years for the stock exchanges since the end of World 

War II. 

Starting in mid-September, growing scepticism about the economy led to lower oil and commodities 

prices and consequently, declining inflation rates presaged the disastrous global economic trend. 

The bankruptcy of Lehman Brothers and the appeal for help from the insurance giant American International 

Group (AIG) which was, however, rescued by a loan from the U.S. Federal Reserve amounting to 

USD 85 billion, brought the economic downturn to its peak not only in the U.S.; international markets 

collapsed as well. 

The initiatives of the central banks (reducing key interest rates starting in October 2008) were accompanied 

by government interventions. Immense rescue packages and stimulus programmes are at times 

aimed at counteracting the economic decline on the international level. 

Despite these negative headlines, it is estimated that global economic growth will be sustained at 3.8 % 

in 2008, although it will reach only 0.7 % in the eurozone. 

The financial centre of Luxembourg: Still one of the top 10 

Albeit the deep recession, the financial centre of Luxembourg maintained its position as the leading 

international private banking / wealth management centre in the eurozone and, furthermore, also sustained 

its position as one of the top 10 leading financial centres worldwide. 

At the beginning of 2008, the labour market in the financial sector benefited from the positive expectations 

of financial experts. In December 2008, the employment rate in the sector was up by about 4.05% 

compared to the previous year. At year end, 27,200 employees worked in 152 banks.

With more than 32,933 bonds listed, the Luxembourg Stock Exchange once again demonstrated its 

exemplary reputation as one of the best in the world for listing securities. 

The accumulated total assets of the Luxembourg-based financial institutions in December 2008 amounted 

to € 930.89 billion; compared to December 2007 a plus of approximately 1.67 %. 

The determination of national political decision makers contributed to the emphasis on safeguarding the 

continuity and stability of the financial centre, especially in turbulent phases of the business cycle. Due to 

this, in 2008 the government decided to increase the deposit protection fund for Luxembourg banks 

from € 20,000 to € 100,000 – a decision, brought about by awareness of the crisis, in order to reduce risks 

in the future. 

Overview of banks 

by geographical origin 

Total: 152 

Source: CSSF Commission for the 

Supervision of the Financial Sector, 

December 31, 2008 

� 2008 � 2007 � 2006 

Report of the Supervisory Board 

43 Germany 

43 Germany 

45 Germany 

21 Luxemburg/Belgium 



14 France 

15 France 

15 France 

11 Italy 

13 Italy 

15 Italy 

12 Switzerland 



7 Scandinavia 

8 Scandinavia 

8 Scandinavia 

6 United Kingdom 



5 USA 



5 Japan 

5 Japan 

5 Japan 

4 Netherlands 

4 Netherlands 

4 Netherlands 

24 Others 

23 Others 

22 Others 

9 

Report of the Supervisory Board


10 

Luxembourg as a fund centre: negative trend in the markets 

is not without consequences 

The volume managed by Luxembourg funds declined with losses of approximately € 400 billion or 22.3%. 

The corresponding deposits accordingly came to approximately € 1,604 billion in November 2008 – this 

regressive trend reflects investors’ dwindling confidence due to the disastrous recession starting in late 

summer 2008. Equity funds in particular were the losers in the past financial year. 

In contrast, the number of funds licensed in Luxembourg rose year-on-year by 496 to 3,364 (November 

2008). With only one exception in 2003, the number of licensed funds in Luxembourg has grown continuously 

since 1990 (1990: 805; 2000: 1,785; 2006: 2,238). 

This pleasant development confirms once more Luxembourg’s outstanding role as a fund centre, not only 

on the European level: After the U.S., Luxembourg is still the second biggest fund centre in the world. 

Although the repercussions of the financial crisis inevitably led to declining growth and fund volume 

respectively, the continuing excellent positioning on a global comparison is testimony of Luxembourg’s 

successful efforts to expand cross-border fund distribution beyond the EU borders through innovative 

product architecture. 

Luxembourg as an economic centre: GDP contracts by 3.2 percentage points to 2% 

Driven by its extraordinary global market position, initial estimates point to 2% growth for Luxembourg 

as an economic centre for the financial year 2008. This does reflect a 3.2 % decline in GDP compared to 

the previous year; however, it is above the average for the rest of the eurozone. 

After a feeble start for the year with a growth rate of only 1.2 %, a 2.7 % gain was recorded in the second 

quarter which, however, had to be adjusted downwards as the year progressed. 

The rise in prices for food, fuel, electricity, etc. was reflected in an inflation rate of approximately 2 % 

(November 2008 calculation) (previous year: 3.2 %). 

The situation in the Luxembourg labour market developed along the lines of the situation in the financial 

sector at the beginning of the past financial year. Compared to the previous year, the number of employed 

persons rose by 4.5% (15,681 persons) to 361,089 (November 2008); the number of resident job 

seekers rose by 9.6 % to 10,801 persons. The unemployment rate was unchanged from year-end 2007 at 

4.7 % (November 2008). The national labour market grew by 2.9 %; the number of frontier commuters 

rose by about 7.1% to 140,609 persons (131,244 in November 2007).

Activities of the Supervisory Board: proper fulfilment of responsibilities – 

supervision and consultation guaranteed 

In the 2008 financial year, the Supervisory Board was extensively involved with the economic and financial 

development and planning, the risk, liquidity and capital management as well as the internal supervision 

of the bank and fulfilled the responsibilities incumbent upon it according to the law and its statutes. It 

regularly supervised the bank's Management Board, gave advice on corporate management and was consistently 

involved in decision making processes of fundamental importance. 

The bank's Management Board was responsible for providing timely and detailed information about the 

business policy, the economic situation and development of Dresdner Bank Luxembourg S.A. and of its 

affiliated subsidiaries and branches. The strategy and implementation of the measures of the management 

agenda were together discussed in detail. 

Meetings of the Supervisory Board were held in February, September and December of 2008. Between 

these regular conferences there was also a continuous exchange of information concerning significant 

transactions, the risk situation and strategic issues. If it was necessary to take decisions between the 

meetings, they were brought about on an unscheduled basis or by circulation. 

Events of special significance: takeover of Dresdner Bank AG by Commerzbank 

On 31 August 2008, Allianz and Commerzbank came to an agreement to take over Dresdner Bank. 

12 January 2009 was stipulated as record date; the legal merger will take place in early April. 

The merger of these two big banks enables due to the bundling of the proven expertise the creation 

of a strong and competitive financial institution on a European scale. The use of federal funds and the 

associated strengthening of the capital base will smooth the way for the merger. 

However, merging the two companies is a staged process that in Germany is expected to last until the 

end of 2010 when the new bank will operate under the unified Commerzbank brand. However, Allianz SE 

will continue to hold a minority interest. 

A specific schedule for the integration of the foreign subsidiaries, including Dresdner Bank Luxembourg S.A., 

is in development. 


11 



12 

Management Board: Joseph Kusters assumes dual function as member of the 


In November 2008, Joseph Kusters, member of the Management Board of Dresdner Bank Luxembourg 

S.A., has also joined the management of Dresdner Van Moer Courtens, in doing so making the acquisition 

of a Belgian banking licence easier. Joseph Kusters will hold the dual position as a member of the Management 

Board in Luxembourg and in Belgium. 

The Supervisory Board thanks Joseph Kusters for his willingness to hold both of these challenging offices 

and wishes him much satisfaction and success in his new responsibility. 

Our thanks to the staff: identification and exceptional dedication 

As at 31 December 2008, Dresdner Bank Luxembourg S.A. had 383 employees, reflecting a 4.8 % growth 

year-on-year. 

On behalf of the Supervisory Board a warmly thank you to all employees, who have again demonstrated 

their commitment and dedication, especially in these challenging economic times. 

Bank’s business performance: good net profit despite gloomy market situation 

The catastrophic market conditions put the global banking system under extreme pressure especially 

starting in third quarter 2008. Despite a sharp, international recession, Dresdner Bank Luxembourg S.A. 

nonetheless achieved a good net profit. 

As of 31 December 2008, the bank posted total assets of € 10.5 billion, down by € 2.6 billion from the 

previous year. The credit volume increased from € 556 million in December 2007 to € 863 million at yearend 

2008 while client deposits fell to € 6.865 billion. At year end, the bank's equity before profit carried 

forward was unchanged from 2007 at around € 425 million. 

The fund volume under management was depleted to € 15.7 billion (December 2008), reflecting a 

year-on-year loss of € 5.3 billion or nearly 26 %. In contrast, the number of funds under management 

grew from 110 in December 2007 to 127. 

Net income after taxes rose to € 317.8 million. Net interest income including income from securities rose 

by € 138.8 million to € 195.6 million. Dividend income from affiliated undertakings played a significant 

role in this. In contrast, net commission income declined year-on-year by € 5 million to € 57.4 million. 

The proceeds from the sale of a single share investment raised the net profit on financial operations from 

€ 91.2 million to € 94.6 million.

In terms of costs, administrative expenses were reduced by € 2 million. 

Including the existing profit carry forward of € 28.34 million, the available profit amounted to € 346.06 

million (€ 78.3 million in December 2007). According to the Supervisory Board resolution, there is a plan 

to distribute a dividend of € 37.5 million and a special dividend of € 302.5 million. The remaining net 

profit is to be carried forward to new account. 

The business performance for the 2008 financial year confirms the successful implementation of the 

strategy with respect to the international orientation of private wealth management, the efficient business 

model and the bank's effective corporate governance even under precarious market conditions. 

Dr. Andreas Georgi 

Chairman of the Supervisory Board 

Dr. Andreas Georgi 

Chairman of the 

Supervisory Board, 

Member of the 


of Dresdner Bank AG 

Klaus Rosenfeld 

Vice Chairman of the 


Member of the 



Anton Simonet 

Member of the 


Global Head of Private 

Wealth Management 


Chlodwig Reuter 

Member of the Supervisory Board, 

Vice Chairman of Dresdner 

Kleinwort and Directeur Général – 

Dresdner Bank AG, 

Succursale de Luxembourg 


13 


Management Report 

for Financial Year 2008 

15 


for Financial Year 2008


16 

Management Report for Financial Year 2008 

General developments: A year of extremes – global financial crisis causes deepest 

recession – governments introduce rescue packages on an astronomical scale 

The year 2008 will doubtless be remembered as one of the most difficult years in the history of the stock 

markets. Weighed down by a global financial crisis that continued to deepen over the course of the year, 

as well as significantly worsening economic forecasts, the stock markets have suffered heavy losses in 

value across the world. The share price losses in the Euro STOXX since the beginning of the year amounted 

to over 50% at the peak. Thanks to the most recent stabilisation, losses have been held to approx. 40%. 

As late as the first half-year of 2008 the higher price of oil due to robust demand in the emerging markets 

was leading to sharply rising inflation rates, placing an additional burden on the capital markets. Not till 

mid-September, with increasing economic scepticism and the resulting fall of oil and commodity prices, 

did we see a drop in inflation rates. 

The crisis in the financial system reached a new dimension after the collapse of Lehman Brothers. As risk 

aversion widened, credit markets practically froze up, drawing the real economy into the crisis as well. 

After the first quarter of 2008 in which economic growth in the Eurozone was surprisingly strong, negative 

growth rates had to be reported already in the second and third quarter. The economic downturn gained 

momentum worldwide. The mood indicators painted a grim picture, which was borne out by hard facts 

such as significant drops in the volume of orders received. The fourth quarter of 2008 was disappointing 

for both the corporate sector and the investors.

The government interventions in the economy in the form of rescue packages that have already taken 

place and are still expected, and the implementation of massive economic programmes, will likely only 

bring effects in the medium-term; they have not yet brought about a trend reversal in the short term. 


In addition to governmental support, central banks have also been intervening in the economic situation. 

After the European Central Bank raised interest rates as late as July 2008, on 8 October 2008 the central 

banks (notably the US Federal Reserve, the Bank of England, the European Central Bank, the Swiss National 

Bank and the Bank of China, amongst others) lowered the key interest rate in a concerted action – largely 

also to support the governmental rescue packages for the financial sector. This trend continued at an 

accelerated pace until December. Fears that the US economy could slip into deflation were met decisively 

by the US Federal Reserve with a further relaxation of its quantitative monetary policy. 

The key to successful investment in fixed-income securities in 2008 was once again proper asset allocation. 

While investors’ risk aversion placed government bonds among the absolute winners, corporate bonds 

demonstrated significant loading in risk premiums (= price losses). Five-year government bonds in 

the US and Europe were quoted firmer at the end of the financial year by 11.3% and 10.8%, respectively. 

In contrast, high-yield bonds showed losses of over 30%, the worst performance in their history. While 

spreads increased to historic levels for investment-grade bonds as well, nonetheless losses in the US (–7%) 

and in the Eurozone (–2%) were not so pronounced. Still this represented a considerable underperformance 

in comparison to government bonds. Even the especially secure covered bond (Pfandbrief) market 

experienced historic widening of spreads in September due to turbulence in the mortgage bank sector, 

and therefore suffered yield losses in comparison to government bonds. 

In the area of Alternative Investments the leading commodities indices reached new all-time highs at the 

beginning of July, headed by the oil price. However, this development turned around with increasing 

velocity. In particular the intensification of the financial crisis, fanned by the Lehman Brothers bankruptcy 

Locational Advantages – 

Financial Centre of Luxembourg 

A successful combination of 

professionalism, competitive locational 

advantages and discretion allows 

the Grand Duchy of Luxembourg 

to play a leading role in the world of 

international finance. 

17 




18 

in September, led to collapse-like movements. Only gold was relatively true to its role as a safe harbour 

during crises, rising by approx. 5.7 % on a US dollar basis and even by approx. 10.6 % on a euro basis. 

In 2008 the US dollar gained significantly in value against all major currencies, with the exception of the 

yen. By the end of the financial year, the US dollar showed net gains against the euro of 4.4 %. After initial 

lows against the euro, a reversal of trend set in as the international economy slowed down and the oil 

price began to fall. 

As a result of significant reductions in interest rates in the Eurozone, the US dollar profited not only from 

the reduced interest rate disadvantage but also greatly from a general deleveraging and the corresponding 

repatriation of assets due to extreme risk aversion on the part of investors. The yen profited most 

from this deleveraging. The liquidation of carry trades drove up demand for the yen, while the interest rate 

disadvantage in relation to the Eurozone decreased as well. After an all-time low in July, the yen gained 

in value against the euro by more than 40%. A similar combination of factors also helped the Swiss franc 

recover moderately against the euro. 

By far the weakest of the major currencies was the British pound, which lost nearly 30 % against the European 

single currency over the course of the year as a result of a mixture of a weak economy and a rapidly 

decreasing interest rate support.

Business development of Dresdner Bank Luxembourg S.A. 

The balanced business model of Dresdner Bank Luxembourg S.A. led to good and significantly increased 

results from business activities despite the global financial crisis. The annual net profit after taxes came to 

€ 317.8 million affected by special factors (previous year: € 62.0 million). This result is due, first of all, to 

ordinary income from the business activities of the bank’s core divisions Private Wealth Management and 

Fund Services as well as companies in which participations are held. Net interest income was influenced significantly 

in December by a single transaction. An investment held on behalf of clients by one of the bank’s 

companies in which participations are held was returned to the client via the exercise of a call option by him. 

The balance sheet total fell as at 31 December 2008 by € 2.6 billion to € 10.5 billion. The volume of business 

(balance sheet total plus contingent liabilities) decreased by approximately 20.3 % from the previous year 

to € 10.5 billion. 

Allianz /Dresdner Bank /Dresdner Bank Luxembourg: Cross-border cooperation – 

joint product solutions 


The cross-border cooperation within the Allianz / Dresdner Bank international network, which has been 

introduced intensively over the past few years, continued in 2008 to lead to successful joint acquisitions 

and the development of an additional joint product for wealthy private clients. Taking into consideration 

the advantageous possibilities associated with the Luxembourg Shipping Register, Dresdner Bank Luxembourg 

S.A., in cooperation with esa Euroship Assekuradeurgesellschaft, the ship and yacht insurance 

provider of the Allianz Group, is now offering yacht financing / yacht services to its international wealth 

management clients. 

Alternative Investments 

With the aim of generating a marketindependent 

return on investment, 

the intermixture of Alternative Investments 

to traditional portfolios promises good 

diversification effects. 

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20 

Internet and Online-Banking: www.dresdner-bank.lu – continued increasing demand 

In the context of the ever increasing international orientation of the Private Wealth Management division, 

the information offered via our broadly diversified Internet presence was further expanded in 2008. The 

website www.dresdner-bank.lu continued to record an increasing number of visitors. Parallel to this our 

online-banking service offers our clients absolutely secure global access to account data and securities 

account overviews. Furthermore, our Internet presence is available in seven languages (German, English, 

French, Italian, Russian, Hungarian and Polish). 

Development in the front office sectors/teams 

Germany: Top service – holistic approach to investment advice and 

asset management – New: Asset managers use securities platform in Luxembourg 

for client services 

The business with wealthy private clients in Germany once again formed a stable basis for our international 

Private Wealth Management in the 2008 financial year. Despite difficult market conditions, numerous 

new client relationships could have been established. High net-worth and ultra high net-worth clients 

in particular became increasingly aware of the added value offered by Dresdner Bank Luxembourg S.A. 

in the context of a holistic approach to investment advice and asset management within the Private 

Wealth Management. 

Thanks to a well-established open management architecture in flexible combination with innovative 

services and products, Dresdner Bank Luxembourg S.A. has been managed to keep the effects of the global 

financial crisis within limits for its clients. In addition to all the traditional elements of capital investment

such as equities, bonds, investment funds, currencies and precious metals, many of our clients are also 

able to profit from Luxembourg’s favourable corporate and fiscal laws, which enable the integration of 

efficient corporate structures and products for structuring capital investments. 

Furthermore, important topics of the advisory services for our German clients were the introduction of 

the withholding tax system in 2009 and the pending inheritance tax reforms in Germany. In these areas 

too, Dresdner Bank Luxembourg S.A. has managed to prepare its clients for the changing fiscal framework 

conditions in a timely manner through competent advisory and support services in the planning of 

property succession. 

For commercial asset managers, the IT-based Asset Manager Platform was developed and established in 

2008. This platform offers asset managers the ability to manage their clients’ security portfolios with 

the help of the technological platform supplied by us – professional, cost-efficient and without restricting 

product choice. The aim is to help asset managers achieve more room to react more quickly to the needs 

of clients and to changing market conditions. 

Family Office Europe: Financial centre Luxembourg – Cross-border services and 

innovative solutions 

With ever-increasing globalisation of the world economy, ever-larger private asset portfolios of international 

character arises, which require ever-more specific knowledge in the field of advisory services. The 

aim: added value via utilisation of localised legislative and political options and security. 

Since its founding in May 2008, the Family Office Europe has become the preferred contact partner of 

wealthy families, international asset managers and cross-border active experts. The services requested 


E-Banking /Online-Information 

Available at any time and in any place 

in the world. Constant availability and 

uncomplicated, secure E-Banking 

offers the possibility of checking the status 

and development of assets quickly 

and simply. 

21 




22 

are advisory services and management of the most varied risks, with simultaneous minimisation of the 

time and costs of our contact partners. Requested is our contribution toward consolidating and growing 

large client asset portfolios. 

Because the requirements of our clients and the resulting solutions are extremely diverse and vary from 

case to case, we forced in 2008 besides the successful maintenance and consolidation of existing and 

new business relationships the identification of internal and external partners. At the same time new 

international clients were acquired and client relation managers were supported in the optimisation of 

their existing and new clients business. 

The Family Office Europe offers banks and other financial consultants that do not have the expertise the 

opportunity of cooperating with us and offers their wealthy clients the option of accessing a broadly 

diversified network of experts via our platform. So the basis for new international business relationships 

has been expanded. In order to be present worldwide, a website has been created initially in English and 

German. At the same time we set up a ’service menu’ and a pitchbook for our clients, also in both English 

and German. Additional languages (French, Russian, Italian etc.) are under way. 

Benelux: Recommendations support business expansion – Expansion in the 

Netherlands: acquisition of two asset management companies. Subsidiary in Belgium: 

now well established after acquisition in 2007 

As in previous years, the relationship managers at the Benelux Desk were successfully able to acquire new 

assets and consolidate existing business relationships in the financial year. Some clients have been served 

and supported for several generations. Against the background of unfavourable market conditions, it is 

above all the recommendations of satisfied clients that have enabled us to establish new client relation-


ships. There is still a great demand in neighbouring countries for information on the specific advantages 

of Luxembourg as a location. 

The merger of the two Belgian asset management companies taken over in 2007, Damien Courtens & 

Cie and Van Moer Santerre & Cie, and the associated integration of these companies into Dresdner Bank 

Group went smoothly. Our Belgian subsidiary, now represented in Brussels, Namur, Antwerp and Liège 

under the name Dresdner Van Moer Courtens, has applied for a banking licence and plans to open additional 

locations of business. 

The expansion strategy of the international Private Wealth Management division of Dresdner Bank in the 

Benelux zone was successfully carried on. Via our subsidiary Dresdner VPV N.V. (Gouda/Netherlands), two 

asset management companies in the Netherlands were taken over in 2008 and branches were opened in 

three additional locations. 

French Desk: Enlargement of successes of previous year – expansion of partner base 

The promising successes of the French Desk from the previous year with regard to both ’assets under 

management’ and revenue were continued in 2008. The number of business partners was increased 

once again. In particular the group of independent asset managers and financial consultants welcomed 

co-operation with Dresdner Bank Luxembourg S.A. as a strong, international, well-networked business 

partner. The new Asset Manager Platform established at the end of the year 2008 was put into operation 

at an independent asset manager located in Luxembourg after successful testing. To deepen the partnerlike 

relationship between clients of the French Desk and the bank was the aim of selected client events 

with a business club atmosphere, for example in Reims and Burgundy. This framework provided many 

opportunities for the parties to get to know each other better. 

Family Office Europe 

Sustainable development for 

international assets. Stability, security 

and trust with cross-border, 

comprehensive management – 

for generations. 

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24 

Italy: New partners – network expansion; major volume acquisitions 

While the previous year was all about reorientation and a new beginning, the activities in 2008 could be 

characterised with consolidating new relationships with business partners and expanding our international 

network of experts. First significant sales successes could have been noted down. The main tasks of the 

Italian Desk were still the professionalism of advisory of existing clients as well as the consolidation and 

expansion of existing contact base in Italy and the transfer of our services. Besides the traditional content 

of private wealth management services, we offer in co-operation with local entities of the Allianz Group 

the entire competence of banking, insurance and asset management. Furthermore, the product themes 

of our ’Luxembourg structures’ are also gaining significance in the Italian market. In addition to the business 

presence of Italian competitors, the opportunity for placing the ’Madeira fixed-term deposit’ via our 

branch in Madeira / Portugal offers an attractive post-tax return. 

International Desk: Solid business development worldwide – successful expansion of 

international target markets 

In a turbulent year for the global economy, the International Team was able to achieve a particularly high 

level of growth of assets in 2008 in its various target markets (Russia, Poland, Hungary, Czech Republic, 

Slovakia, Near/Middle East, South Africa and Scandinavia). Furthermore, during the course of the year additional 

markets were developed, such as Ukraine and Slovenia. Close co-operation with the newly opened 

subsidiary company of Dresdner Bank AG in Dubai, which was opened as part of the growth strategy of 

the international Private Wealth Management division of Dresdner Bank Group, enabled the accelerated 

development of business opportunities and more rapid growth in the Middle East region. The Scandinavia 

Team was expanded with particular success in 2008 and recruited two new employees. Overall we perceive 

an increased worldwide interest in services within the financial centre of Luxembourg. We wish to further 

participate in this in 2009, too.

It is our aim to offer an optimum of services: focused analysis of the financial status of the client and his 

investment targets. In harmony with the individual targets and objectives of the client, the employees of 

the International Desk offer cross-border advisory services and carry out the investment of funds. As a 

result of this approach, an increasing number of private clients, corporations and institutional clients 

are taking an interest in details of the advantageous company law and the fiscal environment in the local 

financial centre. In this respect we are offering these regional solutions (Luxembourg structures) and 

fiduciary accounts at increasing levels. 

Significant prerequisite for a continued stable future growth in international business is a good understanding 

of our cross-border activities as well as knowledge of cultural differences and of the applicable 

company law respectively fiscal environment. Our international teams of advisory make this possible 

through their many diverse nationalities and corresponding multicultural background – frequently combined 

with international training. 

Portfolio management: New investment process implemented – investment 

strategies expanded by three additional variants 

The process of revising investment strategies in portfolio Management that already begun in 2007 was 

completed in 2008. In addition to the DreLux Bond Portfolio, which has been very successful for years, 

the Dresdner Portfolio Management product family could have been expanded by additional three 

strategies. 

The portfolios DreLux Europe 25 and DreLux Europe 50 invest in equities, bonds and alternative investment 

forms with an emphasis on Euroland. 


Luxembourg Solutions 

The well-established Grand Duchy profits 

from an attractive EU legal framework, 

as well as many years of experience 

in international business – the best 

prerequisites for the optimal structuring 

and efficient management of your assets. 

25 




26 

Client requirements for stable and constant value development were met by the introduction as of 

1 August 2008 of an ‘absolute return’ variant within a fund wraparound. With the introduction of this 

variant it has been managed to achieve positive performance for 2008, absolutely as well as relatively, 

despite the ongoing global financial crisis and resulting difficult capital markets environment. The expansion 

of the DreLux Portfolio Management product range led not least to stronger permeation of client 

security portfolios with asset management products. 

Quality Management & Middle Office: ‘Sales excellence’ implemented – 

process optimisation and product innovations 

Due to the integration of the ‘Sales Support’ and ‘Non-Investment Products & Processes’ teams in the 

Quality Management division especially a high degree of process optimisation and product innovation 

over the course of the last financial year could have been forced. As aims of Quality Management all 

activities of the division for the benefit of our clients could be subsumed. 

Our Wealth Management product range was restructured via the introduction of asset management 

within a fund wraparound structure. The corresponding client advisory process for these products was 

further developed and carried out with this specific target in mind. Our clients have invested a high 

volume in the new products. Furthermore, the range of products has been expanded by a MasterCard 

Platinum, yacht financing, ‘cross-border’ issue of certificates and new insurance products. The Quality 

Management division also provides structured and comprehensive support around the products. 

Process optimisation was initiated and implemented dealing with: account opening process, new product 

initiatives, advisory and support process.

In addition, the Quality Management division raised its level of support in the day-to-day business for 

products, processes and front-office IT systems. Therewith, too, the division contributed significantly to 

‘sales excellence’ at the Dresdner Bank Luxembourg S.A. 

The financial crisis was accompanied by a major loss of investor confidence in the quality of various 

financial investment products. Against the background of this it became clear how important regular 

examination of the quality of advisory and management services is. The continued development of our 

advisory process towards a transparent and partner-like relationship with the client is therefore a target 

that we have defined during the course of the year. A significant factor in the future will be the supply 

of expanded securities portfolio information providing added value. 

For this reason, already in 2008 we began with the implementation of an IT system that will enable us 

in the future to assess each client portfolio via a risk/performance analysis. This will allow the client for 

the fist time to see whether the securities in his portfolio fit with his personal risk profile. The basis for this 

analysis is the theory formulated in the 50s by Harry M. Markowitz on how to describe the connection 

between risk and performance, for which he was awarded the Nobel Prize in Economics in 1990. In an 

additional step the system is also to be supplemented with benchmarks, in order to make the added 

benefits provided by our portfolio managers and/or financial consultants transparent to the client. With 

the implementation of this system we will meet the requirements for financial advisory services that are 

appropriate to the investor and the object, pursuant to the MiFID directive. 

Furthermore, we are again planning comprehensive training courses and coaching as part of the optimisation 

of our advisory and support processes, as well as comprehensive training for our insurance experts. 

Financing 


The creation of capital for the generation 

of scope of action. Financial independence 

and the optimisation of customerorientated 

capital market strategies 

due to the provision of funds; 

in all freely convertible currencies. 

27 




28 

Funds Services: High quality standard. Renewed quality certification despite 

difficult market environment (SAS 70). Constant issue of innovative fund products 

In an eventful financial year 2008, Dresdner Bank Luxembourg S.A. also faced up to the challenges of the 

international financial markets in its role as fund administrator and custodian bank. Whilst maintaining 

its high quality standards, Dresdner Bank Luxembourg S.A. managed to meet the increased demands on 

its employees and work processes. The effectiveness of the control processes have once again been 

confirmed through the renewed quality standard certification SAS 70 Type II by an independent auditor. 

The year was characterised by the consistent expansion of a diversified and comprehensive range of 

products resulted from the co-operation with Allianz Global Investors Luxembourg S.A. The issue of 

innovative new fund products that meet the high demands of institutional decision-makers and strategyplanners 

has been expedited on. 

On the product side, the turbulent market environment and price fluctuations in the financial markets 

had a particular effect on equity funds. In this respect the accrual of newly issued and managed funds 

could not compensate for the decline in market volume. On the other hand, our managed funds of funds 

demonstrated positive development. 

Overall, these developments led to an asset volume of € 15.7 billion (31.12.2007: € 21 billion) distributed 

over 127 funds (as of 31.12.2007: 110 funds). 

Changes to the fiscal framework conditions in Germany as of 1 January 2009 required targeted investments 

in technical implementation and adjustments to processes in order to be optimally prepared 

for the new regulations on the flate rate tax. The further development of the funds business was comprehensively 

provided for through corresponding employee training measures. Aim is to offer our clients 

contemporary high quality services both now and in the future.


Personnel: Emphasis on training and further education – Internet presence ‘Careers’ 

at Dresdner Bank Luxembourg S.A. – Mobility concept successful 

Against the background of the growing complexity of the demands in business with our international 

clients, one of the emphases in the 2008 financial year was the qualification and further education of our 

employees. So, around 80% of our employees participate in further training. Therewith the bank invested 

more than one million euros in training courses covering more than 200 different subjects with more 

than 1,000 participants. Besides the various banking themes, which made up approximately half of the 

training courses attended, also events on management and behavioural aspects were important elements. 

In addition there were a further 100 participants in the continuously-running language training courses, 

mainly English, French and German. We should also mention our annual training course in MS Office. 

To meet our constant demand for junior management employees, we also carry out training programmes: 

in 2008 six trainees completed their training programmes. At the end of the year we were training five 

apprentices and preparing four newly appointed employees with basic commercial qualifications for employment 

in the bank with targeted training programmes. Dresdner Bank Luxembourg S.A. is now also 

presenting itself on the web as an attractive employer. Under the new heading ‘Careers’ we publish current 

vacancies, entry-level and career opportunities as well as information on the possible employment of 

school pupils and students within internship. The high number of hits on the website, achieved in only a 

very short time, shows the high degree of interest in the content of the online career pages. 

The mobility concept introduced in the previous year is showing signs of success. An increasing number 

of employees use public transport for their journey to work in the meantime. The bank supports its employees 

in this move to public transport by giving a generous subsidy for the cost of using trains and buses. 

Quality and Innovation 

Success is not simply the result of quality 

and competence but rather the courage to 

innovate. This is the philosophy of your 

strong partner in an international terrain. 

29 




30 

Compliance: ‘Know your customer’ as integral component of client management 

The varied tasks of the AML / Compliance division include ensuring the bank’s adherence to the prescribed 

statutory regulations on the observance of mandatory statutory and regulatory norms combating 

money laundering and preventing the financing of terrorism and other criminal activities, as well as the 

observance of sanctions. In previous years the bank has always fulfilled its duty of regular training on 

this subject in attendance-based training programmes, however in 2008, the bank conducted for the first 

time a computer-based training programme for all employees with a subsequent online test. 

Furthermore, the AML / Compliance division improved its mechanisms for the consolidation and positive 

development of our reputation both within the financial centre Luxembourg and in our international 

target markets. So our aim is the protection of our clients and employees through the attaining and maintaining 

of high ethical standards. This is guaranteed through the imposition of strict rules on handling 

conflicts of interest and preventing abuse and market manipulation as well as through relevant control 

measures. This also includes the supervision and implementation of the regulations of the MiFID 

directive. 

The Compliance division has thus emerged as an integral component of our client management process. 

From the initiation of client relations to the day-to-day management of client services, the Compliance 

division supports and supervises the bank’s client relation managers. 

Measures such as the ‘client acceptance committee’ or detailed requirements for ‘client due diligence’ 

are indispensable for a risk-reducing and therefore beneficial business policies at the bank. At the same 

time, the integrity and respectability of the financial centre of Luxembourg are supported.

Marketing & communication: Present in international markets – Expansion of Internet 

presence (in 7 languages) 

The positioning of the advantages of Luxembourg as a location was the main task of the bank’s Marketing 

& Communications division in 2008, too. Besides the marketing of the existing product and services 

portfolio of the bank, this task also included the implementation of new services to our clients, e.g. the 

establishing of the Family Office Europe, international yacht financing and services, the issue of Privilege 

Platinum MasterCard cards to ultra high net-worth clients and the implementation of our international 

securities platform for each national asset manager. 

The support in the market introduction also included the development of appropriate information 

materials, e.g. brochures, presentations, business models and the service menu, as well as the expansion 

of our comprehensive multi-language Internet presence: www.dresdner-bank.lu. 

The international market presence of the bank is also supplemented by a presentation of the advantages 

of individual products and services through publication in the international speciality press, which has 

emerged as an integral component of our communications strategy. The balanced marketing mix of the 

bank is complemented by appropriate client events with an international theme. 

During the year of the report the bank’s marketing division also supported the marketing and communications 

activities of other affiliated entities, such as Dresdner Bank Monaco (Monaco), Dresdner VPV. N.V. 

(Netherlands) and Dresdner Van Moer Courtens (Belgium). 

Corporate Banking 


Keeping constantly the company 

and its unique environment in mind – 

innovative products and services in 

conjunction with globally active experts 

guarantee making the most of your 

opportunities. 

31 




32 

8,672.4 

Balance sheet and P&L 

Assets: 

The item ‘loans and advances to credit institutions’ sank from € 11.0 billion to € 8.7 billion as at the end 

of 2008. As in the past, Dresdner Bank Luxembourg S.A. continues to place high demands on creditworthiness 

in the selection of its money market partners. The bank's activities are mainly concentrated in Europe. 

The use of cash credits before value adjustments amounted to € 0.9 billion as at the balance sheet date in 

comparison to € 0.5 billion as at the end of 2007. The stock of internal securities (balance sheet positions 

‘treasury bills and other bills eligible for refinancing with central banks’ and ‘bonds and other fixed-interest 

securities’) was unchanged at € 0.6 billion. 

The liquid fixed- and variable-interest securities holdings serve on the one hand as a liquidity reserve and 

on the other to ensure continuous interest income. With few exceptions, the holdings consist of covered 

bonds and public sector bonds. The great majority is suitable for collateralisation of refinancing schemes 

through the European Central Bank. The portfolio of investment holdings sank in the same period from 

€ 100.0 million to € 96.4 million as of 31 December 08. The bank remains the sole shareholder in LUFRA 

Beteiligungs-Holding AG, Zurich, which was founded in 2003. The two fully-owned Belgian subsidiaries Van 

Moer, Santerre & Cie and Damien Courtens & Cie were merged to form Dresdner Van Moer Courtens S.A. 

Liabilities: Bank’s own funds unchanged 

In the reporting period liabilities to banks increased from € 2.2 billion to € 2.4 billion. The subordinated 

liabilities fell to € 200.0 million in comparison to € 299.2 million as at the end of 2007. This decline resulted 

11,021.2 

Loans and 

advances 

to credit 

institutions 

855.9 

432.6 

Loans and 

advances 

to customers 

572.2 

629.8 

Debt securities 

and other 

fixed-income 

securities 

Assets (in € million) 

� 2008 � 2007 

412.7 

Other 

assets 

1,052.3 

2,421.5 

2,175.6 

Amounts 

owed to credit 

institutions 

6,864.9 

9,266.5 

Amounts 

owed to 

customers 

424.9 

Liabilities (in € million) 

� 2008 � 2007 

424.9 

Capital and 

reserves 

801.9 

1,268.9 

Other 

liabilities

from two debenture bonds that matured in 2008 with a value of € 99.2 million. The own funds of the bank 

as reported on the balance sheet at year-end were unchanged at € 424.9 million. The capital adequacy 

ratio (calculated pursuant to the new accounting principles of the IFRS), which contrasts the available equity 

capital with business exposed to risk, exceeded the specified 100% minimum value at year end, reaching 

262.5%. 

Profit and loss account: Available profit € 346.06 million – Dividend € 340 million 

The net interest income including income from securities increased by € 138.8 million (244.3%) to 

€ 195.6 million as a result of dividend income from affiliated companies. The net commission income 

declined from € 62.4 million to € 57.4 million. At € 96.4 million in the financial year 2008, the result from 

financial operations was € 91.2 million higher than in the previous year. This is predominantly due to sales 

revenues from a single equity investment. General administrative expenses registered a decrease of 

€ 2.0 million. All identifiable risks in the credit and holdings portfolio were adequately taken into account. 

Following its business strategy, the bank did not invest at any time either directly or indirectly in the 

US real estate market. The confidence crisis on the capital markets did not affect the bank’s results. 

The annual net profit amounted to € 317.72 million. Including the existing profit brought forward in the 

amount of € 28.34 million, this resulted in an available profit of € 346.06 million. Pursuant to a resolution 

by the Supervisory Board, the general shareholders’ meeting will be advised to distribute a 30% dividend 

(€ 37.5 million) on the bank’s subscribed capital and a special dividend of € 302.5 million. 

The remaining net profit in the amount of € 6.06 million is to be carried forward. 

Profit and Loss Account (in € million) 

� 2008 � 2007 

� 2008 � 2007 

58.5 

60.5 

General 

administrative 

expenses 

53.8 19.9 

4.7 44.5 

Other 

operating 

expenses 

1.3 

Taxes Depreciations 

3.7 

317.7 

62.0 

Profit 

for the 

financial 

year 

195.6 

56.8 

Net 

interest 

income / 

income on 

securities 

portfolio 

5.2 

96.4 62.4 

Net profit 

from 

financial 

operations 

57.4 

Net 

commission 

income 


25.7 

7.7 

Release 

of risk 

provisions 

100.7 

18.7 

Other 

operating 

income / 

miscellaneous 

33 




34 

Employees /corporate bodies: Appreciation for commitment, success and loyalty to 

Dresdner Bank in Luxembourg 

As of 31 December 2008 Dresdner Bank Luxembourg S.A. employed 383 staff. The average number of staff 

in 2008 was 378.5 (previous year 366.5). Developments on the international financial markets and the growing 

complexity of the bank’s business once again increased demands on the staff. We would like to thank 

all our employees for their deep commitment, their identification to the company and their dedication. 

As of 1 January 2008 Dresdner Bank Luxembourg S.A. has had a new dual management structure. The 

members of the Supervisory Board were: Dr. Andreas Georgi (chairman), Klaus Rosenfeld (vice chairman), 

Chlodwig Reuter and Anton Simonet. The members of the Management Board were Mr. Benedikt Buhl 

(CEO), Arnd Heßeler and Joseph Kusters. 

Business policy and risk management strategy: Adequate risk consideration 

As a subsidiary of Dresdner Bank AG, the bank acts within the framework of the company-wide business 

strategy of Dresdner Bank Group. In this context, the bank focuses on business with wealthy clients 

(private wealth management) and fund services. The operational and strategic objectives of the local 

corporate divisions are part of the respective higher corporate divisions at the Dresdner Bank AG level. 

The main risks and unknown factors which the bank faces are presented in detail in the risk management 

section of the Notes. 

Outlook: Further expansion of private wealth management activities in the target 

markets planned – Takeover by Commerzbank – Integration process ‘Growing together 

in Luxembourg’ get started 

Dresdner Bank Luxembourg S.A. is an essential partner in the cross-border private wealth management 

business of Dresdner Bank Group. As such it was once again the most successful entity in business 

with high net-worth and ultra high net-worth clients in the 2008 financial year. In its capacity as ‘regional 

head’, the bank is responsible for large parts of Europe and the Eurozone. 

The unchanged aim is to promote the advantages of the location of Luxembourg and to integrate these 

advantages into products and problem solutions that increase client benefits and help stabilise client 

relations within the entire Group on the one hand and improve on the other hand as well as to open up 

new markets. In this context Dresdner Bank Luxembourg S.A. is planning further ambitious growth and 

the expansion of private wealth management activities in the current target markets and beyond. 

The integration of the asset management companies we have taken over in Holland as well as the expansion 

of the activities of our subsidiaries in Holland and Belgium through the opening of new acquisition 

and management offices will be further important themes in the 2009 financial year.

On 31 August 2008 Allianz SE and Commerzbank AG completed an agreement concerning the takeover 

of Dresdner Bank AG by Commerzbank AG. The supervisory boards of the Allianz SE and Commerzbank 

AG approved the agreement in their meetings on 31 August 2008. At the end of November 2008 Commerzbank 

and Allianz agreed to accelerate the existing takeover implementation plans, which originally 

foresaw the completion of the takeover in the second half of the 2009 financial year. The accelerated 

plan saw Commerzbank complete the takeover on 12 January 2009 and Commerzbank is now the sole 

shareholder of Dresdner Bank. The merging of the two companies will take place in the spring of 2009. 

On 31 December 2008 the Special Fund for Financial Market Stabilisation (SoFFin) provided Commerzbank 

with a silent contribution of € 8.2 billion. Furthermore, the SoFFin has issued Commerzbank Group 

a guarantee for debenture bonds for up to € 15 billion as of 30 December 2008. 

Other than this, there have been no further events that could have a particular effect on the 2008 annual 

accounts. 

The merger of the Luxembourg subsidiary companies of both banks, Commerzbank International S.A. 

and Dresdner Bank Luxembourg S.A., is planned for the fourth quarter of the 2009 financial year. 

Irrespective of this, the brand Dresdner Bank Luxembourg S.A. will continue to exist until provisionally 

the end of 2010. The integration process ‘Growing together in Luxembourg’ began in January 2009. 

All integration activities will be conducted under the motto ‘clients first’ and the client should profit 

from the merger of the two banks. The consolidation of the private wealth management activities of 

Commerzbank International S.A. and Dresdner Bank Luxembourg S.A. will create one of the most 

powerful private wealth management solution providers in Europe. A constant focus on the needs of 

our clients will guarantee the first-class advisory services and service quality for which we are known. 

With this in mind, the expectations of Dresdner Bank Luxembourg S.A. with regard to future growth 

remain positive. The bank’s aim remains the active investigation and development of new business 

opportunities and the encouragement of further growth. 


35 




Expansion in the Netherlands – 

Expansion of Dresdner VPV N.V. 

Subsidiaries of the Dresdner Bank abroad 

37 

Private Wealth Management


38 

Expansion in the Netherlands – 

Expansion of Dresdner VPV N.V. 

As Regional Head, Dresdner Bank Luxembourg is responsible for 

the development of Dresdner Bank’s Private Wealth Management in 

the Benelux region. Back in 1999, the bank had already acquired the 

Dutch asset manager, Veer Palthe Voûte N.V. (VPV). After receiving 

its banking licence in July 2000, the VPV business could undergo 

continuous expansion. In addition to its headquarters in Gouda, the 

subsidiary, which has now been renamed as Dresdner Bank VPV N.V., 

has further branches in Amsterdam, Arnhem and Den Bosch. 

In September 2008, the presence of Dresdner VPV N.V. was expanded 

with the purchase of two asset managers in the Netherlands. 

It acquired all of the shares in the companies, Franke & Partners 

Pensioenadvies en Vermogensbeheer B.V. in Maastricht (Franke & 

Partners) and De Vries & Co. B.V., Blaricum. 

Both companies specialise in looking after wealthy private 

customers. They are an ideal complement to the existing 

Dresdner VPV locations. Together with their employees, 

they manage customer assets amounting to approximately 

€ 250 million today. Dresdner VPV N.V. had 

around 2,600 customers at the year-end and managed 

assets of € 1.1 billion (as of 31 December 2008). 

Gouda 

DRESDNER VPV 

PRIVATE WEALTH MANAGEMENT 

Amsterdam 

Utrecht 

Den Bosch

Arnhem 

Maastricht 

Franke & Partners, Maastricht 

De Vries & Co. B.V., Blaricum, region Amsterdam/Utrecht 

Expansion in the Netherlands – Extension of Dresdner VPV N.V. 

The asset manager Franke & Partners is a relatively small company. 

Each of the partners has an average of 30 years of experience 

in asset management. The investment style is best described as 

independent, international, individual and consistent, based on 

extensive experience in the international world of finance. The 

company is well-networked abroad and uses the know-how of its 

international co-operation partners. This allows advice to be given 

to investors in the Netherlands as well as those abroad. 

The focus is on the achievement of stable returns with acceptable 

levels of risk. 

Franke & Partners Vermogensbeheer Maastricht 

Alexander Franke, Managing Director 

The history of De Vries & Co. goes back to the year 1775, when 

the company still carried out overseas trade with agricultural raw 

materials such as cocoa, coffee and coconut oil. With its membership 

of the Agricultural Futures Exchange, these activities were 

expanded in 1958. By trading in and providing advisory services in 

shares and options, the company has extended its range of services 

since 1995. As of 1 October 2003, the Dutch financial regulator 

granted De Vries & Co. an asset management licence. Since then, 

De Vries & Co. B.V. has offered investment advisory and asset 

management services. The company is subject to the control of the 

Dutch Securities Institute, the Dutch Authority for the Financial 

Markets (Autoriteit Financiële Markten) and the Dutch Central Bank 

(De Nederlandse Bank). 

De Vries & Co., Blaricum 

Sijmen Plomp (left), Erik Nugteren (right), 

Managing Directors 

39 



40 


Subsidiaries of the Dresdner Bank abroad 

Kleinwort Benson, London, Great Britain 

Locations: London, Birmingham, Cambridge, Guernsey, Jersey, Leeds, Manchester, Newbury, Edinburgh 

Services: In addition to PWM key services, also tax consultancy and other services in the UK 

Kleinwort Benson, Channel Islands, Great Britain 

Locations: Jersey and Guernsey 

Services: In addition to PWM key services, the coverage of offshore activities, incl. private banking, 

asset management, investment management, bank & loan services, portfolio management, 

international settlements services, trusts and other services 

Dresdner VPV N.V., Gouda, Netherlands 

Locations: Gouda, Amsterdam, Utrecht, Den Bosch, 

Arnhem, Maastricht 

Services: In addition to PWM key services, 

pension insurance and the structuring of holdings 

and other services 

Dresdner Van Moer Courtens, 

Brussels, Belgium 

Locations: Brussels and branches in Antwerp, 

Liege, Namur 

Services: PWM key services after the issue of 

banking licence (application has been submitted) 

Dresdner Bank Luxembourg S.A., Luxembourg 

Hub function for the subsidiaries 

Dresdner Bank Monaco, Dresdner VPV N.V., 

Dresdner Van Moer Courtens and the branch 

in Madeira 


fund services, financial and estate planning, 

custodian bank for international investment funds, 

yacht financing, ‘Family Office’ services and 

other services 

Dresdner Bank, Monaco 

Location: Monaco 


yacht financing and other services

Private Wealth Management – Subsidiaries of the Dresdner Bank abroad 

Dresdner Bank, Switzerland 

Locations: Zurich, Geneva, Lugano, and hub function 

for the entities in Marbella and Singapore 

Dresdner Bank, (DIFC) Ltd., Dubai (since May 08) 

Hub for the key region ‘Near Middle East’ 


‘cross border onshore’ private wealth management, 

foundations and inheritance planning, consulting 

and other services 

Reuschel & Co. Private Bankers, 

Munich, Germany 

Locations: Branches in Munich and 

sister bank in Austria: Privatinvest Bank 

Services: Universal bank with extensive wealth 

management and private banking solutions. 

Traditional emphasis on private banking, wealth 

management and the supervision of owner-run 

medium-sized companies. In addition to PWM 

key services, inheritance planning and foundation 

management and other services 

Privatinvest Bank, Austria 

Locations: Salzburg, Vienna and Hartberg (nr. Graz) 


fund assets management, consultancy and 

assistance in the setting up and management 

of Austrian private foundations and relocation 

of residence to Austria 

Services: Access to PWM services of the entities in Germany, 

Luxembourg, Switzerland and the UK 

41 


Balance Sheet as at 

31 December 2008 

Report of the Réviseur d’Entreprises 

Balance Sheet 

Profit and Loss Account 

Notes to the Annual Accounts 

43 

Balance Sheet as at 31 December 2008


44 


To the Supervisory Board of Dresdner Bank Luxembourg S.A. 

Report on the annual accounts 

Following our appointment by the Supervisory Board dated 27 February 2008, we have audited the 

accompanying annual accounts of Dresdner Bank Luxembourg S.A., which comprise the balance sheet 

as at 31 December 2008 and the profit and loss account for the year then ended and a summary of 

significant accounting policies and other explanatory notes. 

Management’s responsibility for the annual accounts 

The Management is responsible for the preparation and fair presentation of these annual accounts in 

accordance with Luxembourg legal and regulatory requirements relating to the preparation of the 

annual accounts. This responsibility includes: designing, implementing and maintaining internal control 

relevant to the preparation and fair presentation of annual accounts that are free from material misstatement, 

whether due to fraud or error; selecting and applying appropriate accounting policies; and making 

accounting estimates that are reasonable in the circumstances. 

Responsibility of the Réviseur d’Entreprises 

Our responsibility is to express an opinion on these annual accounts based on our audit. We conducted 

our audit in accordance with International Standards on Auditing as adopted by the Institut des Réviseurs 

d’Entreprises. Those standards require that we comply with ethical requirements and plan and perform 

the audit to obtain reasonable assurance whether the annual accounts are free from material misstatement. 

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in 

the annual accounts. The procedures selected depend on the judgement of the Réviseur d’Entreprises, 

including the assessment of the risks of material misstatement of the annual accounts, whether due to 

fraud or error. In making those risk assessments, the Réviseur d’Entreprises considers internal control 

relevant to the entity’s preparation and fair presentation of the annual accounts in order to design audit 

procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion 

on the effectiveness of the entity’s internal control.

An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness 

of accounting estimates made by the Management, as well as evaluating the overall presentation 

of the annual accounts. We believe that the audit evidence we have obtained is sufficient and appropriate 

to provide a basis for our audit opinion. 

Opinion 

In our opinion, the annual accounts give a true and fair view of the financial position of Dresdner Bank 

Luxembourg S.A. as of 31 December 2008, and of the results of its operations for the year then ended 

in accordance with Luxembourg legal and regulatory requirements relating to the preparation of the 

annual accounts. 

Report on other legal and regulatory requirements 

The management report, which is the responsibility of the Management, is consistent with the 

annual accounts. 

Luxembourg, 16 February 2009 

KPMG Audit S.à r.l. 

Réviseurs d’Entreprises 

T. Feld 

W. Ernst 


45 



46 

Balance Sheet as at 31 December 2008 

Assets (in €) 

31.12.2008 31.12.2007 

Cash, balances with central banks 

and post office banks 

Treasury bills and other bills eligible for 

198,708,936.05 143,754,574.58 

refinancing with central banks 33,888,550.00 0.00 

a) Treasury bills and similar securities 33,888,550.00 0.00 

b) Other bills eligible for refinancing with central banks 0.00 0.00 

Loans and advances to credit institutions 8,672,441,515.40 11,021,211,905.81 

a) Payable on demand 69,323,576.05 82,048,963.84 

b) Other loans and advances 8,603,117,939.35 10,939,162,941.97 

Loans and advances to customers 855,948,283.60 432,559,782.79 

Bonds and other fixed interest securities 572,174,260.00 629,782,309.34 

a) Issued by public bodies 0.00 0.00 

b) Issued by other borrowers 572,174,260.00 629,782,309.34 

Shares and other non-fixed interest securities 2,590,940.36 709,974,732.23 

Participating interests 244,138.28 438,856.36 

Shares in affiliated undertakings 96,144,440.12 99,572,501.45 

Tangible assets 19,376,983.56 20,122,421.36 

Other assets 979,772.47 2,031,187.93 

Prepayments and accrued income 60,751,494.53 76,434,417.02 

Total assets 10,513,249,314.37 13,135,882,688.87

Liabilities (in €) 

31.12. 2008 31.12.2007 

Amounts owed to credit institutions 2,421,505,036.49 2,175,623,583.56 

a) Payable on demand 102,714,998.62 31,595,615.61 

b) With agreed maturity dates or periods of notice 2,318,790,037.87 2,144,027,967.95 

Amounts owed to customers 6,864,944,493.96 9,266,519,048.89 

a) Savings deposits 0.00 0.00 

b) Other debts 6,864,944,493.96 9,266,519,048.89 

ba) Payable on demand 2,491,800,054.32 1,725,233,704.88 

bb) With agreed maturity dates or periods of notice 4,373,144,439.64 7,541,285,344.01 

Debts evidenced by certificates 0.00 0.00 

a) Debt securities in issue 0.00 0.00 

b) Others 0.00 0.00 

Other liabilities 11,939,919.53 679,583,599.04 

Accruals and deferred income 72,463,323.77 75,640,500.81 

Provisions for liabilities and charges 171,389,460.54 103,319,538.61 

a) Provisions for pensions and similar obligations 13,567,584.36 13,988,486.36 

b) Provisions for taxation 130,726,645.63 53,795,403.22 

c) Other provisions 27,095,230.55 35,535,649.03 

Subordinated liabilities 200,000,000.00 299,157,409.90 

Special item with partial reserve character 0.00 72,750,000.00 

Subscribed capital 125,000,000.00 125,000,000.00 

Share premium account 74,137,322.77 74,137,322.77 

Reserves 225,811,665.93 225,811,665.93 

Profit brought forward 28,340,019.36 16,295,203.02 

Result for the financial year 317,718,072.02 62,044,816.34 

Advance dividend 0.00 – 40,000,000.00 

Total liabilities 10,513,249,314.37 13,135,882,688.87 

Off balance sheet items (in €) 

31.12. 2008 31.12.2007 

Contingent liabilities 12,280,912.91 45,629,122.39 

Of which: Guarantees and assets pledged as collateral security 12,280,912.91 45,629,122.39 

Commitments 2,342,980,903.04 2,207,636,061.66 

Fiduciary transactions 568,693,600.06 764,415,828.77 

2,923,955,416.01 3,017,681,012.82 

Balance Sheet 

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48 

Profit and Loss Account for the Financial Year 2008 

Expenses (in €) 

2008 2007 

Interest payable and similar charges 438,447,796.30 523,490,664.51 

Commissions payable 8,064,857.10 7,174,695.38 

Net loss on financial operations 0.00 0.00 

General administrative expenses 58,493,063.65 60,485,955.64 

a) Staff costs 40,143,655.58 40,710,013.92 

Of which: Salaries and wages 31,609,333.33 30,620,628.46 

Social security costs 4,816,895.21 6,146,328.83 

Of which: For pensions 1,942,064.66 3,300,757.33 

b) Other administrative expenses 18,349,408.07 19,775,941.72 

Value adjustments in respect of intangible and tangible assets 1,342,870.02 3,709,056.79 

Other operating expenses 

Value adjustments in respect of loans and advances and provisions for 

53,708,579.75 4,753,924.60 

contingent liabilities and for commitments 

Value adjustments in respect of transferable securities held as financial 

414,000.00 506,179.07 

fixed assets, participating interests and shares in affiliated undertakings 5,000,000.00 0.00 

Transfer to special item with partial reserve character 0.00 0.00 

Tax on profit on ordinary activities 44,476,826.57 19,937,753.10 

Profit on ordinary activities after tax 317,763,212.97 62,073,576.81 

Other taxes not shown under the preceding items 45,140.95 28,760.47 

Profit for the financial year 317,718,072.02 62,044,816.34 

Total expenses 927,711,206.36 682,131,805.90

Income (in €) 

2008 2007 

Interest receivable and similar income 492,046,652.14 565,069,507.10 

Of which: From fixed-income securities 30,269,361.41 26,994,734.26 

Income from transferable securities 142,009,794.12 15,233,682.34 

Of which: a) Income from shares and other 

variable-yield transferable securities 3,992,888.93 990,774.17 

b) Income from participating interests 0.00 0.00 

c) Income from shares in affiliated undertakings 138,016,905.19 14,242,908.17 

Commissions receivable 65,496,352.56 69,622,309.21 

Result from financial operations 

Value re-adjustments in respect of loans and advances and provisions for 

96,421,969.76 5,249,275.49 

contingent liabilities and for commitments 31,073,014.80 8,212,027.80 

Other operating income 27,913,422.98 18,745,003.96 

Loss for the financial year 0.00 0.00 

Income from reversal of special item with partial reserve character 72,750,000.00 0.00 

Total income 927,711,206.36 682,131,805.90 

Appropriation of distributable profit (in €) 

2008 2007 

Transfer to earnings reserves 0.00 0.00 

Dividend (30%) 37,500,000.00 37,500,000.00 

Special dividend 302,500,000.00 12,500,000.00 

thereof advance dividend 0.00 40,000,000.00 

Profit brought forward 6,058,091.38 28,340,019.36 

Total 346,058,091.38 78,340,019.36 

Profit and Loss Account 

49 



50 

Notes to the Annual Accounts 2008 

A. General remarks 

Dresdner Bank Luxembourg S.A. was established on 11 April 1967 as a public limited company under 

Luxembourg law. The duration of the company is unlimited. Its business activities at the international 

level include credit (loans and advances), money market and foreign exchange transactions, precious 

metals, securities and new issues, corporate and private client business including asset management 

as well as investment funds. 

Dresdner Bank AG, Frankfurt am Main, Germany, holds 100% of the bank’s capital. In December 2008 

Dresdner Bank Luxembourg S.A. was sold by Dresdner Bank AG to its 100% subsidiary, DreCo Erste 

Beteiligungs GmbH. As a member of the Dresdner Bank Group, Dresdner Bank Luxembourg S.A. has been 

part of the Allianz Group since 2001. 

As of 12 January 2009, the Dresdner Bank Group was sold by Allianz SE to Commerzbank AG. 

Dresdner Bank Luxembourg S.A. is included in the consolidated accounts of Dresdner Bank AG. These 

accounts are available at Dresdner Bank AG in D-60329 Frankfurt am Main, Jürgen-Ponto-Platz 1. 

The consolidated accounts of Dresdner Bank AG are included in the consolidated accounts of Allianz SE. 

The latter are available from Allianz SE at D-80802 Munich, Königinstrasse 28. 

The financial year corresponds to the calendar year.

B. Valuation principles 

The annual accounts comply with the legal requirements of the Grand Duchy of Luxembourg (Law of 

17 June 1992 on the annual accounts and the consolidated accounts of credit institutions) as well as the 

generally accepted principles of proper accounting in the banking sector. In particular, they are prepared 

on the basis of: 

� the going concern concept, 

� the principle of consistency, 

� the accruals principle, 

� the prudence principle. 

(a) Currency conversion 

The bank prepares its accounts in euro. All assets and liabilities denominated in foreign currencies are 

converted according to the ECB exchange rates applicable as of the balance sheet date. 

Where balance sheet items relate to foreign exchange forwards (swaps), conversion gains or losses are 

neutralised via adjusting items. Swap expenses and income are recorded in the profit and loss account 

in the periods to which they relate. Expense and income items are translated at the exchange rate applicable 

at the date on which they are recorded. 

Outright transactions and currency options are valued at market rates. Provisions are set up to cover 

identified losses, unrealised gains are not recognised. Losses are netted against gains on closed positions 

to the extent that they qualify for such treatment. 

(b) Valuation of other derivative financial instruments (swaps, options, etc.) 

Other derivative financial instruments are valued individually at the actual market rates, according to the 

imparity and realisation principles. Transactions that are intended to hedge specific balance sheet items 

are not valued. 

Identified losses are charged to the profit and loss account while unrealised gains remain unrecognised. 

Valuation losses and gains and losses on closed items are offset to the extent that they qualify for this 

treatment. 

(c) Tangible assets 

Tangible assets are valued at acquisition or production costs. The acquisition or production costs of tangible 

assets with a limited useful life are reduced by value adjustments systematically calculated based on their 

lifetime. The depreciation rates permitted under tax law vary between 2% and 33.33%. Due to larger innovation 

cycles in the IT area, the IT equipment’s useful life was uniformly reduced to three years. Low-value 

assets are fully written off in the year of their acquisition. 


51 



52 

(d) Financial fixed assets 

Financial fixed assets are participating interests and shares in affiliated undertakings which provide a 

permanent contribution to the commercial operations of the bank. Where no permanent diminution in 

value is determined, they are valued at acquisition cost. In 2008, value adjustments of € 5.0 million were 

formed for an affiliated company, in connection with participating interests or shares in affiliated undertakings. 

The bank does not hold any fixed-interest securities as financial fixed assets. 

(e) Investments held as current assets 

Securities held for liquidity purposes are recorded either at acquisition cost or a lower market value. 

The acquisition cost is determined using the average-cost method. Value adjustments are made in order 

to record them at the lower of the two values prevailing on the balance sheet date (principle of the lower 

of cost or market). Following the principle of prudence, and executing the tax legislation, as of 31 December 

2008, value adjustments in the amount of € 0.1 million that were no longer required were maintained. 

The bank does not have a trading portfolio. 

(f) Loans and advances 

Loans and advances are valued at acquisition costs. Premiums and discounts are charged as expenses 

over the duration of the liability as a matter of principle. Discounts relating to note loans are recognised 

at maturity. The bank’s policy is to form specific loan loss allowances for doubtful loans and advances, the 

level of which is determined by the responsible corporate bodies. The allowances are offset against the 

respective asset items. 

(g) Lump-sum provision for latent risks 

In accordance with Luxembourg tax regulations, the bank forms a lump-sum provision. The lump-sum 

provision for risk-weighted assets is offset against the respective asset item. The portion relating to 

off-balance sheet financial instruments is included in the “Other provisions” item. 

(h) Liabilities 

Liabilities are stated at their repayment value. Discounts are capitalised and charged as expenses over 

the duration of the liability. Premiums are recognised over the term of the respective liabilities. 

(i) Taxes 

Taxes are calculated in accordance with the accruals concept. 

A tax group has been formed with Dresdner Bank AG’s Luxembourg branch.

C. Analysis of the accounts 

Classification of loans and advances by remaining maturities (in € thousand) 

As of the balance sheet date, there were no undated loans and advances. 

Bonds and other fixed-interest or variable-interest securities 

Loans and advances Other loans and advances 

to customers to credit institutions 

2008 2007 2008 2007 

Up to 3 months 1) 447,694 313,831 5,128,443 9,124,966 

More than 3 months up to 1 year 15,548 21,413 1,740,473 340,142 

More than 1 year up to 5 years 352,063 89,698 1,725,948 1,448,643 

More than 5 years 40,643 7,618 8,254 25,412 

Total 855,948 432,560 8,603,118 10,939,163 

1) Amounts due in up to 3 months do not include amounts due on demand. 

The bonds and other fixed- or variable-interest securities are held for liquidity purposes. 

Bonds and other fixed- or variable-interest securities amounting to € 572.2 million (previous year: 

€ 629.8 million) were reported. Of these, stock-exchange listed securities accounted for € 572.2 million 

(previous year: € 629.8 million) and unlisted securities accounted for € 0 million (previous year: € 0 million). 

As of the balance sheet date, premiums amounted to € 0.1 million (previous year: € 0.8 million) and discounts 

to € 2.2 million (previous year: € 1.1 million). 

In 2009, bonds and other fixed- or variable-interest securities amounting to € 149.2 million (previous 

year: € 74.6 million) will mature. 

Shares and other non-fixed-interest securities 

Shares and non-fixed interest securities amounted to € 2.6 million (previous year: € 710.0 million). Stockexchange 

listed securities accounted for € 0 million (previous year: € 707.3 million) and unlisted securities 

accounted for € 2.6 million (previous year: € 2.7 million). The decline results from the sale of shares in 

“The Industrial and Commercial Bank of China“ (ICBC), a financial institution listed in Hong Kong. 

Subordinated assets 

As of 31 December 2008, subordinated assets amounted to € 60.0 million (previous year: € 60.0 million), 

consisting of loans and advances to customers amounting to € 60.0 million (previous year: € 60.0 million). 

These figures do not include interest claims amounting to € 0.1 million (previous year: € 0.1 million). 


53 



54 

Assets pledged as collateral 

Due to an exemption from the guarantee deposit obligation, a collateral deposit reported under ‘Other 

assets’ in the amount of €12,400 was repaid by the stock exchange in Luxembourg. 

Value of amounts denominated in foreign currency 

As at 31 December 2008, the value of assets denominated in foreign currencies amounted to € 2,485.1 

million (previous year: € 3,102.6 million); liabilities denominated in foreign currencies amounted to 

€ 2,476.7 million (previous year: € 2,971.2 million). These figures do not include precious metal assets 

amounting to € 27.6 million (previous year: € 19.4 million) on the asset side and € 27.6 million (previous 

year: € 19.4 million) on the liabilities side. 

Participating interests and shares in affiliated undertakings 

Participating interests and shares in affiliated undertakings were held in unlisted companies in the amount 

of € 96.4 million (previous year: € 100.0 million). Listed companies were not included in the portfolio. 

Dresdner Bank Luxembourg S.A. held shares in affiliated credit institutions (Veer Palthe Voûte N.V. (VPV) 

and Dresdner Bank Monaco SAM) in the amount of € 31.8 million (previous year: € 36.8 million). 

The bank holds 100% of the affiliated company LUFRA Beteiligungs-Holding AG, Zurich. 

During the financial year, the merger of both fully-owned Belgian subsidiaries, Van Moer, Santerre & Cie. 

and Damien Courtens & Cie, into Dresdner Van Moer Courtens S.A. was completed. In this context, the 

investment book valued was increased by € 7.2 million, through the payment of an agreed second tranche 

to the previous owners. 

The bank held a minimum of 20% of the capital in the following participating interests and affiliated companies 

of a substantial size (see table): 

Participating interests and shares in affiliated undertakings 

Book value Stake Equity Result 

Name and domicile 31.12.08 31.12.07 31.12.08 31.12.07 31.12.08 31.12.07 31.12.08 31.12.07 

of participating interest in € thousand in % in € thousand in € thousand 

LUFRA Beteiligungs-Holding AG, Zurich 7,186 12,847 100.0 100.0 16,162 13,971 115,967 17,920 

Dresdner Bank Monaco SAM 15,000 20,000 100.0 100.0 16,882 18,790 – 2,200 – 1,908 

Dresdner Veer Palthe Voûte N.V., Gouda 16,766 16,766 100.0 100.0 42,862 32,546 4,585 15,316 

Dresdner Van Moer Courtens S.A. 57,192 49,959 100.0 100.0 46,771 47,221 – 1,859 – 449

The annual financial accounts of the above-named companies have not yet been established for the 2008 

financial year. 

The bank holds further participating interests totalling € 244,000 which include a holding exceeding 20% 

in Captain Holding S.à.r.l., Luxembourg (book value: GBP 46,000; 46% share; capital: GBP 100,000). 

Fixed asset movement schedule (in € thousand) 

Shares in Office 

Participating affiliated Land and and plant 

Interests undertakings Buildings 1) 

equipment 

Gross value as at January 1, 2008 439 99,573 32,309 60,848 

Additions 0 7,232 0 597 

Disposals 180 5,661 0 0 

Exchange rate adjustments – 15 0 0 0 

Gross value as of December 31, 2008 244 101,144 32,309 61,445 

Accumulative depreciation 0 5 14,084 60,293 

of which: depreciation for the financial year 0 5 759 584 

Net value as of December 31, 2008 244 96,144 18,225 1,152 

Net value as of December 31, 2007 439 99,573 18,984 1,139 

1) The portion of the land and buildings used for the bank’s own operations totals € 17,954 thousand. 

Amounts due from and to affiliated undertakings and undertakings 

in which a participating interest is held 

As of the balance sheet date, claims on affiliated companies amounted to € 8,622.8 million (previous 

year: € 11,077.7 million). Of these, loans and advances to credit institutions account for € 8,622.3 million 

(previous year: 10,967.9 million) and loans and advances to customers account for € 0.5 million (previous 

year: € 109.8 million). As in the previous year, there were no claims on affiliated undertakings in the form 

of bonds. 

Amounts owed to affiliated companies came to € 2,847.0 million (previous year: € 2,451.2 million). 

Of these, amounts owed to credit institutions accounted for € 2,295.7 million (previous year: € 2,009.4 

million) and amounts owed to customers accounted for € 551.3 million (previous year: € 441.8 million). 

There were no claims on undertakings in which participating interests are held. As in the year before, 

no amounts owed to undertakings in which participating interests are held existed as of the balance 

sheet date. 


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56 

Classification of liabilities by remaining maturities (in € thousand) 

Other liabilities 

Amounts owed to credit 

institutions with agreed term Amounts Other 

or notice period owed to customers 1) 

securitised liabilities 

2008 2007 2008 2007 2008 2007 

Up to 3 months 2) 

1,879,904 2,118,363 3,397,006 6,910,295 0 0 

More than 3 months up to 1 year 178,263 24,665 579,799 238,729 0 0 

More than 1 year up to 5 years 260,623 1,000 363,573 392,261 0 0 

More than 5 years 0 0 32,766 0 0 0 

Total 2,318,790 2,144,028 4,373,144 7,541,285 0 0 

1) Other liabilities with agreed term or period of notice. 

2 ) Liabilities up to 3 months do not include any amounts owed on demand. 

The decline in other liabilities from € 679.6 million to € 11.9 million is essentially due to the discontinuation 

of an equity-linked note (ELN) issued by the bank in 2006. 

Subordinated liabilities 

In the year under review, the associated interest expenses amounted to € 200.0 million (previous year: 

€ 299.2 million). During the financial year, interest expenses of € 14.8 million (previous year: € 17.9 million) 

were incurred for these. Redemption premiums of € 1.0 million (previous year: € 1.4 million) were recorded 

under ‘deferred income’ as of the balance sheet date. 

Subordinated liabilities 

Type of liability Bond Bond 

Currency and amount € 100,000 thousand € 100,000 thousand 

Interest rate 6.500% 6.250% 

Maturity December 2, 2009 February 26, 2016 

Special item with partial reserve character 

The special item was formed pursuant to Article 54 of the Luxembourg income tax law. In 2008, the 

special item was released in its full amount and resulted in taxable income of € 72.25 million.

Subscribed capital 

The subscribed and fully paid-up capital came to € 125.0 million divided into 50,000 registered shares of 

€ 2,500 each. 

Reserves 

Pursuant to Art. 72 of the Law of 10 August 1915, 5% of the annual profit must, in advance, be allocated 

to the legal reserve until 10% of the subscribed capital has been reached. The legal reserve may not be 

distributed to shareholders. As of the balance sheet date, it came to € 12.5 million, which corresponds to 

10% of the subscribed capital. 

The free reserves include € 108.8 million for crediting wealth tax for the years 2004 to 2008. 

Contingent liabilities 

As of the balance sheet date, the bank had the following contingent liabilities: 

Liabilities from guarantees and assets pledged as collateral: € 12.3 million (previous year: € 45.6 million), 

thereof vis-à-vis affiliated companies € 0.1 million (previous year: € 0.1 million). 

Commitments /credit risks 

Loan commitments exist in the amount of € 187.3 million (previous year: € 169.7 million). As of the 

balance sheet date, there were no outstanding fixed loan commitments to affiliated undertakings. The 

other commitments include two transactions arising from four forward transactions on fixed-interest 

securities in the amount of € 2,155.6 million (previous year: € 2,037.9 million) which offset each other. 

€ 1,437.1 million thereof relate to affiliated companies. As of the balance sheet date, no risks arose therefrom. 

Financial instruments 

In the following, a distinction is made between primary financial instruments recorded in the balance 

sheet and off-balance sheet derivative financial instruments. In general, the bank has no complex financial 

instruments in its books. As at 31 December 2008, the bank had no trading portfolio. 


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58 

Analysis of the primary financial instruments 2008 

The following table presents the bank’s primary financial instruments at book value subdivided into assets 

and liabilities and classified according to the remaining maturities. 

Analysis of primary financial instruments 2008 (in € million) 

≤ 3 months 

Primary financial instruments 

> 3 months 

≤ 1 year 

> 1 year 

≤ 5 years 

> 5 years No maturity 

Primary 

financial 

trading 

instruments 

Instrument class (financial assets) 

Cash, 

balances with 

central banks and 

post office banks 

Treasury bills and 

other bills eligible 

for refinancing with 

195.3 3.4 198.7 

central banks 33.9 33.9 

Loans and advances to credit institutions 5,197.8 1,740.5 1,725.9 8.2 8,672.4 

Loans and advances to customers 

Leasing transactions 

Bonds and 

other fixed interest 

447.7 15.5 352.1 40.6 855.9 

securities 

Shares and other non- 

47.1 102.1 399.4 23.6 572.2 

fixed interest securities 2.6 2.6 

Total financial assets 10,335.7 

Non financial assets 177.5 

Total assets 10,513.2 

Instrument class (financial liabilities) 

Amounts owed to 

credit institutions 

Amounts owed to 

1,982.6 178.3 260.6 2,421.5 

customers 

Securitised liabilities 

5,888.8 579.8 363.6 32.7 6,864.9 

Total financial liabilities 9,286.4 

Non financial liabilities 1,226.8 

Total liabilities 10,513.2 

Total

Neither repo nor reverse repo agreements existed, as with the previous the year. 

Analysis of the derivative financial instruments 

Derivatives are financial products derived from primary financial instruments (underlying instruments, 

e.g. shares, bonds, indices) whose price can be calculated on the basis of the price or value of the underlying 

instrument. A distinction is generally made between derivatives traded on the stock market and 

individually agreed (OTC traded) derivatives. The tables include all derivatives held by the bank. 

In addition to volume, the tables also include the fair values of the positions; transactions with positive 

fair values are reported as asset items while transactions with negative fair values are reported as liability 

items. The fair value is understood to be the amount at which an asset could be exchanged or a liability 

settled. As in the previous year, interest-rate swaps were concluded exclusively for the purpose of hedging 

balance sheet transactions. 

Derivative transactions 2008 (in € million) 

Assets 1) 

NV = Nominal Value FV = Fair Value (at year-end) 

1) Divergent totals in the tables result from rounding differences. 

2 ) Including commodity and precious metal-related OTC transactions. 

Remaining maturity 

Interest-related OTC transactions 

Interest-rate swaps 0 0 100 3 3 0 100 18 203 21 

Interest-rate options 0 0 10 0 0 0 0 0 10 0 

Futures 0 0 1,078 1,271 0 0 0 0 1,078 1,271 

Subtotal 0 0 1,188 1,274 3 0 100 18 1,290 1,292 

Currency-related OTC transactions 2) 

≤ 3 months 

NV FV 

> 3 months –1year 

NV FV 

> 1 – 5 years 

NV FV 

> 5 years 

NV FV 

Forward exchange contracts 577 10 362 28 17 1 0 0 956 39 

Currency options 524 25 102 5 0 0 0 0 626 31 

Subtotal 1,101 35 464 34 17 1 0 0 1,582 70 

Total 1,101 35 1,652 1,308 20 2 100 18 2,872 1,362 

The table includes four forward transactions on fixed-interest securities that offset each other and arise 

from two transactions. As of the balance sheet date, no risks arose therefrom. 

Currency options are transactions in the interest of customers and corresponding hedging transactions 

with banks. No open market price risks arise for DBL from option transactions. 


Total 

NV FV 

59 



60 

Derivative transactions 2008 (in € million) 

Liabilities 1) 

NV = Nominal Value FV = Fair Value (at year-end) 

1) Divergent totals in the tables result from rounding differences. 

2 ) Including commodity and precious metal-related OTC transactions. 

Provisions for loan losses 

Remaining maturity 

Interest-related OTC transactions 

Interest-rate swaps 0 0 2 0 12 –1 3 0 18 –1 

Interest-rate options 0 0 10 0 0 0 0 0 10 0 

Futures 0 0 1,078 – 1,271 0 0 0 0 1,078 – 1,271 

Subtotal 0 0 1,090 – 1,271 12 –1 3 0 1,105 – 1,272 

Currency-related OTC transactions 2) 

≤ 3 months 

NV FV 

> 3 months –1year 

NV FV 

> 1 – 5 years 

NV FV 

> 5 years 

NV FV 

Forward exchange contracts 563 – 14 332 – 28 15 –1 0 0 911 – 43 

Currency options 524 – 25 102 –5 0 0 0 0 626 – 31 

Subtotal 1,087 – 39 435 – 33 15 –1 0 0 1,538 – 74 

Total 1,088 – 40 1,525 – 1,304 27 –2 3 0 2,643 – 1,346 

The risk of counterparty default is covered by individual provisions, lump-sum provisions, provisions for 

derivatives, the formation of country risk provisions and through risk provisioning on securities posted as 

depreciation at the lower of cost or market. In the case of primary financial instruments, the book values 

represent the maximum credit risk. 

The lump-sum provision was released during the reporting year by € 29.5 million, affecting net income. 

A lump-sum provision of € 5.4 million remains. 

Other operating expenses and income 

Other operating income amounts to € 27.9 million, and essentially results from the releasing provisions 

no longer required in the amount of € 26.8 million. 

Other operating expenses amount to € 53.7 million and consist mainly of Other claims released from 

previous financial years, which emerged as no longer having value, in the amount of € 36.6 million, as 

well as other contributions to tax reserves, resulting from the tax group and relating to prior years, 

in the amount of € 13.1 million. Additional contributions of € 1.0 million were also made to the deposit 

guarantee fund. 

Deposit protection and investor compensation system 

Since 1990, the bank has been a member of the “Federation for Deposit Protection, Luxembourg” (AGDL). 

The purpose of AGDL, based on the Law of 5 April 1993 on the financial sector, as amended by the Act 

of 11 June 1997, is the establishment of a system for mutual protection relating to the deposits of natural 

Total 

NV FV

entities of the AGDL member institutions and companies incorporated under Luxembourg law or the law 

of another EU Member State that are entitled, on account of their size, to prepare an abbreviated balance 

sheet. These deposits are insured individually in each case to the sum of € 20,000. In the case of a claim, 

the annual contribution of each AGDL member is limited to 5% of their equity capital. During the reporting 

year, the bank fulfilled a claim to pay an advance of €629,000 in relation to the financial distress of 

subsidiaries of Icelandic banks at the Luxembourg location. This payment took place from existing reserves 

in favour of the deposit guarantee fund. 

In accordance with the Law of 27 July 2000 that incorporated EU Directive 97/9 on investor-compensation 

schemes into the national Law of 5 April 1993 on the financial sector, another objective of AGDL 

since 1 January 2001 has been to ensure investor protection. The purpose of this compensation scheme 

is to protect all investment transactions of natural and certain legal entities up to an equivalent amount 

of € 20,000 in the case of a default by the bank that has been officially confirmed by court or administrative 

authority, irrespective of the number of accounts, the currency or the location within an EU member 

state. 

In accordance with fiscal regulations, the bank has set up a provision for future claims. 

Administrative and representative services 

The bank offers the following administrative and representative services to third parties: 

� Asset management and administration 

� Safekeeping and administration of securities 

� Rental of safe-deposit boxes 

� Trustee services 

� Agency services 

� Underwriting business 

� Fund administration 

� Custodian bank services 

For two companies belonging to the Allianz Group (Dresdner Bank AG’s Luxembourg branch and Allianz 

Global Investors Luxembourg S.A.) the bank provided employees and took over certain administration 

tasks, including IT functions, during 2008. Service agreements have been concluded with entities belonging 

to the Dresdner Bank Group. 

Distribution of income by geographical markets 

The bank’s organisational structure is not based on a geographical breakdown or country specific markets. 

Revenues for 2008 predominantly originated from activities with credit institutions and customers from 

OECD countries. 


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D. Risk Management 

Risks are a significant component of banking business. The bank’s success crucially depends on systematically 

identifying, quantifying and effectively managing the bank-specific credit, market and liquidity 

risks (so-called primary risks) consciously entered into within the context of the business activity. Furthermore, 

efficient and integrated risk management and risk controlling require the integration of all entrepreneurial 

risks, which are also not bank-specific. These include the risk associated with short-term and 

long-term business planning and business structure – business risk and strategic risk – as well as the 

operational and reputational risks (so-called secondary risks) frequently also occurring interactively with 

the primary risks. 

The bank generally pursues a conservative and very selective risk strategy with regard to entering into 

risks. In doing so, the risk strategy defined by the Management Board and Supervisory Board of Dresdner 

Bank AG forms the framework for the local risk strategy of the bank. 

With the aim of the clear separation of functions, the bank’s market segments report to one board 

member, while a further board member is responsible for risk monitoring and controlling functions. Risk 

management is an integral part of the bank’s management and controlling processes. Risks are taken 

with consideration to returns and potential losses while risk-bearing capabilities as well as clear responsibilities 

are also taken into account. The risk management process includes the identification, analysis, 

measurement, monitoring, communication and management of risk. The bank’s management and 

relevant Dresdner Bank Group functions are kept regularly informed of the risk situation through various 

reports. 


(Audit Committee) 

Delegation 


Information 

Monitoring / Control 

� Risk Management � Compliance 

� Finance/Controlling � Legal 

� External auditors � Audit 

� Approval of rules of procedure 

� Approvals of transactions via Management Board competence 

� Approval of participating interests 

� Approval of limits 

� Confirmation of risk profile 

� Responsibility for business policy 

� Responsibility for credit policy 

� Responsibility for equity capital investment/liquidity management 

� Defining limits 

� Defining risk suitability / risk profile 

Risk Management 

� Divisions: decentralised within the context of their duties 

� Liquidity Management: centralised interest / liquidity / FX 

� ALCO: Advising Management Board, asset/liability management, 

equity capital investment, strategic risk management 

Supervisory 

Board 

Rules of 

procedure 

Management 

Board 

Rules of 

procedure

The risk management process of the bank takes place in close cooperation with the units of the Dresdner 

Bank Group. The general conditions defined by the Dresdner Bank Group specifically apply. In the Group, 

an extensive risk management and controlling system is established, which guarantee consistent management 

of the risks across the units. The rules and standards of the Dresdner Bank Group are at the level 

of the bank and are adapted/expanded to accommodate local requirements on the basis of its business 

model. 

The risk appetite of the bank is expressed through the minimum relationship between internally calculated 

risk capital for covering existing risks and the risk-bearing capacity, mainly the liable equity capital of 

the bank. With the calculation of the internal risk capital, the Dresdner Bank Group approaches are relied 

upon. The bank's Supervisory Board and Management Board define the minimum thresholds for solvency 

coefficients. In doing so, internal risk capital is compared under normal conditions, as well as under stress 

conditions of risk-bearing capacity. 

The bank’s risk profile is reviewed on a regular basis. As far as it is meaningfully possible, all material risks 

are quantified. Individual risk types, particularly reputational risks, are encountered with proactive management 

and sensitisation of the employees, instead of quantification. 

Market risks 

Market risks are understood as possible fluctuations in the value of a portfolio as a result of changes in 

market prices, such as interest rates, share prices or exchange rates. Market risks for Dresdner Bank 

Luxembourg S.A. are assessed according to group-wide standards using the parametric value at risk 

method (VaR). 

Risk calculation and limitation follows the Dresdner Bank Group’s internal model based on a 1-day holding 

period and a 95% confidence level. For the overall bank, a limit exists, which was utilised in the 

amount of € 2.15 million through continuing market volatilities. In addition to the VaR calculation, the 

effects of extreme market trends, such as the simulation of a 200 basis point interest rate rise, on the 

portfolio’s value are observed in the context of stress testing. 

Liquidity risks 

Liquidity risk is the risk of not being able to meet current and future payment obligations either fully or at 

the due time, or, in the event of a liquidity crisis, the risk involves refinancing that can be generated only 

at excessively high market rates (refinancing risk) or assets that can be liquidated only with discounts on 

market prices (market liquidity risk). 

At the Dresdner Bank Group, liquidity risks are assessed on the basis of an integrated system, which indicates 

the maturity structure for all future cash flows and generates a cash flow balance sheet, taking into 

consideration available first-class collateral. Risks are limited respectively in the context of a structured 

limit system. Regular stress testing shows the effects on liquidity in different extreme scenarios. 


63 



64 

The bank’s refinancing funds are primarily generated from its customer business. Refinancing options 

exist within the Dresdner Bank subgroup, with the Luxembourg Central Bank, and on the basis of an 

extensive holding of securities in the liquidity reserve designed to secure the liquidity position in the event 

of a crisis. The confidence crisis on the capital markets in the second half of the year did not affect the 

bank’s liquidity position at any time. 

Credit risks 

The credit or counterparty risk consists of the risk of losses from unexpected defaults or depreciation in 

value due to an unexpected deterioration in the credit rating of borrowers or issuers. Counterparty risks 

in the lending business are controlled on an individual case basis defining limits to individual borrowers/ 

borrower units as well as limits for country risks and, where applicable, limits for individual product 

groups. 

The approval and granting of credit lines depends on the availability of sufficient and secure information 

regarding both the borrower and the structure and economic purpose of the credit transaction as well as 

the intrinsic value of the collateral securities. This information is required to carry out the respective risk 

analysis. The responsibilities relating to the granting of credits are specified in the bank’s internal rules of 

procedure. All loan commitments are subject to ongoing risk-adjusted monitoring; in a minimum of once 

500 € million 










0 € million 

240 

239 

Lombard loans 

12 

� Credit volume December 31, 2008 � Credit volume December 31, 2007 

23 

Surety credits 

27 

19 

Mortgage loans 

60 

60 

Subordinated loans 

466 

32 

Other loans

a year, in the context of the resubmission required by the internal rules of procedure, they are reassessed 

and submitted to the key member of staff. Both risk analysis and risk monitoring are based on the dual 

control principle. 

The main part of the credit disbursements is covered by adequate collateral securities. Lending approaches 

and regulations pertaining to the valuation of collateral securities are specified in the internal lending 

guidelines and operational procedures. Both the credit risk that is to be collateralised and the intrinsic value 

of the collateral are subject to ongoing monitoring. 

As a focused private banking unit (PWM), the bank’s lending business is essentially based on the private 

credit portfolio. The emphasis is on Lombard loans which are generally collateralised via respective securities 

portfolios managed by the bank. Further important credit products include guarantees, cash credits, 

trustee loans and real estate financing. 

In addition to the private lending business, the bank very selectively takes part in transactions of the 

Luxembourg branch which forms part of the Dresdner Kleinwort business segment. The Bank’s analysis 

and monitoring of these counterparty risks is essentially based on the respective primary analysis of the 

business segment. 

The bank’s monitoring of trading risks is based on an information system used within the Dresdner Bank 

Group. Day-to-day monitoring comprises the assessment of current limit levels and an ongoing evaluation 

all trading activities and provisions of collateral. 

Operational risks 

Within the Dresdner Bank Group operational risk has been defined as the risk of a direct or indirect loss 

through inadequacies or failures in projects, processes or controls caused by technical, personnel, organisational 

or external factors. 

Operational risks are managed independently by the bank’s individual divisions. Specific measures have 

been implemented to sensitise staff and executives to the detection of potential operational risks. Contingency 

plans, regulations and operational procedures reduce the operational risk. Implemented Business 

Continuity Management (BCM) ensures functionality of the bank’s core processes in the event of an 

emergency. 

A significant component of the measurement and control of operational risks is the annual scenario 

analysis, which forms the basis of the risk capital calculation. The emphasis is on the quantification of particularly 

serious potential losses. The bank’s management is regularly informed of any event of damage 

or loss, risk indicators and the general development of the bank’s operational risks. 


65 



66 

E. Other information 

Other guarantees 

As part of the employee pension scheme (pension fund), members leaving the company are entitled to a 

capital guarantee within “money market funds” investment category. The capital guarantee ensures that 

upon payment the member is entitled to at least the total of deposited contributions. This capital guarantee 

does not exist in other investment categories. 

Average staff numbers 

In the past two years, the bank has employed on average: 

400 

300 

22.8 22.2 

Management 

351.0 

340.0 

Employees 

4.8 

Trainees 

4.3 

� 2008 � 2007 

378.6 

Total 

366.5

Remuneration, pension obligations and loans awarded to the bank’s management 

and administrative bodies 

No remuneration was granted to administrative bodies (4 people). The executive bodies, consisting of 

executive and divisional managers, received a total of € 6.688 million; this figure includes share-based 

incentive plans. 

In the year under review, a total of € 326,000 was transferred to the pension scheme for members of 

the executive bodies. 

As of the balance sheet date, loans and guarantees issued to members of the executive body, 

executives and divisional managers, came to € 1,051,000. 

As of the reference date, pension obligations vis-à-vis members and former members of the executive, 

administrative and supervisory bodies amounted to € 3.313 million. In 2008, payments amounted to 

€ 445,000. 

Auditor’s fee 

The fee for the auditor KPMG Audit S.a.r.l., Luxembourg and KPMG member companies recorded as 

‘other administrative expenses’ in the year under review is composed as follows: 

Auditor’s fee 

Amounts in € thousand (without VAT) 2008 

Audit of annual accounts 320 

Other auditing services 51 

Tax consultancy services 56 

Total 427 


67 



Overview of the Special Sections from 1990 – 2008 

Advisory Bank with a Future 

69 

Special Section


70 


Annual Report 

2008 

19 years ago the idea was born 

to add a special section to the 

annual report of Dresdner Bank 

Luxembourg S.A., that deals 

with issues relating to the Grand 

Duchy of Luxembourg. 

This idea became a tradition. 

The display on this double page 

provides an overview of the 

special sections published in 

the annual reports from 1990 – 

2008. 

At this point we would like once again to 

thank the authors and photographers 

involved in designing the special sections. 

1997 

Dresdner Bank Luxembourg 

at the centre of Luxembourg 

town’s history; 

Robert L. Philippart 

1996 

Tradition and innovation – 

Luxembourg’s museums – 

a growing sector; 

Georges Hausemer 

2008 

Advisory Bank with a Future – 

Through the merger of 

Dresdner Bank and Commerzbank, 

another heavyweight 

will be created on the 

European financial market; 

Dresdner Bank 

1995 

From Berlin to Luxembourg; 

Marie-Paule Jungblut 

and Jean Luc Mousset 

2007 

40 years Made in Luxembourg – 

Two-digit growth figures 

being the standard rather than 

the exception; Peter G. Schmitz 

2002 

Luxembourg – 

A successful business centre 

in the heart of Europe; 

Ministry of Foreign Affairs, 

Grand Duchy of Luxembourg 

1994 

Bernard Molitor, 

1755 to 1833 – 

Life and work of a 

Paris cabinetmaker; 

Dr. Ulrich Leben

2006 

Competences – Financial 

centres Luxembourg and 

Monaco; Frank Roth 

2001 

The Greater Region 

of SaarLorLux – Results 

of co-operation and 

development potential; 

Christian Glöckner 

1993 

“Loosst mer nach e 

Pättchen drënken” – 

Luxembourg wines; 

Jean-Pierre Wagener 

2005 

The financial centre of 

Luxembourg as a centre of 

competence; Benedikt Buhl 

and Thomas Kiefer 

2000 

2000 years of coinage 

and coin circulation 

in Luxembourg; 

François Reinert 

1992 

Contemporary art 

in Luxembourg; 

Edmond Thill 

2004 

Luxembourg and 

EU-Enlargement – 

from an economic angle; 

Nicolas Soisson 

1999 

Castles of Luxembourg; 

John Zimmer 

1991 

The language situation 

in Luxembourg – 

Lex Roth 

Overview of the Special Sections from 1990–2008 

2003 

Luxembourg – 

School of Finance; 

Lucien Thiel 

1998 

Feasting à la luxembourgeoise – 

real Luxembourg cuisine 

is simple, tasty and international; 

Georges Hausemer 

1990 

1890 to 1990: Hundred Years 

of the Luxembourg Dynasty; 

Jean-Claude Muller 

71 

Special Section


72 

Advisory Bank 

with a Future 

Through the merger of 

Dresdner Bank and 

Commerzbank, another heavyweight will be created 

on the European financial market. 

Out of the previously number two- and three-ranked German private banks, 

a European heavyweight will be created with more than one trillion euros in total 

assets, nearly € 300 billion in managed assets and approximately 14 million private 

and business customers. Weeks of negotiations preceded the agreement. In the 

past, major deals had repeatedly failed due to excessive speculation beforehand. 

This time everything was different, as no details reached the public, only 

rumours. Those at the helm were under great pressure since not only the 

Allianz shareholders were expecting a solution for Dresdner Bank, whose 

results had collapsed due to the subprime crisis after a record year in 2006. 

According to the media, a consolidation of the German banking market was 

long overdue. 

In the last week of August, suspense rose. On that Thursday, Allianz, Dresdner Bank 

and Commerzbank confirmed a meeting of the Management Boards and Supervisory 

Bodies. That evening an urgent message on the tickers divulged that Commerzbank would 

acquire Dresdner Bank from Allianz for the price of € 9.8 billion. A historic and major event 

in the 136-year history of the bank was announced. A few hours later, the first press conference 

INTEGRATION 

A future built on tradition 

Three crucial factors for the successful integration 

of Dresdner Bank into Commerzbank: 

1. Speed ahead of excessive complexity. A blueprint is a construction manual to be 

realized as good as possible. It is important in this case to produce visible success as 

quickly as can be.

took place in the atrium of Commerzbank. Martin Blessing appeared for Commerzbank, 

Michael Diekmann for Allianz and Herbert Walter for Dresdner Bank; also present from 

Commerzbank were CFO Eric Strutz and Corporate Communication Manager Richard Lips. 

Blessing explained the two-stage transaction and future business model to the journalists 

using charts. According to this, Commerzbank would acquire in a first stage 60.2 percent 

of the shares in Dresdner Bank from Allianz in early January 2009. In exchange, the insurance 

company would receive shares, a cash payment and parts of the Commerzbank fund subsidiary, 

Cominvest. The acquisition of the remaining shares by Commerzbank would take place 

in autumn 2009. 

“With this takeover, we reinforce our claim to become the leading bank in Germany”, declared 

Commerzbank CEO Martin Blessing. The merger of Dresdner Bank and Commerzbank offers 

the opportunity for the new institution to assert itself not only on the German market but 

also to grow on a European scale. The combination of SME business activities, an extensive 

presence in Central and Eastern Europe, as well as good positioning in the real estate business 

are strengths of the new bank. 

Commerzbank and Dresdner Bank have outstanding competence not only in the private 

customer sector, but also particularly in advising SME companies – with the merger, they are 

number one in this sector. 

With its focus on SME business, the new bank reinforces the status of Germany as a business 

centre. “Dresdner Bank brings valuable assets to the new bank: a broad and very loyal customer 

base, a highly efficient sales division and excellent employees”, says Dresdner Bank CEO, 

Herbert Walter. Dresdner Bank is leading in advisory banking. The working title phrased by 

Blessing matches this: “Commerzbank – the advisory bank”. 

2. Continued excellent customer service during the integration phase. 

3. Communication in all phases of the integration. – Lacking communication would cause 

uncertainty among employees as well as customers. This must be avoided. 

Actions to be taken during the half-year from the majority acquisition until the merger: 

All the preparatory work for the actual integration, such as meetings with the work councils. 

Or issues such as the merger of branches, reforming of teams, establishment of management 

tiers, introduction of a new brand, creation of a common identity. 


73 

Special Section


74 

“With the new 

Commerzbank, 

a powerful 

competitor will be 

created in the 

domestic market 

with a European 

perspective.” 

This requires the utmost preparation and effort in both companies. 

It is to be expected that such an integration process will not be 

characterised entirely by harmony and consensus. 

Decision-making in the event of conflicts: 

Controversial issues regarding individual projects and modules will 

primarily be discussed in the Integration Management Team and 

also decided there where possible. If this cannot be achieved, there 

are higher-ranking integration bodies to handle decisions. 

A sense of common purpose – what this means: 

Both banks are aware of the difficulty of positioning themselves to 

compete in European markets at their previous sizes. Thus a sense 

of common purpose is created from the very fact that this merger 

is not only a major opportunity for both banks, but also for Germany 

as a business location. With the new Commerzbank, a powerful 

competitor will be created in the domestic market with a European perspective. 

The best of both companies: 

In the eyes of customers, one of the strengths without doubt is Commerzbank’s SME 

business. The private customer business of both banks has been performing well. Therein 

lies the opportunity to become together the best private customer bank in Germany. 

Furthermore, both banks have outstanding products, whether these are Commerzbank’s 

equity derivatives or the fixed income division of Dresdner Bank. This is the beauty of this 

merger – the banks complement one another so well that together they can achieve a new 

level. 

Both companies have their strengths. Otherwise, they could not have enjoyed such success 

in competition over the past 130 years. Dresdner Bank’s business identity is based on 

the securities and capital market business. It is especially strong in this sector, providing 

particular benefits to customers. There are also many other strengths, however its 

competence in the securities and capital markets can make a real contribution to the new 

Commerzbank. 

Common values for decision-making: 

The common values in Commerzbank are known under the name “Comvalues”. 

These include: market orientation, respect and partnership – internally as well as toward 

customers – and a service-oriented culture. 

These values are also a high priority at Dresdner Bank.

Commerzbank and Dresdner Bank are more 

than 130 years old. In spite of all their differences, 

their histories show numerous parallels and 

commonalities, not least, in terms of personnel. 

The development of Commerzbank and Dresdner Bank follows the peaks and troughs of German 

economic history. Both institutions were created at the beginning of the 1870s as company limited 

by shares, at that time an innovative legal form. They both benefited as universal banks from the 

economic prosperity of the newly established German Empire. A group of merchants around Carl 

Woermann founded Commerz- und Disconto-Bank in Hamburg. Dresdner Bank was created on the 

initiative of Eugen Gutmann in the state capital of Saxony. In the 1880s, both banks moved their 

headquarters to the imperial capital Berlin and expanded their branch network; their first branch 

offices were also established abroad. As a result of the global financial crisis and the subsequent 

banking crisis in Germany, both institutions were forced to merge with other banks in 1932. 

Temporarily, 70 percent of Commerzbank and more than 90 percent of Dresdner Bank shares were 

state-owned. The period of cooperation by both banks with the Nazi regime has been thoroughly 

researched and documented in recent years. After 1945, the large banks were split up by the allies 

and they lost their branches in the east. It was not until the late 1950s that Commerzbank and 

Dresdner Bank were given a new start: 

The respective successors of each institution came together and were permitted to use their old 

names again. From 1970 onwards, Dresdner Bank and Commerzbank became increasingly internationalised. 

Initial merger negotiations already took place in 2000, however they were not successful. 

Exchanges of management staff between the two institutions repeatedly took place, not only since 

Martin Blessing transferred from Dresdner to Commerzbank. As far back as the middle of the 20th 

century, key staff of both banks had transferred from the other institution. Carl Goertz was initially a 

Commerzbank Management Board member and moved to the Management Board of Dresdner 

Bank in the 1930s, where he was subsequently the Supervisory Board Chairman for nearly three 

decades. In contrast, Hanns Deuß came from Dresdner Bank to Commerzbank, became Management 

Board Chairman and later the Chairman of the Supervisory Board. The following pages show 

an overview of the development of both credit institutions. 

Carl Woermann 

First Supervisory Board Chairman 

of Commerz- and Disconto-Bank 

from 1870 to 1880. 

Eugen Gutmann 

Initiator of the founding 

of Dresdner Bank 

and CEO from 

1872 until 1920 


75 

Special Section


76 

1872 

At the initiative of Eugen Gutmann, Dresdner Bank is founded in Dresden on 12 November. 

For this purpose, the Michael Kaskel private bank is converted into an Aktiengesellschaft 

(company limited by shares). It is opened for business on 1 December. 

1884 

The Management Board 

moves its head office to Berlin, 

where a branch has been 

in business since 1881. 

The logo 

around 1917 – 72 

Dresdner Bank headquarters 

in Berlin, 1895 

1931/32 

The global economic crisis leads to a serious banking crisis. 

Darmstädter und Nationalbank (Danatbank) collapses. 

The German Empire supports Dresdner Bank with 300 million 

Reichsmark and thus holds 90% of its share capital. 

In 1932, the imperial government commands the merger of 

Dresdner Bank and Danatbank. 

Banker 

Eugen Gutmann was 

CEO of Dresdner Bank 

from 1872 to 1920 

Seal of Dresdner Bank, 

around 1900 

1917 

Dresdner Bank takes over Rheinisch-Westfälische Disconto-Gesellschaft. 

Therewith the bank gains broad access to the Rheinish-Westphalian industrial 

region. 

Branch Dresden 

of Dresdner Bank 

1933 

Due to the Nazi laws on 

the expulsion of Jews from public life, 

all board members and employees 

classified as being “non-Arian” must 

leave the bank within a few years. 

1936/37 

Reprivatisation of 

the Dresdner Bank 

shares previously 

transferred to state 

ownership.

Carl Woermann 

Supervisory Board Chairman of Commerzand 

Disconto-Bank from 1870 to 1880 

The new building 

in Hamburg, 

designed by Martin Haller, 

is inaugurated in 1874 

1897 

Takeover of the Frankfurt-based Bankhaus J. Dreyfus & Co. with its 

Berlin branch and continued operation as branches. Therefore, the 

bank dispenses with the suffix “in Hamburg” from 1898. 

Seals from 

the 1920s 

1929 

Commerz- und Privat-Bank and Mitteldeutsche Creditbank, 

Frankfurt am Main, merge. 

1920 

After the merger with the Mitteldeutsche Privatbank in Magdeburg, 

Commerz- und Disconto-Bank changes its name to Commerz- und 

Privat-Bank. The number of branches rises to 284, located mainly in 

Saxony-Anhalt, Saxony and Thuringia. 

1931/32 

Commerz- und Privat-Bank has to merge with Barmer Bank-Verein; 

the Empire is participated with 70 % in the new institution. 

1933 

As a result of Nazi pressure, all Jewish supervisory board members, 

management board members and employees must leave the bank by no later than 1938. 

1870 

Businessmen, merchant bankers and private bankers 

found “Commerz- und Disconto-Bank in Hamburg”. 

The company limited by shares opens for business on 25 April. 

1905 

Takeover of Berliner Bank. 

Its building on the corner of 

Behrenstraße and Charlottenstraße 

develops into a new 

headquarters of Commerzund 

Disconto-Bank. 

Premises of 

head office in Berlin, 

around 1937 

1936/37 

State-owned shares are 

reprivatised. 


1870 

1880 

1890 

1900 

1910 

1920 

1930 

1940 

77 

Special Section


78 

1945 

After the end of the war, the occupying powers order the closure and 

expropriation of branches in the Soviet occupation zone, Berlin and east of the 

Oder-Neiße-border. 

1947/48 

The Western allies split the large German banks into regional sub-institutions. Dresdner Bank becomes eleven sub-banks 

without a clear legal status. 

Share from 1957 

1970 

Europe’s banks increase their 

cooperation. Dresdner Bank 

belongs to the Associated Banks 

of Europe Corporations S.A., 

Brussels. 

1952 

The “Law on the Branch Sector of Credit Institutions” 

allows the merger of the sub-banks into three 

successors: Hamburger Kreditbank AG in Hamburg, 

Rhein-Ruhr-Bank in Düsseldorf and Rhein-Main- 

Bank AG in Frankfurt am Main. 

1972 

100-year anniversary of Dresdner Bank. On the occasion of 

the anniversary, the bank’s corporate design is modernised 

and a new corporate logo is introduced. 

The Silver Tower 

at Jürgen-Ponto-Platz, 1980 

1995 

Dresdner Bank acquires the London-based 

investment bank, Kleinwort Benson. In 

2000, the US investment house Wasserstein 

Perella Group Inc. follows. 

2000 

At the beginning of March, merger plans between Dresdner Bank 

and Deutsche Bank becomes known, which fail, however, in April. 

2001 

On July 23, Allianz takes over Dresdner Bank, 

which has been 

a subsidiary of Allianz 

since then. 

1957 

The successor institutions of 

Commerzbank are reunified into 

Dresdner Bank AG, with its 

headquarters in Frankfurt am Main. 

1971 

Reform of the bank’s organisational structure: 

The head offices in Hamburg, Düsseldorf and 

Frankfurt are dissolved and their functions 

centralised in Frankfurt. The branch network is 

also reorganised. 

1990 

As first Western credit institution, 

the bank opens in Dresden its own 

office in East Germany on 2 January. 

2003 

The bank develops its future programme 

“New Dresdner” to promote the 

modernisation of the business and reorganise 

itself at the same time. 

Money box 

“Drumbo”, 1972 

2006 

The investment banking 

division changes its name 

to Dresdner Kleinwort.

1940 

Commerz- und 

Privat-Bank adopts the 

name Commerzbank- 

Aktiengesellschaft which 

is already in general 

usage. 

1970 

Commerzbank is part of the 

Europartners Group. 

Share from 1957 

1945 

The headquarters are relocated to 

Hamburg prior to the end of the war. 

The 93 offices in East Berlin and 

in the Soviet occupation zone are 

expropriated without compensation. 

1952 

As successor institutions of Commerzbank, 

Bankverein Westdeutschland AG (from 1956 

Commerzbank-Bankverein AG) acts in 

Düsseldorf, Commerz- und Diskonto- Bank AG 

in Hamburg and Commerz- und Creditbank AG 

in Frankfurt am Main. 

1972 

Commerzbank introduces the “Quatre Vents” logo. 

Money box 

“Goldi”, 1974 

Foreign Minister Hans-Dietrich 

Genscher opens the Halle branch 

in 1990 

2000 

Merger discussions between Dresdner Bank 

and Commerzbank stay without any results. 

1990 

Commerzbank relocates its registered 

headquarters from Düsseldorf to Frankfurt 

am Main. After the fall of the Berlin Wall, 

it opens a linking office in East Berlin. 

1993 

In a realignment of structures 

of the headquarters five divisions are 

created. 

2005 

Commerzbank 

takes over Eurohypo AG 

and becomes the 

second-largest credit 

institution in Germany. 

Excerpt from a 

share: The winged 

“C” was the logo of 

Commerzbank from 1940-1972 

1947/48 

Commerzbank is 

broken down into 

nine branch groups. 

1958 

Merger of the successor institutions 

into Commerzbank AG, while the 

Düsseldorf institution taking over its 

two sister banks. 

1971 

The centralisation of headquarters in 

Frankfurt am Main begins at Commerzbank 

as well. The New York branch is the first 

operating branch of a German bank to open 

in the United States. 

Skyscraper 

by Richard Heil 

in Frankfurt, 1974 

1997 

The new skyscraper 

in Frankfurt am Main 

is inaugurated. 

2008 

Commerzbank, Allianz and Dresdner Bank 

announce that Commerzbank will take over 

Allianz’s shares in Dresdner Bank in two stages. 


1940 

1950 

1960 

1970 

1980 

1990 

2000 

2010 

79 

Special Section

Further information about 




Organisational Structure 

Services 

Subsidiaries and Branches 

Contact 

Detailed Directions 

81 




82 


Members of the Supervisory Board and their further mandates in the reporting period 2008 

Dr. Andreas Georgi � Chairman of the Supervisory Board, 

Member of the Management Board of Dresdner Bank AG 

ABB AG, Mannheim – Supervisory Board, Member 

Deutsche Schiffsbank AG, Hamburg/Bremen – Supervisory Board, Vice Chairman 

Oldenburgische Landesbank, Oldenburg – Supervisory Board, Chairman 

Reuschel & Co. KG – Board of Directors, Chairman 

Dresdner Bank (Switzerland) AG – Board of Directors, Chairman 

Dresdner Bank ZAO – Board of Directors, Member 

Rheinmetall AG, Düsseldorf – Supervisory Board, Member 

RWE Dea, Hamburg – Supervisory Board, Member 

Klaus Rosenfeld � Vice Chairman of the Supervisory Board, 

Member of the Management Board of Dresdner Bank AG 

Dresdner Bank (Schweiz) AG – Board of Directors, Member 

Dresdner Bank ZAO – Board of Directors, Member 

Anton Simonet � Member of the Supervisory Board, 

Global Head of Private Wealth Management of Dresdner Bank AG 

Dresdner Bank (Switzerland) AG – Board of Directors, Member 

Kleinwort Benson Channel Islands Holdings Ltd. – Board of Directors - Non-Executive Director 

Kleinwort Benson Private Bank Ltd. – Board of Directors - Non-Executive Director 

Reuschel & Co. KG – Board of Directors, Member 

Chlodwig Reuter � Member of the Supervisory Board, Vice Chairman of Dresdner Kleinwort and 

Directeur Général – Dresdner Bank AG, Succursale de Luxembourg 

Dresdner ZAO – Board Member 

Nordic Advisory Board – Chairman of the Board 

DAM Capital Sarl – Board Member 

Carbon Trade & Finance – Board Member



Members of the Management Board and their further mandates in the reporting period 2008 

Benedikt Buhl � Chairman of the Management Board, Chief Executive Officer (CEO) 

Dresdner Bank AG – Group Management Board, Member 

Dresdner Bank Monaco SAM – Board of Directors, Chairman 

Dresdner VPV N.V., Netherlands – Supervisory Board, Chairman 

European Pension Fund, Luxemburg – Board of Directors, Chairman 

Dr. Barbara Mez-Starck-Stiftung, Freiburg, Director 

Dresdner Bank Luxembourg S.A., Sucursal Financeira Exterior – Chief Executive Officer 

Lufra Beteiligungsholding AG, Zurich – Supervisory Board, Member 

Dresdner Van Moer Courtens S.A., Brussels – Board of Directors, Chairman 

Arnd Heßeler � Member of the Management Board, Chief Financial Officer (CFO) 

Allianz Société Financière S.à.r.l. – Chief Executive Officer 

AZL AI Nr. 2 S.à.r.l. – Chief Executive Officer 

Puxian Investments S.à.r.l. – Chief Executive Officer 

YAO Investments S.à.r.l. – Chief Executive Officer 

Joseph Kusters � Member of the Management Board 

Conquest 91 – Board of Directors, Member 

Bourse de Luxembourg – Répresentant permanent 

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Organisational Structure 

Advisory 

Benelux � Herman De Munter, Director 

South Germany � Patric Ludt, Director 

North Germany � Joachim Erdmann, Director 

Italy � Armand Tauriello, Director 

France � Marc Tassilly, Director 

International Desk � Jörgen Hoolmé, Director 

Scandinavia � Jörgen Hoolmé, Director 

Near /Middle East � Jörgen Hoolmé, Director 

Poland, Czech, Slovakia, Hungary � Jerzy Majorek, Peter Montvai 

Russia, Baltic States � Gilles Bellomi 

South Africa, Namibia � Thomas Schultz 

Family Office � Heiner Hartwich, Director 

Fund Services � Norbert Kohn, Director 

Liquidity Management & Execution � Kristian Larsen, Director 

Portfolio Management � Thomas Langer, Director 

Support 

Business Development � Mario Buric, Director 

Information Technology � Ralf de Fries, Director 

AML / Compliance � Oliver Hainke, Director 

Marketing and Communication � Jacqueline Jörss, Director 

Human Resources and Internal Services � Rolf Riepe, Director 

Quality Management & Middle Office � Peter Schmitz, Director 

Finance � Uwe Strenger, Director 

Legal Department � Dr. Gerd J. H. Otte, Premier Conseiller Juridique 

Internal Audit � Hans-Dieter Boht, Director 

Risk Management � Boris Beyer, Director 

Operations � Alois Braun, Director

Services 

Advisory Services 

� Investment Advice � Custodian bank for international investment funds 

� Portfolio Management � Fund Administration 

� Financial Planning � Luxembourg Structures/Financial Solutions 

� Estate Planning � Family Office 

� Wealth Management 

Fund-linked life insurance 

Fiduciary transactions 

Lombard loans 

Deposits 

� Call and time deposits in all convertible currencies, 

also with Madeira branch 

Financial instruments 

� Financial Futures, FRAs, Caps, Floors, Interest Rate Swaps and CCIRS/EONIA Swaps 

Securities 

� Issuing of bonds � Listing of shares, bonds and other securities on the 

� Dealing in bonds, shares, funds, Luxembourg stock exchange 

commercial papers (CP) and derivatives – � Repurchase agreements 

spot, forward and options � Securities lending 

Money, foreign currencies, precious metals 

� Money market business � NDFs (Non-Deliverable Forward) 

� Foreign currencies and precious metal 

trading – spot, forward and options 


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Subsidiaries and Branches 

Dresdner VPV N.V. 

Oosthaven 52, NL-2800 CG Gouda, Phone: (+31) 182 597 – 777, 

Fax: (+31) 182 597 – 759, E-Mail: info@VPV.nl, Website: www.vpv.nl 

General Management: Fried van ’t Hof (CEO), Piet Hoorneman 

Business purpose: Private Bank with overall banking licence 

Private Wealth Management Solutions 

� Asset Management � Investment funds � Lombard loans 

Dresdner Bank Monaco SAM 

24, Boulevard des Moulins, MC-98000 Monaco, Phone: (+377) 97 701 701, 

Fax: (+377) 97 701 741, E-Mail: pwm@dresdner-bank.mc, 

Website: www.dresdner-bank.mc 

General Management: Charles Sirna (CEO), Joachim Strautmann 

Business purpose: Private Wealth Management 


� Asset Management � Financing � Investment advice 

� Financial Planning � Insurance � Family Office 

Dresdner Bank Luxembourg S.A., Sucursal Financeira Exterior 

Rua da Mouraria, No. 3, Fracção H, P-9000 Funchal /Madeira 

General Management: Benedikt Buhl, Afonso Barroso 

Contact: Joachim Erdmann, 

Phone: (+352) 4760-534, E-Mail: joachim.erdmann@dresdner-bank.lu 

Business purpose: Investment of term deposits using fiscal advantages on site 

Dresdner Van Moer Courtens S.A. 

19, drève du prieuré, 1160 Brüssel, Phone: (+32) 2-5490335, Fax: (+32) 2-5490366 

Phone: (+32) 2-2152516, Fax: (+32) 2-2451432, E-Mail: info@dresdner-vmco.be 

General Management: André Oly (CEO), Damien Courtens 

Business purpose: Société de bourse 


� Asset Management � Advisory � SICAV/SICAFI

Contact 

Warmly welcome to Dresdner Bank Luxembourg S.A. 

Dresdner Bank Luxembourg S.A. – directly opposite the Grand Ducal Palace. 

Appointments available ‘any time’ and ‘anywhere’ in the world. 

26, rue du Marché-aux-Herbes, L-1728 Luxembourg, Fax: (+352) 4760-331, 

E-Mail: info@dresdner-bank.lu, www.dresdner-bank.lu 

Service/new client advice on the following telephone number: (+352) 4760-888 

Further office location and registered office of Dresdner Bank AG, Luxembourg Branch 

6a, route de Trèves, L-2633 Luxembourg-Senningerberg 


Phone: (+352) 4760-888, E-Mail: pwm@dresdner-bank.lu 

Fund Services 

Phone: (+352) 4760-953, Fax: (+352) 4760-8389, E-Mail: fonds.services@dresdner-bank.lu 

Banking Relations 

E-Mail: bankingrelations@dresdner-bank.lu 

Liquidity Management & Execution 

Fax: (+352) 4760-494 

S.W.I.F.T. DRES LU LL 

Reuters DREBO 

Reuters Money Dealing System DRBU 

E-Mail: treasury@dresdner-bank.lu 


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Detailed Directions 


26, rue du Marché-aux-Herbes, L-1728 Luxembourg, Phone: (+352) 4760-888, Fax: (+352) 4760-331, 

E-Mail: info@dresdner-bank.lu, www.dresdner-bank.lu 

By car � Coming from the north and from the west of Germany you can reach Luxembourg by motorway via Trier 

on the A1/E44. � If you are approaching from the south your best route is via Saarbrücken taking the A8/E29 and the A3/E25. 

� Coming from Belgium you should come via Arlon on the A4/E25/E411 and then continue on the A6/E25. � From the 

direction of France the best route is via Metz on the A31/E25 and then the A3/E25 to Luxembourg. The exact route to 

Dresdner Bank Luxembourg S.A. is given in the Internet under: www.dresdner-bank.lu 

By train � The international linkup between Luxembourg’s railway network and the railway networks of directly neighbouring 

countries assures good train connections to Luxembourg. For more detailed information please consult the national 

website of your railway operator. 

By air � There are direct flight connections between Luxembourg and all the major European cities. � www.luxair.lu 

� www.aeroport.public.lu

Photographic Material / Copyright 

For the photographic material reproduced in this annual report we are grateful to: corbis; Ed Holt Photography; fotolia; gettyimages; 

Historical Archives Commerzbank and Dresdner Bank; Luxembourg City Tourist Office; MauritiusImages; MDI Sàrl; 

PantherMedia; Rudolph & Partner 

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Dresdner Bank - Commerzbank International SA

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