Dexia Holding SA · EURONEXT:DEXB
Dexia Holding SA — 9M 2009 Earnings Presentation
20 slides from Dexia Holding SA's earnings presentation, Nov 13, 2009
Slide 1: 9M & 3Q 2009 Results
9M & 3Q 2009 Results November 13, 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 Highlights 3Q 2009 Group Results 3Q 2009 Business Lines Results Conclusion Appendices 3 3Q2009 Results
Slide 4: Key Messages
Key Messages Confirmed profitability for the third consecutive quarter 3Q09 net profit of EUR 274 m vs 3Q08 net loss of EUR -1,544 m 9M09 net profit of EUR 808 m vs 9M08 net loss of EUR -723 m Aggregate profitability of core businesses improved Aggregate net profit of EUR 316 m in 3Q09 vs EUR
Slide 5: 9M & 3Q 2009 Results Highlights
9M & 3Q 2009 Results Highlights (EUR m) 9M08 9M09 Three consecutive positive quarters in Income 3,805 4,712 9M09 totalling EUR 808 m vs a loss of EUR -723 m in 9M08 Expenses -2,942 -2,687 Gross operating income 863 2,025 3Q09 net profit of EUR 274 m after Cost of risk & impairments -1,866 -872 EUR -
Slide 6: Core Businesses Results
Core Businesses Results Aggregate profitability of core businesses increases P&L of Core Businesses* (EUR m) 3Q08 2Q09 3Q09 % yoy % qoq 9M08 9M09 % yoy Income 1,025 1,286 1,312 28.0% 2.0% 3,817 3,802 -0.4% Expenses -869 -781 -784 -9.8% 0.4% -2,489 -2,335 -6.2% Gross operating income 156 505 528 x3.4
Slide 7: Focus on Revenues
Focus on Revenues Quarterly evolution of revenues mainly coming from Group Center 3Q09 revenues 17% below 2Q09, largely Evolution of Group revenues due to the Group Center (EUR 298 m EUR m quarterly decline) Group Center revenue decline reflects lower 4,712 atypical items in 3Q09* and the natural lo
Slide 8: Focus on Costs
Focus on Costs Cost reduction program on track Evolution of costs* EUR 39 m restructuring charge in 3Q09 related to the measures announced on EUR m September 25, 2009 Excl. restructuring charges, 9M09 costs are EUR 244 m below 9M08 Excluding restructuring charges, 3Q09 costs 181 49 are down by 10% y
Slide 9: Focus on Cost of Risk
Focus on Cost of Risk Low cost of risk in 3Q09 Cost of Risk for the Group* Significant collective impairments in 2Q09 and at end 2008 EUR m 3Q09 moderate risk charge in core 947 businesses PWB 817 PWB: 5 bps on average commitments RCB RCB: 75 bps on average loans AMS EUR 59 m reversal of impairm
Slide 10: Refocus on Core Client Franchises: Public & Wholesale Banking
Refocus on Core Client Franchises Public & Wholesale Banking Loan production EUR bn Significant reduction of loan production in 45 9M09 in line with PWB’s refocus on core markets 24 Margins on new loans match Dexia’s increase 8 cost of funding 21 1 7 Revenues decrease mitigated by cost 9M08 9M09 red
Slide 11: Refocus on Core Client Franchises: Retail & Commercial Banking
Refocus on Core Client Franchises Retail & Commercial Banking RCB activity EUR bn 79 80 EUR 7.3 bn increase in deposits YTD (EUR 73 1.5 bn in 3Q09), driven by Belgium and Turkey 50 50 49 Turkey highlights: Loan / Deposit ratio at 124% vs. 146% at end- 2008 Number retail clients: +16% yoy at 2.7
Slide 12: Refocus on Core Client Franchises: Asset Management & Services
Refocus on Core Client Franchises Asset Management & Services Evolution of assets Asset management 2.3 Continued growth in AUM (+7% qoq) 2.0 24% quarterly rise in revenues driven by performance and management fees; continued strict cost control 77.1 82.6 Ongoing simplification of product range
Slide 13: Balance Sheet Deleverage
Balance Sheet Deleverage EUR 13 bn sales of bonds & loans in 9M09 Bond portfolio in run-off EUR 19 bn reduction in bond portfolios in EUR bn EUR -19bn run-off in 9M09 EUR 11.3 bn net bond sales in 9M09, of which EUR 4.7 bn in 3Q09 P&L impact of EUR -69 m in 9M09 of 158 157 which EUR -43 m in 3Q0
Slide 14: Improvement of Group's Liquidity
Improvement of Group’s Liquidity EUR 44 bn Long Term funds raised YTD No new government guaranteed Long-term funds raised YTD benchmark issued since May 2009 EUR bn 44 EUR 12.4 bn covered bonds issued, 41 of which EUR 3.3 bn in 3Q09 34 9.1 7-year EUR 1 bn Obligations Foncières 7.6 49% non guarante
Slide 15: Improvement of Group's Liquidity: Short Term
Improvement of Group’s Liquidity Better Short Term liquidity profile Rebased on 100 110 Overall decrease of short term funding 100 need 90 Total short Improvement of Short Term liquidity profile term funding of the Group thanks to: 80 Access to repo funding, back to pre-crisis 70 levels 60 Impro
Slide 16: Improvement of Group's Liquidity: Guaranteed Debt
Improvement of Group’s Liquidity EUR 33 bn decrease of guaranteed debt vs. peak Decrease of guaranteed debt Guaranteed debt outstandings outstandings EUR bn Orderly exit of contracts below 1 Peak: EUR 95 bn month from the guarantee on New Cap 100 October 16th, 2009* Currently EUR 33 bn down from
Slide 17: AFS Reserve
AFS Reserve EUR 2.3 bn reduction of negative AFS reserve Evolution of AFS reserve Year to date, the negative AFS decreased by EUR 4.7 bn EUR bn In 3Q09, the negative AFS reduction 31/03/09 30/06/09 30/09/09 was EUR 2.3 bn, of which EUR 1.9 bn for the “non-frozen” part Frozen Frozen Frozen AFS The no
Slide 18: Solvency
Solvency Tier 1 of 11.8%; Core Tier 1 of 10.8% Risk Weighted Assets Tier 1 ratio & core Tier 1 ratio EUR bn 152.8 153.3 148.6 14.5% 10.3 10.3 144.8 3.1 3.8 10.3 10.3 129.4 2.9 11.3% 11.8% 2.5 10.6% 10.7% 9.1 5.7 139.5 139.2 135.4 13.4% 132.1 114.6 9.8% 10.4% 10.8% 9.6% 30/09/08 31/12/08 31/03/09 30/
Slide 19: Ongoing discussions on Dexia's restructuring plan
European Commission Ongoing discussions on Dexia’s restructuring plan The results of Dexia’s restructuring plan are being discussed with the EC Amended State guarantee scheme on funding authorized by the EC until end of February 2010, subject to prior undertakings by Dexia (valid for the same 4
Slide 20: Conclusion
Conclusion Results on Dexia’s restructuring plan are being delivered, with an acceleration over recent quarters The trend in revenues reflects a rapid improvement of the Group’s liquidity as well as a normalisation of financial markets The Group will fully exit from the State guarantee on fund