Dresdner Bank, the German commercial and investment bank Allianz agreed to sell in August, plummeted to a €835m ($1.1bn) third-quarter operating loss on the back of "weak and volatile" markets helping drag its insurance giant parent to a €2bn net loss from a profit of roughly the same amount a year ago.

Allianz chief financial officer Helmut Perlet today declared the €9.8bn Dresdner sale, agreed in August and scheduled for completion by the end of next year, is on track, as Dresdner plunged into the red from a €87m operating profit in the third quarter last year.