Dexia Holding SA · EURONEXT:DEXB
Dexia Holding SA — Investor Presentation (July 2023)
18 slides from Dexia Holding SA's investor presentation, Jul 4, 2023
Slide 1: Webcast Dexia | 4 July 2023
Webcast Dexia | 4 July 2023 Dexia applies for the withdrawal of its banking license and authorisations for investment services
Slide 2: Disclaimer
This presentation is confidential and is being provided to you solely for your information and may not be reproduced, retransmitted, forwarded, further distributed to any other person or published, in whole or in part, by any medium or in any form for any purpose and in particular, may not be forwar
Slide 3: Dexia on a path to abandon its banking license
• Filing of an application with the Autorité de Contrôle Dexia on a path Prudentiel et de Résolution (ACPR) on 4 July 2023 to to abandon its abandon the credit institution licence and authorisations for investment services of Dexia Crédit banking Local and the financing company authorisations of lic
Slide 4: Dexia has been executing its Orderly Resolution Plan since end of 2011
Dexia has been executing its Orderly Resolution Plan since end of 2011 31st December 2011 31st December 2022 Entry into resolution Capital increase Explicit funding guarantee Extended guarantee Mandatory divestment of commercial franchises completed 2018 2021 Orderly Resolution Plan Mission Support
Slide 5: In 2012, keeping a banking license was essential to execute the Orderly Resolution Plan
In 2012, keeping a banking license was essential to execute the Orderly Resolution Plan Avoiding any systemic risk Securing funding Dexia represented a systemic risk for Dexia Crédit Local was highly dependent on European financial markets given: Central Bank funding and needed to maintain an access
Slide 6: After ten years executing its Orderly Resolution Plan…
After ten years executing its Orderly Resolution Plan… … and Dexia has considerably improved its liquidity position and no longer depends …Dexia has significantly reduced its footprint… on Eurosystem’s refinancing mechanisms 2012 2022 Fair value of derivatives and assets Funding mix (€Bn) 357 Balanc
Slide 7: A decision that will preserve Dexia's operational continuity
A decision that will preserve Dexia’s operational continuity 1 2 Ability to keep robust Capacity to pursue the Funding capacity risk monitoring and Orderly Resolution Plan management Belgian and French States Robust risk management Further ability to manage the funding guarantee maintained framework
Slide 8: Zoom on Dexia Crédit Local's funding capacity as a non-bank
1 Zoom on Dexia Crédit Local’s funding capacity as a non-bank Issuance of guaranteed debt keeping the HQLA L1 qualification Contingency buffer Dexia Crédit Local will continue to refinance its Dexia Crédit Local will rely on an additional balance sheet notably through the issuance of contingency buf
Slide 9: Zoom on the features of the State funding guarantee
1 Zoom on the features of the State funding guarantee Maximum maturity of 10 years for securities Several, not joint, first Shared 53% Belgium issued under the guarantee State guaranteed debt demand, unconditional, (AA / Aa3 / AA-) and 47% and issuance period until rated1 AA / Aa3 / AA- and irrevoca
Slide 10: Zoom on the Risk Management Framework
2 Zoom on the Risk Management Framework This system will maintain three lines of defence, including compliance monitoring and AML control procedures, as well as an internal audit mechanism. It will be based, as it is today, on a risk appetite framework (RAF) and appropriate monitoring indicator. Sol
Slide 11: Zoom on the Independent Surveillance Committee
2 Zoom on the Independent Surveillance Committee An independent Surveillance Committee will take over from the banking supervisors, particularly in terms of risk and internal control monitoring Composition Mission Dexia’s overall governance structure will remain unchanged Members evenly appointed
Slide 12: Dexia's orderly resolution implementation
3 A decision Streamlined Adequate funding enabling the organization scheme implementation of a model Simplifying regulatory Securing 2 key funding better suited for production, as a non- pillars: bank pursuing State-guaranteed funding with HQLA Dexia’s orderly Transforming the L1 eligibility opera
Slide 13: Zoom on the funding toolbox
3 Zoom on the funding toolbox State guaranteed funding Non guaranteed Money market Debt capital markets Repo market Maturity Up to 1 year 1 to 10 years Up to 1 year Commercial Papers Bonds Bilateral and Triparty Format Repo Currencies EUR, USD, GBP, CHF, CAD, JPY Mainly EUR Issuer Dexia Crédit Local
Slide 14: Dexia's profile as a non-financial entity
Dexia’s profile as a non-financial entity Status Structure Dexia Crédit Local remains a Belgian Federal Institutional, State through the individual and limited company (“Société Federal Holding and French State employee anonyme”) under French Law and Investment Company shareholders the Group’s issui
Slide 15: Appendix
Appendix Poca
Slide 16: Ratings as at 30 June 2023
Ratings as at 30 June 2023 State Guaranteed Debt Long term Outlook Short term “The stable outlook reflects our expectation that the bank will implement an orderly wind-down of its Dexia Crédit Local operations and continue to benefit from the strong commitment of the Belgian and French governments i
Slide 17: Contact information
Funding & Treasury Jean-Christophe Ricard Head of Funding & Treasury Tel: +33 1 58 58 51 42 Contact jean-christophe.ricard@dexia.com Franck Pibouin information Long Term Funding Officer Tel: +33 1 58 58 51 46 franck.pibouin@dexia.com Communication & Investor Relations Fabienne Carlier Head of Commun
Slide 18: Webcast Dexia | 4 July 2023
Webcast Dexia | 4 July 2023 Dexia applies for the withdrawal of its banking license and authorisations for investment services