Dresdner Kleinwort Wasserstein, the investment banking arm of Allianz, the German insurer, saw profits fall 33% in the nine months to the end of September on the back of a 25% cut in trading capital and a reduction in trading revenues.

Allianz has guaranteed to support DrKW until August 2005, giving it time to turn itself into a vehicle capable of attracting outside capital. This legal separation is 75% complete, according to sources at DrKW.