Dexia Holding SA · EURONEXT:DEXB

Dexia Holding SA — Q2 2002 Earnings Presentation

22 slides from Dexia Holding SA's earnings presentation, Sep 12, 2002

  1. Slide 1: P&L Q2 2002 / Q1 2002

    Embargo 12.09.02 – 17h40 P&L – Q2 2002 / Q1 2002 Q1 2002 % (M€) Q2 2002 % Pro forma underlying Revenues  Net Interest and Related Income 954 848 +12.5% +4.6%  Net Commissions and Other 282 306 -7.8% -2.8%  Insurance 206 180 +14.4% +14.4%  Total Revenues 1,442 1,335 +8.0% +4.2% Of which exc

  2. Slide 2: Overall cost objective will be met in 2002

    Overall cost objective will be met in 2002 Initial 7 /12 of the objective yearly ¼ of the objective: 3,304 M€ yearly 1,894 M€ objective: -2.6% 3,248 M€ 812 M€ Achieved: 1,845 M€ Revised -2.1% objective following Achieved: changes of 795 M€ scope and method 795 1845 March 31, 2002 July 31, 2002 Dec.

  3. Slide 3: Quarterly evolution of the underlying Gross Operating Income

    Quarterly evolution of the underlying Gross Operating Income (M€) 1,381 1,361 1,349 1,328 Revenues 1,311 1,275 836 837 786 788 795 785 Costs 563 592 524 543 475 480 Gross Operating Income Q1 2001 Q2 2001 Q3 2001 Q4 2001 Q1 2002 Q2 2002 3

  4. Slide 4: Cost of risk related to total net O/S commitments

    Cost of risk related to total net O/S commitments (in basis points) 3.4 bp Credit 1.2 bp 0.7 bp 0.6 bp 0.6 bp 0.4 bp Enhancement 14 bp 8 bp 7.8 bp 7 bp 6 bp Banking 2 bp Activities 1997 1998 1999 2000 2001 H1 2002* 4 * annualized

  5. Slide 5: Key Performance indicators

    Key Performance indicators Q2 2002 Q1 2002 H1 2002 H1 2001 RWA* (Bn€) 106.4 106.2 106.4 105.0 Tier one Ratio* 9.3% 9.3% 9.3% 9.9% RORWA** 1.51% 1.62% 1.58% 1.93% ROE** 19.1% 20.1% 19.6% 20.5% Profit Margin 28.0% 31.7% 29.8% 29.6% C/I Ratio 55.8% 59.7% 57.7% 53.7% * End of period 5 ** annualized

  6. Slide 6: Public / Project Finance & Credit Enhancement

    Activity Highlights Public / Project Finance & Credit Enhancement  Production of L.T. facilities (in & off B/S)* + 43.1 % 11.5 1.5 Other (Bn €) 8.0 0.9 Public Sector 10.0 + 39.6 % 7.1 Half 2001 Half 2002 * fully consolidated Co’s ; Germany excluded ; Artesia excluded (estimation of 260 M€ for half

  7. Slide 7: Public / Project Finance & Credit Enhancement

    Activity Highlights Public / Project Finance & Credit Enhancement  L.T. Outstandings (in & off B/S)* +9.1 % +0.2 % 123.4 123.6 113.3 14.3 13.4 (Bn €) 13.8 Other Public Sector 109.1 110.2 99.5 June 2001 March 2002 June 2002 7 * fully consolidated Co’s ; Germany excluded

  8. Slide 8: Public / Project Finance & Credit Enhancement

    Activity Highlights Public / Project Finance & Credit Enhancement  New Insurance Premiums +32.4 % 280.3 (M€) 11,3 Others* 47,2 211.8 45,8 x 2.7 DVV Insurance 100.7 7,0 221,8 6,9 166,0 37.5 Sofaxis 86,8 13,9 23,6 Q2 2001 Q2 2002 H1 2001 H1 2002 8 *Dexia Prévoyance and Dexia Life and Pensions

  9. Slide 9: Public / Project Finance & Credit Enhancement

    Activity Highlights Public / Project Finance & Credit Enhancement  FSA Gross Present Value of Premiums + 28.5 % 374.7 (M US$) 84.7 291.5 + 14.4 % 49.7 139.5 199.9 174.8 118.5 61.4 Int'l 23.3 75.9 63.6 ABS 123.3 150.5 75.6 74.9 Muni H1 2001 H1 2002 Q1 2002 Q2 2002 9

  10. Slide 10: Focus on FSA: cost of risk

    Focus on FSA: cost of risk  Thorough review of CDOs and CDSs portfolio, in the context of the deterioration of corporate credit quality in the US  Identification of 7 CDO transactions (originated in 1998-1999) with insufficient protection • Present Value of potential future losses: 51 M$ • Now ful

  11. Slide 11: Retail Financial Services

    Activity Highlights Retail Financial Services + 0.4 %  Customers’ Assets - 0.6 % (Bn €) 80.7 79.8 80.1 OPC + unit linked : 24.4 25.2 - Market effect : -1.7 24.0 off B/S products - New money : +0.5 in B/S products 55.4 55.4 56.1 June 2001 March 2002 June 2002 11

  12. Slide 12: Retail Financial Services

    Activity Highlights Retail Financial Services  Credit Outstandings + 7.5 % + 2.1 % (Bn €) 21.1 21.5 20.1 6.5 6.7 6.0 SME 14.1 14.6 14.8 Personal Sector June 2001 March 2002 June 2002 12

  13. Slide 13: Retail Financial Services

    Activity Highlights Retail Financial Services  Insurance Premiums 511 (M€) 67 438 420 407 40 372 67 72 55 70 Non Life 65 46 54 55 39 79 Traditional Life 54 89 59 Assurance Life Guaranted yield (Branch 21) 349 214 209 240 224 Life Unit-linked (Branch 23) Q2 2001 Q3 2001 Q4 2001 Q1 2002 Q2 2002 13

  14. Slide 14: Investment Management Services

    Activity Highlights Investment Management Services  Private Banking / Affluent Customer Assets (Bn €) 37.3 New Money Market effect - 0.7 -2.3 34.3 March 2002 June 2002 14

  15. Slide 15: Investment Management Services

    Activity Highlights Investment Management Services  Assets under management (Bn €) New money Market effect 86.1 -0.3 -5.3 80.5 March 2002 June 2002 15

  16. Slide 16: Fund Administration

    Activity Highlights Fund Administration # of transactions # of portfolios # of transactions processed (000’s) managed (Millions) +9.9 % +3.5 +7.8 % % 137.7 1,476 +7.9% 1.36 1.36 +19.9 1.30 126.3 +10.9 % % 1,378 114.9 1,331 Q1 Q2 Q2 Q1 Q2 Q2 Q1 Q2 Q2 2002 2002 2002 * 2002 2002 2002 * 2002 2002 2002 *

  17. Slide 17: Segment contributions within Investment Management Services

    Segment contributions within Investment Management Services Private Banking Asset Fund Equity-related Total IMS (incl. share leasing) Management Administration activities (M€) Q1 2002 Q2 2002 Q1 2002 Q2 2002 Q1 2002 Q2 2002 Q1 2002 Q2 2002 Q1 2002 Q2 2002 underlying Revenues 137 133 54 48 47 50 33 3

  18. Slide 18: Focus on Dexia Bank Nederland

    Focus on Dexia Bank Nederland IMS Dexia Bank Nederland excluding Dexia Bank Nederland (M€) % % Q4 2001 Q1 2002 Q2 2002 Q4 2001 Q1 2002 Q2 2002 undelying Q2 02/Q4 01 Q2 02/Q4 01 Revenues 110 89 82 -25.5% 184 182 179 -2.7% Costs -59 -51 -47 -20.3% -133 -128 -123 -7.5% Gross Operating 51 38 35 -31.4%

  19. Slide 19: Artesia integration: Update on social negotiations

    Artesia integration Update on social negotiations  3 agreements signed allowing for the realization of expected synergies  Overall agreement : 26/03/02  Detailed agreement on the organisation of the « Employees » network : 23/05/02  Convention Collectives de Travail : 03/07/02  Rules of geograp

  20. Slide 20: Artesia integration: Impact on personnel

    Artesia integration Impact on personnel EFT reduction objective Realised 30/06/02 vs EFT headcount at 30/06/01 Head Offices -1,400 -396 Employee network -870 -100 -2,270 -496 22% realised after 12 months Evolution of FTE’s at Dexia Bank* and former Artesia 12.660 12.580 12.340 12.150 juin-01 décembr

  21. Slide 21: Artesia integration: Downsizing the branch networks

    Artesia integration Downsizing the branch networks 386 341 45 19 24 5 "Independent" branches "Employee" Network Total Realized as of August 31, 2002 Objective 2005 21

  22. Slide 22: Artesia integration: Cost synergy achievements

    Artesia integration Cost synergy achievements 30 25  11 M€ linked to staff costs 19 (M€)  8 M€ linked to other operating expenses Best Worst case case Objective full Achieved year 2002 H1 2002 22

Dexia — Q2 2002 Earnings Presentation on 6ix