General Presentation
Transcript of General Presentation
World Leader of Public Finance
General Presentation
June 2005
2
Contents
! Dexia within the local public finance market
! Group financial performance and targets
! Business lines
! Appendices
Part One
Dexia within the local public finance market
4
The main markets of local public finance
Outstanding debt 2003 1,240 Bn€ 514 Bn€ 1,473 Bn€
Method of financing Bond market
Mainly Bank Loans
Bond market and Bank loans
Annual expected future growth rate
4.5 % 1.5 % 4.5 %
5
The playersThe local public finance market
Domestic savingsbanks
L.T. lending institutions
Arrangers
Bond insurers
Disintermediated(Munic ipal bond market)
Intermediated
Liability-driven Asset-driven
Dexia Bank Dexia Crédit Local
Investors
Dexia Public Capital Markets
Dexia Municipal Agency (DMA)Dexia Hypothekenbank Berlin (DHB)Dexia CrediopDexia New York…
6
Market constituents and clients’ needs
Market constituents
! Municipalities
! Regions
! Social housing institutions
! Health care institutions
! Schools / universities
! Charities
! Project Finance structures
Clients’ needs
! Funding
! Long-lasting relationship
! Assistance to Financial/budget management
! Access to capital markets solutions
! Optimisation of debt and cost of debt
! Public/private partnership
7
Dexia is the only global player to offer full range of products/services to the local public sector
Local public sector
Local public Local public sectorsector
Project Financing
Insurance Services
Debt Management
Structured Loans
Long term Loans
Capital MarketsSolutions
Credit Enhancement
Asset Management
Payment services / Short term lendings
8
5980
27
12
1996 1997 1998 1999 2000 2001 2002 2003
Dexia outperformed the market in Europe
1996 1997 1998 1999 2000 2001 2002 2003
Europe
514 Bn€451 Bn€
CAGR: +1.9% p.a. 107 Bn€
72Bn€
CAGR: +5.9% p.a.
Grou p
+4.4% p.a.
+11.7% p.a.
Local authorities* Other local players
* Subsovereign borrowers, excluding the German Länder
Local authorities*
Long-term loans outstanding
9
Key business model features
! Solvency of borrowers" Low risk asset weighting" Narrow margins" Low cost of risk
! Long-term" Annuity building business" Low revenue volatility
! Importance of funding" High credit ratings needed
! Differential advantages" A “volume” business " Innovation: new products successfully marketed in a country can be exported to others
10
A different business model
1,000
4
342
42
622
587
91
1,000
559
1.000
22
211
59
964
959
63
1.000
630
Net income before minorities
Cost of risk
Costs
Revenues (1,000 basis)
Non performing loans
Shareholder Equity
Customer deposits
Risk-weighted assets
Customer loans (1,000 basis)
Dexia Group of the 29 first European banks
Data: FY 2004 results
B/S
P&
L
11
Profit margin *
* Profit Margin : Net income before minority interests / Total revenue** Banking activ ities only
Ranking in term of market capitalization as of May 27th, 2005 / Data 2004, except for Bank of Ireland (Sept. 04)
-25.0% -15.0% -5.0% 5.0% 15.0% 25.0% 35.0%
Den DanskeBank of Ireland
DexiaNordea
Banco PopularAIB
HBOSBBVA
Standard Chartered KBC
BNP ParibasLloydsHSBC
BarclaysFortis **
Average of 30 BanksUnicreditoABN AmroSantander
SocGenUBS
RBOSIntesa
ING Groep**CA SASP IMI
Bank Austria CreditanstaltCrédit Suisse
Deutsche BankAllianz (Banking
HVB Group
23 %
34 %
Average of 30 Banks
Dexia
12
History:In 1996 CCB and CLF combined into Dexia
Crédit local de France (CLF)
LT bond
issues
LT lendingsto local public
authorities
(52 Bn€)
Bond portfolio
assets liabilities
Retail
customer
deposits
(66 Bn€)
Lendings to local public authorities
Retail loans
Bond portfolio
assets liabilities
+ BILPrivate Banking
Asset Management
Fund Administration
Crédit Communal de Belgique (CCB)
Net combined income 1996: 481 M€12
13
Dexia primary franchise …
LiabilitiesAssets
High grade bond funding 128 Bn€Institutional client deposits 52 Bn€Retail/Private Banking deposits 65 Bn€
Public/Project Finance credit o/S 212 Bn€
Credit Enhancement 326 BnUS$(FSA)
Asset Management 72 Bn€
Aggregate amounts at Dec. 31, 2004
14
53%
14%
22%
11%
Business portfolio
Pie chart represents segment contributions to the underlying net income – Group share in 2004 (i.e. excluding nonrecurring items & central assets), with changes in Business Lines segmentation* i.e.under EU GAAP without IAS 32 & IAS 39 and IFRS 4
Net income - Group share* FY 2004 : 1,822 M€
Public/Project Finance & Credit Enhancement
Investment Management and Insurance Services
Personal Financial Services
Treasury andFinancial Markets
Part Two
Group financial performance and targets
16
1.92
1.441.241.13
1.251.15
0.980.85
0.750.66
1996 1997 1998 1999 2000 2001 2002 2003 2004 2007
A double digit growth of the Earnings Per Share
1.63
2.02
(1) Excluding nonrecurring items(2) Without IAS 32 & 39 and IFRS 4
Objective
CAGR:+ 12.0 % p.a.
CAGR:+ 12.0 % p.a.
CAGR “UNDERLYING” :+ 10.1 % p.a.
CAGR “UNDERLYING” :+ 10.1 % p.a.
Reported Earnings per Share (in Eur)
(1)
(1)
(2)
EU GAAP Dexia GAAP
17
Dividend Per Share
0.390.43
0.48 0.480.53
0.62
0.320.36
0.310.26
1997 1998 1999 2000 2001 2002 2003 2004
CAGR:+11.5 % p.a.
CAGR:+11.5 % p.a.
Dexia BelgiumDexia France
Dexia
+ 17.0%+ 17.0%
Gross Dividend (in Eur)
18
MIDTERM TARGET
9.3% 9.9%10.7%
9.6%
2002 2003 2004 Q1 2005
MIDTERM TARGET
ROE and Tier 1 ratioTi
er 1
rat
ioR
OE
* core ROE i.e., equity without AFS and CFH reserves
EU GAAP Dexia GAAP
EU GAAP* Dexia GAAP
18.7%19.8%
16.5%16.2%
12%
14%
16%
18%
20%
2002 2003 2004 Q1 2005
19
Return on risk-weighted assets (RORWA)*
1.50%1.40%
1.76%
1.32%1.23%
1.50%1.30%
1.01%
0%
1%
2%
2001 2002 2003 2004
Dexia Peer group**
* The ratio between the net income including minority interests and the average risk-weighted assets** Peer Group: Abn-Amro, Barclays Bank, HVB Group, BBVA, BNP Paribas, Crédit Lyonnais then CA SA,
Deutsche Bank, Allianz (Banking activities), Fortis, KBC, ING Groep, Lloyds TSB, Nordea, Société Générale, SP IMI (estimates)
*** FY 2004 data for Peer Group Source Company Reports
20
59.0 58.9 59.2
55.954.0
52.6
2001 2002 2003 2004 Q1 2005 2007
Cost/income ratio (%)
Objective
* Excluding nonrecurring items
*
under Dexia GAAP under EU GAAP
*
21
Cost of risk related to total net O/S commitments (in basis points)
For Credit Enhancement activities, Cost of Risk relates to net par outstanding insured
* Excluding impact of charges for Legio Lease at Dexia Bank Nederland
6.47.8
2.2
6.6
12.2
9.8
5.7
1.80.8
1997 1998 1999 2000 2001 2002 2003 2004 Q1 2005
1.20.4 0.7 0.6 0.6
2.5
1.20.6 0.5Credit
enhancement
Banking activities
*
*
*
**
22
Summary of P&Lunder EU GAAP (IFRS as endorsed by EU Commission)
(M€)
2004 (1)
Q1 2004 (1) Q1 2005 ∆ Q1 04/ Q1 05
Evolution of underlying (2)
Income
5,629 1,458 1,453 - 0.3% + 5.1%
Costs
- 3,064 -743 - 773 + 4.1% + 5.9%
Gross operating income
2,565 715 680 - 4.9% + 4.1%
Cost of risk
- 226 - 14 - 90 x 6.6
Tax expense
- 429 - 150 - 101 - 33.0%
Other items -88 - 32 - 14 n.s.
Net income – Group share
1,822 519 475 - 8.6% + 12.0%
(1) Without IAS 32 & IAS 39 and IFRS 4(2) Based on pro forma accounts, excluding nonrecurring items
Part Three
Business lines
# Public/Project Finance and Credit Enhancement
# Personal Financial Services
# Investment Management and Insurance Services
# Treasury and Financial Markets
Public/Project Finance & Credit Enhancement
• Municipal Finance• Project Finance• Corporate Lending• Credit Enhancement (FSA)
24* Excluding nonrecurring items
This business line covers:
53%Underlying* net income FY 2004: 884 M€
Q1 2005: 238 M€
2004
Geographical origin of the net income*
* Underlying net income in 2004
• Long and short-term
financing to the public sector
• Other financial services to the
public sector
• Project Finance and
Corporate Lending
Dexia NY
• Liquidity facilities
• Project Finance
• Bond portfolio
FSA
• Credit Enhancement – Muni
• Credit Enhancement – ABS
Other (mainly Europe)
16%
FSA28%
America 6%
France + Benelux
50%
Other (mainly Europe)
16%
FSA28%
America 6%
France + Benelux
50%
25
A robust “single-digit” revenue growth
1,7161,793
1,8772,043
634724 790
884
2001 2002 2003 2004
RevenueNet income - Group share
(M €)
26
under EU GAAP under Dexia GAAP
79.3 80.3 82.2 85.5
54.5 65.7 71.480.7
17.421.1
24.126.8
2001 2002 2003 2004
America
Other countries
France + Belgium
Growth of outstandings stems mainly from new markets…
CAGR 2001-2004
+15.5%
+14.0%
+2.6%
+8.5%
(Bn€)Long-Term outstandings
151.2
177.7193.0
167.1
27
58.3 58.6 58.8 60.6
14.1 14.8 16.7 19.26.9 6.9 6.7
5.8
2001 2002 2003 2004
Corporate andProject Finance
Other local players
Local Authorities
… and from “other local players” in historic markets(France & Belgium)
CAGR 2001-2004
+10.8%
+1.3%
(Bn€) +2.6%
- 5.9%
Long-Term outstandings
79.3 82.285.5
80.3
28
103133
165187
87
86
98
95
8
3
5
6
32
38
34
25
2001 2002 2003 2004
International asset-backed obligations
International municipal obligations
U.S. asset-backed obligations
U.S. Muni obligations(Bn US$)
294
CAGR 2001 - 2004
+43.6%
+4.1%
+22.1%
+14.5%+9.4%
217
266
326
FSA’s credit enhancement: a high growth business Net par outstanding
29
CAGR 1999-2004*
ABV: 16.7%BV: 15.8%
$20
$30
$40
$50
$60
$70
$80
$90
$100
$110 post-mergerpre-mergerAdjusted book value
19991994 199719961995 1998 20032000 2001
Book value
* Growth rates include dividends
$ perShare
2002 2004
Adjusted book value (ABV) per share of $110.90 at December 31, 2004 = Book value of $76.76 + after-tax net deferred premium revenue, net of deferred acquisition cost, of $21.25 + PV of future installment premiums and net interest margin of $13.83 – fair-value adjustments for insured credit default swaps of $.94.
Since the merger with Dexia, FSA’s adjusted book value has grown at a high double digit rate
30
Public/Project Finance & Credit EnhancementUnderlying* P&L
(M€)
Full Year 2004**
Q1 2005
Income
2,043 539
Costs
- 693 - 180
Gross operating income
1,351 359
Cost of risk
- 30 + 1
Tax expense
- 394 - 113
Other items - 43 - 9
Net income – Group share
884 238
Cost-income ratio
33.9%
ROEE***
22.8%
* Based on pro forma accounts; excluding nonrecurring items; under EU GAAP (IFRS as endorsed by EU Commission)** Without IAS 32, IAS 39 and IFRS 4*** Return on economic equity = net income – Group share / allocated equity
31
Development largely driven by organic growth
Based on
leading to
High single digit annual growth of Underlying Gross Operating Income*
Public/Project Finance & Credit EnhancementStrategy and outlook
InnovationInnovation
Broadening of client baseBroadening of client base
Geographic expansionGeographic expansion
32* Objective of the 3-year plan 2004-2007 disclosed at Investor Day 11.02.05
* Excluding nonrecurring items
22% Underlying* net income FY 2004: 372 M€
Q1 2005: 101 M€
33
• Retail banking• Private banking
Personal Financial Services
2004
This business line covers:
Dexia : a key player in asset gathering,mainly in Belgium and Luxembourg
55.8
8.2
6.1
18.0
55.6
2.5
81.2
38.4
Volumes outstanding in Bn€, at 31/03/2005
Life insurance technical reserves
Off-balance sheet products (Mutual funds, direct securities, …)
Balance Sheet products (Deposits, savings bonds, …)
Loans to retail customers
Loans to professionals & SME’s
Loans to private banking customers
119.6
26.7 Retailbanking
Privatebanking
of which
34
An on-going shift from B/S products towards non B/S products in retail customers assets
43 43 44 4556 55 56 57
15
24 24 2631
146
10
1997 1998 1999 2000 2001 2002 2003 2004
Volumes outstanding in Bn€
4953
57 59
82
Dexia Bank alone Dexia Bank + Artesia
Off-balance Sheet products (Mutual funds, Life insurance,…)
Balance Sheet products (Deposits, Savings Bonds, …)
80 79
88
35
12%
35%
Domestic market shares in Belgium (at Dec. 2004)
Savings bonds Savings accounts Mutual funds
Mortgages Consumer loans
Dexia market share: 23.0% 16.2% 19.6%
15.3% 18.3%Dexia market share:
36
Personal Financial ServicesStreamlining the branch network after acquiring Artesia in 2001
543
940
299
868
2001 2002 2003 2004 March 2005
Employee network Independent agents network
1,483
1,167
37
-21%-21%
Number of branches in Belgium
Personal Financial ServicesUnderlying* P&L
38
* Based on pro forma accounts; excluding nonrecurring items; under EU GAAP (IFRS as endorsed by EU Commission)** Without IAS 32, IAS 39 and IFRS 4*** Return on economic equity = net income – Group share / allocated equity
(M€)
Full Year 2004**
Q1 2005
Income
2,164 547
Costs
- 1,577 - 393
Gross operating income
586 154
Cost of risk
- 35 - 9
Tax expense
- 180 - 44
Other items + 1 0
Net income – Group share
372 101
Cost-income ratio
72.9 %
ROEE***
21.7 %
Personal Financial ServicesStrategy and outlook
39* Objective of the 3-year plan 2004-2007 disclosed at Investor Day 11.02.05
! Finalize the integration of Artesia, and the restructuring of the distribution networks in Belgium
! Deploy commercial action in Belgium - increase wallet-share
! Fully exploit the synergies between Retail and Private Banking
leading to
Annual growth of underlying Gross Operating Income in excess of 10%*
Underlying Cost/Income Ratio down from 73% in 2004 to 68% in 2007
* Excluding nonrecurring items
11%
Underlying* net income FY 2004: 179 M€
Q1 2005: 58 M€
40
• Asset Management• Fund Services• Insurance
Investment ManagementAnd Insurance Services (IMIS)
2004
This business line covers:
32%
38%30%
Investment Management and Insurance Services
Insurance
AssetManagementFund
Services
Underlying* Gross operating income FY 2004: 251 M€
* Excluding nonrecurring items
Underlying* Gross operating income 2004
41
39.8 43.449.3 53.3
4.0
3.83.7
11.2
14.9
18.418.7
4.1
2002 2003 2004 Q1 2005
Institutional mandates
Private clients discretionarymandates
Mutual funds (ret & instit.)
Dexia Asset Management
55.1
(Bn€)
62.2
Assets by type of management
71.5
42
75.7CAGR
+ 15.1%
167
152
153
202
382
403
Custody Central Administration Transfer Agent
Capital managed at end of period (Bn€)
Net Asset Valuations (x 1000)
March 2004
March 2005
March 2004
309
363
Q12005
March 2005
Q12004
Assets managed end of period (Bn€)
Other*
Mandates to DFS
320354
! Fund services
* Dexia-BIL group only; excludes other units of Dexia
Investment Management and Insurance Services
43
1,4732,046
2,606
281
317
397
2002 2003 2004
Non life
Life
! Insurance premiums
(M€)
Investment Management and Insurance Services
PPF14 %
IMIS8 %
PFS78 %
3,003
44
of which
2,363
1,754
* *
* As previously published for the first and second business lines and excluding direct business of IMS (previous segmentation)
45
Investment Management and Insurance ServicesUnderlying* P&L
(M€)
Full Year 2004**
Q1 2005
Income 630 168
Costs
- 379 - 98
Gross operating income 251 69
Cost of risk
- 1 0
Tax expense
- 63 - 10
Other items - 9 - 1
Net income – Group share
179 58
Cost-income ratio 60.1 %
ROEE***
24.7 %
* Based on pro forma accounts; excluding nonrecurring items; under EU GAAP (IFRS as endorsed by EU Commission)** Without IAS 32, IAS 39 and IFRS 4*** Return on economic equity = net income – Group share / allocated equity
Investment Management and Insurance ServicesStrategy and outlook
! Asset Management! Target strong growth of assets
! Fund Services! Continue to develop Luxembourg and international operations! Keep on improving productiv ity
! Insurance! Develop Life Insurance activities! Pursue the reorganisation of the activ ity
Leading to
Annual growth of underlying Gross Operating Income in excess of 10%*Further improvement of the underlying C/I Ratio
46* Objective of the 3-year plan 2004-2007 disclosed at Investor Day 11.02.05
47
Public/Project Finance
Personal Financial Services
Investment Management andInsurance Services
* Excluding FSA (credit enhancement) and Dexia Sofaxis (specialist brokerage)
51% 5%
44%
Underly ing in M€
Insurance Activities* at Group level:Contribution of the Business Lines to the Revenues
Q1 2005 revenues from Insurance: 115 M€
Treasury and Financial Markets
* Excluding nonrecurring items
14%
Underlying* net income FY 2004: 231 M€Q1 2005: 82 M€
48
2004
Treasury and Financial MarketsMissions and key figures
! Missions! Long and short-term funding
! Liquidity
! Financial markets desks (Foreign Exchange, Financial Engineering and Derivatives, fixed income…)
! Key figures! L.T. debt issued in 2004: 29 Bn€
! CSP outstanding at 31/12/04: 44 Bn€
! S.T. debt outstanding at 31/12/04: 24 Bn€
! Q1 2005 underlying net income – Group share stems from:! Credit Spread Portfolio: 54 %
! Money Market activities: 24 %
! Financial Derivatives: 11 %
! Other activities (securitization, fixed income, …): 11 %49
Treasury and Financial MarketsUnderlying* P&L
(M€)
Full Year 2004**
Q1 2005
Income
449 138
Costs
- 163 - 42
Gross operating income
287 95
Cost of risk
+ 20 + 1
Tax expense
- 73 - 13
Other items - 2 - 1
Net income – Group share
231 82
Cost-income ratio
36.2 %
ROEE***
25.9 %
50* Based on pro forma accounts; excluding nonrecurring items; under EU GAAP (IFRS as endorsed by EU Commission)** Without IAS 32, IAS 39 and IFRS 4*** Return on economic equity = net income – Group share / allocated equity
! Develop, through permanent innovation, the offer of Market products
to the commercial Business Lines and Group Treasury Functions
! Support the growth of Group’s balance sheet
! Optimize the use of allocated equity by maintaining a cautious
risk/return balance
Leading to
Mid single digit annual growth of Gross Operating Income*
Treasury and Financial Markets Strategy and outlook
51* Objective of the 3-year plan 2004-2007 disclosed at Investor Day 11.02.05
Appendices
53
Stock Performance
Stock Performance of Dexia from January 2, 2004
12 €
13 €
14 €
15 €
16 €
17 €
18 €
19 €
2/01
/200
4
16/0
1/20
04
30/0
1/20
04
13/0
2/20
04
27/0
2/20
04
12/0
3/20
04
26/0
3/20
04
9/04
/200
4
23/0
4/20
04
7/05
/200
4
21/0
5/20
04
4/06
/200
4
18/0
6/20
04
2/07
/200
4
16/0
7/20
04
30/0
7/20
04
13/0
8/20
04
27/0
8/20
04
10/0
9/20
04
24/0
9/20
04
8/10
/200
4
22/1
0/20
04
5/11
/200
4
19/1
1/20
04
3/12
/200
4
17/1
2/20
04
31/1
2/20
04
14/0
1/20
05
28/0
1/20
05
11/0
2/20
05
25/0
2/20
05
11/0
3/20
05
25/0
3/20
05
8/04
/200
5
22/0
4/20
05
6/05
/200
5
20/0
5/20
05
average Dexia EuroStoxx Banks EuroStoxx50
2004 2005
27/0
5/20
05
54
Total shareholder return
2,143 2,049 2,013
2,816
3,265
CAC 40 EuroStoxx50 BEL 20 EuroStoxxBanks
Dexia
Value in € at 27/05/2005 of 1,000 € invested*
1,4751,221
1,100908987
CAC 40 EuroStox x50 BEL 20 EuroStox xBanks
Dexia
on November 20, 1996(day before creation of Dexia)
on September 19, 1999(day before merger Dexia France and Dexia Belgium)
* With dividends reinvested, calculated with Dexia share at 17.84 €
55
Dexia ranking in Euroland (market capitalisation)
27/05/2005 (Bn€)1 SANTANDER Central Hispano 57,82 ING Groep 50,03 BNP Paribas 49,74 BBVA 42,65 ALLIANZ DRESDNER 36,46 SOCIETE GENERALE 36,17 ABN AMRO 34,68 DEUTSCHE BANK R 34,09 CREDIT AGRICOLE 30,910 FORTIS 28,611 UNICREDITO ITALIANO 26,012 KBC GROUPE 23,513 INTESA BCI 21,814 NORDEA 21,215 DEXIA 19,516 SAN PAOLO IMI 16,517 BAYERISCHE HYPO & VEREINSBANK 14,918 ALLIED IRISH BANKS 14,619 BANK OF IRELAND 12,120 BCO POPULAR ESPANOL 11,821 BANK AUSTRIA CREDITANSTALT 11,6
56
Main stock indexes including the Dexia stock
$ Euronext 100$ CAC 40$ BEL 20$ Dow-Jones Stoxx & EuroStoxx
$ FTSE Eurotop 100$ FTSEurofirst80$ MSCI $ Next CAC 70
$ Dexia is also included in 4 “Sustainable Growth” indexes: $ DJ Sustainability Index “World”, $ ASPI Eurozone, $ FTSE 4 Good “Europe” and “Global” $ Ethibel Sustainability Index (ESI) “Europe” and “Global”
57
Shareholders’ base at May 11, 2005
9.7%
16.5%
16.2%
6.8%5.0%
0.1%
45.8%
Arcofin
Holding Communal
Groupe CDC (incl. CNP)
Ethias
Staff and Management
Treasury Shares
Others
Total number of shares outstanding: 1,093,374,501(1)
(1) after cancellation of 51,886,865 shares on May 11, 2005(2) Data March 31, 2005
(2)
(2)
(2)
(2)
(2)
58
Credit ratings of main subsidiaries
S&P Moody’s Fitch
Dexia Crédit Local AA Aa2 AA+
Dexia Bank Belgium AA Aa2 AA+
Dexia BIL AA Aa2 AA+
Dexia Municipal Agency AAA Aaa AAA
FSA AAA Aaa AAA
59
New segmentation as from January 1, 2005
Retail
Private Banking
Retail Financial Services becomes
Personal Financial Services
(PFS)
CentralAssets
Treasury and Financial Markets
(TFM)
Investment Management
Services becomes
Investment Management and
Insurance services (IMIS)
Asset Management
Fund Administration
Insurance
Public/Project Finance
CreditEnhancement
Public & ProjectFinance(PPF)
CSP
MM
Others
% FED% Forex% Fixed income% Securitization% Equity Related Services
Share-Leasing (DBNL)
60
New accounting standards: IFRS
& Starting equity base at 01.01.05 increases by 1.9 Bn€ to 12.4 Bn€ at 01/01/05, mainly due to
& GBBR
& Impact of IAS 32 & IAS 39 & IFRS 4
& Use of European Hedge Portfolio (« Carve-out ») allows no radical change in ALM policies and procedures, and should not materially changevolatility of earnings from 2005 onwards
& Some activities will generate some « accounting noise »
' CDS’s at FSA in the P&L
' Some Treasury and Financial Market mostly in the Reserves
& New calculation of Regulatory Capital Ratios lead to tier 1 ratio of 9.6% (at 31/03/05).
61
Economic Capital: a new method implemented in 2005
8.58.78.8
+2.0
+0.6
-2.7
10.6
0.911.5
Basel I « Cooke »
8%
CurrentRegulatory
capital
Total reg. Capital
Basel II Net impact of other risks**
Basel IIPillar 1
(at Dexia IC*)
Basel IIPillar 1
(all Pillar 1 risks
included)
(Bn€)
* IC: 99.97%**Insurance; business; behavioral; diversif ication impact deducted
The amount of economic capital may change from time to time
with continuing refinements of the risk measurement methodology
Economic Capital
!
Economic Capital
Tier One Capital
30/06/04 31/03/05
62
Contacts
Robert BoublilDirector of Investor Relations
Peter de Baere (Brussels)Tel: +32 2 213 57 46Fax: +32 2 213 57 80
Anne Garsoux (Brussels)Tel: +32 2 213 57 49Fax: +32 2 213 57 80
Investor Relations Officers:
Christian Daumann (Paris)Tel: +33 1 43 92 82 54Fax: +33 1 43 92 71 07
Jim Root (Paris)Tel: +33 1 43 92 83 93Fax: +33 1 43 92 71 07