Corporates and markets, the business unit comprising Dresdner's investment bank and German corporate bank, posted an after-tax loss of €116m ($106m) in the first quarter as weak earnings from the markets and loan loss provisions outweighed cost savings.

Allianz, Dresdner's parent that reported a jump in first quarter profits thanks to sales from industrial holdings, said that its overall banking business lost €149m before taxes and amortisation of goodwill, or €126m afterwards. Dresdner Bank reported on Friday that the loss became a €1.42bn pre-tax profit thanks to share disposals.