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Interim Report Third Quarter 2012

I n t e r i m R e p o r t t h i r d Q u a r t e r a n d F i r s t n i n e m o n t h s o f 2 0 1 2 | A l l ia n z g r o u p G r o u p Ma n a g e m e n t R e p o r t3 6 ◼◼ Earnings Summary for the third Quarter 2012 Our Operating result worsened by € 39 mn to a loss of € 272 mn. This was almost entirely driven by a higher loss in Holding & Treasury. The operating result improved in Banking by € 9 mn and was partly offset by a € 6 mn decrease in our Alternative Investments’ operating result. Earnings Summary – Holding & Treasury 2012 to 2011 third quarter comparison Holding & Treasury’s operating result worsened by € 41 mn to a loss of € 275 mn. This was due to lower operating revenues and higher operating expenses. Our net interest Result weakened by € 11 mn to a loss of € 47 mn. Interest and simil ar income amounted to € 58 mn, a decrease of € 17 mn compared to the previous year’s quarter. This reflects lower income on debt securities as a result of lower interest yields – partly offset by higher income from associates. The decline in interest and similar income could only be partially compensated for by the slight reduction in Interest expenses, excluding interest expenses from external debt, which amounted to € 105 mn (3Q 2011: € 111 mn). Our net fee and commission Result declined by € 24 mn to a loss of € 35 mn. This downturn was driven by unrecovered costs within our internal IT service provider. Administr ative expenses (net), excluding acquisition-related expenses, were up by € 10 mn to € 165 mn. This increase was primarily attributable to higher pension costs and salaries mainly due to the increased business of our internal IT service provider. Operating income from financial assets and liabilities carried at fair value through income remained almost stable at € (7) mn (3Q 2011: € (5) mn). 2012 to 2011 first nine months comparison The oper ating loss grew by € 101 mn and amounted to € 726 mn. This increase largely resulted from a lower net interest result, which was a consequence of lower equity related returns (dividends and income from associates) and interest yields. To a lesser extent it was attributable to a lower net fee and commission result.