Dexia Holding SA · EURONEXT:DEXB
Dexia Holding SA — Q1 2009 Earnings Presentation
31 slides from Dexia Holding SA's earnings presentation, May 13, 2009
Slide 1: 1Q 2009 Results – Press Presentation
1Q 2009 Results – Press Presentation Pierre Mariani, CEO Philippe Rucheton, CFO May 13, 2009
Slide 2: Disclaimer
Disclaimer This presentation and the information contained herein are provided for information purposes only and may not be complete. It does not constitute an offer to sell or the solicitation to buy any securities issued by Dexia or any entity of the Dexia Group. This presentation may include futu
Slide 3: Agenda
Agenda 1Q 2009 Results Highlights & Transformation Plan progresses 1Q 2009 Group & Business Line Results Conclusion 3
Slide 4: Back to profitability
1Q 2009 Results Back to profitability Quarterly group results EUR m 532 • Positive results in 1Q09 289 • 1Q09 highlights the resiliency 251 of Dexia in a challenging environment • No major one-off shock suffered in 1Q09 • Financial crisis impact of -1,544 EUR -419 m • Quality of the asset base is co
Slide 5: Confirmed solidity and profitability of PWB activities
1Q 2009 Public & Wholesale Banking Performance Confirmed solidity and profitability of PWB activities Rapid refocus on core Resilient business Profitable markets 11 462 198 395 8 89% 146 76% 42% 2 1Q08 4Q08 1Q09 1Q08 1Q09 1Q08 1Q09 PWB production (EUR bn) PWB income (EUR m) PWB net income (EUR m) %
Slide 6: Good commercial and financial results
1Q 2009 Retail & Commercial Banking Performance Good commercial and financial results RCB deposits RCB net income EUR bn EUR m 75 76 73 156 138 31/03/08 31/12/08 31/03/09 1Q08 1Q09 Belgium Luxembourg Turkey Other 6
Slide 7: Significant impact of the market turmoil
1Q 2009 Asset Management & Services Performance Significant impact of the market turmoil Net income contributions Evolution of assets EUR m 2.7 47 17 22 1.8 2 0 Asset Mgt Investor Services Insurance 102 73 20 19 AUM (EUR bn) Life reserves (EUR AuA (USD trn) bn) 1Q08 1Q09 -130 31/03/08 31/03/09 7
Slide 8: Proven resiliency of asset base in 1Q09
Asset Quality and Cost of Risk (1) Proven resiliency of asset base in 1Q09 Group total assets by nature As of Mar 09 • Bond portfolio in run-off: 99% investment Eur bn Total: 636 grade, no impairment in 1Q09 • Financial Products Portfolio: EUR 35 m Cash , 60 net impairments in 1Q09 Bond • RCB loans:
Slide 9: Evolution of the cost of risk by business line
Asset Quality and Cost of Risk (2) Evolution of the cost of risk by business line Cost of risk PWB (Bps) Cost of risk RCB (Bps) 7 Belgium&Lux. 403 Turkey RCB 227 174 3 3 2 2 118 111 80 52 27 24 35 10 7 9 15 18 1Q08 2Q08 3Q08 4Q08 1Q09 1Q08 2Q08 3Q08 4Q08 1Q09 Expressed on average customer loans, inc
Slide 10: Update on Closing of FSA Insurance Sale to Assured
Update on Closing of FSA Insurance Sale to Assured Improvement in the Group’s risk profile • States guarantee from Belgium and France on Financial Products is now finalized and includes a number of new developments • The clearance of the deal by rating agencies, as well as legal documentation of the
Slide 11: States Guarantee on Financial Products Portfolio
States Guarantee on Financial Products Portfolio Scope and cost of the guarantee Liquidity guarantees • Cover collateral posting obligations related to GIC liabilities and an event of default on credit lines granted Liquidity guarantees to FSAM* by Dexia • Guarantees expiring in October 2011 • Cost
Slide 12: Balance Sheet Deleverage
Balance Sheet Deleverage Reducing size of bond portfolios, limiting new loan production Group assets by category EUR bn • First results of deleveraging 651 -15 636 efforts in a challenging 22 25 environment. Total assets 55 54 down by EUR 15 bn since Dec. 64 60 Other assets 2008 141 131 Derivatives
Slide 13: Ongoing Improvement of Group Liquidity
Ongoing Improvement of Group Liquidity Benefit of States guarantee Current situation Next steps • Further improvement of access to short term liquidity • Reopening of long term covered bond • 85% of long-term funding budget completed, markets with EUR 21 bn issues at end-April 09 • Revised long term
Slide 14: Adaptation of the Cost Base
Adaptation of the Cost Base Cost savings program on track Quarterly trend in group expenses* Cost savings program EUR m EUR m 600 49 181 977 954 13 918 940 854 200 1Q08 2Q08 3Q08 4Q08 1Q09 2009 2011 restructuring charges costs excl. restructuring charges * Excluding FSA Insurance 14
Slide 15: Solvency: Core Tier 1 of 9.8%
Solvency Core Tier 1 of 9.8% • All impacts from the sale of FSA Tier 1 ratio and core Tier 1 ratio Insurance and prudential consolidation of FP were taken into account in 4Q08 14.5% • Dexia Tier 1 ratio protected against 11.4% further FP losses since 31/12/2008 11.2% 10.6% 10.7% • Core capital contr
Slide 16: Agenda
Agenda 1Q 2009 Results Highlights & Transformation Plan progresses 1Q 2009 Group & Business Line Results Conclusion 16
Slide 17: Financial Highlights
Financial Highlights • Net profit of EUR 251 m in 1Q09 • Financial crisis impact of EUR -419 m in 1Q09 mainly related to impairments & losses on insurance portfolios, CVA Group on monolines, and adjustments on the net loss on FSA sale Performance • Quality of Portfolios confirmed in 1Q09 • Negative
Slide 18: 1Q 2009 Reported Results
1Q 2009 Reported Results Profitable quarter, despite EUR -419 m financial crisis impact Impact crisis (EUR m) 1Q08 1Q09 Var* 1Q09 Income 1,499 1,703 13.6% -508 Expenses -942 -896 -4.9% 0 Gross operating income 557 807 44.9% -508 Cost of risk -288 -409 42.0% -39 Pre-tax income 270 398 47.4% -547 Net
Slide 19: 1Q 2009 Results Excluding FSA Inc.
1Q 2009 Results Excluding FSA Inc. (EUR m) 1Q08 1Q09 Var* Income 1,733 1,331 -23.2% o/w income excl. Crisis impact 1,743 1,839 5.6% Expenses -918 -867 -5.5% o/w expenses excl. Crisis impact -918 -867 -5.5% Gross operating income 815 464 -43.1% o/w gross op. income excl. Crisis impact 825 972 17.8% C
Slide 20: EUR -419 m Financial Crisis Impact in 1Q 2009
EUR -419 m Financial Crisis Impact in 1Q 2009 Major item: insurance impairments Revenues Cost of risk (EUR m) Net income (before tax) (before tax) FSA -116 -35 -83 FSA Financial Products -22 -35 -57 Adjustment deferred taxes - - +67 Adjustments on provisions sale of FSA Inc. -94 - -94 Impairments an
Slide 21: New Segmentation as from 2009
New Segmentation as from 2009 Composition of business lines Public & Wholesale Retail & Commercial Asset Management Group Center Banking Banking & Services Businesses Businesses Businesses Activities • Public Finance • Retail banking • Asset Management • Bond portfolio in run off • Project Finance •
Slide 22: PWB and RCB Profitable in 1Q09, AM & Services affected
PWB and RCB Profitable in 1Q09, AM & Services affected by the Financial Crisis 1Q 2009 figures Net income, excl. financial crisis: EUR 670 m Impact from financial crisis: EUR -419 m (EUR m) (EUR m) 250 0 12 198 145 + 78 -207 -224 PWB RCB AM&Svces Group Center PWB RCB AM&Svces Group Center Reported n
Slide 23: Public and Wholesale Banking: Key Financials
Public and Wholesale Banking: Key Financials Despite higher funding costs, PWB resilient and profitable 1Q09 Variation* • Despite higher funding costs and State (EUR m) 1Q08 4Q08 1Q09 %yoy %qoq guarantee fees, revenues up by 17% yoy Income 395 380 462 17.0% 21.6% due to draws on high margin liquidit
Slide 24: Public and Wholesale Banking: Activity Figures
Public and Wholesale Banking: Activity Figures Slowdown of production and focus on core markets Loan production (EUR bn) • Production and commitments numbers have 11.2 been restated to exclude the Public sector 8.2 bond portfolio (in run off, allocated to Group 6.5 1.9 Center), in line with the new
Slide 25: Retail and Commercial Banking: Key Financials
Retail and Commercial Banking: Key Financials Solid results, improving margins and control on risks 1Q09 Variation* • Revenues up by 5% yoy with diverging (EUR m) 1Q08 4Q08 1Q09 %yoy %qoq trends: Income 690 686 722 4.7% 5.3% Expenses -472 -488 -461 -2.2% -5.5% - In Belgium, revenues down due to lowe
Slide 26: Retail and Commercial Banking: Activity Figures
Retail and Commercial Banking: Activity Figures EUR 3.5 bn increase in deposits Customer deposits Loans yoy (EUR bn) yoy (EUR bn) 75 73 76 49 49 Bonds +32% 45 Other -4% 9 12 12 5 5 5 Business +16% 30 Term deposits & -9% 17 18 28 27 16 Consumer +6% savings bonds Savings +5% 2 3 2 Mortgages +9% 26 27
Slide 27: Asset Management & Services: Key Financials
Asset Management & Services: Key Financials Activities affected by the crisis 1Q09 variation* (EUR m) 1Q08 4Q08 1Q09 %yoy %qoq • Crisis impact: mainly EUR 201 m Income 276 -334 21 -92.3% n.s. impairments & losses on insurance Expenses -172 -176 -165 -4.1% -5.8% portfolios in 1Q09 C/I ratio 62.3% -52
Slide 28: Asset Management & Services: Activity Figures
Asset Management & Services: Activity Figures Decrease in assets related to the financial crisis Assets under Management (AuM) Insurance premiums (EUR bn) (EUR bn) 102.2 1,780 79.3 73.1 -14.2 -8.7 1,149 Net -4.8 -1.4 outflow Mkt Net 717 669 704 effect outflows Mkt effect 31/03/08 31/12/08 31/03/08 1
Slide 29: Group Center: Key Financials
Group Center: Key Financials 1Q09 Variation* (EUR m) 1Q08 4Q08 1Q09 %yoy %qoq • Bond portfolio in run-off (excl. FP) Income 138 -982 496 x3.6 n.s. - Negative impact of State guarantee fees Expenses -143 -355 -124 -13.3% -62.5% and funding costs Gross operating income -5 -1,337 372 n.s. n.s. - No mea
Slide 30: Agenda
Agenda 1Q 2009 Results Highlights & Transformation Plan progresses 1Q 2009 Group & Business Line Results Conclusion 30
Slide 31: Conclusion
Conclusion • Positive results in 1Q09 • PWB and RCB core businesses: resilient and profitable, despite a challenging environment • Quality of the asset base is confirmed • Group expenses down 6% in 1Q09 vs. last year, cost savings program on track • Sale of FSA about to be completed • Ongoing improv