Dexia Holding SA · EURONEXT:DEXB
Dexia Holding SA — Q1 2005 Earnings Presentation
36 slides from Dexia Holding SA's earnings presentation, May 26, 2005
Slide 1: Analysts' meeting Q1 2005 Results
Analysts’ meeting Q1 2005 Results Paris, May 26, 2005 Rembert von Lowis Group CFO
Slide 2: FTA impacts on equity as of January 1, 2005
FTA impacts on equity as of January 1, 2005 IAS 32 & 39 and IFRS 4 (M€) + 32 + 2,345 Impact CFH - 285 12,377 12,168 - 1,098* Deferred reserve taxes Impact of - 584 fair value + 30 hedges Treasury - 195 others Impact and shares Prov. and AFS derivatives impairments reserve on financial assets Core eq
Slide 3: Changes in accounting referential, scope of consolidation, segmentation and conventions
Changes in accounting referential, scope of consolidation, segmentation and conventions Reported accounts EU GAAP i.e. in accordance with IFRS as endorsed by the European Commission IAS 32&39 and IFRS 4 applied as from January 1, 2005 without restating 2004 Pro forma accounts ! Scope (M€) Reported n
Slide 4: Summary of Q1 2005 P&L account
Summary of Q1 2005 P&L account FIRST QUARTER 2005 ! Evolution of Evolution of (M€) Q1 2004* Q1 2005** Q1 05 / underlying underlying* at constant rate Q1 04 *** of exchange Income 1,458 1,453 - 0.3% + 5.1% + 5.9% " of which net commissions 269 290 + 7.5% + 11.1% Costs - 743 - 773 + 4.1% + 5.9% + 6.2%
Slide 5: Quarterly evolution of the underlying gross operating income
Quarterly evolution of the underlying Gross operating income (M€) 1,432 1,363 1,388 1,366 1,317 Income Costs 772 795 773 730 757 at 669 constant US$ 633 631 660 545 572 Gross operating income Q1 2004* Q2 2004* Q3 2004* Q4 2004* Q1 2005** * Without IAS 32, IAS 39 and IFRS 4, based on pro forma accoun
Slide 6: 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 0.5 enhancement 12.2 * 9.8 * 7.8 6.4 6.6 5.7 * Banking 2.2 1.8 * activities 0.8 * 1997 1998 1999 2000 2001 2002 2003 2004 Q1 2005 annualized * Excluding impact of charges for Legio Lease at D
Slide 7: Key performance indicators
Key performance indicators Q1 2004 Q1 2005 C/I ratio 51.0 % 53.2 % C/I ratio underlying 53.5 % 54.0 % ROE 19.8 % 18.7 % EPS (€) 0.46 0.43 RORWA 2.02 % 1.84 % Profit margin 37.1 % 33.6 % 01/01/2005 31/03/2005 Tier 1 ratio 10.0 % 9.6 % RWA (Bn€) 103.4 109.5 NAV per share (€) Related to core shareholde
Slide 8: Business lines
Business lines Activity and Results
Slide 9: Public/Project Finance & Credit Enhancement: Long-term banking commitments
Activity highlights Public/Project Finance & Credit Enhancement ! Long-term banking commitments (fully-consolidated companies) (Bn€) +13.6% 204.7 180.2 15.7 33.2 America Project/ 15.9 25.6 Corporate Finance 88.1 76.2 Other countries 189.0 164.4 Public Finance France + Belgium 78.4 83.4 + Luxembourg
Slide 10: Public/Project Finance & Credit Enhancement: Credit enhancement (FSA)
Activity highlights Public/Project Finance & Credit Enhancement Credit enhancement (FSA) Gross Present Value originations Net Par Outstanding (M US$) (Bn US$) +10.3% 333 +2.9% 302 193 33 187 8 38 16 13 7 12 20 98 23 81 36 35 61 176 193 89 77 Q1 2004 Q1 2005 31/03/2004 31/03/2005 Investments product
Slide 11: Public/Project Finance & Credit Enhancement: Analysis of Q1 2005 underlying P&L
Public/Project Finance & Credit Enhancement Analysis of Q1 2005 underlying P&L FIRST QUARTER 2005 ∆ ∆ at constant (M€) Q1 2004* Q1 2005** Q1 05 / rate of Q1 04 exchange Income 499 539 +8.1% +9.6% Costs - 163 -180 +10.3% +11.5% Gross operating income 335 359 +6.9% +8.7% Cost of risk - 12 +1 n.s. Tax
Slide 12: Public/Project Finance & Credit Enhancement: Quarterly evolution
Public/Project Finance & Credit Enhancement Quarterly evolution of the underlying gross operating income (M€) 542 539 499 502 501 Income at 365 constant US$ 362 359 Gross 335 330 323 operating income Costs 172 178 179 180 163 Q1 2004* Q2 2004* Q3 2004* Q4 2004* Q1 2005** * Without IAS 32, IAS 39 and
Slide 13: Personal Financial Services: Total Customer Assets
Activity Highlights Personal Financial Services ! Total Customer Assets (Retail and Private Banking) (Bn€) + 4.4% 116.7 119.6 of which 114.6 8.2 6.8 8.0 Insurance Private (Life insurance technical Banking reserves) 55.6 38.4 51.5 52.9 Off Balance Sheet products (Mutual funds, direct Retail securitie
Slide 14: Personal Financial Services: Total Customer Loans
Activity Highlights Personal Financial Services ! Total Customer Loans (Retail and Private Banking) (Bn€) +5.5% 26.4 26.7 25.3 Loans to Private banking 2.5 2.5 2.4 customers 6.0 6.1 Loans to SME, independents 5.8 2.4 2.3 Consumer loans 2.4 Mortgage loans 14.7 15.5 15.8 March 2004 Dec. 2004 March 200
Slide 15: Personal Financial Services: Analysis of Q1 2005 underlying P&L
Personal Financial Services Analysis of Q1 2005 underlying P&L FIRST QUARTER 2005 ∆ ∆ at constant (M€) Q1 2004* Q1 2005** Q1 05 / rate of Q1 04 exchange Income 531 547 + 3.0% + 3.1% Costs - 382 - 393 + 2.7% + 2.7% Gross operating income 149 154 + 3.8% + 4.0% Cost of risk - 10 -9 - 2.0% Tax expense -
Slide 16: Personal Financial Services: Quarterly evolution
Personal Financial Services Quarterly evolution of the underlying gross operating income (M€) 545 553 547 531 534 Income Costs 406 394 396 382 393 149 152 157 154 Gross 129 operating income Q1 2004* Q2 2004* Q3 2004* Q4 2004* Q1 2005** * Without IAS 32, IAS 39 and IFRS 4, based on pro forma accounts
Slide 17: Investment Management and Insurance Services: Assets under Management
Activity Highlights Investment Management and Insurance Services ! Assets under Management* Organic growth: + 10.0% Organic growth: + 4.2% (Bn€) +14.9 % +5.9 % Market effect: + 4.9% Market effect: + 1.7% +3.0 +1.2 75.7 +3.6 +2.0 71.5 65.9 Market effect Organic growth Market effect Organic growth 9 m
Slide 18: Investment Management and Insurance Services: Fund Administration
Activity Highlights Investment Management and Insurance Services ! Fund Administration Capital managed at end # of NAV to calculate # of transactions of period (Bn€) in the year (x 1000)** (in million) 348 354 2.15 320 403 1.97 397 1.88 1.84 1.76 152 382 160 167 Other* 189 202 153 Mandates to DFS Ma
Slide 19: Investment Management and Insurance Services: Insurance premiums
Activity Highlights Investment Management and Insurance Services ! Insurance premiums (M€) 971 91 843 of which 119 PPF Non life 658 688 686 22 % 94 95 118 880 PFS 725 69 % 595 591 Life 540 IMIS 9% Q1 2004 Q2 2004 Q3 2004 Q4 2004 Q1 2005 19
Slide 20: Investment Management and Insurance Services: Analysis of Q1 2005 underlying P&L
Investment Management and Insurance Services Analysis of Q1 2005 underlying P&L FIRST QUARTER 2005 ∆ ∆ at constant (M€) Q1 2004* Q1 2005** Q1 05 / rate of Q1 04 exchange Income 144 168 + 16.4% + 16.8% Costs - 88 - 98 + 11.2% + 11.2% Gross operating income 56 69 + 24.6% + 25.7% Cost of risk 0 0 n.s.
Slide 21: Investment Management and Insurance Services: Quarterly evolution
Investment Management and Insurance Services Quarterly evolution of the underlying gross operating income (M€) 173 171 168 144 143 Income 102 98 97 88 92 Costs 81 69 69 56 46 Gross operating income Q1 2004* Q2 2004* Q3 2004* Q4 2004* Q1 2005** * Without IAS 32, IAS 39 and IFRS 4, based on pro forma
Slide 22: IMS: Quarterly evolution of the underlying Gross Operating Income
IMS Quarterly evolution of the underlying Gross Operating Income (M€) Asset Management Fund Administration 62 61 65 60 62 64 50 42 45 43 44 44 44 40 35 29 22 24 21 22 34 20 28 21 21 22 20 16 17 13 Q1 2004* Q2 2004* Q3 2004* Q4 2004* Q1 2005** Q1 2004* Q2 2004* Q3 2004* Q4 2004* Q1 2005** Insurance 5
Slide 23: Insurance Activities at Group level
Insurance Activities* at Group level: Contribution of the Business Lines to the Income (Underlying in M€) Q1 Q12005 2005income: income: 115 115M€ M€ +32% +32%over overQ1 Q12004 2004 Public/Project Finance 6 M€ 58 M€ (5%) (51%) Personal Financial Services 51 M€ (44%) Investment Management and Insuran
Slide 24: Treasury and Financial Markets: Analysis of Q1 2005 underlying P&L
Treasury and Financial Markets Analysis of Q1 2005 underlying P&L FIRST QUARTER 2005 ∆ ∆ at constant (M€) Q1 2004* Q1 2005** Q1 05 / rate of Q1 04 exchange Income 130 138 + 5.6% + 7.5% Costs - 40 - 42 + 6.2% + 7.0% Gross operating income 90 95 + 5.3% + 7.7% Cost of risk + 11 +1 - 94.9% Tax expense -
Slide 25: Treasury and Financial Markets: Quarterly evolution
Treasury and Financial Markets Quarterly evolution of the underlying gross operating income (M€) 138 130 124 Income 106 88 95 90 83 67 46 Costs 40 41 42 39 42 Gross operating income Q1 2004* Q2 2004* Q3 2004* Q4 2004* Q1 2005** * Without IAS 32, IAS 39 and IFRS 4, based on pro forma accounts ** With
Slide 26: Central Assets
Central Assets Analysis of underlying P&L (M€) Q1 2004* Q1 2005** Variance Income 59 41 - 18 Costs - 55 - 59 +4 Gross operating income 3 - 18 - 21 Tax expense 2 17 + 15 Other items -6 -3 +3 Net income – Group share 0 -4 -4 * Without IAS 32, IAS 39 and IFRS 4, based on pro forma accounts ** With IAS
Slide 27: Impact of the nonrecurring items on the P&L
Impact of the nonrecurring items on the P&L (M€) Q1 2004* Q1 2005** Variance Income + 78 + 20 - 58 Costs 0 0 0 Gross operating income + 78 + 20 - 58 Cost of risk -1 - 83 - 82 Impairments on goodwill - 10 0 - 10 Tax expense + 26 + 62 - 36 Minority interests -1 0 +1 Net income - Group share + 93 -1 -
Slide 28: Main nonrecurring items
Main nonrecurring items (M€) Q1 2004* Q1 2005 Income • Interest discount on “Dexia offer” loans + 10 +9 • Gains/losses on equities + 63 + 11 • CLN Portfolio - 10 - • Disposal of properties + 17 - Cost of risk • Additional charge for mediation Duisenberg (DBNL) - - 97 • Release of prior provisions (D
Slide 29: Appendices
Appendices • Update on DBNL/Legio • Update on Artesia integration • Evolution of outstanding shares
Slide 30: Evolution of the share leasing portfolio outstanding
DBNL/Legio Evolution of the share leasing portfolio outstanding 4,178 140 (M€) 3,269 172 2,401 2,448 Total 147 2,291 2,210 174 Of which Of which Of which 1,868 151 contracts Dexia Dexia with Offer Offer capital accepted not 1,489 repayments accepted 1,434 1,347 851 1,637 670 689 133 13 5 1,229 537 4
Slide 31: Recent and upcoming developments
DBNL/Legio Recent and upcoming developments ! April 29, 2005: Success of Duisenberg’s mediation % Cost of settlement 400 M€ Of which % Contribution made by Aegon 218 M€ (agreement of February 11, 2005) % Additional expenses recognised by Dexia 97 M€ (pre tax) ! June 20, 2005: Settlement with foundat
Slide 32: Legio lease – Evolution of the stock of provisions
DBNL/Legio Legio lease – Evolution of the stock of provisions (M€) 809 315 Of which: 218 288 577 contribution 510 from Aegon - 67 260 Effect of 85 - 14 -2 Settlement move to Duisenberg Reversal Utilisations EU GAAP (400) net of of prior provisions existing (AEX, …) provisions 521 425 317 31/12/04 01
Slide 33: Downsizing of the branch network in Belgium
Artesia integration Downsizing of the branch network in Belgium -- 26% 26% Target 1,483 -- 21% 21% 1,167 1,099 940 868 895 543 299 204 2001 2002 2003 2004 March 2005 2005 Employee network Independent agents network 33
Slide 34: Impact on personnel
Artesia integration Impact on personnel EFT reduction Achieved to objective 31/03/05 vs EFT headcount at 30/06/01 Head offices - 1,400 - 1,506 Employee network - 870 - 647 - 2,270 - 2,159 95 % realised 34
Slide 35: Evolution of outstanding shares
Evolution of outstanding shares Shares cancelled at Outstanding General Meeting of shares May 11, 2005 1,145,261,366 Outstanding - 51,886,865 shares 1,093,374,501 Of which: 12,980,000 acquired in 2005 38,906,865 acquired in 2004 Treasury shares 976,920 31/12/2004 12/05/2005 35
Slide 36: Impact of IAS 32/39 on Q1 2005 Net income – Group share
Impact of IAS 32/39 on Q1 2005 Net income – Group share Impact on: (M€) & Income -11 Of which: " CDS FSA -2 " Structured products revenue accrual -8 " Inefficiencies of hedges -1 & Costs 0 Reversal DBNL provision & Cost of Risk + 14 (change in AEX and other parameters) & Taxes +1 & Net income – +2 G