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Dresdner posts quarterly loss
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November 2, 1998: 8:40 a.m. ET
But stock rises on increased risk provisions to cushion further losses
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LONDON (CNNfn) - Dresdner Bank posted a third-quarter operating loss, but its shares rose on relief that the worst of the pain has now been accounted for.
Dresdner, Germany's third-largest bank, revealed a 56.6 million mark ($34 million) operating loss in the third quarter, which it blamed on the financial crises in Asia and Russia. Dresdner made 632 million marks in the same period a year ago.
A profit had been expected and investors took fright at the mention of the word "loss", which sent the stock sliding more than 2 percent at the opening in Frankfurt. A pause for reflection boosted sentiment however, and the stock began to rise. By mid-day the shares were at 65.3 marks, up slightly more than 1 percent.
Analysts said the bank appeared to have put the worst of its troubles behind it. Dresdner has increased risk provisions so that it is cushioned from further emerging market woes.
The final quarter is expected to be better because the bank accounted for all of its exposure to collapsed hedge fund LTCM in the third-quarter figures.
For the first nine-months, Dresdner has boosted its loan-loss provisions by more than a third, to 1.25 billion marks. Roughly half of that provision was made during the third quarter.
Nine-month operating profits at Dresdner fell to 1.73 billion marks from 2.37 million marks last year.
Dresdner does not report net or per-share earnings.
Germany's biggest bank, Deutsche, reported earnings last week. 
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Dresdner Bank
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