Dexia Holding SA · EURONEXT:DEXB
Dexia Holding SA — Q3 2005 Earnings Presentation
42 slides from Dexia Holding SA's earnings presentation, Nov 17, 2005
Slide 1: Activity and Financial Results in Q3, 2005
Activity and Financial Results in Q3, 2005 Brussels, November 17, Rembert von Lowis 2005 Group CFO
Slide 2: Changes in accounting referential, scope of consolidation, segmentation and conventions
Changes in accounting referential, scope of consolidation, segmentation and conventions Pro forma accounts Scope (M€) Reported net income – Group share September 30, 2004 1,396 - Exits (Kempen & Co, SMBP) -2 + Additions (FMS Hoche) 0 Pro forma net income – Group share September 30, 2004 1,394 -
Slide 3: Summary of 9M 2005 P&L account
Summary of 9M 2005 P&L account NI NE MONTHS 2005 Evolution of Evolution of underlying (M€) 9M 2004* 9M 2005* * 9M 05 / underlying *** 9M 04 *** at constant rate of exchange I ncome 4,185 4,406 + 5.3 % + 5.3 % + 5.6 % of which net commissions 778 868 + 11.5 % Costs - 2,265 - 2,387 + 5.4 % + 5.4 %
Slide 4: Key performance indicators
Key performance indicators 9M 2004 9M 2005 C/ I ratio 54.1 % 54.2 % C/ I ratio underlying 55.4 % 55.5 % ROE 17.5 % 19.3 % EPS (€) 1.24 1.36 RORWA 1.78 % 1.89 % Profit margin 34.6 % 34.7 % Variation in 30/ 06/ 05 30/ 09/ 05 3 months Tier 1 ratio 9.4 % 9.9 % RWA (Bn€) 114.5 111.8 - 2.3 % NAV per share
Slide 5: Cost of risk
Cost of risk related to total net O/S commitments** (in basis points) 2.5 1.2 1.2 Credit 0.4 0.7 0.6 0.6 0.6 0.8 enhancement 12.2 * 9.8 * 7.8 6.4 6.6 5.7 * Banking 2.2 1.8 * 1.1 * activities 1997 1998 1999 2000 2001 2002 2003 2004 9M 2005 annualized * Excluding impact of charges for Legio Lease at D
Slide 6: Summary of Q3 2005 P&L account
Summary of Q3 2005 P&L account THI RD QUARTER 2005 Evolution of Evolution of underlying (M€) Q3 2004* Q3 2005* * Q3 05 / underlying * ** Q3 04 *** at constant rate of exchange I ncome 1,319 1,510 + 14.5% + 9.1% + 10.0% of which net commissions 234 285 + 22.0% Costs - 766 - 821 + 7.3% + 5.8% + 6.
Slide 7: Quarterly evolution
Quarterly evolution of the underlying gross operating income (M€) 1,435 1,415 1,430 1,363 1,389 1,353 1,311 Income Costs 784 792 810 758 765 773 730 633 632 662 623 620 546 569 Gross operating income Q1 2004* Q2 2004* Q3 2004* Q4 2004* Q1 2005* * Q2 2005* * Q3 2005* * * Without IAS 32, IAS 39 and IF
Slide 8: Business lines
Business lines Activity and Results
Slide 9: Strong top line performances and originations in the three commercial business lines
Strong top line performances and originations in the three commercial business lines Underlying revenues Business volumes growth (in 12 (M€) growth + 12.0 %* months) 1,663 FINANCE 1,497 • LT commitments + 18.9 % PUBLIC • Net par o/s FSA + 4.8 % 9M 04 9M 05 (M€) + 4.1 % 1,676 FINANCIAL PERSONAL 1,611
Slide 10: Public/Project Finance & Credit Enhancement
Activity highlights Public/Project Finance & Credit Enhancement LT originations LT banking (excl. Germany) commitments (Bn€) (incl. Germany) + 59 % + 19 % 221. 33.8 2 + 44 % at constant 186. scope 9.4 1 168. 6 3.2 New 20.5 21.2 business Change of 28.0 scope 203.5 169.9 153.2 16.4 16.8 4.8 5.8 3.7 15
Slide 11: Public/Project Finance & Credit Enhancement
Activity highlights Public/Project Finance & Credit Enhancement Long-term banking commitments* (Bn€) + 18.9 % 221. 17.7 2 186. 39.6 16.2 1 27.7 America Project/ Corporat e 97.1 Finance 78.7 Other countries 203.5 169.9 Public Finance France + Belgium 79.7 84.5 + Luxembourg 30/09/2004 30/09/2005 * f
Slide 12: Public/Project Finance & Credit Enhancement
Activity highlights Public/Project Finance & Credit Enhancement Credit enhancement (FSA) Gross present value originations Net par outstanding (M US$) (Bn US$) + 1.5 % + 4.8 % 692 710 721 31 53 72 49 52 54 336 352 13 105 97 79 7 290 40 33 3 10 138 171 37 7 185 6 87 100 84 369 323 345 209 160 182 9M 2
Slide 13: Public/Project Finance & Credit Enhancement
Public/Project Finance & Credit Enhancement Analysis of 9M 2005 underlying P&L NI NE MONTHS 2005 at constant (M€) 9M 2004* 9M 2005* * 9M 05 / rate of 9M 04 exchange I ncome 1,497 1,663 + 11.1 % + 12.0 % Costs - 509 - 555 + 9.0 % + 9.6 % Gross operating income 988 1,108 + 12.1 % + 13.2 % Cost of
Slide 14: Public/Project Finance & Credit Enhancement
Public/Project Finance & Credit Enhancement Analysis of Q3 2005 underlying P&L THI RD QUARTER 2005 at constant (M€) Q3 2004* Q3 2005* * Q3 05 / rate of Q3 04 exchange I ncome 499 571 + 14.4 % + 17.2 % Costs - 175 - 188 + 7.4 % + 9.3 % Gross operating income 323 382 + 18.2 % + 21.6 % Cost of risk
Slide 15: Public/Project Finance & Credit Enhancement
Public/Project Finance & Credit Enhancement Quarterly evolution of the underlying gross operating income (M€) 571 540 541 551 499 500 499 Income 382 362 361 365 335 330 323 Gross operatin g income Costs 178 180 186 188 163 170 175 Q1 2004* Q2 2004* Q3 2004* Q4 2004* Q1 2005* * Q2 2005* * Q3 2005* *
Slide 16: Personal Financial Services: Total Customer Assets
Activity Highlights Personal Financial Services Total Customer Assets (Retail and Private Banking) (Bn€) + 8.4 % 124. of which 116. 9 115.1 7 8.9 7.5 8.0 Insurance 41.4 (Life insurance technical Private reserves) Banking 51.4 53.0 61.0 Off Balance Sheet products (Mutual funds, direct securities,..
Slide 17: Personal Financial Services: Total Customer Loans
Activity Highlights Personal Financial Services Total Customer Loans (Retail and Private Banking) (Bn€) + 8.6 % 28.2 26.0 26.4 2.7 Loans to Private banking 2.5 2.5 customers 6.2 6.0 Loans to SME, independents 6.0 2.3 2.3 2.4 Consumer loans Mortgage loans 15.5 17.0 15.2 Sept. 2004 Dec. 2004 Sept. 2
Slide 18: Personal Financial Services
Personal Financial Services Analysis of 9M 2005 underlying P&L NI NE MONTHS 2005 (M€) 9M 2004* 9M 2005* * 9M 05 / 9M 04 Income 1,611 1,676 + 4.1 % Costs - 1,182 - 1,195 + 1.2 % Gross operating income 429 481 + 12.1 % Cost of risk - 23 - 16 - 28.3 % Tax expense - 126 - 146 + 15.1 % Other items +3 0
Slide 19: Personal Financial Services
Personal Financial Services Analysis of Q3 2005 underlying P&L THI RD QUARTER 2005 (M€) Q3 2004* Q3 2005* * Q3 05 / Q3 04 I ncome 545 572 + 5.0 % Costs - 394 - 406 + 3.1 % Gross operating income 152 167 + 9.9 % Cost of risk -8 -2 Tax expense - 44 - 53 Other items +2 +1 Net income – Group share 102
Slide 20: Personal Financial Services
Personal Financial Services Quarterly evolution of the underlying gross operating income (M€) 572 545 547 557 531 534 540 Income 572 547 557 531 530 528 530 406 394 393 397 406 382 386 Costs : without upfront fees on structured products 154 154 160 167 Gross 149 152 operating 129 income Q1 2004* Q2
Slide 21: Investment Management and Insurance Services: Assets under Management
Activity Highlights Investment Management and Insurance Services Assets under Management* (Bn€) Organic growth: YTD + 18.9 % Market effect: YTD + 11.1 % + 30.0 % 2.3 87.9 4.2 2.3 81.4 3.4 1.2 75.7 Market 3.0 Organic effect 1.7 71.5 Market growth 67.6 2.1 Market Organic Organic effect effect growth
Slide 22: Investment Management and Insurance Services: Fund Administration
Activity Highlights Investment Management and Insurance Services Fund Administration Capital managed at # of NAV to # of end of period (Bn€) calculate in the year transactions (in (x 1000)** million) 402 2.15 412 2.05 1.97 338 348 1.83 397 1.76 163 381 157 160 Other* 240 Mandates 181 189 to DFS Se
Slide 23: Investment Management and Insurance Services: Insurance premiums
Activity Highlights Investment Management and Insurance Services Insurance premiums (M€) 971 91 841 845 of which 113 105 686 700 PPF Non life 101 18 % 95 880 PFS 728 740 70 % 591 599 Life IMIS 12 % Q3 2004 Q4 2004 Q1 2005 Q2 2005 Q3 2005 23
Slide 24: Investment Management and Insurance Services
Investment Management and Insurance Services Analysis of 9M 2005 underlying P&L NI NE MONTHS 2005 at constant (M€) 9M 2004* 9M 2005* * 9M 05 / rate of 9M 04 exchange I ncome 460 493 + 7.2 % + 7.4 % Costs - 277 - 309 + 11.3 % + 11.3 % Gross operating income 183 184 + 0.9 % + 1.4 % Cost of risk -1
Slide 25: Investment Management and Insurance Services
Investment Management and Insurance Services Analysis of Q3 2005 underlying P&L THI RD QUARTER 2005 at constant (M€) Q3 2004* Q3 2005* * Q3 05 / rate of Q3 04 exchange I ncome 143 154 + 7.3 % + 8.0 % Costs - 97 - 109 + 12.5 % + 12.5 % Gross operating income 46 45 - 3.5 % - 1.4 % Cost of risk 0 0
Slide 26: Investment Management and Insurance Services
Investment Management and Insurance Services Quarterly evolution of the underlying gross operating income (M€) 173 171 172 168 154 144 143 Income 109 102 98 101 97 88 92 Costs 81 69 69 70 56 46 45 Gross operating income Q1 2004* Q2 2004* Q3 2004* Q4 2004* Q1 2005* * Q2 2005* * Q3 2005* * * Without I
Slide 27: Quarterly evolution (IMIS)
IMIS Quarterly evolution of the underlying gross operating income (M€) Asset Management Fund Administration 62 71 73 65 62 64 61 60 50 45 44 46 42 47 49 43 44 44 44 35 40 29 22 25 27 21 22 24 34 25 20 28 21 19 20 21 22 24 17 20 13 16 Q1 2004* Q2 2004* Q3 2004* Q4 2004* Q1 2005** Q2 2005** Q3 2005**
Slide 28: Insurance Activities at Group level
Insurance Activities* at Group level: Contribution of the business lines to the revenues (Underlying in M€) 9M 2005 revenues: 309 M€ + 5.4 % over 9M 2004 Public/ Project Finance 5% 48 % Personal Financial Services 47 % I nvestment Management and I nsurance Services * Excluding FSA (credit enhancemen
Slide 29: Treasury and Financial Markets
Treasury and Financial Markets Analysis of 9M 2005 underlying P&L NI NE MONTHS 2005 at constant (M€) 9M 2004* 9M 2005* * 9M 05 / rate of 9M 04 exchange I ncome 343 366 + 6.7 % + 7.7 % Costs - 123 - 128 + 3.8 % + 4.2 % Gross operating income 220 238 + 8.2 % + 9.7 % Cost of risk 15 1 n.s. Tax expe
Slide 30: Treasury and Financial Markets
Treasury and Financial Markets Analysis of Q3 2005 underlying P&L THI RD QUARTER 2005 at constant (M€) Q3 2004* Q3 2005* * Q3 05 / rate of Q3 04 exchange I ncome 88 133 +50.5 % +54.7 % Costs - 42 - 43 + 1.1 % + 2.2 % Gross operating income 46 90 + 95.7 % x 2.0 Cost of risk 4 0 n.s. Tax expense -
Slide 31: Treasury and Financial Markets
Treasury and Financial Markets Quarterly evolution of the underlying net income - Group share (M€) 82 74 73 65 53 47 45 Q1 2004* Q2 2004* Q3 2004* Q4 2004* Q1 2005* * Q2 2005* * Q3 2005* * * Without IAS 32, IAS 39 and IFRS 4, based on pro forma accounts ** With IAS 32, IAS 39 and IFRS 4 31
Slide 32: Treasury and Financial Markets: Underlying contribution of main segments
Treasury and Financial Markets Underlying contribution of the business line’s main segments Credit Spread Money Market Other desks Total (M€) portfolio 9M 04* 9M 05** 9M 04* 9M 05** 9M 04* 9M 05** 9M 04* 9M 05** Income 161 178 95 99 87 89 343 366 Costs - 22 - 20 - 30 - 36 - 71 - 72 - 123 - 128 Cost
Slide 33: Central Assets
Central Assets Analysis of underlying P&L (M€) Q3 2004* Q3 2005* * 9M 2004* 9M 2005* * I ncome + 36 +1 + 153 + 82 Costs - 57 - 64 - 162 - 189 Gross operating income - 22 - 64 -9 - 107 Tax expense + 10 -6 + 11 + 23 Other items -5 -2 - 17 -8 Net income – Group share - 17 - 72 - 15 - 92 * Without IAS 3
Slide 34: Impact of the non-operating items on the P&L
Impact of the non-operating items on the P&L (M€) Q3 2004* Q3 2005* * 9M 2004* 9M 2005* * I ncome +9 + 80 + 107 + 126 of which MtM variations of FSA’s CDS portfolio - + 35 - + 21 Costs -1 - 11 0 - 12 Gross operating income +8 + 69 + 107 + 114 Cost of risk +4 + 36 +5 +9 I mpairments on (in)tangible a
Slide 35: Main non-operating items
Main non-operating items (M€) Q3 2004* Q3 2005 I ncome I nterest discount on “Dexia offer” loans + 11.1 + 7.0 Gains/ losses on equities + 1.0 + 39.7 MtM of FSA’s CDS portfolio (impact I AS32&39) - + 34.8 Costs Restructuring cost DBNL -1.4 - Closure of Rekord in Germany - - 11.2 Cost of ris
Slide 36: Appendices
Appendices • Update on DBNL/Legio • Update on Artesia integration • Evolution of outstanding shares • Impact of IAS 32/39
Slide 37: Evolution of the share leasing portfolio outstanding
DBNL/Legio Evolution of the share leasing portfolio outstanding 4,178 (M€) 140 3,269 172 2,401 2,448 Total 2,059 Of which Of which Of which 147 1,844 1,776 contracts Dexia Dexia 1,868 180 with Offer Offer 207 capital accepted not 176 1,489 repayments accepted 1,324 1,204 1,136 685 1,637 538 553 1,22
Slide 38: Share Leasing – Evolution of the stock of provisions
DBNL/Legio Share Leasing – Evolution of the stock of provisions (M€) 809 -56 733 -20 Of which: Reversal -36 -25 672 218 288 of DBNL 315 Utilisation Reversal con- provision 221 s of DBNL tributio s Utilisation provision 510 n from s s 275 Aegon 85 -14 -6 Settlemen t Reversal Duisenber of prior g (400
Slide 39: Downsizing of the branch network in Belgium
Artesia integration Downsizing of the branch network in Belgium Objective already exceeded Target set in 2001 1,483 - 27 % 1,083 1,099 940 840 895 543 243 204 2001 2002 2003 2004 Sept. 2005 End 2005 Employee network Independent agents network 39
Slide 40: Impact on personnel
Artesia integration Impact on personnel Objective already exceeded EFT reduction Achieved to objective vs EFT30/06/01 headcount at 30/09/05 Head offices - 1,400 - 1,654 Employee network - 870 - 719 - 2,270 - 2,373 40
Slide 41: Evolution of outstanding shares
Evolution of outstanding shares Shares cancelled at Outstanding Exercice of General Meeting of shares warrants May 11, 2005 1,145,261,366 3,617,864 - 51,886,865 Outstanding shares 1,096,992,365 of which: 12,980,000 bought back in 2005 Treasury shares of which: 11,371,937 10,498,400 31/12/2004 30/09/
Slide 42: Impact of IAS 32/39
Impact of IAS 32/39 on specific items of the income statement Application of IAS 32/39 since Jan. 1st 2005 brings added volatility, among other, to the following items of the P&L I mpact on 9 months 05: (M€) Income -5 Of which: CDS FSA + 21 Revenue on structured products - 22 (previously upfro