Dexia Holding SA · EURONEXT:DEXB
Dexia Holding SA — Q2 2002 Earnings Presentation
22 slides from Dexia Holding SA's earnings presentation, September 2002
Slide 1: P&L – Q2 2002 / Q1 2002
P&L – Q2 2002 / Q1 2002 Q1 2002 ∆% (M€) Q2 2002 ∆% Pro forma underlying Revenues • Net Interest and Related Income 954 848 +12.5% +4.6% • Net Commissions and Other 282 306 -7.8% -2.8% • Insurance 206 180 +14.4% +14.4% • Total Revenues 1,442 1,335 +8.0% +4.2% Of which exceptional 114 59 Costs -805 -7
Slide 2: Overall cost objective will be met in 2002
Overall cost objective will be met in 2002 Initial 7/12 of the objective yearly objective: 3,304 M€ ¼ of the 1,894 M€ yearly -2.6% objective: 3,248 M€ 812 M€ Achieved: 1,845 M€ Revised -2.1% objective following Achieved: changes of 795 M€ scope and method 795 1845 March 31, 2002 July 31, 2002 Dec. 3
Slide 3: Quarterly evolution of the underlying Gross Operating Income
Quarterly evolution of the underlying Gross Operating Income (M€) 1,381 1,361 1,349 1,328 Revenues 1,311 1,275 836 837 786 788 795 785 Costs 563 592 524 543 475 480 Gross Operating Income Q1 2001 Q2 2001 Q3 2001 Q4 2001 Q1 2002 Q2 2002
Slide 4: Cost of risk related to total net O/S commitments
Cost of risk related to total net O/S commitments (in basis points) 3.4 bp Credit 1.2 bp 0.7 bp 0.6 bp 0.6 bp 0.4 bp Enhancement 14 bp 8 bp 7.8 bp 7 bp 6 bp Banking 2 bp Activities 1997 1998 1999 2000 2001 H1 2002* * annualized
Slide 5: Key Performance indicators
Key Performance indicators Q2 2002 Q1 2002 H1 2002 H1 2001 RWA* (Bn€) 106.4 106.2 106.4 105.0 Tier one Ratio* 9.3% 9.3% 9.3% 9.9% RORWA** 1.51% 1.62% 1.58% 1.93% ROE** 19.1% 20.1% 19.6% 20.5% Profit Margin 28.0% 31.7% 29.8% 29.6% C/I Ratio 55.8% 59.7% 57.7% 53.7% * End of period ** annualized
Slide 6: Public / Project Finance & Credit Enhancement: Production of L.T. facilities
Activity Highlights Public / Project Finance & Credit Enhancement ! Production of L.T. facilities (in & off B/S)* + 43.1 % 11.5 1.5 Other (Bn €) 8.0 0.9 Public Sector 10.0 + 39.6 % 7.1 Half 2001 Half 2002 * fully consolidated Co’s ; Germany excluded ; Artesia excluded (estimation of 260 M€ for half
Slide 7: Public / Project Finance & Credit Enhancement: L.T. Outstandings
Activity Highlights Public / Project Finance & Credit Enhancement ! L.T. Outstandings (in & off B/S)* +9.1 % +0.2 % 123.4 123.6 113.3 14.3 13.4 (Bn €) 13.8 Other Public Sector 109.1 110.2 99.5 June 2001 March 2002 June 2002 * fully consolidated Co’s ; Germany excluded
Slide 8: Public / Project Finance & Credit Enhancement: New Insurance Premiums
Activity Highlights Public / Project Finance & Credit Enhancement ! New Insurance Premiums +32.4 % 280.3 (M€) 11.3 Others* 47.2 211.8 45.8 x 2.7 DVV Insurance 100.7 7.0 221.8 6.9 166.0 37.5 Sofaxis 86.8 13.9 23.6 Q2 2001 Q2 2002 H1 2001 H1 2002 *Dexia Prévoyance and Dexia Life and Pensions
Slide 9: Public / Project Finance & Credit Enhancement: FSA Gross Present Value of Premiums
Activity Highlights Public / Project Finance & Credit Enhancement ! FSA Gross Present Value of Premiums + 28.5 % 374.7 (M US$) 291.5 84.7 + 14.4 % 49.7 199.9 139.5 174.8 118.5 61.4 Int'l 23.3 75.9 63.6 ABS 123.3 150.5 75.6 74.9 Muni H1 2001 H1 2002 Q1 2002 Q2 2002
Slide 10: Focus on FSA: cost of risk
Focus on FSA: cost of risk ! Thorough review of CDOs and CDSs portfolio, in the context of the deterioration of corporate credit quality in the US ! Identification of 7 CDO transactions (originated in 1998-1999) with insufficient protection • Present Value of potential future losses: 51 M$ • Now ful
Slide 11: Retail Financial Services: Customers' Assets
Activity Highlights Retail Financial Services + 0.4 % ! Customers’ Assets - 0.6 % (Bn €) 80.7 79.8 80.1 OPC + unit linked : 24.4 25.2 - Market effect : -1.7 24.0 off B/S products - New money : +0.5 in B/S products 55.4 55.4 56.1 June 2001 March 2002 June 2002
Slide 12: Retail Financial Services: Credit Outstandings
Activity Highlights Retail Financial Services ! Credit Outstandings + 7.5 % + 2.1 % (Bn €) 21.1 21.5 20.1 6.5 6.7 6.0 SME 14.1 14.6 14.8 Personal Sector June 2001 March 2002 June 2002
Slide 13: Retail Financial Services: Insurance Premiums
Activity Highlights Retail Financial Services ! Insurance Premiums 511 (M€) 438 67 420 407 40 372 67 72 55 70 Non Life 65 46 54 55 39 79 Traditional Life 54 89 59 Assurance Life Guaranted yield (Branch 21) 349 214 209 240 224 Life Unit-linked (Branch 23) Q2 2001 Q3 2001 Q4 2001 Q1 2002 Q2 2002
Slide 14: Investment Management Services: Private Banking / Affluent Customer Assets
Activity Highlights Investment Management Services ! Private Banking / Affluent Customer Assets (Bn €) 37.3 New Money Market effect - 0.7 -2.3 34.3 March 2002 June 2002
Slide 15: Investment Management Services: Assets under management
Activity Highlights Investment Management Services ! Assets under management (Bn €) New money Market effect 86.1 -0.3 -5.3 80.5 March 2002 June 2002
Slide 16: Fund Administration
Activity Highlights Fund Administration # of transactions # of portfolios # of transactions processed (000’s) managed (Millions) +9.9% +3.5% +7.8% 137.7 +7.9% 1,476 1.36 1.36 +19.9% 1.30 126.3 +10.9% 1,378 114.9 1,331 Q1 Q2 Q2 Q1 Q2 Q2 Q1 Q2 Q2 2002 2002 2002 * 2002 2002 2002 * 2002 2002 2002 * Cust
Slide 17: Segment contributions within Investment Management Services
Segment contributions within Investment Management Services Private Banking Asset Fund Equity-related Total IMS (incl. share leasing) Management Administration activities (M€) Q1 2002 Q2 2002 Q1 2002 Q2 2002 Q1 2002 Q2 2002 Q1 2002 Q2 2002 Q1 2002 Q2 2002 underlying Revenues 137 133 54 48 47 50 33 3
Slide 18: Focus on Dexia Bank Nederland
Focus on Dexia Bank Nederland IMS Dexia Bank Nederland excluding Dexia Bank Nederland (M€) Q4 2001 Q1 2002 Q2 2002 ∆% Q4 2001 Q1 2002 Q2 2002 ∆% undelying Q2 02/Q4 01 Q2 02/Q4 01 Revenues 110 89 82 -25.5% 184 182 179 -2.7% Costs -59 -51 -47 -20.3% -133 -128 -123 -7.5% Gross Operating 51 38 35 -31.4%
Slide 19: Update on social negotiations
Artesia integration Update on social negotiations ! 3 agreements signed allowing for the realization of expected synergies " Overall agreement : 26/03/02 " Detailed agreement on the organisation of the « Employees » network : 23/05/02 " Convention Collectives de Travail : 03/07/02 ! Rules of geograp
Slide 20: Impact on personnel
Artesia integration Impact on personnel EFT reduction objective Realised 30/06/02 vs EFT headcount at 30/06/01 Head Offices -1,400 -396 Employee network -870 -100 -2,270 -496 22% realised after 12 months Evolution of FTE’s at Dexia Bank* and former Artesia 12.660 12.580 12.340 12.150 juin-01 décembr
Slide 21: Downsizing the branch networks
Artesia integration Downsizing the branch networks 386 341 45 19 24 5 "Independent" branches "Employee" Network Total Realized as of August 31, 2002 Objective 2005
Slide 22: Cost synergy achievements
Artesia integration Cost synergy achievements 30 25 ⇒ 11 M€ linked to staff costs 19 (M€) ⇒ 8 M€ linked to other operating expenses Best Worst case case Objective full Achieved year 2002 H1 2002