The Private & Corporate Clients banking division of Dresdner Bank, part of the Allianz Group, posted a reduced third quarter operating profit of €149 million ($217 million), compared to €167 million for the same period in 2006. For the nine months to the end of September, operating profits are marginally down at €645 million compared with €660 million in the previous year. PCC reflects the organisational changes within Dresdner Bank, which saw it divide into two operating divisions, PCC and Investment Banking starting from the first quarter of 2007. Third-party assets managed by Dresdner are unchanged from the end of 2006 at €21 billion. PCC combines all the banking activities formerly provided by the Personal Banking and Private & Business Banking – including Private Wealth Management – divisions as well as activities with medium-sized business clients from the former Corporate Banking division. But overall, operating income at Dresdner Bank in the third quarter declined by 24 per cent to nearly €1.2 billion from €1.6 billion in the third quarter of 2006 due to a negative trading result of €196 million. And operating profit fell to €87 million in the quarter, compared to €391 million in previous year’s quarter. The total effect of the financial market turbulence on the bank's profit and loss statement amounted to €575 million, comprising a valuation effect of €350 million in the trading book for asset-backed securities and an adjustment of €30 million for financing agreements for company acquisitions. An additional €195 million relate to indirectly affected business lines. The asset management business at Allianz saw funds under management increase from €764 billion to €775 billion compared with the previous year-end. This corresponded to an increase of 7.1 per cent based on constant exchange rates. Net inflows on a nine-month basis were €12 billion but with outflows of €8 billion in the third quarter. "Despite the difficult market environment, we are in a good position," said Allianz chief financial officer Helmut Perlet. "In the area of fixed income investments, for example, PIMCO has benefited from its strong positioning on high-quality investments which it established quite early. While this led initially to slower growth, a third quarter performance - well above benchmark - resulted." Operating profit increased in the third quarter of 2007 by 12.2 per cent from €294 million to €330 million compared to the previous year's quarter.