Dexia Holding SA · EURONEXT:DEXB
Dexia Holding SA — FY2008 Earnings Presentation
73 slides from Dexia Holding SA's earnings presentation, Feb 26, 2009
Slide 1: FY & 4Q 2008 Results and Update on Transformation Plan
FY & 4Q 2008 Results and Update on Transformation Plan Pierre Mariani, CEO Philippe Rucheton, CFO February 26, 2009
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 includes unaudit
Slide 3: Agenda
Agenda CEO Key Messages Dexia Perspective FY & 4Q 08 Results and Dividend FY & 4Q 2008 Group Results FY & 4Q 2008 Business Line Results Conclusion from the CEO Appendices 3
Slide 4: Dexia Group Profile
Dexia Group Profile 10.6% Tier 1 ratio after impact of the crisis and sale of FSA Public & Wholesale Retail & Commercial Portfolios FSA Insurance Banking (excl. FSA) Banking in run-off sold • EUR 2.5 bn income • EUR 2.7 bn income • EUR 158 bn bonds • USD 425 bn • 35% C/I ratio • 89% C/I ratio • EUR
Slide 5: Dexia's Key Challenges
Dexia’s Key Challenges Refocus Public & Grow and improve Reduce the size of Wholesale Banking profitability of R&CB Portfolios • Refocus on markets • Growth of deposit • Large scale with local long term base deleveraging efforts funding, true • Improvement of in current market commercial relative co
Slide 6: Transformation Plan to Address Key Challenges
Transformation Plan to Address Key Challenges Implementation on track 1 Priority given to core client franchises 2 Improvement of the Group’s risk profile 3 Adaptation of the cost base 6
Slide 7: Public & Wholesale Banking: resilient business
1 Priority Given to Core Client Franchises Public & Wholesale Banking: resilient business High proportion of Diversified and Resilient business businesses with solid profitable business fundamentals in Belgium PWB income excl. FSA PWB income (2008, excl. Belgium PWB activity: (EUR m) FSA and crisis
Slide 8: Rapid refocus of the Public & Wholesale Banking business
1 Priority Given to Core Client Franchises Rapid refocus of the Public & Wholesale Banking business Refocus on markets with core client franchises New loan production • Confirmation of the commercial franchise in EUR 55 bn Belgium, France, Luxembourg, Italy and Iberia • Platforms to tap into local f
Slide 9: Actions to improve risk profile are on track
2 Improvement of the Group’s Risk Profile Actions to improve risk profile are on track FSA sale process Liquidity situation In-depth reorganization in line with plan gradually improving of trading activities • Approval by US anti-trust • Benefits from the States’ • Exit of proprietary trading • Guar
Slide 10: All portfolios regrouped and put in run-off
2 Improvement of the Group’s Risk Profile All portfolios regrouped and put in run-off Bond portfolio (excl. FPs) Financial Products portfolio EUR 158 bn USD 16.1 bn / EUR 11.5 bn AAA 36% AAA AA 36% 17% AA 35% NIG A 1% 8% BBB BBB 9% A NIG 14% 20% 25% • 99% investment grade • 75% investment grade • Cu
Slide 11: EUR 200m cost savings in 2009, EUR 600m by 2011
3 Adaptation of the Cost Base EUR 200m cost savings in 2009, EUR 600m by 2011 1 2 3 TFM PWB Efficiency and cost transformation + transformation + reduction in 2009 EUR 200 m cost savings in 2009 Reduction of 888 full time (c. EUR 300 m full year impact) positions in 2009 888 EUR 100% EUR 4.1 bn EUR
Slide 12: Initiatives to deliver cost savings in 2010 and 2011 launched
3 Adaptation of the Cost Base Initiatives to deliver cost savings in 2010 and 2011 launched 1 2 3 Transformation of Transformation of Efficiency and the Businesses the Support Lines cost reduction Initiatives detailed to • TFM transformation • Efficiency and cost our social • PWB transformation redu
Slide 13: Experienced leadership team
New Management Board Experienced leadership team • CEO and chairman of Dexia Group Management Board since Oct. 2008 CEO • Previously, Senior Executive Vice- P. Mariani President of BNP Paribas and co-Head of Retail Banking, in charge of International Retail Services at BNP Paribas Public & Wholesale
Slide 14: Agenda
Agenda CEO Key Messages Dexia Perspective FY & 4Q 08 Results and Dividend FY & 4Q 2008 Group Results FY & 4Q 2008 Business Line Results Conclusion from the CEO Appendices 14
Slide 15: FSA and crisis in 4Q08 led to a EUR 3.3 bn FY loss
4Q and Full Year Results FSA and crisis in 4Q08 led to a EUR 3.3 bn FY loss Impacts on 4Q08 Financial Net income (EUR m) net income impact 9M 4Q FY 2008 2008 2008 • Sale of FSA Insurance -EUR 1,655 m • Dislocation of financial -723 -EUR 1,504 m markets • Additional restructuring -EUR 181 m -1,655 ch
Slide 16: Transformation efforts to be shared by all stakeholders
Exceptional Measures Transformation efforts to be shared by all stakeholders Management • No bonus paid to top management for 2008 and Directors’ • Lowering of the compensation to Directors for 2009 Compensation • Exceptional circumstances make the payment of a dividend for 2008 inappropriate Divide
Slide 17: Agenda
Agenda CEO Key Messages FY & 4Q 2008 Group Results P&L Impacts of the Financial Crisis IAS 39, AFS Reserve and Bond Portfolios in Run-Off Solvency FY & 4Q 2008 Business Line Results Conclusion from the CEO Appendices 17
Slide 18: Highlights (1/2)
Highlights (1/2) • Net loss of EUR 3,326 m in FY08, and EUR 2,603 m in 4Q08 • The continued deterioration of the US mortgage market and a more cautious approach led to the booking of a EUR 300 m collective impairment in 4Q08 on the US RMBS portf. Group Results • Financial crisis impacts of EUR 5,868
Slide 19: Highlights (2/2)
Highlights (2/2) • Prudential ratios reflecting all consequences of the FSA sale and protected against potential further FP losses, after the Solvency expected finalization of States Guarantee on FP assets • Tier 1 ratio of 10.6%, including core Tier 1 ratio of 9.6% • PWB: proven resiliency in 4Q08
Slide 20: Agenda
Agenda CEO Key Messages FY & 4Q 2008 Group Results P&L Impacts of the Financial Crisis IAS 39, AFS Reserve and Bond Portfolios in Run-Off Solvency FY & 4Q 2008 Business Line Results Conclusion from the CEO Appendices 20
Slide 21: FY 2008 Results
FY 2008 Results EUR 3.3 bn net loss, 10.6% Tier 1 ratio Impact crisis (m EUR) FY 2007 FY 2008 Var* FY 2008 Income 6,896 3,556 -48.4% -4,173 Expenses -3,834 -4,119** 7.4% 0 Gross operating income 3,062 -563 n.s. -4,173 Cost of risk -163 -3,292 x20.2 -2,852 Pre-tax income 2,892 -3,877 n.s. -7,026 Net
Slide 22: 4Q 2008 Results
4Q 2008 Results 4Q 2008 mainly affected by FSA exit and new impairments Impact crisis (m EUR) 4Q 2007 4Q 2008 Var* 4Q 2008 Income 1,695 -249 n.s. -2,308 Expenses -1,004 -1,177** 17.2% 0 Gross operating income 691 -1,426 n.s. -2,308 Cost of risk -63 -1,438 x22.8 -1,230 Pre-tax income 621 -2,874 n.s.
Slide 23: EUR 3.2 bn Financial Crisis Impact in 4Q 2008
EUR 3.2 bn Financial Crisis Impact in 4Q 2008 Major items: FSA exit, insurance impairments, monolines Revenues Cost of risk (m EUR) Net income (before tax) (before tax) FSA -1,302 -781 -2,031 FSA - Financial products -38 -339 -378 Including EUR 300 m collective impairment booked in 4Q08 Sale of FSA
Slide 24: Quarterly Results Excluding Crisis Impact
Quarterly Results Excluding Crisis Impact Resilient revenues, beginning of cost reductions 4Q 2008 net income excl. crisis: EUR 557 m including restructuring charges Revenues Expenses Cost of risk (m EUR) (m EUR) (m EUR) 181 1,230 49 1,844 6% 1,975 1,959 2,060 1,001 1,007 995 942 944 1,868 994 5% 4%
Slide 25: Agenda
Agenda CEO Key Messages FY & 4Q 2008 Group Results P&L Impacts of the Financial Crisis IAS 39, AFS Reserve and Bond Portfolios in Run-Off Solvency FY & 4Q 2008 Business Line Results Conclusion from the CEO Appendices 25
Slide 26: Impact of IAS 39 Reclassification
Impact of IAS 39 Reclassification EUR 100 bn* reclassified without significant P&L impact • As announced mid-November, Dexia reclassified part of its AFS and trading 30/09/08: € 217bn assets. Reclassification took effect on 01/10/08: € 129bn (-40%) € 91bn 1/10/08 « AFS » portfolio • Impact on result
Slide 27: AFS Reserve – 4Q 2008 Evolution
AFS Reserve – 4Q 2008 Evolution IAS 39 amendment impact on AFS reserve (bn EUR) 30/09/08 01/10/08 • As a result of IAS 39 reclassification, part of the AFS reserve was “frozen” Frozen • The “frozen” AFS reserve is amortized on AFS Reclassification of reserve AFS AFS assets reserve to L&R -6.8 an acc
Slide 28: Bond Portfolios in Run-Off, Excluding FP
Bond Portfolios in Run-Off, Excluding FP 99% investment grade By asset class (EUR 158 bn) Other 4% ABS & MBS • Includes former Public Bonds and Credit 24% Spread Portfolios, TFM trading portfolios Public sector and • Portfolios in run-off following Dexia’s strategy sovereign Dec 08 to refocus on cor
Slide 29: FSA's Financial Products Portfolio, in Run-Off
FSA’s Financial Products Portfolio, in Run-Off By asset class • Portfolio reclassified in L&R in Dexia IFRS (USD 16.1 bn / EUR 11.5 bn) accounts Public related • Frozen AFS reserves related to FP portfolio 25% amount to circa USD 3.9 bn (EUR 2.8 bn) Dec. 08 Other ABS RMBS • Based on prior valuation
Slide 30: Agenda
Agenda CEO Key Messages FY & 4Q 2008 Group Results P&L Impacts of the Financial Crisis IAS 39, AFS Reserve and Bond Portfolios in Run-Off Solvency FY & 4Q 2008 Business Line Results Conclusion from the CEO Appendices 30
Slide 31: Weighted Risks
Weighted Risks 4Q 2008 Growth of RWA exclusively related to FP Weighted risks (bn EUR) 159.4 152.8 • As of 1/1/2008 the switch to Basel II 7.9 10.3 allowed for a EUR 42 bn RWA relief 129.4 3.1 120.1 121.7 9.1 9.1 9.1 5.7 • The rise in 4Q08 RWA is exclusively 5.9 5.7 related to the inclusion of FSA’s
Slide 32: Solvency
Solvency Core Tier 1 at 9.6%, taking into account all impacts of the FSA transaction Tier 1 ratio and core Tier 1 ratio • All impacts from the ongoing sale of FSA 14.5% Insurance and prudential consolidation of FP were taken into account in 4Q08 11.2% 11.4% 9.1% 10.6% • Dexia Tier 1 ratio protected
Slide 33: Agenda
Agenda CEO Key Messages FY & 4Q 2008 Group Results FY & 4Q 2008 Business Line Results Conclusion from the CEO Appendices 33
Slide 34: 4Q 2008 Results Impacted by FSA Sale and Insurance Impairments
4Q 2008 Results Impacted by FSA Sale and Insurance Impairments 4Q 2008 figures Net income, excl. financial crisis: EUR 557 m Impact from financial crisis: EUR -3,159 m (m EUR) (m EUR) 299 -2 -41 202 -216 -446 -456 87 105 7 13 + -1,999* -157 PWB FSA PFS TFM AM IS CA PWB FSA PFS TFM AM IS CA excl. (PW
Slide 35: Public and Wholesale Banking: Key Financials Excluding FSA
Public and Wholesale Banking: Key Financials Excluding FSA Resilient performance during 4Q 2008 4Q08 FY08 (m EUR) 2007 2008 Var* 2008 Var* • FY08 net income increased by 9% yoy when Income 557 553 -0.7% 2,452 8.5% excluding a EUR -283 m crisis impact (mainly Expenses -220 -210 -4.5% -869 6.6% Gross
Slide 36: Public and Wholesale Banking: Activity Figures
Public and Wholesale Banking: Activity Figures Excluding FSA Slowdown of production and focus on core markets Production volumes • 4Q08 production significantly lower as the (bn EUR) public bond portfolio was put in run-off 30* 5 • 4Q08 loan origination was focused on core 14 markets and valuable co
Slide 37: Public and Wholesale Banking: Quarterly Results
Public and Wholesale Banking: Quarterly Results Excluding FSA and Crisis Impacts Stabilization of revenues and beginning of cost reductions Revenues Expenses Cost of risk (m EUR) (m EUR) (m EUR) 52 120 232 653 676 220 219 647 210 210 588 558 18% 14% 254 16% 13% 9% 10% -5% 6% -1 98 4Q07 1Q08 2Q08 3Q0
Slide 38: Personal Financial Services: Key Financials
Personal Financial Services: Key Financials Insurance impairments affecting reported results 4Q08 FY08 (m EUR) 2007 2008 Var* 2008 Var* • FY08 income impacted by impairments and losses Income 717 237 -67.0% 2,197 -22.1% on the insurance investment portfolio Expenses -497 -497 -0.1% -1,997 5.7% Gross
Slide 39: Personal Financial Services: Activity Figures
Personal Financial Services: Activity Figures Deposit Base stabilized Customer deposits Loans yoy (bn EUR) yoy (bn EUR) 42 42 69 72 69 Bonds +20% 38 Other +3 % 11 6 5 10 12 5 10 10 Business +15 % Term deposits & 9 25 28 25 -1% 3 3 Consumer +7 % savings bonds 2 Savings -6% Mortgages +10 % 26 24 24 ac
Slide 40: Personal Financial Services: Quarterly Results
Personal Financial Services: Quarterly Results Excluding Crisis Impacts Market environment putting pressure on revenues Revenues Expenses Cost of risk (m EUR) (m EUR) (m EUR) 26 119 720 722 511 135 717 689 497 497 664 477 487 10% 7% 6% -1% 5% -4% -7% 4Q07 1Q08 2Q08 3Q08 4Q08 49 -171 0% 24 25 15 16 -
Slide 41: Asset Management: Key Financials
Asset Management: Key Financials AuM down by 28% in 2008, costs being reduced 4Q08 FY08 (m EUR) 2007 2008 Var* 2008 Var* Income 73 2 -97.2% 161 -43.4% • 4Q08 results affected by a one-off commercial action Expenses -45 -36 -20.6% -143 -9.9% related to the crisis (EUR 41 m, pre- and post-tax) Gross o
Slide 42: Investor Services: Key Financials
Investor Services: Key Financials Assets under Administration down 34% but good commercial performance 4Q08 FY08 (m EUR) 2007 2008 Var* 2008 Var* Income 112 89 -20.8% 409 -4.1% • 4Q08 and FY08 revenues decreased by resp. Expenses -76 -75 -2.1% -297 4.4% Gross operating income 36 14 -60.6% 112 -21.2%
Slide 43: Treasury and Financial Markets: Key Financials
Treasury and Financial Markets: Key Financials 4Q08 FY08 • FY08 results deeply impacted by the financial crisis (m EUR) 2007 2008 Var* 2008 Var* (EUR 1,504 m), including: Income 145 255 75.6% 33 -94.3% - Impairments on banking portfolios (EUR 750 m) Expenses -52 -65 24.4% -245 14.0% Gross operating
Slide 44: Central Assets: Key Financials
Central Assets: Key Financials 4Q08 FY08 (m EUR) 2007 2008 Var* 2008 Var* • FY08 negative results are explained by losses Income 128 -263 -391 -239 -655 and impairments on banking equity portfolios Expenses -76 -210 -134 -417 -96 and funds mainly in 4Q08 Gross operating income 53 -473 -526 -657 -751
Slide 45: Agenda
Agenda CEO Key Messages FY & 4Q 2008 Group Results FY & 4Q 2008 Business Line Results Conclusion from the CEO Appendices 45
Slide 46: Conclusion from the CEO
Conclusion from the CEO • Economic and financial environment to remain very challenging in 2009 • Quality of outstanding and resiliency of revenues will support PWB performance until the re-opening of long-term funding markets • Robustness of retail banking activities demonstrated over recent months
Slide 47: Agenda: Appendices
Agenda Appendices 1. Segment Reporting 8. VaR and Equity Portfolio 2. Quarterly Series: Reported Figures 9. Capital Adequacy 3. Financial Crisis Impact 10. Asset Quality and Ratings 4. Quarterly Series without Crisis Impact 11. Data per Share 5. Activity Figures 12. Balance-Sheet Items 6. FSA: Contr
Slide 48: Segment Reporting: Reported figures
1 Segment Reporting Reported figures Public and Personal Treasury and Wholesale Financial Asset Investor Financial (m EUR) Banking Services Management Services Markets Central Assets Dexia REPORTED STATEMENT OF INCOME 4Q 2008 Income -569 237 2 89 255 -263 -249 Expenses -294 -497 -36 -75 -65 -210 -1,
Slide 49: Quarterly Series: Reported figures
2 Quarterly Series Reported figures DEXIA (m EUR) 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 Income 1,779 1,959 1,448 1,690 1,499 1,990 315 (249) Expenses (921) (933) (964) (1,001) (942) (944) (1,056) (1,177) Gross operating income 858 1,026 484 690 557 1,046 (741) (1,426) Cost
Slide 50: Quarterly Series: Reported figures
2 Quarterly Series Reported figures PERSONAL FINANCIAL SERVICES (m EUR) 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 Income 656 752 695 717 720 722 518 237 Expenses (450) (465) (476) (497) (477) (487) (537) (497) Gross operating income 206 286 220 220 244 235 (19) (260) Cost of ri
Slide 51: Quarterly Series: Reported figures
2 Quarterly Series Reported figures INVESTOR SERVICES (m EUR) 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 Income 99 113 103 112 105 114 101 89 Expenses (66) (69) (74) (76) (73) (74) (76) (75) Gross operating income 33 44 29 36 32 40 25 14 Cost of risk 0 (1) 1 0 0 0 0 (1) Impairme
Slide 52: Quarterly Series: Reported figures
2 Quarterly Series Reported figures CENTRAL ASSETS (m EUR) 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 Income 67 150 71 128 (11) 35 (1) (263) Expenses (92) (73) (81) (76) (63) (63) (81) (210) Gross operating income (25) 77 (10) 53 (74) (28) (81) (473) Cost of risk 4 1 (8) (3) (52
Slide 53: Financial Crisis Impact: 4Q 2008 figures
3 Financial Crisis Impact 4Q 2008 figures Revenues Cost of risk 4Q08 Financial crisis impact (m EUR) Net income PWB PFS AM TFM CA (before tax) (before tax) FSA -1,302 -781 -2,031 -1,999 -34 FSA - Financial Products -38 -339 -378 -378 Including EUR 300 m collective impairment booked in 4Q08 Sale of F
Slide 54: Financial Crisis Impact: FY 2008 figures
3 Financial Crisis Impact FY 2008 figures Revenues Cost of risk 2008 Financial crisis impact (m EUR) Net income PWB PFS AM TFM CA (before tax) (before tax) FSA -2,060 -1,665 -3,139 -3,106 -34 FSA - Financial Products -344 -339 -676 -676 Including EUR 300 m collective impairment booked in 4Q08 FSA -
Slide 55: Financial Crisis Impact: FY 2008 figures
3 Financial Crisis Impact FY 2008 figures Net income, excl. financial crisis: EUR 2,543 m Impact from financial crisis: EUR -5,868 m (m EUR) (m EUR) 0 1,126 -57 -195 715 -283 581 -723 338 69 81 + -1,504 -368 -3,106* PWB FSA PFS TFM AM IS CA PWB FSA PFS TFM AM IS CA excl. (PWB) excl. (PWB) FSA FSA Re
Slide 56: Quarterly Series: Without crisis impact
4 Quarterly Series Without crisis impact DEXIA (m EUR) 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 Income 1,761 1,945 1,761 1,975 1,844 1,959 1,868 2,060 Expenses (921) (933) (964) (1,001) (942) (944) (1,056) (1,176) Gross operating income 840 1,012 797 974 902 1,014 812 884 Cost
Slide 57: Quarterly Series: Without crisis impact
4 Quarterly Series Without crisis impact PERSONAL FINANCIAL SERVICES (m EUR) 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 Income 656 752 695 717 720 722 689 664 Expenses (450) (465) (476) (497) (477) (487) (537) (497) Gross operating income 206 286 220 220 244 235 152 167 Cost of
Slide 58: Quarterly Series: Without crisis impact
4 Quarterly Series Without crisis impact INVESTOR SERVICES (m EUR) 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 Income 99 113 103 112 105 114 101 89 Expenses (66) (69) (74) (76) (73) (74) (76) (75) Gross operating income 33 44 29 36 32 40 25 14 Cost of risk 0 (1) 1 0 0 0 0 (1) Imp
Slide 59: Quarterly Series: Without crisis impact
4 Quarterly Series Without crisis impact CENTRAL ASSETS (m EUR) 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 Income 39 102 71 117 (7) 35 (22) (22) Expenses (92) (73) (81) (76) (63) (63) (81) (210) Gross operating income (53) 29 (10) 41 (70) (28) (102) (232) Cost of risk 4 1 (8) (3
Slide 60: Activity Figures: Public and Wholesale Banking
5 Activity Figures Public and Wholesale Banking PUBLIC AND WHOLESALE BANKING LONG-TERM COMMITMENTS (1) LONG-TERM ORIGINATIONS (1) December 31, December 31, Variation constant (m EUR) 2007 2008 Variation exchange rate FY 2007 FY 2008 Variation Europe 234,850 249,155 6.1% - 48,404 40,708 -15.9% Belgiu
Slide 61: Activity Figures: Personal Financial Services
5 Activity Figures Personal Financial Services PERSONAL FINANCIAL SERVICES 2007 2008 Variation Variation Dec. 31, 2008 Dec. 31, 2008 / Sep. 30, / Dec. 31, (m EUR) Dec. 31 March 31 June 30 Sept. 30 Dec. 31 2008 2007 Total customer assets & liabilities 173,793 171,879 172,387 171,218 162,567 -5.1% -6.
Slide 62: Activity Figures: Asset Management & Investor Services
5 Activity Figures Asset Management & Investor Services ASSETS UNDER MANAGEMENT (1) 2007 2008 Variation Variation Dec. 31, 2008 Dec. 31, 2008 / Sep. 30, / Dec. 31, (bn EUR) Dec. 31 March 31 June 30 Sept. 30 Dec. 31 2008 2007 Total 109.7 102.2 98.8 93.7 79.3 -15.4% -27.7% By type of management Mutual
Slide 63: FSA: Contribution to Public and Wholesale Banking
6 FSA: Contribution to Public and Wholesale Banking Quarterly series (m EUR) 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 Income 119 102 -89 -43 -204 88 -218 -1,122 Expenses -32 -35 -32 -35 -26 -7 -32 -84 Gross operating income 87 67 -121 -78 -231 80 -250 -1,207 Cost of risk -3 -3 -7 -9 -197 -432 -261 -8
Slide 64: Credit Risk Exposure
7 Credit Risk Exposure Dexia Group exposure by geographical region Dexia Group exposure by category of counterpart as of December 31, 2008 as of December 31, 2008 Dexia excl. Dexia excl. (m EUR) FSA Inc. FSA Inc. (1) (m EUR) FSA Inc. FSA Inc. (1) Belgium 116,081 10 Central governments 78,800 1,007 F
Slide 65: VaR and Equity Portfolio
8 VaR and Equity Portfolio (1) TFM's value at risk 2008 (2) (3) (4) (5) (6) IR & FX (Trading and banking) EQT Trading Spread trading Other risk VaR (10 days, 99%), in m EUR Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 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
Slide 66: VaR and Equity Portfolio
8 VaR and Equity Portfolio LISTED SHARES SENSITIVITY – BANKING COMPANIES PORTFOLIO (1) (m EUR) Market Value VaR % VaR/MV (2) EaR December 31, 2007 1 105 97 8.7% ( 11) March 31, 2008 895 94 10.5% ( 57) June 30, 2008 822 96 11.7% ( 94) September 30, 2008 599 76 12.7% ( 129) December 31, 2008 396 66 16
Slide 67: Capital Adequacy
9 Capital Adequacy CAPITAL ADEQUACY Basel I Basel II in m EUR, except where indicated Dec. 31, 2007 March 31, 2008 June 30, 2008 Sept. 30, 2008 Dec. 31, 2008 Tier 1 capital 14,549 13,483 13,843 18,741 16,126 Total regulatory capital 15,345 14,533 14,997 19,747 18,077 Weighted risks 159,383 120,113 1
Slide 68: Capital Adequacy
9 Capital Adequacy Comparison total equity (financial statements) and total equity as calculated for regulatory requirements Dec. 31, 2007 Dec. 31, 2008 in m EUR Financial Statements Regulatory purposes Financial Statements Regulatory purposes Total shareholders' equity 14,525 14,525 3,916 3,916 Min
Slide 69: Asset Quality and Ratings
10 Asset Quality and Ratings QUALITY OF RISK in m EUR, except where indicated Dec. 31, 2007 March 31, 2008 June 30, 2008 Sept. 30, 2008 Dec. 31, 2008 (4) Impaired loans 1,218 1,170 1,227 1,317 3,535 Portfolio impairments (1) 818 789 810 843 2,083 (2) Assets quality ratio 0.50% 0.48% 0.47% 0.50% 0.99
Slide 70: Data per Share
11 Data per Share NUMBER OF SHARES Dec. 21, 2004 Dec. 31, 2005 Dec. 31, 2006 Dec. 31, 2007 Dec. 31, 2008 Number of shares 1,145,261,366 1,107,469,030 1,163,184,325 1,178,576,763 1,762,478,783 of which Treasury Shares 40,050,935 20,550,020 490,607 8,967,312 293,570 Number of options 50,684,800 55,903
Slide 71: Balance-Sheet Items
12 Balance-Sheet Items SIMPLIFIED CONSOLIDATED BALANCE SHEET (m EUR) Dec. 31, 2007 Dec. 31, 2008 TOTAL ASSETS 604,564 651,006 of which I. Cash and balances with central banks 8,835 2,448 II. Loans and advances due from banks 54,776 61,864 III. Loans and advances to customers 242,619 368,845 IV. Fina
Slide 72: Balance Sheet - OCI and AFS Reserve
13 Balance Sheet - OCI and AFS Reserve of which: Total Accumulated OCI AFS Reserve (m EUR) (m EUR) 726 361 76 12 -1,587 -111 -2,216 -6,659 -7,035 -6,179 -6,667 -11,542 Equity portfolio -13,572 Bond portfolio -11,011 -11,878 31/12/07 31/03/08 30/06/08 30/09/08 31/12/08 31/12/07 31/03/08 30/06/08 30/0
Slide 73: Past Contribution of Exit / Run-off Activities
14 Past Contribution of Exit / Run-off Activities PWB Bond Portfolios • Discontinued markets: Australia, Eastern • Portfolios in run-off, excluding FP: Public Europe (ex-Slovakia), Mexico, India, Bonds Portfolio, Credit Spread Portfolio, Scandinavia TFM’s Trading Portfolio • Past contribution to Dex