Dexia Holding SA · EURONEXT:DEXB
Dexia Holding SA — 2Q 2009 Earnings Presentation
73 slides from Dexia Holding SA's earnings presentation, Aug 26, 2009
Slide 1: 1H & 2Q 2009 Results and Update on Transformation Plan
1H & 2Q 2009 Results and Update on Transformation Plan August 26, 2009 Pierre Mariani, CEO Philippe Rucheton, CFO
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 CEO Key Messages 2Q 2009 Results Highlights Transformation Plan: Key Achievements to Date Conclusion and next steps 2Q 2009 Group Results 2Q 2009 Business Line Results Conclusion Appendices 3 2Q2009 Results
Slide 4: 2Q 2009 Results Highlights – Excluding FSA Insurance
2Q 2009 Results Highlights – Excluding FSA Insurance Deconsolidation of FSA Ins. in 2Q09, following closing of the sale EUR m 2Q09 Var / 2Q08* Var / 1Q09* on July 1, 2009 Income 1,640 -4.0% 23.3% Confirmation of 1Q09 operating Expenses -875 -6.8% 1.0% performance: business lines all profitable i
Slide 5: Quarterly Results Excluding FSA Insurance
Quarterly Results Excluding FSA Insurance Decreasing crisis impact Gross operating income Cost of risk & impairments Net income EUR m EUR m EUR m 681 670 738 788 520 476 897 972 411 799 809 -58 718 -127 -44 2Q08 3Q08 4Q08 1Q09 2Q09 -193 -419 2Q08 3Q08 4Q08 1Q09 2Q09 228 -508 39 165 133 56 84 97 -1,2
Slide 6: Cost of Risk Excluding Crisis Impacts
Cost of Risk Excluding Crisis Impacts Moderate increase of cost of risk Cost of risk PWB Cost of risk RCB Bps Bps 6 403 cost of risk 268 3 227 3 174 2 111 1 80 64 52 24 35 23 7 9 15 18 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 RCB Turkey Belgium & Luxembourg //
Slide 7: Bond portfolios in Run-Off
Bond portfolios in Run-Off No meaningful deterioration in 2Q09, reduction of negative AFS reserve Bond portfolio in run-off Financial Products (FP) EUR 149 bn USD 16.3 bn NIG AAA EUR 11.6 bn 3% 16% BBB 12% AAA AA 34% 13% A NIG A 24% 55% 8% AA BBB 27% 8% Bond portfolio in run-off down to EUR 149 bn
Slide 8: Agenda
Agenda CEO Key Messages 2Q 2009 Results Highlights Transformation Plan: Key Achievements to Date Conclusion and next steps 2Q 2009 Group Results 2Q 2009 Business Line Results Conclusion Appendices 8 2Q2009 Results
Slide 9: Reminder: the Main Priorities of the Transformation Plan
Reminder: the 4 Main Priorities of the Transformation Plan 1 Disposal of FSA 2 Reduction of Group’s risk profile 3 Adaptation of cost base 4 Priority given to core client franchises 9 2Q2009 Results
Slide 10: 1 – Disposal of FSA
1 – Disposal of FSA Sale completed on July 1, 2009 Impact of FSA sale Transfer of an exposure of USD 416 bn insured portfolio, including USD 103 bn of ABS FSA Reduction of the loss on the sale of EUR 101 m in USD 432 bn 2Q09 mainly linked to the rise of Assured’s share price (USD 12.38 as of Jun
Slide 11: 2 – Reduction of Group's Risk Profile: Balance sheet deleverage
2 – Reduction of Group’s Risk Profile Balance sheet deleverage; accelerated bond sales Total Group assets EUR bn -60 (-9%) Total assets down by EUR 60 bn 651 636 (-9%) since Dec. 2008 without any 22 55 25 592 significant exchange rate impact 54 15 Other assets 41 64 60 EUR 7.2 bn bond sales real
Slide 12: Improvement of liquidity situation (1)
2 – Reduction of Group’s Risk Profile Improvement of liquidity situation (1) EUR 37.7 bn long-term funds raised YTD EUR 37.7 bn long term issues year- (as of August 21, 2009) to-date, of which 41% non- EUR bn guaranteed 22.4 Reopening of the covered bond market in 2Q09 First EUR 1 bn 5-year senior
Slide 13: Improvement of liquidity situation (2)
2 – Reduction of Group’s Risk Profile Improvement of liquidity situation (2) Guaranteed debt outstandings Renewed access to non-guaranteed funding EUR bn EUR 4 bn short term non-guaranteed 150 funding raised as of August 21, 2009 Starting decrease of guaranteed debt 120 outstanding 90 Guaranteed
Slide 14: Financial market activities under control
2 – Reduction of Group’s Risk Profile Financial market activities under control Centralization of interest rate trading and institutional bonds / market making activities in Centralization on track Brussels and portfolio management in Dublin Reduction of VaR limits from EUR 178 m (3Q08) to EUR 1
Slide 15: 3 – Adaptation of the Cost Base
3 – Adaptation of the Cost Base Enhance Group profitability through actions on costs Cut costs in line with group’s resizing Invest and extract full potential of core and stricter cost control policy activities Reduce costs where scope of activities Consolidate core franchise is redefined (‘focu
Slide 16: 4 – Priority given to Core Client Franchises
4 – Priority given to Core Client Franchises PWB: production refocused, margins compatible with Dexia’s higher cost of funding PWB production refocused on core markets EUR bn Significant reduction of new loan 55 Production reduced Production level production, in line with PWB’s explained by client
Slide 17: RCB and AMS: better quarter for asset gathering activities
4 – Priority given to Core Client Franchises RCB and AMS: better quarter for asset gathering activities Deposits AuM EUR bn EUR bn + EUR 6 bn 98.8 77.0 76.5 78.6 93.7 +5.5% 76.1 72.8 79.3 77.1 73.1 30/06/08 30/09/08 31/12/08 31/03/09 30/06/09 30/06/08 30/09/08 31/12/08 31/03/09 30/06/09 17 2Q2009 Re
Slide 18: RCB: positive evolution of deposits and loans
4 – Priority given to Core Client Franchises RCB: positive evolution of deposits and loans Belgium & Luxembourg Turkey Loans Loans EUR bn EUR bn 39.6 8.4 8.3 38.0 30/06/08 30/06/09 30/06/08 30/06/09 Deposits Deposits EUR bn EUR bn 69.1 70.6 5.9 6.2 30/06/08 30/06/09 30/06/08 30/06/09 18 2Q2009 Resul
Slide 19: Consolidation of the Belgian Retail Franchise
4 – Priority given to Core Client Franchises Consolidation of the Belgian Retail Franchise 1 New branch concept, open, communicative & 100% cash-protected (79 branches already transformed, complete roll out in 4 years) Reorganisation of Reinforce account Managers & specialist positions in networ
Slide 20: Agenda
Agenda CEO Key Messages 2Q 2009 Results Highlights Transformation Plan: Key Achievements to Date Conclusion and next steps 2Q 2009 Group Results 2Q 2009 Business Line Results Conclusion Appendices 20 2Q2009 Results
Slide 21: Conclusion
Conclusion Disposal of FSA Insurance marks an essential step in Dexia’s risk profile reduction Confirmation of 1Q09 operating performance All business lines profitable in 2Q09 Cost down by 7% yoy Net income up by 13% vs 1Q09, despite EUR 175 m of collective provisions Tier 1 of 11.3% and Core
Slide 22: Next Steps
Next Steps Progressive exit of State guarantee on Group’s funding being prepared As stated in the existing convention, the guarantee may be extended by mutual agreement amongst the States for a period of 1 year European Commission already informed by the guarantors of Dexia’s request for an extens
Slide 23: Agenda
Agenda CEO Key Messages 2Q 2009 Group Results Group P&L, impacts of the financial crisis AFS reserve and bond portfolios in run-off Solvency 2Q 2009 Business Line Results Conclusion Appendices 23 2Q2009 Results
Slide 24: 2Q 2009 and 1H 2009 Reported Results
2Q 2009 and 1H 2009 Reported Results EUR 534 m reported net profit in 1H09 Impact crisis Impact crisis (EUR m) 2Q08 2Q09 Var* 2Q08 2Q09 Income 1,991 1,640 -17.6% 32 -44 Expenses -945 -875 -7.4% 0 0 Gross operating income 1,046 765 -26.9% 32 -44 Cost of risk & impairments -496 -361 -27.2% -432 -228 P
Slide 25: 2Q 2009 Results, Excluding FSA Insurance
2Q 2009 Results, Excluding FSA Insurance Sound operating performance Var 2Q09/ Var 2Q09/ (EUR m) 2Q08 1Q09 2Q09 2Q08* 1Q09* Income 1,710 1,331 1,640 -4.0% 23.3% Income excl. crisis impact 1,837 1,839 1,684 -8.3% -8.4% Expenses -940 -867 -875 -6.8% 1.0% Expenses excl. crisis impact -940 -867 -875 -6.
Slide 26: 1H 2009 Results, Excluding FSA Insurance
1H 2009 Results, Excluding FSA Insurance Without FSA and crisis impact, 1H09 net income down by 8% yoy Var 1H09/ (EUR m) 1H08 1H09 1H08* Income 3,443 2,973 -13.7% Income excl. crisis impact 3,580 3,525 -1.5% Expenses -1,858 -1,744 -6.1% Expenses excl. crisis impact 1,858 1,744 -6.1% Gross operating
Slide 27: EUR -193 m Financial Crisis Impact in 2Q 2009
EUR -193 m Financial Crisis Impact in 2Q 2009 Major item: collective provisions Revenues Cost of risk (EUR m) Net income (before tax) (before tax) FSA 35 -35 40 Financial Products -66 -35 -101 Adjustments on provisions sale of FSA Ins. 101 - 101 Adjustment taxes - - 40 Impairments and other -79 -193
Slide 28: Quarterly Results Excluding FSA Insurance
Quarterly Results Excluding FSA Insurance Resilient revenues, ongoing cost control Revenues Expenses Gross operating income EUR m EUR m EUR m 181 49 972 1,934 897 1,837 1,839 799 809 1,744 1,685 718 13 16 940 977 954 2Q08 3Q08 4Q08 1Q09 2Q09 854 860 -127 -44 -508 2Q08 3Q08 4Q08 1Q09 2Q09 -127 -508 -
Slide 29: Agenda
Agenda CEO Key Messages 2Q 2009 Group Results Group P&L, impacts of the financial crisis AFS reserve and bond portfolios in run-off Solvency 2Q 2009 Business Line Results Conclusion Appendices 29 2Q2009 Results
Slide 30: AFS Reserve – 2Q 2009 Evolution
AFS Reserve – 2Q 2009 Evolution EUR 3.2 bn reduction of negative AFS reserve Evolution of AFS reserve EUR bn 31/12/08 31/03/09 30/06/09 The “non frozen” AFS reserve is valued using a mark-to-market and 'Frozen' 'Frozen' 'Frozen' a mark-to-model approach AFS AFS AFS Amortization reserve Decrease
Slide 31: Bond Portfolios in Run-Off, Excluding FP
Bond Portfolios in Run-Off, Excluding FP 97.4% investment grade Bond portfolio in run-off (EUR bn) AAA AA A BBB NIG Total Public sector 4.9 21.5 8.4 2.0 0.4 37.2 Sovereigns 1.5 5.6 4.5 5.5 0.1 17.2 Banks 7.1 7.3 16.5 2.8 1.0 34.7 Covered bonds 10.4 1.7 0.1 - - 12.2 ABS 14.8 2.3 0.9 0.8 1.1 19.9 MBS
Slide 32: Financial Products Portfolio, in Run-Off
Financial Products Portfolio, in Run-Off Stabilization of rating migration in 2Q09 Financial Products portfolio (USD 16.3bn / EUR 11.6bn) AAA AA A BBB NIG Total US RMBS 0.7 0.9 0.6 0.6 7.8 10.6 o/w Subprime RMBS 0.6 0.6 0.6 0.4 5.1 7.3 o/w Alt-A first lien 0.1 0.2 0.1 0.2 2.7 3.3 Other ABS 0.1 0.8 0
Slide 33: Agenda
Agenda CEO Key Messages 2Q 2009 Group Results Group P&L, Impacts of the Financial Crisis AFS Reserve and Bond Portfolios in Run-Off Solvency 2Q 2009 Business Line Results Conclusion Appendices 33 2Q2009 Results
Slide 34: Weighted Risks
Weighted Risks EUR 4.7 bn quarterly decrease of weighted risks Weighted risks EUR bn Annual increase in weighted risks 152.8 153.3 largely explained by the prudential 10.3 10.3 148.6 consolidation of FSA’s Financial 10.3 Products Portfolio in 4Q08 (impact of 3.1 3.8 129.4 2.9 EUR 25 bn on weighted
Slide 35: Solvency
Solvency Tier 1 of 11.3%; Core Tier 1 of 10.4% Tier 1 ratio and core Tier 1 ratio Solid Group solvency, core Tier 1 14.5% increasing to 10.4% as of 30/06/09 mainly thanks to RWA decrease 11.4% 11.3% 10.6% 10.7% All impacts from the sale of FSA Insurance and prudential consolidation of FP were ta
Slide 36: Agenda
Agenda CEO Key Messages 2Q 2009 Group Results 2Q 2009 Business Line Results Conclusion Appendices 36 2Q2009 Results
Slide 37: All Business Lines Profitable in 2Q 2009
All Business Lines Profitable in 2Q 2009 Business lines results before and after crisis impacts Net income, excl. financial crisis: EUR 476 m Impact from financial crisis: EUR -193 m EUR m EUR m 164 133 125 -16 + -42 -46 55 -90 PWB RCB AMS Group Center PWB RCB AMS Group Center Reported net income: E
Slide 38: Public and Wholesale Banking: Key Financials
Public and Wholesale Banking: Key Financials Despite higher funding costs, PWB resilient and profitable 2Q09 1H09 2Q09 revenues down by 16% yoy due (EUR m) 2Q09 %yoy %qoq 1H09 %yoy to State guarantee fees and higher Income 350 -16.3% -24.3% 813 -0.2% liquidity costs Expenses -146 -9.5% 1.0% -291 -
Slide 39: Public and Wholesale Banking: Activity Figures
Public and Wholesale Banking: Activity Figures Focus on core markets and controlled production Loan production EUR bn Refocus on core markets and temporary 17.9 lower demand due to market conditions account for the reduction of production in 10.4 2Q09 vs. 2Q08 Although remaining at a low level,
Slide 40: Public and Wholesale Banking: Quarterly Results
Public and Wholesale Banking: Quarterly Results Resilience of revenues, confirmation of cost reductions and low risk charge Revenues Expenses Cost of risk & impairments EUR m EUR m EUR m 471 98 462 419 161 163 387 157 350 145 146 56 17 43 -7 2Q08 3Q08 4Q08 1Q09 2Q09 17 21 22 9 -182 2Q08 3Q08 4Q08 1Q
Slide 41: Retail and Commercial Banking: Key Financials
Retail and Commercial Banking: Key Financials Solid operating performance 2Q09 1H09 Revenues flat yoy with diverging (EUR m) 2Q09 %yoy %qoq 1H09 %yoy trends: Income 718 0.1% -0.6% 1,440 2.4% In Belgium, revenues fell due to lower Expenses -469 -3.5% 1.6% -930 -2.8% fees on mutual funds and insuran
Slide 42: Retail and Commercial Banking: Activity Figures
Retail and Commercial Banking : Activity Figures Good commercial performance of RCB networks Customer deposits Loans yoy EUR bn yoy EUR bn Total +3% 49 50 Total +4% 77 76 79 48 5 5 4 10 12 13 Bonds Other -10% +20% 18 18 19 32 27 27 Business +5% Term deposits & -13% 3 3 3 savings bonds Consumer -4% 2
Slide 43: Retail and Commercial Banking: Quarterly Results
Retail and Commercial Banking: Quarterly Results Confirmed operating performance Cost of risk & impairments Revenues Expenses EUR m EUR m EUR m 26 717 722 718 507 488 686 485 469 131 665 461 170 53 104 79 63 47 27 -36 -17 2Q08 3Q08 4Q08 1Q09 2Q09 2Q08 3Q08 4Q08 1Q09 2Q09 2Q08 3Q08 4Q08 1Q09 2Q09 res
Slide 44: Asset Management & Services: Key Financials
Asset Management & Services: Key Financials Back to profitability in 2Q09 (EUR m) 2Q09 2Q09 %yoy %qoq 1H09 1H09 %yoy Asset Management: quarterly rebound of revenues thanks to positive market Income 198 -32.9% x 9.3 219 -61.6% effect on AuM and seasonal effects, Expenses -166 -4.2% 0.4% -332 -4.1%
Slide 45: Asset Management & Services: Activity Figures
Asset Management & Services: Activity Figures Increase in assets Assets under Management (AuM) Insurance premiums EUR bn EUR m 1,149 79.3 77.1 73.1 -4.8 -1.4 +0.1 +4.0 717 669 704 678 Net Mkt Mkt Net new outflow effect effect cash 31/12/08 31/03/09 30/06/09 2Q08 3Q08 4Q08 1Q09 2Q09 Assets under Admi
Slide 46: Asset Management & Services: Key Contributors Excluding Crisis Impacts
Asset Management & Services: Key Contributors Excluding Crisis Impacts Quarterly improvement of financial results Asset Management Insurance Investor Services EUR m EUR m EUR m 24 27 20 47 65 15 71 46 2Q08 3Q08 4Q08 1Q09 2Q09 7 4 -48 18 3 2 -138 -1 13 2Q08 3Q08 4Q08 1Q09 2Q09 -201 -16 4 5 -41 2Q08 3
Slide 47: Group Center: Key Financials
Group Center: Key Financials EUR 74 m net contribution in 2Q09 2Q09 1H09 Bond portfolio in run-off (excl. FP) (EUR m) 2Q09 %yoy %qoq 1H09 %yoy Growing negative impact of State Income 375 -33.0% -24.3% 871 24.9% guarantee fees (EUR 77m in 2Q09) and Expenses -95 -23.1% -22.8% -219 -17.8% funding cos
Slide 48: Appendices
Appendices 1 Specific disclosures, based on recommendations from the Financial Stability Board 2 Segment Reporting 3 2Q09 Crisis Impacts by Business Line 4 Activity Figures 5 Credit Risk Exposure 6 VaR and ALM Equity Portfolio 7 Capital Adequacy 8 Asset Quality and Ratings 9 Data per Share 10 Balanc
Slide 49: Specific Disclosures: Hedged and unhedged CDOs of US residential mortgage assets
1- Specific Disclosures, Based on FSB Recommendations Hedged and unhedged CDOs of US residential mortgage assets EUR 10 m of gross notional amount of hedged CDOs of US RMBS protected via CDS bought from banks (100% rated at least A). No protection bought from monolines. EUR 24 m of gross notiona
Slide 50: Counterparty risk on monoliners: exposure
1- Specific Disclosures, Based on FSB Recommendations Counterparty risk on monoliners: exposure Protection via Protection via CDS other types of contracts Remaining Fair Value of the exposure to protection before Value counterparty Total gross Underlying asset classes Gross notional value adjustment
Slide 51: Counterparty risk on monoliners: quality of exposure
1- Specific Disclosures, Based on FSB Recommendations Counterparty risk on monoliners: quality of exposure Underlying assets Public Finance Project/Corporate fin. ABS Monoline Counterparty by rating* (EUR bn) IG NIG Total IG NIG Total IG NIG Total TOTAL AAA/AA 14.7 0.5 15.2 5.9 0.5 6.4 7.9 2.7 10.6
Slide 52: Direct loan exposure to US, Spanish and UK real estate markets
1- Specific Disclosures, Based on FSB Recommendations Direct loan exposure to US, Spanish and UK real estate markets Direct loan exposure on US Real Estate market Commercial Real Estate : Dexia is exposed to commercial Real-Estate loans only through its US securitization subsidiary, which held a
Slide 53: Exposure to CMBS
1- Specific Disclosures, Based on FSB Recommendations Exposure to CMBS Gross Cumulative value Protection Net exposure exposure ** adjustments* (nominal) (EUR bn) Commercial mortgage- 1.3 -0.3 0.0 1.0 backed securities (CMBS) Breakdown of CMBS by ratings, geography and sectors (as of June 30, 2009) R
Slide 54: Exposure to US RMBS
1- Specific Disclosures, Based on FSB Recommendations Exposure to US RMBS* Cumulative value Gross exposure Protection (nominal) Net exposure US RMBS (EUR bn) adjustments **** Prime 0.14 0.00 0.03 0.01 Alt-A ** 2.20 0.02 0.04 0.07 Subprime *** 5.18 0.04 0.07 0.08 Total 7.52 0.06 0.14 0.16 Protections
Slide 55: Exposure to UK and Spanish RMBS
1- Specific Disclosures, Based on FSB Recommendations Exposure to UK and Spanish RMBS* UK and Spain RMBS Cumulative value (EUR bn) Gross exposure adjustments ** Protection (nominal) Net exposure UK 2.16 0.24 0.06 2.34 o/w Conforming 1.8 0.27 0.06 2.01 o/w Non conforming 0.27 -0.03 - 0.24 o/w Buy to
Slide 56: Exposure to Conduits and SIV
1- Specific Disclosures, Based on FSB Recommendations Exposure to Conduits and SIV As originator, Sponsor or Co-Sponsor, Dexia has no exposure on conduits or SIV 56 2Q2009 Results
Slide 57: Exposure to LBO Financing
1- Specific Disclosures, Based on FSB Recommendations Exposure to LBO Financing (EUR bn) Breakdown of final participations in LBOs Final take Energy Other Food 4% Number of accounts 106 1% 4% Transports Industry Commitments 3.1 17% 6% To sell Number of accounts 1 (Carrix) Ports 30% Commitments 0.03
Slide 58: Segment Reporting
2 - Segment Reporting Public and Retail and Asset Wholesale Commercial Management (m EUR) Banking Banking & Services Group Center Dexia REPORTED STATEMENT OF INCOME 2Q 2009 Income 350 718 198 375 1,640 Expenses (146) (469) (166) (95) (875) Gross operating income 204 250 32 280 765 Cost of risk (39)
Slide 59: 2Q09 Crisis Impacts
3 – 2Q09 Crisis Impacts Split by business line Revenues Cost of risk 2Q09 Financial crisis impact (m EUR) Net income PWB RCB AMS GC (before tax) (before tax) FSA 35 -35 40 40 Financial Products -66 -35 -101 -101 Adjustments on provisions sale of FSA Inc. 101 - 101 101 Adjustment on taxes - - 40 40 I
Slide 60: Activity Figures: Public & Wholesale Banking
4 – Activity Figures Public & Wholesale Banking PUBLIC AND WHOLESALE BANKING LONG-TERM COMMITMENTS LONG-TERM ORIGINATIONS Variation June Variation 30, 2009 June 2Q 2009/ (m EUR) June 30, 2008 June 30, 2009 30, 2008 2Q 2008 1Q 2009 2Q 2009 2Q 2008 Dexia 274,776 269,996 -1.7% 18,919 1,883 3,027 -84.0%
Slide 61: Activity Figures: Retail & Commercial Banking
4 – Activity Figures Retail & Commercial Banking RETAIL AND COMMERCIAL BANKING 2008 (1) 2009 Variation Variation June 30, 2009/ June 30, 2009/ (m EUR) June 30 Sept. 30 Dec. 31 March 31 June 30 June 30, 2008 March 31, 2009 Total customer assets & liabilities 179,454 177,176 170,107 170,943 174,902 -3
Slide 62: Activity Figures: Asset Management & Services
4 – Activity Figures Asset Management & Services ASSETS UNDER MANAGEMENT (1) 2008 2009 Variation Variation June 30, 2009/ June 30, 2009/ (bn EUR) June 30 Sept. 30 Dec. 31 March 31 June 30 June 30, 2008 March 31, 2009 Total assets under management 98.8 93.7 79.3 73.1 77.1 -22.0% 5.5% By type of manag
Slide 63: Credit Risk Exposure
5 – Credit Risk Exposure DEXIA GROUP EXPOSURE BY DEXIA GROUP EXPOSURE BY CATEGORY OF GEOGRAPHICAL REGION COUNTERPART (m EUR) (m EUR) Belgium 115,219 Central governments 76,828 France 107,493 Public sector entities 283,198 Germany 41,175 Corporate 52,018 Italy 59,654 Monolines 12,800 Luxembourg 12,61
Slide 64: VaR and Equity Portfolio
6 – VaR and Equity Portfolio Value at risk (1) 2008 IR (2) & FX (3) (Trading and banking) (4) EQT (5) Trading Spread trading Other risk (6) VaR (10 days, 99%), in m EUR 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Average 30.0 43.6 38.4 62.7 6.5 7.7 7.5 7.7 60.0 79.4 78.0 75.9 1.8 1.3 2.4 3.7 By
Slide 65: VaR and Equity Portfolio
6 – VaR and Equity Portfolio Banking companies ALM and Insurance 2008 (3) (4) Interest rate Equity Credit spread Sensitivity and VaR 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Banking companies Sensitivity, in m EUR -468 -155 -136 -131 -16 -16 -15 -15 (1) ALM VaR 10d 99%, in m EUR 148 73 52 58 103 92 117 9
Slide 66: VaR and Equity Portfolio
6 – VaR and Equity Portfolio LISTED SHARES SENSITIVITY – BANKING COMPANIES PORTFOLIO (1) (2) (m EUR) Market Value VaR % VaR/MV EaR June 30, 2008 822 96 11.7% (94) September 30, 2008 599 76 12.7% (129) December 31, 2008 396 66 16.7% (69) March 31, 2009 318 53 16.7% (64) June 30, 2009 281 45 16.0% (29
Slide 67: Capital Adequacy
7 – Capital Adequacy COMPARISON TOTAL EQUITY (FINANCIAL STATEMENTS) AND TOTAL EQUITY AS CALCULATED FOR REGULATORY PURPOSES Dec. 31, 2008 June 30, 2009 Financial Regulatory Financial Regulatory (m EUR) Statements purposes Statements purposes Total shareholders' equity 3,916 3,916 7,277 7,277 Minority
Slide 68: Asset Quality and Ratings
8 – Asset Quality and Ratings QUALITY OF RISK (m EUR, except where indicated) June 30, 2008 Sept. 30, 2008 Dec. 31, 2008 (4) March 31, 2009 June 30, 2009 Impaired loans 1,227 1,317 3,535 3,652 3,624 (1) Portfolio impairments 810 843 2,083 2,318 2,324 Assets quality ratio (2) 0.47% 0.50% 0.99% 1.03%
Slide 69: Data per Share
9 – Data per Share NUMBER OF SHARES June 30, 2008 March 31, 2009 June 30, 2009 Number of shares 1,156,412,677 1,762,478,783 1,762,478,783 of which Treasury Shares 305,365 293,570 293,570 Number of options 62,701,693 71,787,214 71,787,214 Total Number of current/potential future shares 1,219,114,370
Slide 70: Balance Sheet: Assets
10 – Balance Sheet Assets CONSOLIDATED BALANCE SHEET ASSETS (m EUR) June 30, 2008 Dec. 31, 2008 June 30, 2009 I. Cash and balances with central banks 8,899 2,448 3,262 II. Loans and advances due from banks 55,053 61,864 49,242 III. Loans and advances to customers 260,018 368,845 357,374 IV. Financia
Slide 71: Balance Sheet: Liabilities
10 – Balance Sheet Liabilities LIABILITIES (m EUR) June 30, 2008 Dec. 31, 2008 June 30, 2009 I. Due to banks 184,887 213,192 142,637 II. Customer borrowings and deposits 129,573 114,728 121,537 III. Financial liabilities measured at fair value through profit or loss 17,086 18,952 18,809 IV. Derivati
Slide 72: OCI and AFS Reserve
11 – OCI and AFS Reserve of which: Total Accumulated OCI AFS Reserve (EUR m) (EUR m) 12 127 76 -111 -1 -7,035 -6,667 -11,542 -10,756 -13,572 -14,366 Equity portfolio -9,616 Bond portfolio -11,011 -11,878 -12,729 30/06/08 30/09/08 31/12/08 31/03/09 30/06/09 30/06/08 30/09/08 31/12/08 31/03/09 30/06/0
Slide 73: DenizBank's consolidated accounts
12- DenizBank’s consolidated accounts Another strong quarter Var. 2Q09/ Var. 2Q09/ Var. 1H09/ In millions of EUR 2Q08 1Q09 2Q09 2Q08 1Q 09 1H08 1H09 1H08 Income 193 229 278 44.1% 21.1% 360 507 41.0% Expenses - 102 - 89 - 100 -1.7% 11.6% - 194 - 189 -2.4% Gross operating income 91 140 178 95.4% 27.2%