G ROUP MANAGEMENT REPORT Banking Business 79 The division Dresdner Kleinwort Wasserstein (DrKW) encom- passes the Capital Markets and Corporate Finance & Advisory businesses of Dresdner Bank. At DrKW,  operating income of  2.2 billion euros was almost at last year’s level. The earnings development in Capital Markets was especially encouraging. We cut  administrative expenses to 1.9 billion euros largely because of early and consistent restructuring measures, and the reduction of staff, primarily in the Corporate Finance & Advisory business. As a result, DrKW achieved the turnaround with an  operating result of 354 million euros and  earnings after taxes of 238 mil- lion euros. Dresdner Kleinwort Wasserstein (reporting structure 2004) Institutional Restructuring Unit (reporting structure 2004) In the Institutional Restructuring Unit (IRU), the  operating loss amounted to 728 million euros. This loss was mainly attributa- ble to loan loss provisions of 884 million euros, more than four fifths of the loan loss provisions for the entire group. There were two main drivers behind net additions to loan loss provisions. First, we had to record discounts on book value from the sale of loans which were carried out more quickly than planned; sec- ond, we made additions to the loan loss provisions for loans at risk. The share of these loans is far higher in the IRU than in the strategic business. The IRU recorded a loss after taxes of 933 million euros. This contains a balance of other income/ex- penses of – 527 million euros.