Dexia Holding SA · EURONEXT:DEXB
Dexia Holding SA — Debt Investor Presentation (January 2024)
32 slides from Dexia Holding SA's debt investor presentation, January 2024
Slide 1: Dexia: Issuer with an Explicit State Funding Guarantee
Dexia Issuer with an Explicit State Funding Guarantee Fixed Income Investor Presentation – January 2024
Slide 2: Disclaimer
Fixed Income Investor Presentation 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
Slide 3: Agenda
Fixed Income Investor Group profile & State funding guarantee 1 Presentation Agenda Update on the orderly resolution 2 January 2024 Funding and liquidity 3 Appendix 4 3
Slide 4: Group profile & State funding guarantee
Fixed Income Investor 1 Group profile & State funding guarantee Presentation Overview of a Group in orderly resolution A Agenda January 2024 Pursuing the resolution beyond 2023 B 4
Slide 5: Dexia has abandoned its banking license since 1 January 2024
1. Group profile & State funding guarantee A ▪ In resolution since 2012 and detaining a banking license Dexia has until 31 December 2023 ▪ Filing of an application with the Autorité de Contrôle abandoned its Prudentiel et de Résolution (ACPR) on 4 July 2023 to abandon the credit institution licence
Slide 6: Dexia has been executing its orderly resolution plan since end of 2011
1. Group profile & State funding guarantee A Dexia has been executing its orderly resolution plan since end of 2011 31 December 2011 31 December 2023 Entry into resolution Debanking & renaming Capital increase Explicit funding guarantee Extended guarantee Mandatory divestment of commercial franchise
Slide 7: In 2012, keeping a banking license was essential to execute the ORP
1. Group profile & State funding guarantee A In 2012, keeping a banking license was essential to execute the ORP1 Avoiding any systemic risk Securing funding Dexia represented a systemic risk for European Dexia was highly dependent on Central Bank financial markets given: funding and needed to maint
Slide 8: After ten years of executing its orderly resolution plan
1. Group profile & State funding guarantee A After ten years of executing its orderly resolution plan ... … 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 deri
Slide 9: A decision that preserves Dexia's operational continuity
1. Group profile & State funding guarantee B A decision that preserves Dexia’s operational continuity 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
Slide 10: Dexia's orderly resolution after debanking
1. Group profile & State funding guarantee B A decision Streamlined Adequate funding enabling the organisation 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 L1 Dexia’s
Slide 11: Dexia's profile post-debanking
1. Group profile & State funding Guarantee B Dexia’s profile post-debanking Description and status Structure ▪ Dexia Holding, 99.6% State-owned, ceased to be a Belgian Federal State Institutional, individual through the Federal financial company under Belgian law in 2024 Holding and French State and
Slide 12: Update on the resolution
Fixed Income Investor 2 Update on the resolution Presentation A Recent developments Agenda B Evolution of the balance sheet January 2024 Portfolio breakdown and asset quality C 12
Slide 13: Recent developments
2. Update on the resolution A Recent developments Cross-border merger of Dexia and Dexia Crediop ▪ Implementation of the merger by absorption of Dexia Crediop by Dexia by September 2023, with retroactive tax and accounting effect from 1 July 2023 ▪ Local presence maintained through the establishment
Slide 14: Evolution of the balance sheet
2. Update on the resolution B Evolution of the balance sheet Indicative1 Run Off Balance Sheet For illustration purpose only (in EUR billion) ▪ Sensitivity to exogenous 181 factors, as the amount of cash collateral posted and 159 fair value items may be impacted by interest rate 120 and exchange rat
Slide 15: Portfolio breakdown and asset quality
2. Update on the resolution C Portfolio breakdown and asset quality Portfolio description Key portfolio figures1 (30 June 2023) ▪ Good asset quality overall: >90% assets within the investment Number of exposures 6,401 grade range Number of debtors 1,906 ▪ Low cost of risk: limited amount of non-perf
Slide 16: Funding and liquidity
Fixed Income Investor 3 Funding and liquidity Presentation A Funding mix and toolbox Agenda B Features of the State funding guarantee January 2024 Focus on State guarantee issuance C 16
Slide 17: Funding mix and toolbox
3. Funding and liquidity A Funding mix and toolbox ▪ Dexia has a robust and cost-efficient funding model based on diversification of: ‒ Full range of funding instruments allowing to access all liquidity sources Funding mix ‒ Currencies with strong funding franchises developed in Euro, US Dollars and
Slide 18: Features of the State funding guarantee
3. Funding and liquidity B Features of the State funding guarantee Maximum maturity of Explicit guarantee 10 years for securities First demand, unconditional, Shared 53% Belgium issued under the guarantee State guaranteed debt irrevocable (AA / Aa3 / AA-) and 47% and issuance period until rated1 AA
Slide 19: Focus on State-guaranteed issuance
3. Funding and liquidity C Focus on State-guaranteed issuance Key pillar of the funding mix Current State-guaranteed funding mix ▪ As the robustness of the explicit State guarantee has Short-term funding GBP 18% positioned Dexia as an SSA issuer, this source of funding 27% progressively became the k
Slide 20: Focus on State-guaranteed issuance – Capital market funding
3. Funding and liquidity C Focus on State-guaranteed issuance – Capital market funding Highlights Redemption profile of outstanding issuances ▪ For 2024, long term funding program of EUR 5.5 bn 9 GBP ▪ Firm anchorage in SSA landscape due to: 8 7 USD EUR – Explicit State Guarantee funding 6 – HQLA Le
Slide 21: Focus on State-guaranteed issuance – Commercial paper programmes
3. Funding and Liquidity C Focus on State-guaranteed issuance – Commercial paper programmes Highlights Outstanding by currency and initial duration ▪ Objective: managing short-term liquidity GBP [0-3m] ▪ For 2024, average outstanding targeted at EUR 11.5 bn 6% EUR 2% ▪ Frequent issuer in EUR, USD an
Slide 22: Ratings as at 2 January 2024
3. Funding and Liquidity C Ratings as at 2 January 2024 State-guaranteed debt Long term Outlook Short term “We now analyze Dexia as a nonbank financial institution (NBFI) and no longer a bank. While partially mitigated by the creation of a new Dexia surveillance body by the guarantor states and the
Slide 23: 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 24: Appendix
Appendix ETS |
Slide 25: Zoom on Dexia's funding capacity as a non-bank
Appendix Zoom on Dexia’s funding capacity as a non-bank Issuance of guaranteed debt keeping the HQLA L1 qualification Contingency buffer ▪ Dexia continues to refinance its balance sheet ▪ Dexia has constituted an additional notably through the issuance of State- contingency buffer, as it is no longe
Slide 26: Zoom on the risk management framework
Appendix Zoom on the risk management framework This system maintains three lines of defense, including compliance monitoring and AML control procedures, as well as an internal audit mechanism. It is based on a risk appetite framework (RAF) and appropriate monitoring indicators. Solvency Liquidity As
Slide 27: Zoom on the independent Surveillance Committee
Appendix Zoom on the independent Surveillance Committee An independent Surveillance Committee has taken over from the banking supervisors, particularly in terms of risk and internal control monitoring Composition Mission Dexia’s overall governance structure remains unchanged Members evenly appointed
Slide 28: 2013 and 2022 guarantee mechanism
Appendix 2013 and 2022 State funding guarantee mechanism Process Scope ▪ No acceleration of payment. Guarantee calls leading to payment ▪ Eligible financing: funding raised in the form of obligations of the States only in accordance with the normal securities and financial instruments, deposits or p
Slide 29: Dexia Group profile
Appendix Dexia Group profile ….with an extended explicit State funding guarantee granted by the Belgian and French States ▪ Explicit State guarantee granted to Dexia 1 ▪ Ceiling of EUR 75 billion in principal of which EUR 72 billion to cover the Group's debt issues and EUR 3 billion for 2 Features o
Slide 30: Disposal process
Appendix Disposal process Disposal of major franchises Status Main characteristics Dexia Bank Belgium (renamed Belfius) Closed 20/10/2011 ▪ Sale price EUR ~4 billion RBC Dexia Investor Services Closed 27/07/2012 ▪ Sale price EUR 838 million DenizBank Closed 28/09/2012 ▪ Sale price EUR 3,024 million
Slide 31: Half-year results 1H 2023 | Key figures
Appendix Half-year results 1H 2023 | Key figures Balance EUR 60.6Bn ▪ Balance sheet down by EUR -3.7 bn (-6%), driven by the reduction of the asset portfolio and the rising interest rates, mainly in sterling sheet EUR 64.3bn as at 31/12/2022 ▪ Asset portfolio at EUR 31.6 bn, of which EUR 18.3 bn in
Slide 32: Dexia: Issuer with an Explicit State Funding Guarantee
Dexia Issuer with an Explicit State Funding Guarantee Fixed Income Investor Presentation – January 2024