Annual report 2008 DEXIA BANK BELGIUM Contents 2008 2008

Group profile 2

Key figures for Dexia Bank Belgium 4

Management report 7

Consolidated financial statements 29

Non-consolidated financial statements 147

Additional information 208

Annual Report 2008 – Dexia Bank Belgium 1

Group profile

Dexia is a European bank, with 36,760 members of staff and This business line also includes asset management and investor a core shareholders’ equity of EUR 17.5 billion as of Decem­ services activities. Dexia Asset Management had EUR 79 billion ber 31, 2008. Dexia Group focuses on Public and Wholesale of assets under management as of December 31, 2008. The Banking, providing local public finance actors with comprehensive investor services business is conducted by RBC Dexia Investor banking and financial solutions, and on Retail and Commercial Services, a joint venture with Royal Bank of Canada, which Banking in Europe, mainly Belgium, Luxembourg and Turkey. offers its expertise in global custody, fund and pension adminis­ tration and shareholder services to institutions around the world. Total assets under custody amounted to USD 1.9 trillion as of December 31, 2008. Business lines

1. Public and Wholesale Banking Ratings

As a consequence of the transformation plan initiated by Dexia in November 2008, the Public and Wholesale Banking The Group’s main operating entities – Dexia Bank Belgium, business line has been revisited in order to take into account Dexia Crédit Local and Dexia Banque Internationale à Luxem­

the current market environment. It will focus on markets bourg – are rated AA- by Fitch, A1 by Moody’s and A by report management combining strong commercial franchises, a long-term funding Standard & Poor’s. Three of Dexia’s European subsidiaries capacity and potential for profitable growth. issue Triple-A rated secured bonds.

The commercial franchises in France, Belgium, Luxemburg, d

Italy and the Iberian Peninsula have been confirmed and these ate markets will remain core markets for Public and Wholesale d Banking. Dexia will maintain a presence in Germany, Japan and Switzerland to retain platforms for access to funding sources.

The activities in the United Kingdom and in the United States consoli will be significantly reduced. financial statements financial The ongoing financial crisis does neither question our clients’

solvency nor their financing needs. And Dexia remains – on its d core markets – a major player in public and infrastructure finance,

the financing of the health and social housing sectors, and ate d social economy.

Its strategy in this field is aiming at strengthening the range of products and services to customers. This approach, which is already largely effective in Belgium, will enable the Group to

go beyond its role of specialist lender in order to offer a better non-consoli service to a broader customer base. statements financial

2. Retail and Commercial Banking

Dexia is a leading European bank, ranking among the three major banks in Belgium and Luxembourg and holding a strong position in Turkey. It is also present in Slovakia. The bank is offering a wide range of retail, commercial and private banking services as well as insurance products to more than six million customers.

Annual Report 2008 – Dexia Bank Belgium 3 Key figures for Dexia Bank Belgium

consolidated STATEMENT OF INCOME – KEY FIGURES 31/12/07 31/12/08 r Evolution (in millions of EUR) 2007/2008

Income 2,884.9 1,702.6 (1,182.3) -41.0% Expenses (1,747.8) (1,790.8) (43.0) +2.5%

Gross operating profit 1,137.1 (88.2) (1,225.3) -107.8%

Cost of risk (60.1) (558.8) (498.7) +830.3%

Net income – Group share 1,032.0 (573.9) (1,605.9) -155.6%

KEY RATIOS

Profit margin(1) 36.0% -35.3% -71.3% Cost-income ratio(2) 60.6% 105.2% +44.6% Return on equity (ROE)(3) 22.5% -9.7% -32.2% management report management KEY RATIOs – underlying

(2)

Cost-income ratio 63.3% 105.1% +41.8% d ate d consoli financial statements financial

d ate d non-consoli financial statements financial

(1) The ratio between the net income and the income. (2) The ratio between the expenses and the income. (3) The ratio between the annualized net income – Group share and the weighted average of core shareholders’ equity (estimated dividend for the period deducted).

4 Dexia Bank Belgium – Annual Report 2008 consolidated BALANCE SHEET – KEY FIGURES 31/12/07 31/12/08 r Evolution (in millions of EUR) 2007/2008

Total assets 264,698 263,093 (1,605) -0.6%

Of which Loans and advances to customers 80,206 103,520 23,314 +29.1% Loans and securities 80,673 53,614 (27,059) -33.5%

Total liabilities 259,312 259,581 269 +0.1%

Of which Customer borrowings and deposits 76,079 69,815 (6,264) -8.2% Debt securities 26,820 17,349 (9,471) -35.3%

Total equity 5,386 3,512 (1,873) -34.8%

Of which report management Core shareholders’ equity 5,430 6,855 1,425 +26.2% Total shareholders’ equity 5,199 3,474 (1,725) -33.2%

EQUITY RATIOS Basel I(1) Basel II(2) d

ate

Tier 1 ratio 8.1% 12.9% +4.8% d Capital adequacy ratio 9.4% 14.7% +5.3% Risk-weighted assets 62,373 51,805 (10,568) consoli

Ratings Dexia Bank belgium statements financial Long term Outlook Short term

d

Fitch AA- Stable F1+ ate

Moody’s A1 Negative P-1 d Standard & Poor’s A Stable A-1 DBRS AA (low) Negative trend R-1 (middle)

Dexia Bank Belgium is rated AA- outlook stable by Fitch (September 30, 2008), A1 outlook negative by Moody’s (January 19, 2009), A outlook stable by Standard & Poor’s (December 19, 2008) and AA (low) trend negative by DBRS (November 17, 2008). non-consoli financial statements financial

(1) In 2007 the ratios are calculated according to Basel II without application of “IRB – provision excess/shortfall” and with Risk Weighted Assets calculated according to Basel I. (2) Ratio Basel I floored: Tier 1 ratio = 9,3% and Total Capital ratio = 10,4%.

Annual Report 2008 – Dexia Bank Belgium 5 6 Dexia Bank Belgium – Annual Report 2008 management report

Corporate governance 8

Activity report 12

Risk management 18

General information 24

Annual Report 2008 – Dexia Bank Belgium 7 non-consolidated consolidated management report financial statements financial statements 8 Dexia Bank Belgium – Annual Report 2008 Corporate governance Corporate Dirk Vanderschrick Board and the Board of Directors Management the Compositionof (2) (1) Chief Financial Vice X SA Dexia of Board Management the of Member SA, Bank Dexia of Board Management the of Chairman S Members Jozef SA Dexia of Directors of Board the of Chairman Jean- Vice-Chairmen ofMayor Beauvechain M Chairman L Jean- Roger Marc Dirk A Members X Vice-Chairman S Chairman Mayor of Genk of Mayor uc Van tefaan Decraene tefaan Decraene tefaan avier de Walque de avier Walque de avier 2. B 2. 1. nn De R De nn arc Deconinck members of legislative chambers from mentioning their titles in deeds or publications relating to profit-making undertakings. undertakings. profit-making to relating publications or deeds in titles their mentioning from chambers of legislative members or former serving and of state, ministers and ministers former ministers, 14, serving 1931)of August Gazette prohibits 19312 6, of law of the August (Belgian Article 1, 2009. March on Situation - MANAGEMENT Chairman of the Management Board of Dexia Bank SA, Bank of Dexia Board Management Chairman of the G Luc Dehaene F L G OAR yselinck rançois L auwers abriels eyssens T oeck hielen D D OF O M fficer artin IRECTORS B OAR D (2) (1) Chief SA, Bank Dexia of Board Management the of Member Solicitor and Municipal Councilor for Merelbeke for Councilor Municipal and Solicitor P Waterloo of Mayor L Responsible for Risk Management SA, Bank Dexia of Board Management the of Member Jean- Responsible for Human Resources Management SA, Bank Dexia of Board Management the of Member Roger Banking Commercial & Retail for Responsible SA, Bank Dexia of Board Management the of Member Marc Corporate and Banking Wholesale & Public for Responsible SA, Bank Dexia of Board Management the of Member Dirk General division and Participations Secretary the Planning, & Analysis Wealth for Department the ments, Depart Tax and Legal the for responsible General, Secretary President of the of the President T Chairman of Honorary and Director F Bruno Consultant Wivina Demeester ARC of the Board Management Chairman of the F Markets Financial and Treasury for Responsible SA, Bank Dexia of Board Management the of Member Dirk Vanderschrick Facility Management and S of the President M of Antwerp Mayor P Member of the Management Board of Dexia Bank SA, Bank Dexia of Board Management the of Member A rancine uc Van atrick atrick Janssens erge hierry Jacques nn De R De nn arc Justaert G O F L yselinck K rançois L auwers perations perations L eyssens ubla lichy T achaert S oeck hielen wiggers M Alliance Nationale des Mutualités Chrétiennes Mouvement Ouvrier Mouvement Chrétien Ouvrier O artin fficer, responsible for IT, for fficer,responsible O rganization Crédit Crédit du Nord O perations, perations,

Group O Group

­ on February 27, 2009 it was decided to appoint definitively appoint to decided was it 27, 2009 February on Rector of the University of Mons of University the of Rector Bernard Branson. At the Extraordinary Branson. At the Extraordinary Francine as Swiggers a of director Dexia Bank to replace Mr. Mrs. Rik provisionally appoint to decided Directors effect of Board the with Bank 2009 30, January Dexia on of meeting its At 2009. 1, director January a from as resigned Branson Rik Mr. of 2012. four until years the end of the of term renewable maximum a for Bank Dexia of director a as it was to decided ratify the of appointment Mr. Luc Van Thielen of Meeting 29,AtShareholders’ December 2008, the Extraordinary Markets. Financial and for Treasury responsible as Debroise Benoît Mr. of powers the assumed Vanderschrick Dirk Mr. O IT, for Mr. as Chief Dirk Vanderschrick of powers the over took Thielen Van Luc Mr. Bank. Dexia of ofManagementtheBoardwas appointed member as Thielen of meeting the At meeting. until Pierre Richard Debroise and the shareholders’ Benoît next Miller, Axel Messrs. Jean respectively of mandates vacant the Mariani, fill Pierre to Bank Dexia Messrs. of directors as Thielen Van Luc and Dehaene provisionally appoint to decided on meeting its At from effect with Bank Dexia of directors as resigned Richard Pierre and Miller Axel Messrs. 3, 2008. July from effect with Bank Dexia of Board Management of the member and as a director resigned Debroise Mr. Benoît Board Management the of the Board of Directors and Changes in the composition Directors. of Board the on sit also members whose Board, Management day The applies Directors of Board The Group. of the level at the adopted as policy general the Board. Management the on serve twenty comprising Directors of Board a by managed is Bank Dexia 2009 1, March at As Charleroi of Mayor Jean-Jacques Viseur Ghent of Councilor Municipal and Solicitor T de Belgique General of Secretary the C SA Dexia of Chief Executive P ony Van P Van ony ierre laude M perations, Facility Management and O and Management Facility perations, - Rolin to ariani L ux - day management of Dexia Bank is entrusted to Bank of is the day Dexia entrusted management

arys O fficer andfficer Chairmanof the Board Management O ctober 21, 2008 the Board of Directors Directors of Board the 21,2008 ctober Confédération des Syndicats Chrétiens - O five members, nine of five members, whom also O O O ctober 7, ctober 2008. ctober 21, 2008, Mr. Luc Van Luc Mr. 21,2008, ctober rdinary Shareholders’ Meeting Meeting Shareholders’ rdinary O rdinary Shareholders’ Meeting Meeting Shareholders’ rdinary - Hainaut perations perations O rganization, while while rganization, fficer responsible responsible fficer

- Luc Luc The Chairman of the Audit Committee is Mr. Bruno Flichy. Flichy. Mr. is Bruno Committee Audit the of Chairman The non three of composed of of the Board Directors subcommittee advisory an is 2002, 18, December on up set Committee, Audit The committee Audit Belgium. Bank Dexia by applied procedure appointments the with accordance in Belgium Bank Dexia of meeting shareholders’ nextordinary would two directors be for submitted approval definitive at the of who had The these Guerber appointment Jacques resigned. and Rompuy Van Herman Messrs. replace to directors two 2009 it was to decided enable the Board toof Directors co 27, February of Meeting Shareholders’ Extraordinary the At 29, 2008. December of on as the company a director resigned Mr. Guerber Jacques company. of the a as director date that on resigned fore Belgian on Government Federal 30, December 2008 the and there of Minister Prime appointed was Rompuy Van Herman Mr. O the of end the until of 2012. Meeting years Shareholders’ four of term renewable mum maxi a for Bank Dexia of director a as Swiggers Francine Mrs. Committee delivered a favorable opinion to the Board of Directors Directors of Board the to opinion them. influencing the facts and results financial the regarding favorable a delivered made Committee Audit comments the the auditors, the and bank the of evaluating management the by After 2008. 30, on June and Directors 2007 of Board the to reported the financialconsolidated results of Dexia Bank at December 31, Committee Audit the 2008 In of Directors. Board bank’s the to submission its before information financial periodical follow the oversees also It consolidation. the evaluating of by scope particular the in governing criteria the and used company, standards accounting the the by provided information financial the of integrity the monitors Committee Audit The Reporting 2.1. Financial sense. large the in control and supervision prudential exercising of task its in Directors of Board the assists Committee Audit The Mr. Van to replace Rompuy). Herman 2009 30, January on director independent an as (appointed Demeester Wivina Deconinck Marc Members Flichy Bruno Chairman 2. 2. taks an 1. C omposition - executive directors. directors. executive d po wers Annual Report 2008 – Dexia Bank Belgium rdinary rdinary - up of of up - opt opt ­ ­ 9

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 10 Dexia Bank Belgium – Annual Report 2008 the banking law on the organization of audit committees committees audit of organization the on law banking the amend to bill draft subjects: and/or projects following the on given also were Speeches Supervision. and Audit of those on actions, of the the activities and Compliance on department court outstanding on and department Legal the of activities on the the reports received the Audit Committee 2008 During Committee. Audit the to management managed. risk and and systems control internal the identified on report a delivers properly Board Management are the end this To regulations) and legislation linked applicable towith the risks compliance (including risks main the that ensure to management executive the by up set systems management risk and audit internal the of efficiency the examines Committee Audit the year a once least At management risk and audit Internal 2.2. In 2008 the Audit Committee met six times. At these meetings, half the Directors meetings, these At times. six of Board of the of meetings met dates the before held were which Committee Audit the 2008 In Board. Management to the reports which Bank Dexia of department Audit Internal the on relies it end ever.To that and evidence out or can what any carry supporting inspection The Audit Committee can require to be shown any information Frank Messrs. by represented the on Meulemeester. De Bernard and Verhaegen Deloitte, opinion auditors of favorable a issued appointment Committee Audit the 2008 In auditors and their auditing programs. the of independence the monitors Committee Audit The pay.and independence their regarding and meeting shareholders’ ordinary the by re or appointment the regarding to The opinions Audit issues Committee the Board of Directors satisfactorily. audits external their out carry auditors the that verifies Committee Audit The audit External 2.4. half 2008 the report, audit internal 2007 the approved and examined Committee Audit the 2008 In mendations. recom its and department Audit the of findings the to reacts management the which to extent the verifies also Committee Audit The division. Audit Internal the of independence and efficiency operational the assesses Committee Audit The audit Internal 2.3. crisis, ... financial of the impact ment, and credit management, solvency liquidity risk manage (ALM), Management Liability & reporting”, prudential Asset periodic on management effective the by declaration and system of audit internal the on assessment the management effective the by “Reporting on 2008 9, May of CBFA_2008_12 circular Commission Insurance and Finance Banking, 17,2006), May of 2006/43/EC directive Council and Parliament (European internal audit report and the 2008 audit plan. plan. audit 2008 the and report audit internal 3. 3. F unctioning of the the of unctioning - yearly or financial statements were examined. examined. were statements financial or yearly A - appointment of auditors of appointment u d it it C ommittee ommittee - yearly yearly ­ ­ ­ supervision of credit institutions credit of supervision March 22, 1993 on the status and article 27§2 of the law of of directors activities – External and analyzed identified, duly are covered. activities its all of framework Internal Audit thatverifies the risks that Dexia Bank takes in the importance. of particular considers it which values and of and structures its integrity Bank Dexia and the effectiveness of reputation good the maintain helps function audit The operatesystems and effectively that they are efficiently applied. auditing existing that ensure to constantly and supervision internal promote to is function audit the of assignment The entire Group. the throughout integrated are plan audit and methodology The activities. Dexia’s of all for consistent is which and rules strictest the with complies that framework a within units business different the in departments auditing of system a by a uniform established and supported integrated audit function has Group Dexia the strategy, and vision Group’s our From control of the financial situation and financial statements of statements financial and situation financial the of control the 2008 30, April to 1, January from period the During years. of three period of d’entreprises, SC Réviseurs Deloitte s.f.d. SCRL for a renewable with a Board of and Auditors to solely renew the term of office at decided that the Coopers Réviseurs d’entreprise, SCCRL and SCRL s.f.d. SC d’entreprises, Réviseurs officeof the Dexia Bank Board of of exercisedAuditors by term the that fact the of view in and foregoing the Given Réviseurs d’entreprises, SC s.f.d. SCRL. Deloitte to Company the Auditors was assigned 2007 task the to a call a Following in forsubsidiaries audit firm.single tender main its and Dexia of accounts the of auditing external the of task the entrust to decided Group Dexia the 2008, in renewal for up came auditors the of office of term the When auditors of Board Bank. National the in functions the bank’s which Annual is Report, with deposited such publish to chosen has Bank Dexia managers. senior and directors by its held positions any external to disclose required is Bank Dexia directors, bank by funtions external of pursuit 19, of July the on 2002 Decree by Royal approved Regulations Commission Insurance and Finance Banking, the to Pursuant 4. 4. O I nternal nternal rdinary Shareholders’ Meeting on April 30, 2008, it was was it 2008, 30, April on Meeting Shareholders’ rdinary O rdinary Shareholders’ Meeting to rdinary Shareholders’ cease working A u d it it , was due for at renewal

Pricewaterhouse Deloitte Deloitte ­ With regard to MiFID to regard With • At their approach to certain aspects of compliance. aspects to certain approach on of the made be should mention sake of completeness, the For outbywhichare other instruments carried financial institutions. financial in transactions carried certain of respect in imposed was transactions personal on rules out by of employees the MiFID bank, a duty to such report operations the of application In department). Compliance of the supervision the (under year the of half second the during out carried was controls of batch first the and force, into entered already had that procedures and/or measures the of effectiveness • • detection: for capacity its broaden and were actions taken to enhance the bank’s measures preventive the During Compliance the department. past year the following of priority main is the laundering of money risk the Controling Compliance SA. Dexia of Report Annual the to refer we subsidiaries, foreign its of on Deloitte behalf of Belgian companies linked to Dexia Bank or special assignments carried out by PricewaterhouseCoopers and or of For paid details for services the remuneration exceptional (other assignments). Bank Dexia of behest the at out carried assignments special or services exceptional for payment in 2008 of course the fees received for Deloitte a total amount of EUR 414,260 during assignments). (other Bank for Dexia out carried assignments special or services exceptional for 8,144 EUR of fees paid From 1 January to April 30, 2008 Price years. three of period renewable a for appointed is and Meulemeester De Bernard and Verhaegen Frank Messrs. by represented is SCRL, s.f.d. SC d’entreprises, Réviseurs Deloitte 2008. year financial the for Bank Dexia of statements financial and SC s.f.d. SCRL with the task of control of the financialsituation shareholders entrusted the firmDeloitte Réviseurs d’entreprises, • • Board a to entrusted was auditors: 2007 company of firms two of year composed Auditors of financial the for Bank Dexia the establishment of a system for monitoring the respect and and respect the monitoring for system a of establishment the with made was to a that start addition In lines. in business the ing up that matters had not yet with been implemented (fully)

o

- PricewaterhouseCoopers, Réviseurs d’entreprise, SCCRL,d’entreprise, Réviseurs PricewaterhouseCoopers, Deloitte, Réviseurs d’entreprises, SC s.f.d. SCRL, represented represented SCRL, s.f.d. SC d’entreprises, Réviseurs Deloitte, such as “name missing”, as “name checking”, … such Additional to efforts complete the customer identification; operational; fully now is which system Vlaminckx. by Mr. Joseph Steenwinckel; Mr. by Josy represented Additional controls Additional based and on projects recent regulations going discussions throughout the Group to harmonize the n - going refinement of the ERASE computerized monitoring monitoring computerized ERASE the of refinement going O rdinary Shareholders’ Meeting on the 30, April 2008 Meeting Shareholders’ rdinary (1) , on , - going attention was paid to follow to paid was attention going waterhouseCoopers was ­waterhouseCoopers ­ ­ (1) European European Union through the European passport. of the countries in other of banks establishment the to and facilitate of orders execution the for platforms between competition greater greater with ensure investors protection, provide to 2007 1, November on force into entered MiFID (Market in Financial Instruments Directive) is a European directive that that directive European a is Directive) Instruments Financial in (Market MiFID Annual Report 2008 – Dexia Bank Belgium 11

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 12 Dexia Bank Belgium – Annual Report 2008 Activity report Activity the figure for the euro zone (+0.9%) and Germany (+1.0%), Germany and (+0.9%) zone euro the for figure the to amounted 1.2%. similar barely in to This was broadly 2008, decline, above all after the summer of Economic growth 2008. period 2004 period After four (on average +2.6%years of growth dynamic for the 2008 in environment financial and economic The world insurance group AIG, the request by bank the merchant the request AIG, group insurance world leading the into stages) three (in capital of Morgan injection JP colossal by the takeover Mutual, Washington bank savings biggest subsequent the of Chase and collapse the few with a zenith nationalized part large a in later.its in crisis reached weeks theUnited financial States The then and Government Federal giants, Fannie Mae and Freddie Mac, were bailed out by the US mortgage the when high second a reached crisis liquidity The repo the raising Bank Central European of July. rate by beginning 0.25% at the the in resulting inflation, rising of fears by confronted themselves found then banks central The collateral. as equities and mortgages conventional accepted even (FED) Reserve Federal The accepted. also were instruments back. securitized bonds, government to addition pushed in were that it so broadened, was required repaying guarantees of for range The dates the and up seizing from in to markets order the intointerbank prevent cash the system prices rallied by 15 to The 20%. central banks had to less inject market stock which during weeks ten some lasting followed with the of support JP Morgan Chase. A of period relative calm Reserve by a Federal over the weekend orchestrated had been that Stearns, Bear bank merchant the of rescue the particular in and banks the by results reached disappointing of 2007 of publication the middle with March the of in fortnight first the during high appeared initial an which crisis liquidity The Kingdom. United the and Ireland Spain, like erupted, had crisis housing the where countries those in except low, relatively remained unemployment of rate the and progress good astonishingly of 2007 winter of the mildness hinted at a far less economy. vigorous Even however, so, by sustained the indicators, Confidence economy. Belgian the did as ground, its stood economy European the meantime the In in rates or interest their banks Europe raised held them steady. central developments, such byConfronted increases. wage set to decline. Wage demands and escalated resulted in further looked power purchasing Households’ soared. Inflation highs. historic in resulted speculation all above and supply of ages short of fears demand, in rise The materials. raw other and food energy, of prices the in explosion the by about brought The firsthalf of the year was by characterized galloping inflation of months 2008. final the during tions propor unbelievable assumed it as crisis financial the of force full the by engulfed was economy real the whole a as world the Throughout worse. fared countries European other but - 2007), the Belgian economy underwent a sharp sharp a underwent economy Belgian the 2007), - 2008, economic growth made made growth economic 2008, ­ ­ of capital in view of the need to constitute provisions or to write write to or provisions short constitute to running need the were of too, view in they that capital of found banks “healthier” other them, After them. guarantee to state the get or nationalized be capital, their raise options: three following the of one to first tobeand affected were forced,in order to tosurvive, resort the were finance bond and interbank on reliant broadly Banks rescue the to came government Crédit Suisse. and of UBS Swiss the and Scotland of Bank TSB. The UK took government a in shareholding majority Royal HB and Bank up Dresdner bought Commerzbank nationalized. were banks Icelandic three The Santander. Banco by over taken were Bingley & Bradford and Leicester & Alliance Europe, In planet. the across speed ning light with spread crisis The Citigroup. into government the by of and capital banks the injection Stanley into mere depositary Morgan and Sachs Goldman banks merchant of conversion the America, of Bank by Lynch Merrill bank merchant the public works, VAT reductions, measures to raise purchasing purchasing raise to measures reductions, VAT works, public things other among involved They plans. savings recovery launch dived, to efforts their in Consumption themselves over fell 2008. Governments of soared. quarter fourth the during lay and announced cuts companies in reorganizations production, Countless economy. the in spiral downward a and sector corporate the in capital of shortages causing projects, large market to forced the cut drastically banks back their tolending the interbank in already a affecting state. The paralysis parlous Such financialturbulence theinfected real economywhich was commitments. its toit meet enable government. to Belgian support the public needed from also Ethias company loan a insurance The obtained KBC borrowings. interbank its for backing state received it and governments its institutional shareholders and from the French and Belgian from contribution a through capital its raised Dexia company. insurance and bank Belgian its over take to Paribas BNP with reached was agreement provisional a while nationalized were the Benelux governments and its operations in the Netherlands listed on the stock market. got Fortis an banks of injection from capital on impact serious a had crisis financial the Belgium In levels. high, fairly still Settlements, were spreads able to interbank return to though alarming, less International for Bank that so to bear of calm a measure to the bring managed gradually and (IMF) Fund govern Monetary banks, central the of part the ments and on international organizations, such as the International intervention Vigorous 2007.in mid erupted – in other words ten times what they had been before the zone crisis euro the in bp 200 and States United the in (bp) points interest of explosion an caused tsunami the market, interbank the across swept it As capital. of injections too, received banks, These downgraded. severely be to had portfolio in held securities and/or counterparties of ratings the because and defaulted counterparties as loans off Lehman Brothers for “Chapter 11” protection, the takeover of of takeover 11” the “Chapter for Brothers protection, Lehman - offs. Economic activity in the world at large plummeted plummeted large at world the in activity Economic offs. - rate spreads reaching 500 basis basis 500 reaching spreads rate O S was taken over by Lloyds by Lloyds over S taken was ­ ­ present itself as a leader in operational effectiveness and effectiveness operational in leader a as itself present to seeks also but sector public the to partner trustworthy a as acts bank the foremost and First expertise. and experience of wealth a up building in years the over succeeded has and sector public the with links historical close has Bank Dexia Banking 1.1. Wholesale & Public 2008 in principalThe of Bank Dexia activities restored. be to is confidence if essential is which markets, interbank and bond equity, the for foundations the lay also might That gets G20a grip effectively on the financialand economiccrisis. power the throughout world may well if become inevitable the of balance the of realignment structural A 2009. of summer the by hold taken not has recovery the if measures additional to adopt to poised be appear would authorities and monetary political The depression. economic interest off of stave should economy level low the boost to very measures The and prices material raw cheap rates, countries. emerging the of dynamic reduced the of because +0.9% barely to amount well could ( zone ( States United the in figures growth negative with recession of year a be will 2009 world, the Throughout support. scant offer economy the relaunch to plans and rates interest in fall substantial the being time the For value. book and/or weighting of Hundreds shares were forecasts. below traded their intrinsic profit did as considerable crumbled, the Valuations of banks. big three the of because 54% lost index Bel20 The saw sector its stock market value fall by as much as 80 to 95%. able to limit to 32their losses The between financial and 40%. were markets American the while value, their of 50% and 45 the EuropeanIn 2008 stock markets on lost average between fell by 0.7%. product domestic gross least comparable to the 1992/1993 when recession the country’s at be could Belgium in recession the that signs are there that, Despite zone. euro the of countries other in than severe less in slowdown the Belgian economy seems however to have been a sharp decline in the Belgian economy during the autumn. The The free fall in consumer sinceconfidence the summer presaged duemature. to bonds in refinancing difficulties and results of disappointing in bonds anticipation government their on of those against widen kept spreads barely and pace their saw depending countries the euro even within zone. bonds Corporate issuing creditworthiness, between paper, apparent quality became high sought distinctions too, here, But bonds. investors government as on focusing sharply fell rates interest central banks accelerated the cuts in their base rates. Long of liquidity, to injections the addition theenormous already In of deflation. specter the raise to the enough In spectacular was inflation in fall the And collapsed. businesses. small materials for raw other and food energy, of prices the meantime conditions lending easier and power B 1. PU ANKING - 1.3%), Japan ( Japan 1.3%), B LIC & W & HOLESALE - 1.6%) and Belgium ( Belgium and 1.6%) AN D CORPORATE D - 1.1%). World growth growth World 1.1%). - 1.7%), the euro 1.7%), euro the - term term has for several years been regularly monitoring the problem of the problem monitoring regularly been has for years several department Research its since concerned, is Bank Dexia as far as phenomenon new no is population the of ageing The thatmake difference. the all specificity and quality for the Dexia sector), whose funding has been guaranteed by the Flemish Flemish the by guaranteed been has funding approved whose sector), the that credit out housing social the (in pointing Flanders in companies worth lending is it Here million. 664 EUR of total a to amounted sector welfare the to loans New funds those of share lion’s The television. cable and distribution in water invested was granted. were million 2,522 EUR totaling loans which for projects, new fund to it on count to were able also in sector the public bank’s The customers other committed. isdeeply Dexia to which a role government, for local choice of funder the is it circumstance – exceptional most the market in leader this fieldand that toin demonstrate all – even as position its assert to managed Bank Dexia country, the network made up of commercial employees spread throughout Finance Public professional the by efforts sustained to Thanks Bank to in local authorities 2008 amounted to EUR 1,317 million. so, the total volume of new long not high any generated demands for particularly funding. Even has that office of term municipal a of middle the in falls 2008 obtained. results commercial the from as well as administrations these in contacts usual bank’s the half than more among 2008 of summer the in out too – can be seen from the findingsof the brand carried survey economic sector, public the difficult affected has that environment financial and extremely an in particular in – authorities the prod in the light of that phenomenon. phenomenon. of that light in the service public popula efficient an of continuity the ageing ensure to and an tion of problem the with cope government local help to designed brand Line” “Silver the under services and the specifically, bank has brought a together rangeof products More authorities. local the for consequences its and ageing Brussels the and Community (C Commission Authority Local Community at Joint the Community, Flemish contracts the where level cashier regional and several of renewal the saw 2008 committed. have been 100 million EUR almost where of the new Pension for Funding the public Bodies (PFB) sector creation the in involved closely was Dexia that, to addition In whole of over 11% a in as the for reserves all year life insurance the products. during growth a in resulted Belgium Insurance Dexia and Bank Dexia by jointly adopted approach grated inte and professional the products, insurance to regard With of 2007.end at the position the on up 4% 12.9 EUR billion, to amounted management under assets and deposit on sums sector welfare and public of At 2008 end the 2.4 EUR billion. short outstanding of volume total the 2008 of end the Atyear. previous the on to amounted Bank EUR and 33.2 subsidiaries its up billion, 4% Dexia by sectors welfare and public the to granted loans term long outstanding of volume total the 31, 2008 December At projects. major of funding purpose for the paper commercial of issues several arranged bank the sector, tion” educa “higher the in customers For finance. loan of provider sole their as Bank Dexia chosen 2007, have since Community uct innovation. How well this approach is appreciated by by appreciated is approach this well How innovation. - term loans to those sectors amounted to amounted sectors those to loans term - Annual Report 2008 – capital Region once again chose chose again once Region capital O C - term loans granted by Dexia O M), the German the M), Dexia Bank Belgium - speaking speaking ­ ­ - ­ 13

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 14 Dexia Bank Belgium – Annual Report 2008 apartments for the apartments elderly, and the head officeof a major para barracks, military of purchase the (for real transactions first its Bank’s Dexia Immorent, Dexia while signed, were leader project as (Public bank the PPP involving first the Thus business. of areas new these in credibility bank’s the establish helped and real led estate policy to the initial commercial successes that The measures taken by the bank in 2007 with regard to energy development. of sustainable principles the with accordance in use after it of dispose to and consumption energy low its to customers be sure of the provenance of their equipment and 2009. for a new hard planned innovations new Even so, major true to the bank’s concern the for development, sustainable towards transition was a year of 2008 and for sectors, welfare the public services and products electronic of range Bank‘s Dexia line, IT For of wind power and biomass projects. The bank acted as acted bank The projects. biomass and power wind of funding in the involvement its through market the on position its asserted has Bank Dexia energy, renewable of field the In export and mortgages, ship finance. infrastructure, dockland of financing the finance,partnerships, private public andproject takeovers of funding the lending, syndicated in market Belgian the on notably business, of fields various in operator market major a In the area of & Structured Finance, Project Dexia Bank remains communication. effective and in targeted and forces with the measures introduced in the past to coordinate its sales combined operations, factoring and leasing Dexia’s through in and knowledge expert the in lies business its of success and development future the to key reliable sources and on lending in the form from of asset finance.funds The of collection steady the on is focus the where customers among presence commercial strong a by backed business banking conventional on past the in than emphasis greater even placed department Banking Corporate The fleets. vehicle a “green”Fleet, Green Dexia for including customers’ solution sold, and launched were products new several end that remained To deposits rate. whole profitable a and reasonable as a at grew lending and 2008 stable Throughout market. the on possible was it and specialized business, despite the extremely hostile approach conventional conditions both in this to transactions of volume the Thanks maintain to involved. parties all with partnership successful a in resulting customers with trust of to long Corporate of Banking good maintaining The financial andeconomic crisis also highlightedthe importance 1.2. Corporate Banking future. in the so to be continue will and authorities local the of future financial the affecting issues big the all in involved deeply moreover is Dexia choices. strategic certain and preparing even when policy budgetary developing is to possible make valid with similar when comparisons bodies it typology, defined a scientifically Using zones. police the and thetwo new financialprovinces customers profiles: presenting in the provision of financialinformation tolocalgovernment by C its entirely offset to workshop sheltered a to panels roof solar of fitting the including cogeneration, and power solar of fields the in Energy line its also regional institution). firstsuccesses reported Dexia Dexia Bank again in enhanced its reputation as 2008 an expert and software rental service - was and rental service introduced allowing software O 2 emissions. - Private Partnership) contracts, contracts, Partnership) Private - - estate subsidiary, completed completed subsidiary, estate depth experience acquired acquired experience depth - term relations term relations - energy, Dexia Corporate Finance was involved as financial financial as involved was Finance Corporate Dexia energy, renewable In Fluxys. to business transit Distrigas’s of sale the the Distrigas, raising of the in Publigas’s and Fluxys participation for Eni with transaction a in Publigas to adviser financial as acted bank the sector energy the In successes. of number a achieved again Finance Corporate Dexia markets, on the bond liquidity of shortage the and crisis market stock the of effects the under market shrinking a with cope to had it Although conse are crisis. financial to the and vulnerable less quently segment corporate large the in than aggressive values EUR of 15between operations and 100 million where deals are less funding Takeover year. corporate with of agreements segment on the middle focused the of half the second the with line during In borrowers. class top general progress of the market, business in that shrank sector choosing by and structures funding conservative more of use the through further finance ship of portfolio its diversify to market the on climate general During the half first of DexiaBank of 2008 tookadvantage the system. storage and treatment silt a of exploitation and construction AM the for bid successfully which SeReAnt THV for provider fund sole the as involved notably was bank the partnerships, structure infra private public its In million. 90 EUR some of investment Biostroom Electrawinds of financing the for Arranger Lead Mandated The Luxembourg market retained its luster in 2008 and, wher in luster 2008 its market retained Luxembourg The this major long the European Parliament (now known as thereby D5), bringing Léopold the Brussels In successful. was STIB the with collaboration in operation Back Rent & Sale The partnerships. private public for particular in and level) national and regional local, (at sector public the in projects estate real for deployed higher margins and tighter in lending conditions. expression Extra funds were their found which crisis credit and liquidity the second half of the year the market succumbed to of the effects the During apartments. and dwellings residential or buildings office for whether projects estate real of funding the towards year the of beginning the at approach cautious a adopted a downturn in possible Expecting the market, Dexia Real Estate the following by Airholding SN in was divestment ofentry Lufthansa. 2008 in biggest Equity The Private sectors. Dexia ICT and media the in capital risk of investment the promote to Cleantech Sydes with collaboration in Capricorn the in Fund (clean shareholding major a took also Equity Shipit and Electrawinds, the Ghent bio in Infra+ DG by investments infrastructural the to essentially related these 2008 In estate. partner real and technologies clean through infrastructure, namely choice, of investments sectors its principal its in ships channeled Equity Private Dexia Shipit. company logistical the in participation a of taking the over It assets. also the advised infrastructural DG certain fund Infra+ of SA Infrabel to sale the over Company Holding SNCB the advised and exchange stock Brussels the on shares Thenergo as a Corporate Finance also acted co C in participation a of Electrabel by acquisition potential the over as well as Electrawinds to granted warrants with loan a over Benelux) the in projects PPP and structural infra for GIMV the and Dexia by up set fund investment (the Infra+ DG fund infrastructure the and GIMV the to adviser O handed over the keys to the last building intended for for intended building last the to keys the over handed RAS project in the Port of Antwerp involving the design, design, the involving Antwerp of Port the in project RAS O - technology sector) and sector) in technology Arkafund set up in 2006 stend, a cogeneration power station worth an worth station power cogeneration a stend, - term term European to project a conclusion. successful - - adviser over of the listing adviser accelerator. Dexia Private Société Espace Espace Société - Power. Dexia Dexia Power. ­ ­ ­ ­ ­ the the flow at towardsdeposits notice. represented The proportion short in fall the to and of 2008) end at the 3 billion EUR (over account savings at settling EUR 22.8 billion thanks to the success of the internet The decline in balances on savings accounts was limited to 5.3%, crisis. financial of the fell because customers banking private O there. already information the supplement to website the on as well and drafted for posted all on employees the bank’s intranet, as were publications internal various responses those of basis according to of the the question. type listing responses raised, had customers questions the of all a up database drew Desk Information Agent the and departments Complaints the the Contact Dexia Direct Private department, Direct department, Dexia the Together intervals. regular at information same the one sang from the same song every that economic ensure to the order In of crisis. the of fallout analysis financial and initial an gave November of beginning “ magazine the of edition special A division. Communications the by day each updated is and website bank’s the on posted and together put rapidly was pack information An Centre. Care Customer the by provided linefiring wasbacked support up by theprofessional self and SCRL the in staff The deposits. their of safety the antee guar to done been had everything them reassuring message out to as its customers soon as a possible clear and transparent send to was broke crisis the when concern overriding bank’s The funds. of shortage Dexia’s by caused confidence of crisis the of consequences grievous the by overnight confronted was Group, Dexia the of pillar Retail the too, Bank, Dexia where flows, choices. investors’ guide to investment criterion only, and sometimes and primary, the savings became in safety shifts tectonic produced The and past the in unseen levels to plummet to market liquidity. stock the of short themselves on prices caused tofollowed that risk aversion unprecedented found funds operating their interbank of the With other. that each to on it for part a large relied that extent banks up, those even market drying an lend such to to refused markets banks the financial the across panic spread portfolios bond and loan banks’ the in ratings counterparty downgraded and counterparties Defaulting crisis. banking a also but crisis, financial a only not facing themselves found savers day.But rainy a for more save to households led prices and in the collapse and distrust stock real estate The unbridled alike. consumers and investors customers, paralyzed ensued that that and prevailed the The huge loss of uncertainty confidence under of the impact devastating each successive financialshock. reeling themselves found institutions, credit and companies also but households, impact only Not halt. a to global beyond and Belgium and duration in growth brought extent, and economy real the on toll its heavy a by took everyone surprised that sector financial the in wreaked carnage The 2008. of months the deep crisis of thatconfidence besetthe economy in the final of consequences the to avoid too, unable was bank, retail The it. on dealings in their ever Belgian possible, enjoyed customers the company’s support 2. 2. verall investment balances held at Dexia Bank by retail and and retail by Bank Dexia at held balances investment verall - employed branch networks, which found themselves in the & RETAIL - term rates that at the end of the year reduced reduced year the of end the at that rates term B COMMERCIAL Vos Investissements - sheet, sheet, all Dexia Bank received staff ANKING ” published at the the at published ” O n the ­ ­ Branch 23 insurance products fell by 36% on the year before. before. year the on fell by 36% products 23 insurance Branch of reserves the as well as assets fund investments net 2008 of end the At markets. down stock the of progress the on part in or severe a about brought crash on turn which the in return products depends investment all market stock worldwide The 9%. than less by a little rose quarter. first the during all above after sought much was product, investment insurance income 21 aBranch guaranteed Capital, year 6 a brought also Bank a preferring Dexia term sold. For longer customers investment, The were – year the of half first the during crisis. launched were sixteen over financial which of the – of Netherlands Funding Dexia by outbreak issues bond the before investments safe of range wide a customers personal its offering already was success encountered by safer long thrall its as a result the of enormous the explains crisis banking The quest for desperate that safety held and savers in investors outstanding by 15% year. increased had previous Bank the on 2008 Dexia at customers December retail by of held end accounts term the on By balances faded. attraction their short in recession, economic fall the of the result a as with year the but, of end the at 2008 in well particularly did months 18 at accounts savings all Above quarter. a at steady by savings accounts in retail overall held customers’ investments and consequently more room for maneuver when it comes to comes it when maneuver for room more consequently and this borrowers reduced means monthly repayments substantially For loan. conventional new a by replaced be must tranche the else or maturity at payment single with one in redeemed be mortgage conventional a fixed a combining product innovative an “ the launched Bank Dexia industries, building with coincide To 2007.on down slightly was loans consumer in 3% of rise (+11.8%). The businesses small to loans and (+9.5%) mortgages with particularly but before. of Progress that order was to be seen across the board, year the on 9.7% up billion, 29 EUR to amounted customers banking private and retail to loans outstanding total 2008 of end the At lending. for year good a was 2008 2007, Like customers. new retain and toattract other each fight they as razor the standing information and advice are Dexia Bank’s best weapon for with Highly assets. private of management the in provide can Banking Private Dexia that value added the to and private assets for transferring year the of problem the to during relating them of given most customers, were banking talks 134 that, to addition In 125. to network sales the in officers such of number the Academy – 75 new Private Banking Banking Private Dexia the – program training management non of range cally for designed private banking were customers added to the fund and in a a Branch 21 monetary specifi insurance product subfunds New steady. fairly remained contracts management under assets of volume the market, the on prevailing stances port the in rose from 26 to 31%. Despite the circum funds difficult exceptionally accounts term by investment represented that by while 23% to 28 from fell represented proportion The were also to be seen in of the Private portfolios Banking customers. safety increased and liquidity greater towards shifts Definite - end campaign put the focus on savings bonds. Dexia Life Life Dexia bonds. savings on focus the put campaign end - - trained employees who can offer customers expert expert customers offer can who employees trained term loan. Under the fixed the Under loan. term O verall reserves of Branch 21 insurance investments investments insurance 21 Branch of reserves verall - contractual products. Under the new asset asset new the Under products. contractual - sharp competition between market operators operators market between competition sharp Batibouw - year D certificate to the market. The The market. the to certificate D year , the trade fair for the DIY and DIY the for fair trade the , Annual Report 2008 – - term investments. Dexia Bank O - term loan the capital must must capital the loan term fficers graduated, bringing graduated, bringing fficers combi-crédit Dexia Bank Belgium - term rates rates term folios ­folios ”, ”, ­ ­ ­ ­ 15

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 16 Dexia Bank Belgium – Annual Report 2008 were broadcast on Channel Z to underline the importance of of importance the underline to Z Channel on broadcast were which spots advertising televised used and term short the on focused Banking Business Dexia to professionals, lending its In of eco form in the granted were loans car of new for the obtaining “eco conditions the by relaxing to vehicles go for cleaner customers C of reduction the 2008 the At the mortgage to need the account. without securities the to or block in Belgium property question, in property the on of a charge promise for the agreement a and private premium the a Generali Group), collateral (in L’Equité company with insurance collaboration in together, to buy second homes in France or Monaco, Dexia Bank also put saving for Sparing a emergencies. thought for Belgians wanting deposits – deposits can be out carried in the improved Self put Day their questions. can customers which in area information open an of favor in counter cash the of disappearance the in lies innovation main Banking as well as on Private and credit insurance consumer specialists, mortgage, of services the on call can who person contact Each service. investor professional is specialized a allotted fixed long a of ment to the customer, with the accent firmlyplaced on the establish pilot sites. Central to that is design approach the personalized In June 2008 Dexia Bank launched its new branch design in ten internet. the over only operate that banks or price on solely focus that operators those to contrast in – model banking as and toeasily accessible a development its pursue universally internet the In bank 2008 to continued invest in and branches its in the customer a unique, excellent and selling recognizable experience. the offer therefore must channel Each offered. are products which through channel of the regardless value, added provide to banker their want customers that is fact The customers. its main Bank multi Dexia model, an integrated through products its selling that belief its tained distribution new its on deciding When on the dyke at found be to also are dispensers These capital. the of stations subway busiest 31 the in dispensers contract cash a 40 of installation concluded bank the the for 2008 in network) transport Brussels (the STIB the with dispensers, cash of network Points of High Traffic its a development With to view Net. the further mated teller machines in the bank’s branches and in Dexia Direct auto the of screens the viewing when this of aware became customers Bank Dexia transfer. European the of introduction the with 2008 January of end the at taken was Commission) establishment the European the towards of initiative (an step Area Payments Euro Single major a a of payments, of field the In explanations about differenton products the other. and hand one the on profits company of reinvestment the Day the the as such events business major in involved also was bank The short Louise in Brussels. in Louise Brussels. non and financial covering customers Business for given talks 156 Entreprendre exhibition and the the and - Journée de l’excellence de Journée financial subjects like the adoption of corporate status or status corporate of adoption the like subjects financial - - term funding for the expansion of corporate business. business. corporate of expansion the for funding term channel system best met the needs and of expectations - banking banking facility it offers, thereby endorsing its intention O fficers, Private Bankers and Business Bankers. The The Bankers. Business and Bankers Private fficers, Brussels Motor Show Motor Brussels Forum de Liège de Forum O - term relationship involving advice backed by by backed advice involving relationship term stend, in Zaventem Airport and in the Avenue in Airport stend, Zaventem O 2 - emissions – Dexia Bank encouraged Bank Dexia – emissions car car loan” launched in 2007. 8% Almost - to - at Tour & Taxis in March, Batibouw March, in Taxis & Tour at , the the , day banking operations day – banking operations including . To this should be added the added be should this To . - insurance insurance package involving a Foire de Libramont de Foire – where the focus was on on was focus the where – - Service Zone, Service - car loans. loans. car , Concrete Concrete ­ ­ ­ , online monthly designed to to designed respond online of the monthly interest growing cally. cally. electroni settled and received be can that invoices and debits direct slips, wage as such efficiently more and rapidly more easily, more money of questions managing for service simple a providing portal web financial own its into Net Direct Dexia the young in the internet. by 17,replaced 10and been has between aged website. world world over. The failure of the shattered Lehman belief Brothers the governments by together put plans rescue enormous the na culmi­ markets, financial the about predictions dire and losses financial of reports alarming of a by succession marked clearly an 2008, allocation. capital working of its the bank’s balance sheet and ensuring that the best use is made for is managing TFM also responsible networks. sales different offering high tofinancialquality products the of customers the by Bank Dexia within lines business other for support provide The task of principal is Treasury to and (TFM) Financial Markets Bank’s service. customer including process sales Dexia whole become to the future overseeing banking, remote near for channel distribution the main in is and Services & Sales Direct renamed been That has itself etc. which Center, Care Customer the habits), of part forms counterpart, surfing as telephone its like (such service, data web of management and collection sales, of optimization experience, customer selling: in Bank’s entire the together team This channel. – as – Web known Sales brings distribution web the on fulltime works now employees of team A birth. baby’s the before months three Account Baby an online to open possible is It also Budgetline). or loans personal loans, (car loans installment for online apply to possibility the as well as simulations offers also DDN Net. Direct Dexia through only opened be can which account on 30, June 2008. account savings internet the of launching the with expanded Dexia Bank’s range of and was internet products services further users. users. to offers it tips the and services banking online of range its life,and updating Bank improving is Dexia everyday constantly develop­ the Now that for use of the internet has fully become part and parcel of motto the also banking. is telephone and internet i.e. – banking direct of ment approach personal proactive A staff. and customers among satisfaction of level high a suggest who branches or pilot the in out complex more is carried surveys business initial The discussion. lengthier a have to want whose customers for reserved there is round and cash any to access has longer no branches the in staff account. customer’s the to online credited installed ATMs of immediately are made deposits where generation branches its new all in this have to world the in bank first the be thus will Bank Dexia 2009. in branches remaining bank’s the in installed be should they and branches 400 over high new During these new 2008 “recycling” machines were the in installed with equipped is which 3. TREASUR 3. ting ­ting in with the of collapse September and Lehman Brothers Dexiainvestor.be Satisfaxion annus horribilis annus - the Y AN Y - clock clock CCT The surveillance. Advice Zones are O , the hard the , ver 150,000 customers now have such an customers ver 150,000 D FINANCIAL D is now an integral part of the Dexia.be the of part integral an now is Zoomit for the banking sector, was a year year a was sector, banking the for - - house knowledge of internet internet of knowledge house copy magazine for Axioneers Axioneers for magazine copy has made it possible to convert convert to possible it made has - powered teller machines. machines. teller powered MARKETS O n their side, the the side, their n Axion – e – Axion ( TFM - based based , an an , ) ­

(portfolio management). (portfolio in centre) and (Sterling competence London an in office Dublin to In TFM addition alsoin its head has office Brussels, an office secondment. secondment. internal through filled were vacancies 300 Around well. as way 2008 in a success as considerable with met horizons professional mobility broadening and internal skills general and technical developing of stimulating of strategy the 2007, in As in 2008. recruits 330 new of with new no employees, skilled and fewer experienced than influx an in resulted This professionals. for on laid specifically event an and participants 400 over by attended Graduates Young for Day Job a of organization successful the events, continued and saw high at attendance a number of recruitment was drive recruiting 2007 the year the of half first the During in 2008. mobility and recruitment on impact an had also crisis financial The Human Resources Management long its for centre competence a with itself endowed has bank the 2006, in Company (DIC) Investment of Dexia establishment the With & Modeling. Sales and Structuring & Trading securitization,(CST), Structured Solutions the for or operations regarding the Credit Spread Credit Portfolio (CSP), customers of care takes retail Income, for Fixed pillar, third The sector. whether public products structured and equities Forex, involving activities all covers (MET), Trading & and Long ALM Cash Management, & three divisions: comprises Liquidity and sheet balance Bank’s Dexia of management financial the for pillarisiswhichsuch theA responsible group first Treasury segments. market specific in expertise together bringing of aim the with pillars three on centered currently are activities trading various bank’s The costs. Income in 2008 was also heavily influencedby the higher financing altogether. of them a number discontinue to and activities TFM its of profile risk the adopt reduce to to drastically governments prompted they the measures did. radical that market the on cash of financial short age the the was it For effects. confront to secondary steps disastrous its and crisis various took TFM year the During liquidity. to generate designed of instruments number be accepted as collateral for and transactions an increase in the interest rates, an of expansion the list of the that securities would in cut fundamental a included which measures substantial decision market, bank the andstimulate inter In to order confidence lending. restore in risk the resulting quasi interbank faced a of market with in was change suddenly the perception fail”.The to big “too were institutions financial large that government issued or AAA or issued government in investments for centre investment and competence bank’s year Last thements. unit continued to develop, becoming the 4. SUPPORT - term term Funding. The pillar,second Market Engineering - term Asset & Liability Management (ALM) invest (ALM) Management Liability & Asset term

ACTI V - makers in the central banks took banks central the in makers ITIES - rated eurobonds. eurobonds. rated O n its side Dexia Group decided n its side Group Dexia decided - total paralysis of interbank paralysis total ­ ­ ­ Management employees. social dialogue and in its accordance with the the on of spirit the in impact conducted be the will plan the of possible Discussion as far as limit to try to and (full FTE 265 in 2009 to ensure that some the of transformation Dexia is successful including 2009 in be deployed will resources All Bank. in Dexia equivalents) time jobs 900 around affect will the Group Dexia as Throughout a in whole, the staff reduction will be to submitted the European and Belgian Works Councils. by accompanied a general plan to reduce and costs which staff be will business bank’s the of analysis and reorientation The activities. Banking Wholesale and Public its of reorientation the and activities trading its of reorganization thorough a things, other among by, Group the of profile risk tothe reduce it was decided 30, 2009, on January announced Group Dexia the of plan transformation overall the Under . Annual Report 2008 – P rinciples of S of rinciples Dexia Bank Belgium ocial ocial 17

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 18 Dexia Bank Belgium – Annual Report 2008 Risk management Risk The extent of the potential loss can be limited by the granting granting the by limited be can loss potential the of extent The applied. “country is also risk” term the case that In risk. credit the in increase an cause also may country, particular a in events or authorities, monetary or political by taken Measures obligations his meet to surety or of counterparty. quality in the of or a decline borrower a by failure a of form bank the in the either about come can a Such loss that counterparties. more loss potential the as may as suffer a of in result of one the or solvency deterioration defined be can risk credit The Credit risk on an individual loan or portfolio. portfolio. or loan an individual on risk a is and Capital” on Return Adjusted “Risk for abbreviation the RAR the to according proactively them risk possible best a towards portfolios loan the steering for used also are They portfolio. entire the of terms in or basis individual an on either loans its on risk the monitor to bank the enable parameters These “default situation”. a in himself find might borrower a moment the at loan the on sum outstanding of the an estimate provides indicator This Default at Exposure 1.3. of default. case in the loan per loss the to calculate on a central data base. The data from that us data enable base of the bank to record the details of the on sustained losses loans to continues Todefault. that end, it the has practice been long if counterparty the expect that bank can the of loss the extent the of indication an provides (LDG) Default Given Loss The Default Given Loss 1.2. “excellent” from to “default vary status”. which risk of classes into several divided is portfolio the purpose that For defaulting. portfolio loan entire of the probability the monitor to possible it makes system That portfolio. lending the of quality the monitor to system rating internal an applies Dexia Default of 1.1. Probability method. Advanced) Based Rating (Internal IRBA the method, II Basel within the Dexia has organization. opted for the most advanced it has available of range expertise vast the with in conjunction risk, Dexia uses a number which of indicators it statistical applies credit the contain and monitor measure, identify, to order In risk. the reducing at aimed measures other by or guarantees of 1. K - corrected method for measuring and monitoring the return return the monitoring and measuring for method corrected e concepts of Basel Basel of y concepts - return profile, and for managing managing for and profile, return II O C method. RAR method. C O C is is C of risk, Dexia Bank applies the Dexia Risk Policies. This involves involves This Risk Policies. the Dexia Bank applies of Dexia risk, In its operating procedures and in its day in its and procedures operating its In • “Loss Given Default” and “Risk Adjusted Return on Capital” Capital” on Return Adjusted “Risk and Default” Given “Loss the with along which, rating internal an given is counterparty Each risk. of concentrations excessive avoid to designed is limits Dexia of system The Rating. Internal the in expressed Default of Probability of level a and counterparty of type in the particular fixingof onlimitsdepending authorization the • • three of organization the Committee: through Risk of types applied is which Group the of of Management the credit risk at Bank Dexia the follows policy operations. That operations. once Committee meets a week and is composed TFM in inherent risks credit and market all manage and audit a established has Bank Dexia 2008, in occurred that crisis the Following Front the and Department Risk the between established been has In a order to of clear separation improve functions supervision, Group. in the rules and and of regulations the policy general the Dexia governing sound bank the management, laid requirements down provisions the meet Bank Dexia by applied standards The them. all identifying potential risks and fixinglimits in which to contain bank the of in that management The for risk consists Markets. the Financial loss on movements potential unfavorable of result the a as as income or value in defined be can risk market The Marketrisk other. the on risks market and hand one the on of the management risks credit between a coordination better of concentration were risk. Efforts also made in 2008 to achieve the reduce to taken were measures particular, In changed. were guidelines the policy, lending reflected longer no they where and necessary Where risk. credit the in increase the to adapt rapidly to the on changing circumstances the market and above enabled the The described organization bank in 2008 to independent audit. the Control Quality function which carriesout an internal and by closely followed is process The risk. the toon take deciding whether to comes it when factor crucial a is parameters,

2. 2. the “Transaction Committees” which handle loan applications; applications; loan handle which Committees” “Transaction the the “Policy Committees” in which policy and lending guide lending and policy which in Committees” “Policy the the “Risk Control Committees” which monitor the portfolio. portfolio. the monitor which Committees” Control “Risk the and up; drawn are lines C O re ffice. ffice. d it risk management management risk it Market Committee Market whose remit is to monitor, to is remit whose - to - day management management day ­ over a fixed period of time (10 days). time of (10period days). a fixed over (99%) interval confidence particular a with associated losses This markets. is measure of a the potential statistical maximum day the and management risk for used tool main the is measure VaR The requirements. funds own on (BIS) Settlements International for Bank the at Committee Basel the of rules the on and (CAD) Directive Adequacy Capital European in the contained standards qualitative and quantitative the on based is risks market to applies Bank Dexia that methodology The 1.2. Methodology quarter. each MRGC to the presented analyses detailed of subject the form results the and month each of end the stress The scenarios). (historical factors risk of combinations or spreads), credit volatility, isolated risk rates, (interest factors exchange rates, share prices, either concerning scenarios twenty around of consisting level stress of range a addition, In rho). gamma, vega, thêta, to (delta, options on and sensitivity limits limits on tosensitivity interest rates, exchange rates and margins, risk. The VaR limits are by supplemented nominal volume limits, Value departments involved. various the by question in product the of discussion allows that procedure overall astrict to undergo has product ALM or risk appropriate profiles. Tothat end,new TFM proposed every into them translate and trends market toanticipate constantly taking place in the environment oblige Market Risk Management The advent of new and financialinstruments the rapidchanges decision any Bank. Dexia on particular, In units. taken by the MRGC at the level of constituent the Group is the of each to apply which guidelines have been laid down by the Group and which the follows system management This markets. financial the on to all business that applies system management a coherent responsible is which established has risks, monitoring and managing department assessing, for Management Risk Market The control and 1.1. limitation Risk Committee Guidelines & Risk Market committee a (MRGC). to the back SA, report Dexia in committees two those Furthermore, & Legal. Reporting Financial Management, Risk i.e. Front in TFM, involved of all divisions of is representatives That Committee composed • • remit: following Bank Dexia also has a Risk Management Department. Front of the of representatives

1. Dealing room risk room 1. Dealing to monitor the progress of new financial products. products. financial of new progress the to monitor TFM; of aspects operational all - at - Risk (VaR) is the basis for measuring and controlling controlling and measuring for basis the is (VaR) Risk - to - day monitoring of positions on the financial financial the on positions of monitoring day Weekly Weekly Operational Committee O ffice, ffice, - tests have been set up at Group Group at up set been have tests O - test readings are calculated at calculated are readings test ffice and the Credit & Market Market & the and Credit ffice O perations, Credit & Market perations, de facto with the the with binding maximum liquidity deviations. deviations. liquidity maximum Presenton (Net Value) NPV sensitivity limits and the expected based regulations of set standing a within so does It position. interest bank’s Committee the of Liability Asset Group’s (ALC the of meetings monthly the rate to relating risks all items on are the sheet balance taken at The concerning the decisions strategic of management interest 2.1. Principles used. is VaR risk. equities for the historical a risk, spread the In 2009 an will application for be made to BFIC to and approve the VaR risks equities the interest cover to required funds own statutory of volume the determining for used is and Commission Insurance and under The 481 days. That VaR has data. been approved by the Banking, Finance market parameters over observations historical weighted of equally consist series of time lying basis correlation the and on estimated volatility are the which in VaR parametric Interest Following the continuing crisis in O in reduced. crisis drastically were continuing the Following monitored. be can risk ALC the at income of loss in movements the or yield curve. That risk is monitored each month gain potential the in the current year and subsequent years as a result of various estimating entails risk of ure both Belgian and international accounting standards. This meas 2.2.2. remit. ALM interest the covers ALC bank’s and liabilities assets, off Variations in interest rates may the affect economic value of the S 2.2.1. interest bank’s the to how assess approaches but complementary value. to rise nomic distinct gives This two rate both the may affect bank’s adversely income and eco its interest in Fluctuations profile. risk overall Bank’s the reflects interest the that ensures department Management Risk Market The rates. interest in movements adverse to interest The 2.2. Management of the interest-rate risk positions. ALM of the out arising ALC Group’s the by decisions the of implementation practical the oversee to Board Management the of members two with together ALC Tactical the monitored, properly is process ALM the that ensure To for risk, option significant a containing portfolios specific For rate risks. exchange and The bank actively monitors its income risk in accordance with with accordance in risk income its monitors actively bank The 2. ALM 2. Committee has set Dexia Bank a sensitivity limit that that limit sensitivity a Bank Dexia set has Committee O O A ). The role of ALC the role The ). - ensitivity limits (economic value approach) value (economic limits ensitivity ccounting income risk (income approach) rate and exchange rate risks are monitored using a using monitored are risks rate exchange and rate O R meetings. The Group sets a limit so that that income income that that so limit a sets Group The meetings. O - rate risk can be defined as the bank’s sensitivity sensitivity bank’s the as defined be can risk rate isk Committee meets in principle each week each principle in meets Committee O Committee and to analyze the risks and the results results the and risks the analyze to and Committee - rate risk as determined by its consolidated consolidated its by determined as risk rate - rate risks, equity risks and liquidity liquidity and risks equity risks, rate is to supervise the management management the O is to supervise Annual Report 2008 – - balance balance sheet items. The Group’s ctober 2008, the ALM limits limits ALM the 2008, ctober - rate risk: rate risk: Dexia Bank Belgium - rate risk rate - rate rate ­ ­ - ­ 19

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 20 Dexia Bank Belgium – Annual Report 2008 Brothers’ debacle. Brothers’ basis of information provided by each unit within the Group. Group. the within unit by each provided of information basis ALC Group the by Group Dexia of level Liquidity liquidity and funding of Management 2.4. of 2008. end at the downwards revised also interest the Like with relating scenarios. stress and EaR VaR, used: are risk measures the and value economic to Here, risk too, income for its standard accounting purposes. share’s a to relating risk the the (in interest companies the Like European sectors). in energy and utility public property, financial, principally made are Investments risk equity the of Management 2.3. Some limited outflows were witnessed on Dexia’s retail deposits deposits position. liquidity overall our jeopardized never and retail O Dexia’s of on beginning witnessed the at were outflows limited Some sources. funding of its maturity the to lengthen of all market opportunities take will advantage Dexia forward, Going U.S. the in lines committed on draws the of decrease a by and markets core the outside production loan new in reduction intended an to due possible also was improvement base. This of the deposit and the markets funding stabilization to access the facilitated has and 2009 of quarter first the in issue for three public an transactions amount of EUR 8.5 billion to Dexia allowed support This guarantee. states’ mentioned early and September late prevailing situation difficult the from improved gradually has liquidity Group’s the environment, challenging still a In and 9, 2008 ber and have been issued contracted, or renewed between before due fall securities or bonds liabilities, and institutions issued for securities the that provided same these counterparts, credit towards debt other and bonds as well as counterparts, institutional liabilities Dexia’s covers and lion) bil­ 59 EUR to amounted funding guaranteed of outstanding the maximum amount of EUR 150 billion (as of 31,December 2008, total a to relates guarantee This sources. funding its of many guarantee of the states of Belgium, France and on Luxembourg Since squeeze. liquidity severe high of reserves substantial its to as well as states Luxembourg and French Belgian, the of support joint the to thanks However, Dexia. high against repos of exception the with secured, and unsecured drying severe The 2007 the Dexia’s liquidity management was seriously challenged during 2.5.1. Liquidity 2.5. units. various its and Group the of position liquidity overall the supervises and measures, thedefines limits and ALC ratios tobe and observed, Group the addition, In - quality collateral) at the outset of the crisis did not spare spare not did crisis the of outset the at collateral) quality O Liquidity crisis - ctober 9,ctober 2008 Dexia has from benefited the combined rate rate risk, the risk equity is from also assessed two angles: - - risk management is coordinated and defined at the the at defined and coordinated is management risk 2008 financial turmoil, particularly after the Lehman Lehman the after particularly turmoil, financial 2008 - quality assets, Dexia was able to overcome this this overcome to able was Dexia assets, quality O ctober 31, ctober 2009. - up of money and capital markets (both (both markets capital and money of up ctober 2008 but this trend was short was trend this but 2008 ctober - rate risk, the limit for the equity risk was was risk equity the for limit the rate risk, O ctober 2008 thanks to the above above the to thanks 2008 ctober O Committee approves the techniques techniques the approves Committee Committee on the the on Committee O O ctober 31, ctober 2011 O - lived lived cto ­ Dexia’s liquidity risk is managed using a centralized approach. approach. centralized a using managed is risk liquidity Dexia’s • • • • This surveillance of short both. bank including scenarios stress severe of variety a under as well as scenario ongoing an under tested is capacity funding secured its with needs liquidity future Dexia’s of adequacy The crisis. from the current last lessons the intovery taking consideration conservatively; determined is capacity funding secured Its from its current and future on reviewed been has crisis. management liquidity and financial risk current the of light the in liquidity to approach Dexia’s 2.5.2. support Luxemburg. continued the and/or of the combined markets guarantee of the states of Belgium, France and capital and money the of reopening the on depends position liquidity Dexia’s institutions, many As other financial substantially. funding needs reduce its risk to as so plans business future and sheet balance current its of liquidity its amending by management. risk changes management framework and by these entering to into liquidity a of thorough review responded foundations Dexia very the shook crisis This out the Group. line ensures activity that a common is strategy applied through of entities the Group, different Dexia Dexia’s cash and liquidity the by managed are positions liquidity local the Although • • • are: sources funding important most Dexia’s risk. liquidity its of keya is mitigant sources funding Dexia’s of diversity The basis. regular a on tested is A plan contingency global is liquidity part of the and guidelines into consideration. constraints regulatory local all takes Dexia framework, ment O practices. best and mendations recom regulatory latest the with compliant it makes which back is framework This triennial Dexia’s of financialplan. definition the of heart the at is management risk liquidity generally, More basis. monthly a on supervised Longer basis. daily a Its future funding needs are assessed dynamically and compre and arising dynamically needs liquidity the consideration into taking assessed hensively, are needs funding future Its funding proven capacity. secured its exceed never should needs funding future its that is policy

n top of the constraints set by its internal liquidity risk manage risk liquidity internal its by set constraints the of top n unsecured bonds (of which bonds distributed via its own own its via distributed bonds which (of bonds unsecured the states’ guarantee. states’ the non and central bank , interbank deposits deposits, CP/CD’s, fiduciary tri and bilateral central bank tender operations; Turkey); and Luxemburg in Belgium, (mainly deposits retail Luxemburg; and France Belgium, of states the by guaranteed CP’s and bonds 2009, from as networks); briefe Foncières covered covered bonds (mainly Dexia Municipal Agency’s a variety a of variety short wholesale - specific and market stresses or even a combination of combination a even or stresses market and specific L iquidity iquidity ); - bank deposits of which several are benefitting from from benefitting are several which of deposits bank or Dexia Kommmunalbank Deutschland’s Deutschland’s Kommmunalbank Dexia or R - isk isk party repo transactions; repo party - term funding needs (up to 3 years) are are years) 3 to (up needs funding term M - tested and updated on a regular basis basis regular a on updated and tested anagement framework anagement - term funding needs is on performed - and off - term unsecured term funding unsecured sources: - balance sheet transactions. balance sheet transactions. Obligations Obligations O Pfand verall verall ­ - ­ ­ ­ Departmental heads can out also on carry analyses Departmental the basis of sources more clearly. This change aims at providing the right right the providing at aims change This clearly. more sources in order to the changing rapidly reflect costof its main funding Dexia also revisited internal its transfer pricing in system 2008 developing and in part implementing the methodology for Data Data for in 2009. refined further be will which methodology the Classification.It also produced implementing anInformation Risk dashboard part in and developing pointed the the department main focus of its towards attention Assessments, Risk Information specific of number a analyzing entirely on information security. In to addition out carrying and 2008 during concentrated we prevention, to regard With specific incidents. of wake the in departments the by forward put plans action follow systematic a develop to done was work 2008 In database is sufficiently comprehensive. the that and speed to up is bank the throughout incidents risk operational of registration that confirm can We database. central the in correspondents by registered reports incident a on day risks operational of the the with for responsible Correspondents managing the different aspects primarily lies appointed have however, these heads; ground, department the on risks operational managing for Responsibility risks. operational particular of move but over also toto makeAMA, more aware the business to wish we if model risk the support to possible it make only for scenario methodology These scenario analysis. not analyses a develop to done being work of start the saw also 2008 risks. greatest the for plans action assessment preventive the of to implementation given and also definition is the to as well as control of systems attention existing of Special the content. in units specific operational other with Dexia Group as regards the timing sought of the is RCSA roll conformity greater the round.Thus, first among other things in the secondround, Self with made take toaccount of experiences adjusted round first Control and Risk of round is applied based The on methodology that of Assessments. second the the of start the saw 2008 Approach”. “Standardized for the opted has Group Dexia the II, Basel under required capital statutory the calculate To other. the on ground the on risks operational the contain and manage to effectively and bank hand one the the on enable to is approach II Basel under requirements and capital regulatory the to meet coordinated this of purpose The Management. to the thereon regularly report and units that is in the applied policy a all manner throughout consistent ensure to particular in care take units business main the and central the of roles specifies and all responsibilities The those involved. and model organization and methodology the in reflected are that principles the detail in out sets policy That Group. Dexia the of Committee Policy Risk the by approved is Bank Dexia by applied as risks operational of management the on Policy O capacities. funding the and lending the between balance incentive to the various lines business in order to achieve a sound perational risk management risk perational O perational Risk Management departments of Dexia Dexia of departments Management Risk perational - to - day basis. basis. day O perational Risk Risk perational - out out and the - up to up and its solvency ratios. Indeed, and according ratios. Indeed, its to solvency the Banking, Finance reserves and capital of terms in requirements its calculate to method – Approach Based Rating Internal Advanced – AIRBA the using been has Group Dexia the 2008 1, January Since II Basel crisis. financial the during and crises operational (minor) of number a during effectiveness their method proved and 2007 in adopted strategy ology the Management, Crisis to regard With off). cut being Centre Brussels of result a (as buildings office head all in downtime temporary with coping for Plans Continuity Business the to brought were refinements that to addition In and the same head officebuilding activated. were inadvertently one within functions critical all for Plans Continuity Business the which during out carried were exercises two 2008 In Management. & Access Identity on policy of a new steps Lastly, were important taken towards the implementation of Economic Capital it requires that takes account of the advan subsidiaries. their and the units leading of the each of among allocated account been has takes total that that diversification; of amount tages the requires it whole a as Capital Group measuring the Economic for for of calculated methodology a has it and developed them has It encounters. it risk of types the all terms identified thus has Dexia in Process). Assessment needs Adequacy their Capital of Internal – (ICAAP estimate capital economic valid of a providing of capable established are have that things, risks their managing and other calculating for systems among internal must, they that means This capital. adequate by ismatched profile risk their that ensuring that have for they in set a place process regulators their satisfy to banks the requires 2008, 31, December since Belgium in applicable been has which 2, Pillar since risk operational of in capital the relation statutory to credit risk, market risk and The reform of Basel is II not restricted solely to the calculation challenge. new a as major is seen harmonization pean Euro with conform to deadlines those of producing shortening for further a however Deadlines year; the over reduced formats. gradually were data the national of variety wide the by quality and technical resources that is made even more difficult data of terms in process painstaking and complex highly of the units various the Group – between a collaboration close The new C to. adhered strictly was them for meeting schedule The which were the the focus throughout year.of attention special That authorization was dependent on certain recommendations level. operational and at conceptual both method exacting very that use to authorized be to bank Belgian first the was Dexia 2007,18, December of decision Commission’s Insurance and 1. 2. P 2. descri P illar 1 – risk management as management 1 – risk illar illar 2 illar O b REP (Common Reporting) system was system the result of REP Reporting) (Common e d a bo v e Annual Report 2008 – Dexia Bank Belgium ­ ­ ­ 21

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 22 Dexia Bank Belgium – Annual Report 2008 integral part of the way the bank is managed (and of the way way the of (and managed is bank the way the of part integral an forms approach 2 Pillar The down. laid schedule the with in accordance Group of the of regulators college the and BFIC under Pillar 2. Pillar under place taken have that developments the of informed kept closely been have DBB of Board Management and Directors of Board The constraints. major its of budgeting one The constitutes which reached). are plans for process 2009 is thus founded on the notion of financial risk appetite and strategy mercial com reporting, risks, on decisions its particular, in which, in required 2 Pillar of application the on PPB Circular by report full the and 2, Pillar team A project was transversal set up to ensure compliance with • • • risks: these against protection best the have to order in measures The management of the insurance company has taken different and provision technical insufficient of would occur. risks the risk that risk catastrophic the risk, underwriting the follows: as are faces insurer nonlife a that risks main The intervene. to have will insurer the which for damage of extent and occurrencethe about uncertainty stilloccur, riskis there then insured the occur.Should not will or will that policy insurance the by covered insured risk the in or policy insurance an of underwriting the in uncertainty from arises risk insurance The applied. be can principles mutualization or solidarity the that so risks insurance different group can company insurance the transfers the insured risks to the insurance company. In this way, policyholder the contract, insurance an underwriting By risks Insurance European Central Bank. the and authority future that between established be should links close that and level, European at powers mandatory it giving by strengthened be should (CEBS) Supervisors Banking European of Committee the of role the that regulators, local with maintained be should contact operational that believing this, of supporter firm a is Dexia supervision. European of reform of the rules governing major risks and the enhancement to with in respect the Directive, particular Capital Requirement at toand level national over international the the amendments held being consultations the in involved closely is Dexia Lastly, SA. by Dexia published statements in the conso included the at therefore is only Bank Dexia concerning applies information the so level, operators, market to given be to details quantitative and qualitative the defines which 3, Pillar

3. P 3. risks 1. continuous control of the claim provisions that have been been have that provisions claim the of control continuous identified element,estimated; correctly each account into take that and contract each to allocated a customized premium determination; premium a customized policy; acceptance M illar 3 illar anagement of nonlife insurance nonlife of anagement - 2007 - 15 - CPB - CPA has been submitted to the the to submitted been has CPA lidated ­lidated ­ (with at least an S&P A S&P an at least (with These models will be used to develop applications that steer steer that applications develop to used be will models These and operational risk. risk underwriting risk, market between made is distinction A • Moreover, these models will be used for internal and external external and internal for used be will models these Moreover, • the Group’s insurance entities towards creating more share­ more creating towards entities insurance Group’s the • • group stochastically model to is specifically: and more insurance liabilities project the of purpose main The Belgium. Insurance of Dexia department Risk the within in an Belgium, Insurance Dexia of Directors of Board the by the of approval Following the Framework” “Risk Management run. tively effec risk the manages department Risk the management, risk for responsible is who management the with Along • purposes of statutory accounting and to determine the financial financial Group. Dexia the within determine to and strength or capital accounting management of the insurance entities (DIS) statutory of purposes for important is which broadened, is (DIS) Group Dexia to belonging entities insurance the of reserves capital available of base the reinsurers, the to risk ceding By objectives. capital on return out set to help should transactions Reinsurance of reinsurance high with a brokers) selection major via (mostly placed are covers reinsurance Adequate capacity. risk their manage help to and results their stabilize and strengthen financially to reinsurance use (DIS) Group Dexia the to belonging entities insurance The product. existing an modifying or product new a launching when issued also is opinion actuarial An program. reinsurance the on and portfolios insurance of profitability on insurance, for provisions technical the on analysis out carry regularly actuaries designated the addition, In 2. Solvency prepare to and agencies rating and bodies regulatory auditors, external and internal to report to example for purposes, reporting • • • to: applications as such value, holders’

2. - house project for modeling insurance risks has been set up up set been has risks insurance modeling for project house future claims that will occur within a predefined time horizon, horizon, time predefined a within occur will that claims future impact of the reinsurance program on these claims. these on program reinsurance of the impact fully; settled insurer) that have occurred in the past but have yet not been as well as the claims settlement; Group. Dexia of appetite risk the and equity DIB’s account into taking DIB by ten can be made be can relevant return in pricing insurance so policies that an estimate programs; reinsurance on decisions support capital; required on return the account into exist; might that benefits cation diversifi­ account into taking classes specific in insurances reinsurance policy adapted reinsurance to policy the insurance risks underwrit calculate economic capital which is required to underwrite underwrite to required is which capital economic calculate take into account economic capital requirements against the the against requirements capital economic account into take calculate the future claims settlement (whether or not reported to the the to reported not or (whether settlement claims future R einsurance polic a priori a ex post ex (A minus) rating for long tail business). tail long for rating minus) - (A oftaking profitability portfolios specific of value creation. value of y - quality reinsurers reinsurers quality ­ ­ an active policy in the field of reinsurance recoverables which, which, recoverables of reinsurance field in the policy active an have Group Dexia within (DIS) entities insurance Additionally, them. upon incumbent obligations all for guarantee additional an as reserves for deposit a reinsurers the of most the Moreover insurance entities of the Dexia Group require from protection elements. legal or structural essential, feature treaties reinsurance all rely on reinsurers with an A S&P Group Dexia within (DIS) entities insurance all moment this at Therefore, risk. credit reinsurance reduce to try and reinsurers from arising risk liquidity or bankruptcy any of impact the on focusing are Group Dexia within (DIS) entities insurance The reinsurers. of the solvency and of service levels necessary the versus rates economical more of merits the up weighing simultaneously purchasing power on the reinsurance international market, whilst The within insurance Dexia Group entities (DIS) strive to maximize reinsurers of Quality 2.3. practice. and activity reinsurance the on information requested and necessary all basis regular a on receives Manager Risk Reinsurance the management, the for information management the prepare to order In Group. of Dexia recommendations the and regulations local applicable currently the with line in are contracts reinsurance the of conditions and terms The basis. statutory on capacity risk additional Group Dexia within (DIS) entities The main of effect in own the of reinsurers Group. the within exist that opportunities the currently Dexia makeGroup (DIS) greater use of reinsurance of companies insurance some insurers, other to Compared consultants). treaties and other (such providers related as service brokers and reinsurance coverage pricing, the claims of the the transactions, the of terms in transactions the of conformity market and to attention monitoring the processes special framework with operating an has management the aspects, of number a For entities of the Dexia Group. reinsurance and insurance all to conveyed are reinsurance risk regarding procedures management both ceded and assumed reinsurance and effective guidelines underwriting Reinsurance guidelines 2.2. Risk management and reinsurance portfolios). investment our of depreciation a and sector reinsurance the in bankruptcies possible claims, exceptional on capital calculations adequacy (taking into account possible and interval) 99.5% the than confidence stringent more times The has Management a special focus on stress scenarios (some individually and on Group level. for assessment all the within insurance Dexia Group entities (DIS) risk of basis the on determined is reinsurance for need The analysis risk 2.1. Reinsurance - house house reinsurance is to provide the insurance - (A minus) rating or and better ­ • Natural disaster risk disaster Natural • • approach: value economic an on based shocks, technical or economic particular of impact the measure tests Stress “stop and ance surance, excedent” “(sums) reinsurance, “excess of loss” reinsur of forms traditional of “quotareinsurance treaties: share” rein number a use Group Dexia within (DIS) entities insurance The cycles. market of impact limited more of because cost reinsurance predictable more a to lead that standards underwriting reinsurance conservative pricing) and structure (in follow Group Dexia within (DIS) entities insurance The Reinsurance2.4. programs reinsurers. with of business concentrations excessive avoiding thus portfolio, reinsured their in risks aggregate and single limit Group Dexia within (DIS) entities insurance The of a reinsurer). bankruptcy event of an impending the in reinsurer a by level rating particular a of conservation settlement of their obligations (in case of uncertainty about the if is appropriate, to encourage reinsurers to an accelerated cash expenses. and lapses mortality, sensitivity, interest on made also are tests value, of stress the the embedded With calculation yearly authorities. ALC regular and IMF the the to in discussed are Results 20 years. past of the disaster natural important most the times 2 to ratio, claims/premiums Estimate the of impact a natural in equivalent, disaster terms of S there is reinsurance.facultative risks • risk Underwriting made: are tests stress following The reinsurance. and before is after measured the impact risks the For technical a on best done are tests The

tress tress tests insurances technical result of the non of the result technical on the result technical of the life and the insurance activities terms); value market or economic in measured are elements these side of on ; the the sheet balance liabilities appearing the debts the between total of the side assets of the balance sheet and period, period, then return to average. 3 a during expenses general the of 20% by Increase - rate. to experience return immediate then period, 5 a during benefits tax without contracts of +20%) rate (surrender rate surrender the of 20% by Increase - rate. to experience return immediate in relation to the rate experience during a 5 - assurance Life 10 past of years. the ratio combined 150% worst of the - of Deterioration the combined ratio to a level toequivalent on the economic value of the net assets (i.e. the difference difference the (i.e. assets net the of value economic the on insurance Nonlife Deterioration, for every age, of the mortality rate by 5/1,000 5/1,000 by rate mortality the of age, every for Deterioration, - loss” reinsurance. For specific large individual individual large specific For reinsurance. loss” - Annual Report 2008 – - estimate basis. basis. estimate life insurance activities. life insurance O meetings and communicated communicated and meetings - year period, year then period, Dexia Bank Belgium - - year year year year ­ ­

23

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 24 Dexia Bank Belgium – Annual Report 2008 General information General The Extraordinary Shareholders’ Meeting held Meeting on Shareholders’ 29, December The Extraordinary Equity capital and appropriation amounts to EUR 155,266,905.19.to EUR amounts from year,the previous forward the total profit fordistribution brought 4,163,894.49 EUR of profit the of addition the With 151,103,010.70. EUR to amounts year financial the for distribution for 4,030,174.27,profit EUR the tax the of deduction After determined is Group. Dexia the of strategy the and profit shareholders in growth its the of pays basis the on Bank Dexia that dividend The environ financial difficult a in Bank reaction. speedy requires that ment Dexia of ratios solvency the to formality on conditions the market and if need be much to enhance too without and rapidly more adjust to Directors of Board the enable will This years. five of period a for valid is authorization That Association. of Articles the under provided twenty of amount an by of instead 3,458,066,227.41) (EUR cents thousand, two hundred and twenty fifty and hundred four billion, three of maximum a by capital bank’s the raise to conditions, certain under and circumstances certain under Directors of Board the empowered and capital authorized of level the raised 2009 27, on held February Meeting Shareholders’ Extraordinary The any face value. without shares The company has profit registered also issued 300,000 shares. registered 359,412,616 by represented is and 3,458,066,227.41) (EUR twenty and hundred fifty and hundred four billion, three to amounts Bank Dexia of capital equity The shares. new of issuing the without 3,458,066,227.41), (EUR cents thousand, two hundred and twenty fifty and hundred four billion, three to and twenty hundred and fifty euros and eighty of fivea andbillion million hundred one two cash contribution to decided 2008 raise of the capital equity Bank Dexia through profit of 1. 2. 2. P A rogress of capital capital of rogress ppropriation of profit of ppropriation - five million euros (EUR 25,000,000.00) as formerly formerly as 25,000,000.00) (EUR euros million five - fiveeuros and fifty - seven cents (EUR 2,500,000,001.87) from seven cents nine 2,500,000,001.87) (EUR - eight million, sixty - - eight million, sixty million, eight seven euros and forty and euros seven four cents (EUR 958,066,225.54) -four cents 958,066,225.54) (EUR free reserves amounting to amounting reserves -free - d - - six thousand, two hundred seven seven euros and forty seven euros and forty uring 2008 uring - - eight million, sixty million, eight eight million, sixty million, eight - six thousand, two two thousand, six - one cents one - sharing sharing

- - one one one - - six six six six ­ euros and fifty and euros • of association association of articles the to Amendments of profit to holders that a preferential dividend of EUR 3,272,891.21 should O be paid dividend. Board of will not Directors propose to pay the any shareholders the At year). financial for the distri bution for profit the of 5% of minimum a (i.e. reserve statutory a sum of minimum 7,555,150.54EUR to the allocated be must 2.5 EUR billion, of increase capital the of aconsequence As amounting respectively to EUR 250 million and EUR 600 million. million. 600 EUR and million 250 EUR to respectively amounting (DIB) Belgium Insurance Dexia of capital the in increases two the were 2008 in Bank Dexia for operations outstanding The Group the of Principal changes in the structure • 2009 27, February on Meeting decided: Shareholders’ Extraordinary The shares. of new issuing the 3,458,066,227.41), without (EUR twenty and hundred two fifty and hundred four lion, fifty and hundred nine from it raise to eight sixty million, 2,500,000,001.87) (EUR eighty and euros one and million hundred five billion two by increased was Bank Dexia of capital equity The the by amended were Bank Dexia 29, 2008. December of on Meeting Shareholders’ Extraordinary Association of Articles The

3. 3. (27) and nine (9) respectively. respectively. (9) (27) nine and twenty to Board Management the and Directors of twenty and hundred two fifty and hundred four and arrangements laid down in the Company Code; Company the in down laid arrangements and provisions the with accordance in 3,458,066,227.41) (EUR to increase the maximum number of members of the of Board number to the members maximum increase to increase the capital by a further amount of three billion, billion, three of amount further a by capital the increase to to for the authorize Board of a of Directors period fiveyears A nnual nnual O rdinary Shareholders’ Meeting on April 29, 2009 the the 2009 29, April on Meeting Shareholders’ rdinary n the other hand the Board of Directors will propose propose will Directors of Board the hand other the n four cents (EUR 958,066,225.54) to three bil­ to three 958,066,225.54) (EUR -four cents d - six thousand, two hundred and hundred twenty two six thousand, - i sharing shares. shares. sharing v i d en - - seven euros and forty and euros seven eight million, sixty million, eight d - - eight million, sixty million, eight seven euros and forty and euros seven - - six thousand, thousand, six

six thousand, thousand, six - seven cents cents seven - - one cents cents one one cents cents one - seven seven - five five ­ - • • USD 430,000,000 to LHSP on May 5, 2000. Artesia Bank’s share share Bank’s Artesia 2000. 5, May to 50,000,000. USD on amounted LHSP to 430,000,000 USD of loan syndicated the in Bank Artesia former the by taken share the 24,092,917.71. in EUR originates claim This for recorded been has impairment an which for – interests reserved 182,354.31 EUR which of 1.3971)– USD/EUR rate (exchange 28,963,083.03 EUR of sum principal a for LHSP of bankruptcy the to chargeable USD in claim a has Bank Dexia have occurred. events relevant following the then, Since Reports. Annual 2007 and 2006 the in detail in described was This quences thereof. conse the and (LHSP) Products Speech Hauspie & Lernout of bankruptcy the with ways various in concerned is Dexia Hauspie & Lernout Litigation: • • real in held shares including; place, took involving operations Various Cable Multimédia 1 (IP and IP 2). In Dexia addition, Bank sold its shares in de Gestion inter and Company,Projenor Power SPE in holdings its sold Bank Dexia Thus operations. financial various in part took Bank Dexia and wound up and Sogeval Cordius Advisory. real two together merged Bank Dexia Thus bank. the of chart the to organization help simplify operations several conducted Bank Dexia simplification, operational of interests the In on mortgages residential property). in specializing company investment (an Penates in subfunds two of creation the and line) business Finance Funding Public the Secured by Dexia receivables in in investing company investment subfunds (the Belgium new of creation the saw 2008 Bank. by Dexia owned buildings four of it to assignment the involving kind in through a cash contribution and in part through a contribution in part arranged was of DIB capital in the increase second The

P 1. C 2000. of capital the in reduction the housing); social of management and building the for contracted real (a Invest Vlabo in and project) building (a Bogey in held participations the in increase the and (office the taking of a 20% interest in the company company the in interest 20% a of taking the the the sale of shares in centre) administration RAC (Government ro - - estate companies, Brussels Business CenterBrussels estate companies, and Deximmo, Nord Projet Nord municipal utilities Inasep and laim on L on laim ducts O mega 8 mega - building project in Luxembourg); project building (IEG) and divided Immo divided and (IEG) , sold its participations in the capital of the the of capital the in participations its sold , - 10 (office and increased its participation in Socofé in participation its increased and ernout & H & ernout - building project in Auderghem); project building Promotion Léopold Promotion - Intercommunale d’Etude et d’Etude Intercommunale Projets into two companies companies two into Projets auspie S auspie - estate company estate - estate companies companies estate peech Immo-Foire Application and Lex Lex and . ­

dans les comptes annuels) and other related offences among among offences related other and annuels) comptes les dans jaarrekening/faux de in (valsheid LHSP of statements financial the of falsification the to accessory alleged an Appeal as of prosecuted Court is Bank Dexia summons, Criminal of the writ the to According before Ghent. in appear to parties, other 20 O pledge a 1,200,000. has USD around at estimated is still Bank Dexia claim, of which value the by LHIC, owned its of securities a on portfolio for security the of part As forclaim. remaining the recorded been has 43,959,626.92 EUR for impairment An interests. 6,919,585.09reserved EUR which of – 52,240,144.08 EUR to amounted (LHIC) Company Investment Hauspie & Lernout on claim 31, Bank’s outstanding Dexia the of December As 2008, dividend from the Belgian liquidation of LHSP. any receive to unlikely are creditors unsecured other the and According to the LHSP Dexia Bank receivers, Belgian bankruptcy States. United the in and Belgium in The of liquidation is LHSP’s assets to subject separate proceedings • • below): listed are important most the (only damages for claims relevant following the of aware was until the last day of the trial. offences can prosecuted make a claim in the criminal the proceedings to relation in losses suffered have to alleging Parties it. against brought charges the Dexia Bank its underlines innocence in this matter and contests 2009. of course the during decision its deliver will and 2009 30, January on case criminal the on deliberated Appeal of Court The 2008. 19, December on closed were case the of aspect criminal the regarding pleadings oral The charges. the contesting for grounds serious has it considers Bank Dexia approximately EUR 29,000,000. of in an amount of properties seizure the demands Prosecutor Public the Furthermore, recognition. revenue improper for loan knew million that the management of LHSP 20 would utilize these funds USD a granting by ABC allegedly whilst and Hauspie Willaert, Lernout, to Messrs. revenue, fictitious of creation the in LHSP abetted and aided ABC) (hereafter Corporation The Public alleges in Prosecutor that substance Banking Artesia de cours). (koersmanipulatie/manipulation manipulation market and d’émission) (emissiebedrog/délit fraud securities écritures), en geschriften/faux in (valsheid forgery which

3. 3. I C 2. n May 4, 2007, Dexia Bank was summoned, together with with together summoned, was Bank 2007,Dexia 4, May n n EUR EUR 744,128,638.37. of Part this the claim claims duplicates claim who Spaarverlies) and around Deminor by EUR 315,000,000. represented holders Around Around 15,000 (including individual shareholders the share The Belgian receivers of LHSP who are claiming are who LHSP of receivers Belgian The v P rosecution of Dexia Bank in Belgium in Bank Dexia of rosecution estment laim on L on laim C ernout & H & ernout ompan O Annual Report 2008 – n December n 31,December 2008 Dexia Bank y auspie Dexia Bank Belgium ­ 25

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 26 Dexia Bank Belgium – Annual Report 2008 Court has deferred the handling of the civil aspects indefinitely. indefinitely. aspects civil the of handling the deferred has Court the case; the of aspects civil the from criminal the separate to It should be noted that the Court Appeal of Ghent has decided • discussion. under still are calculated be should it which from date the and interest of the amount The added. be must to interest which amounts are principal amounts All the above • • on which LHSP was declared bankrupt in in bankrupt declared was LHSP which on date the or bought, were shares LHSP the which on date the it whether should be a date (e.g. particular 9, November to 2000, as approach their in differ parties civil the calculated, be to is interest the which from date starting the to regard With 7%. currently is which interest of rate statutory the is applied be to rate interest the case, worst the In principle principle the of because proceedings criminal the of end the after until is the not criminal proceedings, likely to have any development in introduced claims the of duplicative extent large a to claim, the claim would amount to EUR approximately 439 million. This According to of the assessment provisional receivers’ the claim, bankruptcy. in LHSP of liabilities net the against twenty In July 2005 the Belgian of receivers LHSP filedan against action claim receivers’ 4.1. LHSP above). million 430 USD a under 1., paragraph (see LHSP 2000 5 May dated facility by credit it syndicated to owed 28,963,083.03 EUR of amount an to and shares) LHSP 437,000 holding still is Bank (Dexia portfolio LHSP its on suffered losses the to relation in is claim Bank’s Dexia 2. EUR of amount provisional in LHSP company the against and Bastiaens and Willaert Hauspie, Lernout, Messrs. against party civil a as claim a made turn, its in Bank, Dexia • • • claimed: damages the of extent real the determine to For the following reasons, among others, it remains very difficult date. mean

in Belgium in 4. the rate of interest to be applied and the USD/EUR conversion conversion USD/EUR the and applied be to interest of rate the is a very complicated matter. complicated very a is and investors the by wrong Bank committed alleged Artesia unknown; still is parties of civil number final the discussion; under rate still are 7,259,107.06. EUR claiming are who Kernel Learning The of receivers The 17,662,724. EUR is claiming which & Noordstar Mercator of LHSP. receivers by the claim in the reduction substantial a to lead to as such be to unlikely is duplication that bank, the by analysis the of state present the In parties. other of a number of parties are claiming provisional amounts; amounts; provisional claiming are of parties a number proving the link between the damage suffered by the the by suffered damage the between link the proving C i - v one parties, including Dexia Bank, for an indemnity indemnity an for Bank, Dexia including parties, one il procee il le criminel tient le civil en état en civil le tient criminel le d O ings against Dexia Bank Dexia against ings ctober 2007, claiming damages for a for damages claiming 2007, ctober . O ctober 2001) or a or 2001) ctober seriously harm Dexia Bank’s interests. interests. Bank’s Dexia harm seriously the cases (other than the NASDAQ in amounts Bank Dexia has the public not settlement rendered in full. terminated finally have States been United the in Bank Dexia against brought cases the all result, a As 2008. in September Trustee, terminated was Litigation the The civil only case in outstanding the United States, brought by état of the principle because proceedings likely to have any until development after the end of not the criminal are proceedings, criminal the in introduced claims the of duplicative extent large a to claims, These assessed. been yet not have which losses, their for damages seek claimants The 4,941 of investors. behalf on Deminor by filed was claim main The Bank. Dexia including parties, various against shares LHSP in investors of groups by filed been have claims civil Certain by individuals Claims 4.2. criminal investigation relating to LHSP (in the form of a burger a of form the (in LHSP to relating investigation criminal the claim introduced by the receiver of Holding both L&H in the include They above). 6., paragraph (see Mr.Bastiaens to BAN relate of to Most the proceedings the pending loan granted by purchaser. the by paid price the to equal amount an at capped BAN, for matter LHSP the of consequences financial the bear will Bank Dexia that essence, in agreed, been has it operation, this of to In General (BAN) (GE). Nederland Artesia Electric the context O In worthless. is now which shares) 12,000,000 around (of LHSP in 1, EUR at participation the for estimated provisionally bank, the from damages claiming also are Holding L&H of receivers that the mentioned be it should sake the of For completeness, applications. these for grounds the contests vigorously DBB repayment. its claiming is receiver bankruptcy Holding L&H the Holding, L&H to due was money this that view the Taking Willaert. and Hauspie Lernout, Messrs. by BAN with opened accounts personal three to credited was million 25 USD mil­ of 10 price USD selling of The lion. amount an for BAN of favor in guarantee bank a issued (ABC) Corporation Banking Artesia former The holding. L&H by owned shares LHSP of Bastiaens Mr. by acquisition the of purposes the for 2000 July in BAN by Bastiaens Mr. to granted loan million 25 USD a with connected is This 25of USD million. amount principal the pay to Bank, Dexia and (BAN) Nederland Artesia Banque with along Willaert, and Hauspie Lernout, Messrs. summoned O 6. L 6. U the in 5. 7. Banque A 7. Banque n April 27, 2004, the bankruptcy receiver of L&H Holding Holding L&H of receiver bankruptcy the 27,2004, April n . ctober 2006, Dexia Bank sold its affiliated company Banque Banque company affiliated its sold Bank Dexia 2006, ctober C & i v H il procee il H ol nite d ing rtesia N rtesia d S d tates ings against Dexia Bank Dexia against ings e d - erlan class action) since class action) this could le criminel le tient le criminel civil en d ­ • • • • reasons: following the for Belgium in it against made claims for the any provisions constituted not has Belgium Bank Dexia Bank Dexia provided. curities 68,052,544.63. EUR toexpects some be able to recoverto the difference in view of the se amounted file 1., Hauspie paragraphs (see – interests 7.).of – and 2. reserved 81,142,273.06 EUR 7,104,106.89 some to EUR which amounts file Hauspie & Lernout the in granted facilities credit to relating claims outstanding O USD of payment a O on 17,538,614.58 BAN of favor in in resulted This above). 6., paragraph (see BAN of favor in issued principal in 10,000,000 USD of O in Finally, 2009. 30, April on decision a give will which cassation), de (cour Court Supreme the before Luxembourg in Appeal of Court the of decision the against appeal an lodged has BAN section). this of paragraph first the in favor of guarantee (see GE aforesaid the of execution in 2007 9, July on BAN to 30,039,336.54) (USD amount this reimbursed Bank Dexia and Luxembourg Paribas BAN paid the was shares value to of obtained, the BNP Parvest shares Parvest the on attachments various the of lifting no As condemnation. its from deriving any damage against harmless Luxembourg Paribas and BNP hold to BAN indemnify condemned Appeals of Court Luxembourg The 2007.1, July June 30, 2007 if the latter were not delivered to prior CAIL to on shares Parvest these of countervalue the CAIL to pay to or by 30, June 2007 to shares CAIL the Parvest to deliver ordered was Luxembourg Paribas BNP which by (CAIL) Luxembourg Indosuez Agricole Crédit of request the at 2006 12, July on Court In the of a addition, Luxembourg issued Appeal decision BAN. of hands the in attachment provisional their to proceeded and shares these to relation in and criminal Holding case, KBC L&H Bank have all made claims Belgian the in magistrate investigating The Bastiaens. Mr. to shares LHSP the of sale the of proceeds the with Willaert and Hauspie Lernout, Messrs. by acquired shares Parvest to In BAN addition, is involved in a number of pertaining proceedings 6., above). paragraph (see court civil the before and civile) partie de partijstelling/constitution lijke

8. 8. n December 31, 2008, the exposure of Dexia Bank to the the to Bank Dexia of exposure the 2008, 31, December n The number of civil parties and the amounts they claim claim they amounts the and parties civil of number The sible and at least unfounded. unfounded. at least and inadmis sible are parties civil the by brought actions the of most that argued has and submissions extensive made has DBB moment. the at estimated definitively be cannot claimed. is amount provisional a often that and amount precise any of mention no make …) (Deminor, claims we note various that actions, to civil the regard With it. against that it has to strong arguments contest the charges brought opinion the of are bank the of lawyers The damages. pay to it ordering decision court a of likelihood the 50% than As things stand at the moment, the Bank assesses at less less at assesses Bank the moment, the at stand things As P ro v ctober 2007,Dexia Bank honored the bank guarantee guarantee bank the honored Bank 2007,Dexia ctober O isions an isions n the same date impairments for the Lernout & Lernout the for impairments date same the n d impairments ctober 30, 2007. 30, ctober ­ ­ their case should not be committed to Court. to committed be not should case their ( chambers the before conseil/raadkamer appeared people four Those 2004. March of end the at charged were executives former four recall, To closed. is now duties Septem­ on authorities judicial ber 28, the 1999 with by regard to a fraud possible involving inheritance opened file criminal The duties Inheritance these all of merits the and validity the claims. challenges strongly Dexia of 2008. quarter third in the reversed were courts American the in actions the for constituted provisions unused The ) in January 2009, when it was decided that it was decided when 2009, ) in January Annual Report 2008 – chambre chambre du Dexia Bank Belgium 27

non-consolidated consolidated financial statements financial statements management report 28 Dexia Bank Belgium – Annual Report 2008 as at december 31, 2008 consolidated financial statements

Consolidated balance sheet 30

Consolidated statement of income 32

Consolidated statement of change in equity 33

Consolidated cash flow statement 37

Progress of the consolidated balance sheet and statement of income 38

Notes to the consolidated financial statements 41

I. Accounting principles on a consolidated basis 41 II. Subsidiaries, equity-accounted enterprises, and affiliated enterprises 57 III. Business reporting 68 IV. Significant items included in the net income 70 V. Post-balance sheet events 70 VI. Litigation 70 VII. Notes on the assets of the consolidated balance sheet 70 VIII. Notes on the liabilities of the consolidated balance sheet 86 IX. Other notes on the consolidated balance sheet 97 X. Notes on the consolidated off-balance sheet items 113 XI. Notes on the consolidated statement of income 114 XII. Notes on risk exposure 122

Report of the Auditors 144

Annual Report 2008 – Dexia Bank Belgium 29 non-consolidated consolidated management report financial statements financial statements Consolidated balance sheet balance Consolidated XI. X. IX. VIII. VII. VI. X. IX. VIII. VII. VI. V. V. IV. IV. 30 (2) (1) statements. financial consolidated 41 of these pages on to 142 part notes The integral an are XII. XI. III. II. I. XIII. XII. III. II. I. T Total assets (in thousands of EUR) thousands (in LIA of EUR) thousands (in ASSETS

otal lia

Figures as of Dec. 31, 2007 have been restated. An amount of EUR 56,960 thousand representing operational taxes is transferred from “Tax liabilities” to “Other liabilities”. “Other to liabilities” “Tax from transferred is taxes operational representing thousand 56,960 of EUR amount An assets”. restated. 31, been “Other to have of Dec. as 2007 assets” “Tax Figures from transferred is taxes operational representing thousand 22,294 of EUR amount An restated. 31, been have of Dec. as 2007 Figures Dexia Bank Belgium – Annual Report 2008

B ILITIES Investments in associates Investments Tax assets goodwill and assets Intangible assets fixed Tangible hedge portfolio of revaluation Fair value Derivatives investments Financial Technical provisions of insurance companies insurance of provisions Technical hedge portfolio of revaluation value Fair Derivatives loss or profit through value fair at measured assets Financial Tax liabilities Provisions and other obligations Subordinated debts securities Debt Financial liabilities measured at fair value through profit or loss or profit through value fair at measured liabilities Financial customers to advances and Loans Liabilities included in disposal groups held for sale for held groups disposal in included Liabilities liabilities Other deposits and borrowings Customer to banks Due sale for held assets Non-current Other assets banks from due advances and Loans banks central with balances and Cash b ilities (1) (1) (2) (2)

7.12 & 9.3 7.11 & 9.2 & 9.2 8.7 N N otes otes 7.10 7.13 8.2 8.3 8.8 8.4 8.5 8.6 8.9 9.3 8.1 7.2 7.8 7.3 7.4 7.5 7.6 9.1 9.1 7.9

264,697,528 259,311,967 113,091,738 26,820,484 80,205,945 79,269,848 14,306,907 64,477,908 14,929,260 76,079,030 14,943,021 16,195,140 2,968,845 3,087,464 7,052,683 4,912,969 1,297,492 2,171,792 31/12/07 31/12/07 (109,849) 628,391 458,727 901,613 217,032 73,943 29,112 0 0

263,092,889 259,580,520 104,027,770 103,520,175 33,839,959 44,557,424 65,793,492 36,301,702 69,815,391 16,731,674 17,349,142 1,364,044 9,056,208 1,096,387 3,224,965 9,224,831 1,062,585 1,920,640 1,541,525 31/12/08 31/12/08 489,522 521,052 912,752 227,412 23,104 71,653 0 0 The notes on pages 41 to 142 are an integral part of these consolidated financial statements. financial consolidated 41 of these pages on to 142 part notes The integral an are (1) XVIII. XIV. XV. XVII. XVI. XXI. XX. XIX. T Total equit T C (in thousands of EUR) thousands (in EQUIT otal lia otal sharehol ore sharehol ore Figures as of Dec. 31, 2007 have been restated for share-based payments. share-based for restated 31, been have of Dec. as 2007 Figures

Net income for the period the for income Net Subscribed Subscribed capital Reserves and retained earnings retained and Reserves Treasury shares capital paid-in Additional Discretionary participation features of insurance contracts insurance of features participation Discretionary interests Minority b) Other reserves securities on reserve Available-for-sale a) income of statement the in recognized not losses and Gains Y b ilities an ilities y d d ers’ equit ers’ ers’ equit ers’ d equit y y y (1) (1)

Annual Report 2008 – N otes 9.3 9.7

264,697,528 3,230,845 5,385,561 1,032,034 5,198,620 5,430,177 31/12/07 (208,395) (231,557) 958,066 209,232 115,025 (23,162) Dexia Bank Belgium 71,916 0

263,092,889 (3,346,558) (3,381,778) 3,458,066 6,855,423 3,473,645 3,512,369 3,762,009 31/12/08 (573,884) 209,232 (35,220) 38,724 31 0 0

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements Consolidated statement of income of statement Consolidated XII. XI. X. IX. VIII. VII. VI. IV. 32 (1) statements. financial consolidated 41 of these pages on to 142 part notes The integral an are XVI. XV. XIV. XIII. V. III. II. I. XXI. XX. XIX. XVIII. XVII. I G E N N N (in thousands of EUR) thousands (in ncome

xpenses xpenses

et income income et operations continuing of income et income et ross operating income operating ross

Figures as of Dec. 31, 2007 have been restated for share-based payments. share-based for restated 31, been have of Dec. as 2007 Figures

Dexia Bank Belgium – Annual Report 2008

Net income from associates from income Net Fee and commission expense commission and Fee Dividend income Staff expense income net Other activities insurance from expense Technical activities insurance from income technical and Premiums income commission and Fee investments on income Net loss or profit through value atfair instruments financial from income Net Attributable to equity holders of the parent the of holders to equity Attributable costs acquisition Deferred & amortization Depreciation costs Network expense administrative and General Interest expense income Interest Impairment on tangible and intangible assets intangible and tangible on Impairment Attributable to minority interest to minority Attributable tax) of (net operations Discontinued Tax expense goodwill on Impairment commitments credit for provisions and loans on Impairment b efore tax efore (1) (1) (1) (1)

11.7 & 9.3 N 11.10 11.14 11.15 11.12 11.13 11.11 otes 11.2 11.3 11.8 11.4 11.5 11.6 11.6 11.9 11.1 11.1

(52,624,237) 54,832,258 (4,826,133) (1,747,822) 2,884,879 1,075,622 4,518,424 1,032,034 1,037,787 1,037,787 1,137,057 31/12/07 (366,889) (564,856) (108,660) (102,000) (707,417) 554,590 270,683 107,802 114,550 (60,065) (37,835) (24,183) 63,125 (1,370) 5,753 0 0 0

(54,032,340) 56,890,538 (4,386,499) (1,790,756) (1,121,465) 1,702,605 4,100,789 (600,206) (600,206) 31/12/08 (573,884) (653,620) (370,238) (581,304) (100,489) (733,832) (105,382) (370,959) (558,812) 150,384 539,566 (25,438) (26,322) (88,151) 58,518 53,414 (6,657) 0 0 0 Consolidated statement of change in equity

The notes on pages 41 to 142 are an integral part of these consolidated financial statements. financial consolidated 41 of these pages on to 142 part notes The integral an are

(1) period the of Movements period the of Movements A THE (in thousands of EUR) thousands (in (in thousands of EUR) thousands (in CORE A A A GAINS NOT s of Dec. 31, 2007 Dec. s of s of Dec. 31, 2006 Dec. s of 31, 2006 Dec. s of s of Dec. 31, 2007 Dec. s of -  - -  - adjustments Translation - - - - - Net income for the period the for income - Net - -  - -  - - Dividends reserves to Transfers - Figures as of Dec. 31, 2007 have been restated for share-based payments. share-based for restated 31, been have of Dec. as 2007 Figures following AFS disposals AFS following FV of Cancellation of consolidation consolidation of scope of Variation of associates value fair in changes Net Cash flow hedges flow Cash – to income to transfers due value fair in change Net Available-for-sale investments investments Available-for-sale – to income to transfers due value fair in change Net Cash flow hedges flow Cash through equity – value fair in change Net of consolidation consolidation of scope of Variation Available-for-sale investments Available-for-sale through equity – value fair in change Net services employee of value payments: Share-based STATEMENT RECOGNI

SHAREHOL AN D LOSSES D Z E DERS D OF

IN

INCOME ’

EQUIT

(1) (1)

Y

S S ubsidiaries ubsidiaries ubscribed 958,066 958,066 for sale for capital held 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

G ains and losses not recognized not losses and ains in the statement of income of statement the in A S dditional dditional (208,396) (936,933) ecurities ecurities (123,390) 864,226 209,232 209,232 (14,753) paid-in capital (6,198) 8,652 ( AFS 0 0 0 0 0 0 0 0 )

Derivatives T reasury reasury (25,088) (19,227) shares (2,081) ( 5,053 3,142 CFH (253) 0 0 0 0 0 0 0 0 0 0 0 )

and retained retained and Annual Report 2008 – A (1,150,000) 3,230,845 ( 3,202,512 and and ssociates ssociates AFS R 1,157,195 earnings eserves (11,126) 20,229 14,659 (4,783) 4,980 6,479 , CTA CFH 661 (1) 0 0 0 0 0 )

A N C djustments djustments T the period the ranslation umulative umulative et income 1,032,034 (1,157,195) 1,032,034 1,157,195 Dexia Bank Belgium (2,562) (6,352) (8,914) ( CTA for 0 0 0 0 0 0 0 0 0 0 )

shareholders’ shareholders’ G roup share (1,150,000) gains and 5,527,005 1,032,034 5,430,177 (936,272) (231,557) (134,516) 886,946 (25,088) (21,359) equity 14,659 (3,056) (4,783) (2,081) losses 8,652 6,479 T C otal ore 33 0

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 34 period the of Movements Discretionary participation features of insurance contracts insurance of features participation Discretionary interests Minority parent the of holders to equity attributable income of statement the in recognized not losses and Gains equity shareholders’ Core The notes on pages 41 to 142 are an integral part of these consolidated financial statements. financial consolidated 41 of these pages on to 142 part notes The integral an are A A TOTAL (in thousands of EUR) thousands (in MINORIT s of Dec. 31, 2006 Dec. s of s of Dec. 31, 2007 Dec. s of - Other - consolidation of scope of - Variation adjustments Translation - equity through value fair in change - Net period the for income - Net - Dividends capital of Increase - Dexia Bank Belgium – Annual Report 2008 EQUIT Y INTERESTS Y as of Dec. 31, 2007 Dec. of Y as

10,056 equity 25,782 67,435 27,123 (1,284) 5,758 C ore 0 0 0

not recognized recognized not statement G of income of ains and and ains (12,617) losses in the the in 4,481 8,326 8,182 606 (16) 0 0 0

interests M (12,617) inority 10,056 34,108 71,916 27,729 (1,284) 5,758 8,182 (16)

Discretionary Discretionary participation of insurance insurance of 5,385,561 5,430,177 contracts (296,302) (231,557) features 426,030 115,025 1 (14,703) 1 71,916 5 , 0 2 0 0 0 5 0 0

The notes on pages 41 to 142 are an integral part of these consolidated financial statements. financial consolidated 41 of these pages on to 142 part notes The integral an are

period the of Movements period the of Movements A A THE (in thousands of EUR) thousands (in A of EUR) thousands (in CORE A GAINS NOT s of Dec. 31, 2008 Dec. s of s of Dec. 31, 2008 Dec. s of s of Dec. 31, 2007 Dec. s of s of Dec. 31, 2007 Dec. s of - - adjustments Translation - - - Net income for the period the for income - Net - - - -  - - Dividends reserves to Transfers - capital subscribed of - Issuance - disposals AFS following FV of Cancellation consolidation of scope of Variation Cash flow hedges hedges flow Cash – to income to transfers due value fair in change Net Available-for-sale investments Available-for-sale – to income to transfers due value fair in change Net consolidation of scope of Variation Cash flow hedges flow Cash through equity – value fair in change Net value of employee services employee of value payments: Share-based Available-for-sale investments Available-for-sale through equity – value fair in change Net STATEMENT RECOGNI

SHAREHOL AN D LOSSES D Z E DERS D OF

IN

INCOME ’

EQUIT

Y

S S ubsidiaries ubsidiaries ubscribed 3,458,066 2,500,000 958,066 for sale for capital held 0 0 0 0 0 0 0 0 0 0 0 0 0 0

G ains and losses not recognized not losses and ains in the statement of income of statement the in (3,346,558) A (3,852,355) S dditional dditional (208,396) ecurities ecurities 209,232 209,232 645,695 paid-in capital 63,223 ( 5,181 AFS 94 0 0 0 0 0 0 0 0 )

Derivatives T reasury reasury (19,227) (21,774) (11,051) shares ( 8,667 CFH (165) 0 0 0 0 0 0 0 0 0 0 0 2 )

and retained retained and Annual Report 2008 – A 3,230,845 ( 3,762,009 1,032,034 and and ssociates ssociates AFS R (500,000) earnings eserves (51,137) 41,468 (8,862) (6,523) (1,821) 4,980 7,992 , CTA CFH (10) (3) 0 0 0 0 )

A N C djustments djustments T the period the (1,032,034) ranslation umulative umulative et income 1,032,034 (573,884) (573,884) Dexia Bank Belgium (6,923) (8,914) ( 1,987 CTA for 0 0 0 0 0 0 0 0 4 0 )

shareholders’ shareholders’ G roup share (3,381,778) (3,903,492) 2,500,000 gains and 6,855,423 5,430,177 (500,000) (573,884) (231,557) 687,163 (11,051) equity 15,825 61,402 (8,862) losses 7,992 T C (165) otal ore 97 35 0

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements The notes on pages 41 to 142 are an integral part of these consolidated financial statements. financial consolidated 41 of these pages on to 142 part notes The integral an are 36 period the of Movements Discretionary participation features of insurance contracts insurance of features participation Discretionary interests Minority parent the of holders to equity attributable income of statement the in recognized not losses and Gains equity shareholders’ Core A A TOTAL (in thousands of EUR) thousands (in MINORIT s of Dec. 31, 2007 Dec. s of s of Dec. 31, 2008 Dec. s of - Other - consolidation of scope of - Variation adjustments Translation - disposals AFS following FV of Cancellation - equity through value fair in change - Net period the for income - Net - Dividends capital of - Increase Dexia Bank Belgium – Annual Report 2008 EQUIT Y INTERESTS Y as of Dec. 31, 2008 Dec. of Y as

(26,322) 18,809 69,423 equity 15,339 67,435 (4,840) C (998) ore 0 0 0

not recognized recognized not statement G of income of ains and and ains (30,699) (32,589) (1,068) (5,134) losses in the the in 4,481 3,707 (96) 0 0 0

interests M (32,589) (22,615) inority 18,809 38,724 10,205 71,916 (4,936) (1,068) (998) 0 Discretionary Discretionary participation of insurance insurance of ( 6 3 3 contracts , , features , (115,025) 8 5 3 115,025 1 5 3 8 2 5 1 8 , , , , 7 3 4 7 7 6 2 2 8 9 0 4 0 0 0 0 0 0 0 3 0 )

Consolidated cash flow statement Changes in operating assets and liabilities and assets operating in Changes for Adjustment (1) Dividends Dividends paid shares treasury of Sale shares treasury of Purchase debts subordinated of Reimbursement debts subordinated of Issuance shares new of Issuance units business of and subsidiaries of Sales units business of and subsidiaries of Acquisitions shares equity unconsolidated of Sales shares equity ofAcquisitions unconsolidated assets fixed of Sales assets fixed of Purchase Interest paid received Interest Dividends received paid tax Income equivalents cash and cash on consolidation of scope in change and changes rate exchange of Effect activities financing from flow Cash activities investing from flow Cash activities operating from flow Cash taxes income after income Net The notes on pages 41 to 142 are an integral part of these consolidated financial statements. financial consolidated 41 of these pages on to 142 part notes The integral an are C of EUR) thousands (in C N N C N C N Add C ash flo ash an ash ash flo ash flo ash an ash et cash pro cash et pro cash et pro cash et pro cash et - Other adjustments Other - taxes Deferred - associates from Dividends - associates from - Income losses or gains - Unrealized provision) insurance (mainly provisions for - Charges investments on gains Net - assets other and loans equities, bonds, on - Impairment impairment other and amortization Depreciation, - Figures as of Dec. 31, 2007 have been restated for share-based payments. share-based for restated 31, been have of Dec. as 2007 Figures itional information cash equi d cash cash equi d cash w w w from operating acti from financing acti from in v v v v i i i i d d d d e e e e d d (use d (use d (use v v v esting acti alents at the alents alents at en alents d d d ) ) ) financing acti by financing by in acti by operating (1) v vities vities esting acti esting vities of perio d of b (1) eginning of the perio the of eginning v v d v ities ities ities d Annual Report 2008 –

(53,469,298) 19,348,654 59,546,293 19,348,654 77,398,431 17,855,230 15,265,312 56,157,397 (2,265,014) 1,663,980 3,325,947 1,037,787 31/12/07 (596,381) (871,284) (897,043) (596,381) (276,905) (273,503) (897,043) (333,974) (110,329) 185,646 241,090 216,374 (42,464) 127,625 (76,089) (25,841) Dexia Bank Belgium 33,496 63,666 10,056 71,095 (1,884) (3,092) 0 0 0

(53,380,705) (19,814,256) (24,767,969) (21,901,172) (21,901,172) 57,584,407 77,398,431 56,745,666 (2,110,320) 2,302,676 2,302,676 1,310,960 2,517,559 2,107,757 2,133,176 31/12/08 (600,206) (500,998) (264,465) (350,456) (215,760) (166,995) (215,760) 550,580 134,376 213,475 (61,546) (21,895) 130,115 63,090 25,506 25,438 (4,153) 7,036 7,259 232 37 0 0

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 38 Dexia Bank Belgium – Annual Report 2008 sheet and statement of income balance consolidated the of Progress statements Preliminary notes to the financial total. total. sheet balance the of 39.5% for accounted They 8%. of fall a banks to Debts 31, at December total 2007. the on 0.6% of fall slight a 263.1billion, EUR to amounted At 31,December the 2008 Analysis of the balance sheet rules. accounting IAS the with conformity in and Group Dexia the by applied procedures and methods the with accordance in out carried mark the of application the and advances” and “loans heading the under customers to advances and securities available allows amendment That bonds. of number a of respect in quarter fourth the during applied was amendment, the in out set criteria the meet that securities of reclassification the permits 7, IFRS 39 and which to IAS amendment The Union. European by the as adopted standards to up drawn all pursuant the IFRS The of financialconsolidated statements Dexia Bank have been Funding Secured Dexia that to addition Dublin Belgium, In liquidated. were Italia in and Financière Dexia Artesia The pany participations Fidexis. com the and companies, insurance Assurances, Vandewalle and Belstar of sale the were 2007 in changes principal The liquidated. were Finance International Artesia in Eurcolux and The participations Markets. Capital Real Estate Dexia became Corporation Capital Mortgage Artesia the and de Crédit Elantis was Société renamed Dexia Belgium. Funding Secured Dexia within compartments further of creation the and Penates of SPVs the establishment was the there addition In Foire. Immo of purchase the and Corp Investment RAC of sale the were 2008 in occurred that changes greatest The 2. EU 2. consoli 1. C 1. Lia hanges to the scope of scope the to hanges Loans Loans and Loans and held securities for purposes trading GAAP b ilities - to d amounted to EUR 104 billion at the end of 2008, 2008, of end the at billion 104 EUR to amounted - ation model method of valuing certain assets was was assets certain valuing of method model O ak and Dexia Immorent were established. established. were Immorent Dexia ak and

. The reclassification of financial assets assets financial of reclassification The . for sale for consolidated balance sheet Loans and and to as bereclassified Loans total total ­ under the heading “customers”. heading the under EUR 7.6 billion in balances held by of booked financialinstitutions fall net a was There bonds. of reclassification the to and to in customers loans to an increase attributed be can rise The customers amounted to to EUR 103.5 billion advances (up 29.1%, or and EUR 23.3 billion). Loans 2008 31, December At financial institutions. by other issued certificates of a fall in deposit 35.3%) because by securities represented with a slight fall in combined balances on savings and banks term accounts. other to debts in decline a to due mainly is at December 31, at December – 2007 a fall of 33.2%. Group amounted to EUR 3.5 billion, as against EUR 5.2 billion At 31,December 2008 the stable. less or more stayed contracts repo of volume The deposits. term in decline the to The fall in 104.0 is (EUR billion) interbank liabilities attributable the in fall the than smaller was that contracts. of repo volume deposits term in increase an to attributable is billion) 65.8 (EUR assets interbank in fall The 2.5 fell by EUR billion. bycompanies, insurance mainly held shares, of position The customers. to advances and Loans as bonds (down 33.5%). The fallsecurities is mainly in was due to billion the reclassification 53.2 EUR which of of billion 53.6 EUR was 2008 31, December at trading, portfolios these for of amount held total strategy: mark sale, portfolio for to available according together shown are securities and loans Union, European the by Principles adopted Accounting Accepted Generally the to Pursuant worth EUR 69.8 bil 69.8 EUR worth 2008 of end the At for 33.1% total. sheet balance of the EUR 87.2 billion at the end of 15.3%), (down 2008 accounting to amounted bonds) and certificates, and bonds (savings Customer borrowings and deposits represented by securities by represented deposits and borrowings Customer 2. L 2. 5. 5. De 4. L 3. T oans an oans oans an oans otal capital an otal capital b ts to an to ts d d lion, down 8.2% on the previous year. This year. This previous the on 8.2% down ­lion, securities a were were deposits and borrowings Customer d dv - claims on b on claims amounted to EUR 17.3 EUR to (down amounted billion to capital and reserves ances to customers to ances - market or held to maturity. The The maturity. to held or market d reser v es anks of Dexia Bank Bank Dexia of Debts Debts

EUR 1,398 million. 1,398EUR million. by fell income underlying The share. Group – income net the in fall the in million 209.8 EUR for accounted and 2007 in and equity prices in the wake of the international financial crisis. crisis. financial wake international in the of the prices equity and (1) EUR to year fall. amounted factors this The from contribution extraordinary that of million +2.3 EUR for accounted they and next the to changes occurred of in from consolidation year the scope one EUR The statement of income Analysis of the consolidated dividend the by 39 tomillion. 33EUR EUR million and year the during fell for by interests 2007 was which paid out Minority in 2008. sustained loss the by affected also was capital Core state. Belgian the 26.2% of of participation the increase from an resulting capital in increase the billion, to 6.9 essentially due EUR to amounted capital Core EUR to amounted item this 2008 31, December At differences. conversion the and assets liquid hedging for derivatives the available the to relate losses or gains latent These of income. statement in the are included not that losses or gains deferred or latent plus distribution) before year the for income net reserves, premiums, contribution and issue (capital, capital core of up made are reserves and Total capital Positive value of derivatives of value Positive securities and Loans customers to advances and Loans banks from due assets Financial interests Minority equity Total shareholders’ equity shareholders’ Core debt convertible and Subordinated securities Debt derivatives of value Negative deposits and borrowings Customer to banks due Liabilities (in millions of EUR) millions (in Total assets Total equit T Lia C 1. otal lia onsoli Percentages were calculated on the basis of amounts in units. in of amounts basis the on calculated were Percentages - N b net income – income net - 3,382 million, a considerable drop due to a 3,382 million, the fall considerable in bond 574 mil 574 ilities et income – income et b d - ilities 20.7mil lion, down EUR 1,606 million on 2007. A few few A 2007. on million 1,606 EUR down ­lion, ate y d

b lion compared with EUR +189.1 EUR with million compared ­lion G alance sheetalance amountedshare roup in 2008 to G roup share roup -for - sale portfolio, portfolio, sale • 105.2%, substantially up on 2007 (60.1%). For the same reason reason of 2007). 63.3% same the For (60.1%). 2007 105.1% the was on ratio increase on underlying the significant (a up substantially 105.2%, andamounted tothe year during made loss bythe influenced The • • • follows: in2007. as than more down break 43 million) They (EUR E 22 million. EUR the and Furthermore, lion. lion and the crisis, the fell by EUR 133 million. As a result of the financial international by increased EUR 36 million. The item interest margin item the movements: of fall following the is result The the 1,162EUR mil been have would fall the unchanged, remained consolidation ( 1,182 million EUR of Total

xpenses 2. I 2. 3. byincreased 0.9%network the to (orCommissions EUR 3.3 million). 3.3 million). EUR costs Other 3.3EUR million); year; the (+3.7%) over 26 million EUR by increased Staff costs, which account for around 41% of the total, total, the 41% of around for account which costs, Staff Depreciation on tangible and intangible assets fell by 3% (or (or 3% by fell assets intangible and tangible on Depreciation overratio operating the whole of 2008 was heavily E ncome income xpenses Technical margin on insurance activities insurance on margin Technical Financial liabilities amounted to EUR 1,791 million in 2008, i.e. 2.5% i.e. 2008, in 1,791 million EUR to amounted Net income on investments on income Net lion over the year. the over ­lion amounted to EUR 1,703 million in 2008, a fall rose by 2.9% (or EUR 16.4 million). million). 16.4 EUR (or 2.9% by rose rose by EUR 650 million and the item Dividends item the and million 650 EUR by rose Net commissions Net -

41%) on 2007. Had the scope of scope the Had 2007. 41%) on – – Dec. 31, 2007 Dec. trading securities Annual Report 2008 – 264,698 264,698 259,312 113,092 80,206 26,820 80,673 14,307 14,943 79,270 76,079 5,386 3,087 5,430 5,199 Net income by associates by income Net fell by EUR 14 million 14 EUR by fell 72 by EUR 1,392 mil­ 1,392 EUR by fell by EUR 347 mil­ 347 EUR by fell Dec. 31, 2008 Dec. increased by increased 263,093 263,093 104,028 259,581 103,520 33,840 Dexia Bank Belgium 36,302 65,793 69,815 53,614 17,349 3,225 6,855 3,512 3,474 39 Net Net

E +126.5% +153.7% volution +26.2% +29.1% -46.2% -35.3% -33.2% -33.5% -79.3% -17.0% +4.5% in % in +0.1% -8.2% -8.0% -0.6% -0.6% (1) 39

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 40 Net commissions Minority interests Minority Tax expense assets (in)tangible on Impairments risk of Cost (in millions of EUR) millions (in G expenses I C N N ncome onsoli et income – income et income et ross operating income operating ross Dexia Bank Belgium – Annual Report 2008 d ate with the tax authorities and of liquidation losses. losses. of liquidation and authorities tax the with disputes of settlement the of result the mainly 2007), in lion (1) non 2008 In income of terms In below: shown are year the during changes principal The before. year the 189.1million EUR to opposed EUR to amounted share Group – income non of contribution the 2008 In in to2007 97 EUR EUR fell from million charge tax underlying the these, excludes one If 2007). in lion - (EUR items extraordinary for credits includes This 2007.241.2% on down 2008, for Taxes write general as well as specific 2007.covers in It million 60 EUR to to in amounted 2008 EUR 559 risks) credit as million, opposed The 107.8% down lion, 2007.on The EUR EUR T 127to EUR in 2007.opposed million balanced out with a debit of a out with debit balanced items on non-operating axes 6. 6. 5. G 4. 7. F G Percentages were calculated on the basis of amounts in units. in of amounts basis the on calculated were Percentages roup share roup gross operating income d - (impairments on loans and provisions for for provisions and loans on (impairments risk of cost C T 19.2 million in 2008 (as opposed to a credit of EUR 61.8 mil­ 61.8 EUR of credit a to opposed (as 2008 in million 19.2 - ocus on non-operating items non-operating on ocus downs. statement of income ax (including deferred taxes) amounted to - amounted EUR taxes) deferred (including ost of risk of ost ross operating income operating ross - operating items amounted to EUR EUR to amounted items operating 19 million in 2008 and EUR 61.8 mil 61.8 EUR and 2008 in million 19 in 2008 amounted to EUR - EUR to amounted 2008 in - operating items to the net net the to items operating - 72 million in 2008. in 2008. 72 million - 20.7 million, as million, 20.7 - 1.6 million as as 1.6 million 53 million 88 mil­ 88 ­ following the transition from Basel I (2007) to Basel II (2008). (2008). II to Basel I (2007) Basel from transition the following risk of volume the period that 31, 2007. December on 9.4%) to RAR the 8.1% to (and of decision BFIC the and 2005 5, August on Gazette the Belgian the of in published basis the on decree amending the to pursuant figures calculated IFRS been consolidated have ratios These 14.7%. to The The The The crisis. financial of the result a as before, year the below well 2007), in 22.5% to opposed The (36%). 2007 on a of percentage total came income) to 2008 to 12.9% and the the 12.9% and to 2008 8. 8. return on equity ( equity on return profit margin profit T F ier 1 solvency ratio (Basel (Basel ratio solvency 1 ier inancial ratios inancial

Dec. 31, 2007 Dec. O ctober 17, 2006. The Tier 1 ratio amounted amounted ratio 1 17, Tier The ctober 2006. (the net profitbefore minority interests as (1,748) 2,885 1,038 1,032 1,137 453 (60) (38) (6) (1) ROE total capital ratio ( ratio capital total

amounted in 2008 to - in 2008 ) amounted Dec. 31, 2008 Dec. - weighted assets fell by 16.9% by fell assets weighted II amounted at the end of of end the at amounted ) (1,791) 1,703 - (600) (559) (574) 35.3% 35.3% in – 2008 down 439 (88) 53 26 (7)

– Basel Basel – RAR E +830.3% +385.9% volution -241.2% -155.6% -557.5% -107.8% -157.8% 9.7% (as -41.0% +2.5% in % in -3.0% O (1) ver ver II ) statements Notes to the consolidated financial R S 33. 32. 26. 25. 24. 23. 31. 30. 29. 28. 22. 21. 20. 16. 19. 18. 15. 14. 13. 12.

10.

CONSOLI A

METHODOLOGY I 27. 11. 17. . 8. 4. 6. 2. 3. 5. 9. egment 1. 7. isk ccounting ACCOUNTING

TRANSACTIONS PARTIES RELATED EQUIVALENTS CASH AND CASH BORROWINGS SECURITIES OF LENDING AND AGREEMENTS REPURCHASE AND SALE LEASES ASSETS OTHER ACTIVITIES FIDUCIARY SHARES TREASURY AND CAPITAL SHARE CHARGES AND RISKS FOR PROVISIONS BENEFITS EMPLOYEE TAX INCOME DEFERRED GOODWILL ASSETS INTANGIBLE ASSETS FIXED TANGIBLE DERIVATIVES LOSS OR DAY PROFIT ONE A PORTFOLIO OF EXPOSURE RISK INTEREST-RATE THE OF HEDGE DERIVATIVES HEDGING TO MATURITY HELD SECURITIES AND SALE FOR AVAILABLE SECURITIES AND LOANS LOSS OR PROFIT AT THROUGH VALUE FAIR MEASURED LIABILITIES OR ASSETS FINANCIAL OR TRADING FOR HELD LIABILITIES FINANCIAL OR ASSETS FINANCIAL TO CUSTOMERS AND BANKS FROM DUE ADVANCES AND LOANS COSTS NETWORK ACTIVITIES REINSURANCE AND INSURANCE EXPENSE AND INCOME COMMISSION AND FEE EXPENSE AND INCOME INTEREST ASSETS FINANCIAL ON IMPAIRMENTS FINANCIAL ASSETS OF SALES ON LOSSES AND GAINS REALIZED DATE ACCOUNTING SETTLEMENT DATE AND TRADE TRANSACTIONS AND TRANSLATION CURRENCY FOREIGN LIABILITIES OFFSETTING FINANCIAL ASSETS AND FINANCIAL GROUP BANK DEXIA MAYTHAT IMPACT PUBLICATION PREVIOUS CHANGES IN ACCOUNTING POLICIES SINCE THE CONSOLIDATION ACCOUNTING OF BASIS

management

reporting

D

policies ATE

D B

policies

PRINCIPLES

ASIS

and

hedging

ON

A

activities

44 44 44 44 44 48 48 48 54 54 54 54 54 54 50 50 49 49 49 52 52 52 52 52 42 45 45 45 53 43 55 51 51 51 41 41 41 • • • • The common used abbreviations below are: below abbreviations used common The below. out set are statements financial consolidated these The principal accounting in adopted policies the of preparation 2009. 23, February on Directors of Board the by of approved been have statements financial The 2006. 31, December from as Union European the by approved IFRS the to according statements financial consolidated its publish Bank 5, Dexia of The to Royal compels Decree 2004 December applies fully Bank Dexia hereafter. applicable. not issues specific for the except standards these Standards Reporting Union Financial European the by International Dexia the in Group Dexia approved the to transposed and IFRS the to according package consolidation Group its preparing been has Bank Dexia Dexia, to reporting its of framework the in 2005, 1, January Since Methodology the possibility to hedge core deposits. deposits. core to hedge possibility the of conditions of application interest the including 2008 31, December to up EC prepared the by been endorsed and EU” the therefore by adopted have as IFRSs all with accordance “in statements financial Bank’s Dexia standards. accounting on legislation Community simplify to order in interpretations as adopted by and the EU untilstandards all encompasses which 2008 3, November on 1126/2008 EC Regulation issued Commission European The EU. by the adopted as IFRSs all with in accordance The of financialconsolidated statements Dexia Bank are prepared 1.1. General policies Accounting • •

1. B EU GAAP: International Financial Reporting Standards as as Standards Reporting Financial International GAAP: EU IASB: International Accounting IASB: Standards Board International FinancialStandards IFRS: Reporting EU the by approved Group Advisory Reporting Financial European EFRAG: Committee Regulatory Accounting ARC: Committee IFRIC: International Financial Reporting Interpretations Reporting Financial International IFRIC: ASIS OF ACCOUNTING Annual Report 2008 – - rate portfolio rate hedging and portfolio October 15, 2008 Dexia Bank Belgium 41

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 42 Dexia Bank Belgium – Annual Report 2008 • • 1.2. Accounting estimates stated. otherwise concern basis. They are in stated of thousands unless euro (EUR) are on prepared astatements going financial The consolidated 1. IFRS by 32&39 permitted as information IAS comparative apply to decided Bank, and 4 IFRS as Dexia from 1,January 2005, the without restating 2004 including Group, Dexia SA. Dexia as way same the in standards IFRS the applied Bank Dexia 2005, and 2004 For 2005. year the from effect with standards IFRS the with accordance in statements financial annual consolidated its publishing is which subsidiary, SA Dexia a is Bank Dexia Dexia Bank adopted the new accounting rules on 1,January 2005. • first the for one. 2009 last 1, the for July 2009 1, January after after or or on on and standards three begin that periods reporting annual for effective respectively be will and standards existing The IASB published and amendments issued 2.1. IFRIC New interpretations IFRS standards, • • • • areas: made are in and principally estimates the following Judgments differences could be material to the financialstatements. actual results estimates, may differ from such and estimates the these developing in information available all considered have they believes management While reported. amounts affect that assumptions and estimates make to required is In preparing the consolidated financialstatements, management

MA SINCE 2. determination of fair values of non of values fair of determination actuarial assumptions related to the measurement of measurement the to related assumptions actuarial option for the “full goodwill method”. “full goodwill for the option an make to possibility the has Bank Dexia entity, acquired - loss. or in profit liabilities and assets recognized previously to adjustments value fair the of recognition with value fair to associate existing the - acquired. acquisition capitalize longer no can Bank Dexia acquisitions, new For - reasons: for several Bank Dexia impacts standard this of revision The 2004. in issued as of provisions. in recognition the from resulting events past of obligations present estimation assets; plan and obligations benefit employee of insurance contracts; of liabilities measurement intangible assets; and property investment equipment, and plant property, instruments; determination of the useful life and the residual value of of value residual the and life useful the of determination estimation of the recoverable amount of impaired assets; impaired of amount recoverable the of estimation IFRS 3 IFRS “Business Combinations”, which replaces the standard In case of a step a of case In For each new investment in a non a in investment new each For CHANGES Y D IMPACT

THE

- related costs as part of the cost of the business

PRE IN four revised standards revised four - acquisition, Dexia Bank will first remeasure remeasure first will Bank Dexia acquisition, V B EXIA ACCOUNTING IOUS

PU ANK B LICATION GROUP - controlling interest in an an in interest controlling POLICIES - quoted financial quoted which will replace replace will which

THAT

The International Accounting Standards Board (IASB) issued issued (IASB) Board Standards Accounting International The A • • • • • The also IASB issued • • editorial changes with minimal effect on accounting. on effect minimal with changes editorial or terminology involving those and purposes measurement or recognition presentation, for changes accounting involve issued are The those that in amendments presented two parts: project. improvements annual its in made proposals on reached Board the conclusions of result the are amendments These (IFRSs). Standards Reporting Financial International to amendments of collection a IFRSs, to Improvements 2008 22, May on •

nnual improvements 2008 to IFRS to 2008 improvements nnual disclosed in note VII.7. “Reclassification of financial assets”. financial of VII.7. “Reclassification note in is disclosed statements financial on information further and impact The Receivables. and to Loans for Sale Available (ii) IAS 27 “Consolidated and separate financial statements”. financial separate and “Consolidated 27 IAS IFRS 1 IFRS “First Time of Adoption Financial International Reporting amendment to IFRS 2 “Vesting conditions and cancellations” cancellations” and conditions “Vesting 2 IFRS to amendment entitled “Cost of an Investment in a Subsidiary, Jointly Jointly Subsidiary, a in Investment an of “Cost entitled statements”, financial separate and “Consolidated 27 IAS to and IFRS” of Adoption Time “First 1 toIFRS amendment impact. major any without well as 1, 2009 January from as applicable obligations” and ments instru financial “Puttable 1 IAS and 32 IAS to amendment Bank. Dexia on impact major a have not will which 2009 1, January from as applicable financial communication. external and reporting management with line in reporting segment disclosing allow will It 2009. 1, January after or on begin that periods reporting annual for 14 IAS supersede will 8 that 2008 January has no for major impact Bank. Dexia IFRS in Reporting” “Segment 14 IAS revised a issued IASB The 14 Reporting”. “Segment IAS Revised because level Bank anymore. Dexia adopter time at first no is Bank Dexia impact no has which Standards”, equity. impact will but loss or profit on impact no have will of a subsidiary ownership controlling in a Changes parent’s obligation. a present is of the acquiree or liability not a contingent mine whether - ii) Available for Sale to Loans and Receivables and toLoans Sale for Available ii) Dexia Bank applied this possibility to reclassify some financial financial and some for Trading Receivables and Held to Loans (i) reclassify to of out assets possibility this applied Bank Dexia and Receivables and Loans into or Sale for Available Tradinginto for Held i) of out met, are conditions amend non some whereby reclassification 2008 1, July the from so, use wish to they if ments, IFRSs to according reporting companies enable standards amended The instruments”. financial some of reclassification the permitting Disclosures Instruments: “Financial 7 IFRS and Measurement” and Recognition Instruments: “Financial 39 IAS to amendment hedge transactions. of this is amendment mainly related to a limited numberof Bank Dexia on impact The 1,2009. July from as applicable Janu from applicable also Associate” or Entity Controlled amendment to IAS 39 “Eligible hedged items” being being items” hedged “Eligible 39 IAS to amendment For new acquisitions, an analysis will be required to deter to required be will analysis an acquisitions, new For - ary 1, 2009 on. The impact is assessed toimmaterial. be is assessed impact 1, The on. ­ary 2009 derivative financial assets can be transferred, if specific canifbe specific transferred, assets financial derivative

five amendments

to the existing standards: existing the to

­ ­ ­

Unless otherwise specified the amendments are effective for for effective are amendments the specified otherwise Unless • • These interpretations do not impact Dexia Bank. Dexia impact not do interpretations These the net income from associates decreased by EUR 2.5 by EUR million. decreased associates from income net the by increased EUR expense 12.1staff been restated; mil 31,also has 2007 December of consoli as income of the statement dated implementation this of result a As million. 0.7 EUR Treasury EUR 7.3 and million. The net income with from decreases of associates “Group expense 2 staff of IFRS 11 increase an is there IFRIC Transactions” of Share implementation the to Due • reclassified: were taxes operational In the as financialconsolidated statements of December 31, 2008, presentation in Changes 2.3. • • • Commission: European the by endorsed been The or to following interpretations amendments have standards ropean Commission 2.2. IASB and by IFRIC texts endorsed the Eu • • • after or on and interpretations one: last the for 1, first 2009 July two the for 2009 1, January on or after begin that for periods annual effective respectively The • • ways: following the in Bank Dexia impact mainly will IFRS to 2008 improvements annual The entities are topermitted adopt them earlier. annual beginning periods on or after 1,January 2009, although •

IFRIC 14 “IAS 19 The Limit of a Defined Benefit Asset, Asset, Benefit Defined a of Limit The 19 “IAS 14 IFRIC amendment to IFRS 2 “Share 2 IFRS to amendment Dexia Bank will account property under construction or or construction under property account will Bank Dexia Disclosures”. Instruments: “Financial 7 IFRS and Measurement” and Recognition Instruments: “Financial 39 IAS to amendment Costs” “Borrowing 23 IAS to amendment Conditions and Cancellations” Interaction” and their Requirements Funding Minimum measurement. Impact 16. IAS on of consequence any scope without the presentation to in limited is longer no and 40 IAS of scope the in property investment as use future for development sale. the after subsidiary former its of whether the entity will retain a non A revised Presentation” revised A to amendment of 1 IAS Financial Statements: “Presentation non of 17 “Distribution IFRIC operation” foreign a in investment net a of 16 “Hedges IFRIC estate” real of construction the for 15“Accounting agreements forIFRIC regardless sale, for held as subsidiary that of liabilities and all the assets Bank classify will of control Dexia a subsidiary, of loss involving plan sale a to committed is Bank Dexia If (line X) to “ X) (line liabilities” “Tax from moves million 59.4 EUR of amount An “ to XI) (line assets” “Tax from moves million 31.6 EUR of amount An IFRIC issued issued O O ther liabilities” (line XI). (line liabilities” ther ther assets” (line XII). (line assets” ther three interpretationsthree - cash assets to owners”. to assets cash - Based Payment: Vesting Payment: Based - controlling controlling interest in , which will be will which , lion ­lion and - ­ or more parties undertake an economic activity that is subject subject is that activity economic an undertake parties more or two whereby arrangement is a contractual A venture joint (JV) 3.2. Jointly-controlled entities respectively. shown in separately the balance sheet and of statement income are interests minority to attributable income net and Equity Bank. Dexia by adopted aries have been amended to ensure with consistency the policies of the subsidi policies the accounting necessary, When ments. state financial consolidated the in recognition requires that Intra eliminated. been have companies Bank’s Dexia between transactions on losses and gains unrealized and balances transactions, Intercompany ceases. control Bank Dexia which on date the from as dated consoli longer no are and Bank Dexia to transferred is control from the date effective on which are consolidated Subsidiaries over financialpolicies. and operating control exercise to power the has indirectly, or directly Bank, Dexia which in entities those are SPE and Subsidiaries (SPE). entities purpose special and subsidiaries its company, parent the of those include statements financial consolidated The 3.1. Dexia Bank. Dexia by adopted policies the with consistency ensure to amended have been associates of the policies accounting the necessary, Where undertakings. associates’ the of respect in obligations guaranteed or incurred has Bank Dexia unless zero, reaches investment the of amount carrying the when discontinued is associates from losses of recognition The transferred. asset of shows evidence the unless an transaction of impairment the eliminated also are losses Unrealized interest. Bank’s Dexia of extent the to eliminated are investments” method “equity its and Bank Dexia between transactions on gains Unrealized goodwill. net including assets net the of share its reflects that at an amount sheet balance in the is recorded investment the and associates from income as recognized is year the for income net of share ownership The rights. voting the of 50% and 20% between owns Bank Dexia when case, the usually is This control. exercise not does but influence, significant has Bank Dexia where investments are Associates method. equity the using for accounted are associates in Investments Associates 3.3. Bank. Dexia by adopted policies the with consistency ensure to amended been have applied entities is controlled jointly of policies subsidiaries, for as for the When necessary, treatment, accounting intercompany transactions. consolidation same The on a line and expense income liabilities, assets, the of share their of combination by propor integrated are the ventures via for accounted are tionate method. In consolidation the joint financialstatements, ventures Joint control. joint to 3.

CONSOLI Subsidiaries D ATION - Group losses may indicate an impairment impairment an indicate may losses Group Annual Report 2008 – - by - line line basis. Dexia Bank Belgium ­ ­ ­ ­ 43

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 44 Dexia Bank Belgium – Annual Report 2008 Dexia Bank is incorporated. is Bank Dexia which in currency the currency), presentation and (functional EUR in stated are statements financial consolidated The simultaneously. liability the settle and asset the realize to or basis, net a on and toright tointends either a enforceable settle offset legally quently, the net amount is when Dexia only Bank reported) has conse (and offset are liabilities financial and assets Financial arising from revaluing the contract to fair value at the reporting reporting the at value the fair in to recognized are losses and gains unrealized contract These date. the revaluing from arising losses or gains unrealized any date trade the from recognizes Bank Dexia P&L, through value fair at recognition initial at measured liabilities and assets financial For date. trade at derecognized and recognized are trading for held instruments financial However Bank. Dexia by or to delivery of date the is are recognized and on derecognized the date, settlement which instruments financial of sales and “regularAll purchases way” treatment as for fair value adjustments. fair value, the follow exchange differences the same accounting of for non income; dated statement consoli the in recorded are items monetary from differences for non used are rates Historical value. fair at carried items monetary year or year or period at currencies foreign transactions date of the transaction. currency foreign entities, are accounted for using approximate the exchangerate at the Bank Dexia individual For 5.2. Foreign currency transactions rate. closing the at translated are acquisition and entity foreign the the of from liabilities and assets arising as treated are entity foreign a of adjustments value fair and Goodwill sale. on loss or gain the of part as income of statement the in recognized are differences exchange such entity, foreign a of equity. translation within adjustment shareholders’ cumulative a as recorded are investments, such of as hedges designated instruments currency other and borrowings of and associates and subsidiaries foreign in investment net the of translation the from arising differences Exchange rates. exchange year respective at translated are liabilities and assets their and period average the or at year the for rates exchange (EUR) currency presentation Bank’s Dexia into lated trans are currency presentation Bank’s Dexia from different currency functional ahave that entitiesforeign of statements O 5.1. Foreign currency translation TRANSACTIONS ACCOUNTING 5. FOREIGN 5. 4. 6. TRA 6. FINANCIAL n consolidation, the statements of income and cash flow flow cash and income of statements the consolidation, n OFFSETTING - - monetary items at carried monetary cost. The resulting exchange end exchange rates for monetary items and non and items monetary for rates exchange end D E D ATE CURRENC LIA B AN FINANCIAL ILITIES O utstanding balances denominated in denominated balances utstanding D SETTLEMENT D Y TRANSLATION Y - end are translated at period period at translated are end - monetary items carried at items carried monetary ASSETS - end or quarter or end D AN ATE O AN D n disposal n disposal D - end end - ­ ­ ­ for asset’s carrying amount and the present value of expected future future expected of value present the and amount carrying asset’s the between difference the as calculated is cost amortized at carried assets for loss impairment the of amount The amount. recoverable estimated its than greater is amount carrying its if impaired is asset financial bearing interest An date. sheet balance at each losses of estimates best management’s the represent impairments 58 § 39 IAS with accordance in impaired, is assets that a orevidence asset financialgroup of is financial objective Dexia Bank records allowances for when impairment losses there investment. the of cost amortized or cost the and costs) transaction of (net received proceeds the between difference the is disposals on losses or gains realized income, of statement the through revalued not assets financial For cash to of statement income unless have the transactions been assigned • • way: following the in to customers” advances and “Loans and in banks” from “Due with are on for recorded losses assets Allowances impairment doubtful. payments interest associated and loan any of repayment makes that extent an classified to be deteriorated has should customer the of worthiness credit the commitments if impaired Loan as impaired. as regarded be the where counterparty, the off However, there may be such circumstances about as uncertainty are usually into converted on guarantees and standby letters of credit) and loan commitments O asset. financial similar a for interest of rate market current the the present future value of discounted cash flows expected at is at fair value measured of an instrument amount recoverable variable for contract the under mined deter rate interest effective current or rate interest effective original instrument’s financial the at discounted flows cash

OF 8. 8. 7. REALI ff -sale asset. date. These have been estimated based upon historical historical upon based estimated been have These date. or other lending atrelated the balance commitments sheet that evidence are losses present in of segments the portfolio objective but impairment specific no is there where losses is impairment calculated. collective a which underly on the portfolio and the from excluded be will recognized asset be ing will loss impairment measure this specific in a impaired, being as aggregated assessed is asset an When generally ment. are characteristics risk that with retail loans) small share (including balances similar Assets rate of at time impairment. the interest effective the recoverable from guarantees and collateral, discounted using amounts including flows, cash expected of value present the being amount, recoverable the and amount carrying the between difference the is assets identified specifically S C - pecific impairments balance sheet exposures such as credit subsitutes (e.g. subsitutes credit as such exposures sheet balance ollective impairments IMPAIRMENTS FINANCIAL - flow hedge relationships or are related to an available an to related are or relationships hedge flow Z E D GAINS D ASSETS ON – The amount of the impairment on on impairment the of amount The – AN – Loss impairments cover incurred incurred cover impairments Loss – - FINANCIAL balance balance sheet items when called. - D LOSSES D balance balance sheet should exposure - rate instruments. The The instruments. rate ON ASSETS SALES - 70. The The 70. ­ - ­ ­ ­ • that are included in the calculation of the effective interest rate. rate. instrument. financial the acquired not interest had entity the if effective and the of liability incurred or been have not would that one is cost incremental An calculation asset the in financial a of included are that acquisition the to attributable directly are that costs incremental are costs Transaction costs). transaction (including price purchase interest effective the using basis interest all for income of statement the in recognized are expense and income Interest Bank. Dexia by monitored is risk credit how on information more for Risk Credit section the to refer also We commitment”. credit for provisions and loans on “Impairments in item the are reported in AFS included on loans Impairments investments”. on income “Net as income of statement the in included are adjustments value are When AFS securities impaired, the related accumulated fair by case a on addressed is securities debt on impairment Reversal prices. of quoted recovery to later due income of statement the in reversed be cannot securities equity on Impairments impairment. of evidence objective also is cost its below value fair the in decline prolonged or significant A 39. IAS to according impairment of evidence objective an is there whether assess and impair to decision price or when a risk is by identified and management, takes the acquisition tothe 25% than compared more by declined have recognized in the all of case not Bank that Dexia equities analyses impairment. securities on losses in the of statement and income” or within the of statement income “Gain through value fair Available impairment. “Available credit commitments”. for provisions and loans on “Impairment the to credited is impairment the of release the impairment, initial the of down write the after occurring event an to due decreases sequently sub­ impairment the of amount the If commitments”. credit for provisions and loans on “Impairment item the in income, of statement the in commitments” credit for provisions and loans on “Impairment the against are recoveries subsequent impairment; related its against off written is it collectable, un­ being as management by determined is asset an When

9. INTEREST 9. - financial crisis on the ratings and the expected losses. expected the and ratings the on crisis financial the of impact the reflect better to model its recalibrated Bank Dexia market has conditions, the Considering stressed proba­ and back are on testing and data II based Basel risk models. default appropriate loss and bilities combines that approach an using models risk credit purpose that for develops Bank Dexia operate. borrowers the which in environment economic current the reflecting and borrowers the to allocated ratings credit the segment, each in losses of patterns collective impairment. collective componentrisk Country case basis in accordance with the standard. the with in accordance basis case -for - sale” (AFS) assets are only subject to specific specific to subject only are assets (AFS) sale” INCOME - given defaults that are subject to regular regular to subject are that defaults given -for - - sale sale quoted are equities measured at bearing instruments on an accrual accrual an on instruments bearing AN – Included within specific and D EXPENSE D - rate method based on the the on based method rate - - when the service is provided. Performance fees are recognized Performance is provided. the when service fees. Revenue from is asset management recognized as earned of unit trust and mutual fund and management administration For asset management operations, revenue consists principally transaction has been completed. completion of the of underlying transaction, stage when the the underlying on based recognized are businesses, of sale or purchase the or securities other or securities equity loans, of acquisition the of arrangement the as such party, third a for negotiating, or participating in the negotiation of a transaction from arising fees and commissions as such acts significant For transaction. underlying life of the the over on basis an accrual are recognized Bank’s activities from Dexia arising commissions the of most standard, this to According Commissions and fees are recognized in accordance with 18.IAS amount. recoverable the measuring for flows cash future the discount on based the rate recognized after of that interest was toused there is income interest amount, recoverable estimated its to O sheet. balance the in orliability asset financial related the as item same the in reported is interest Accrued components components as time passes. insurance significant containing when contract insurance an become and contract investment an as start can contract A policyholder. future uncertain event the (the insured affects event) adversely specified a if policyholder the compensate to agreeing by policyholder) (the party riskinsurance from another significant contract is a contract under which one (the party insurer) accepts insurance An expire. or exist to cease obligations and rights all until contract insurance an remains contract insurance an of the with A that conditions complies contract features (DPF). 4 IFRS under fall that participation discretionary with contracts investment and contracts for provisions technical evaluate to policies accounting local the use to elected has Bank Dexia Hence, 4. IFRS under such as qualify they if GAAP local under contracts insurance for account to company a allows 4 IFRS 4. IFRS under products insurance of requirements the meet not do they as instruments financial sold by products insurance have companies as been requalified Dexia Bank is mainly in active Some insurance banking products. 11.1.Insurance granted. is loan no if expiry rate if interest as on is the revenue loan granted, and recorded Loan commitment fees are recognized as of part the effective conditions are met. underlying all when i.e. acquired definitively are they when EXPENSE ACTI 10. FEE 10. 11. nce nce an interest bearing financialasset has beendown written INSURANCE VITIES AN D COMMISSION D

AN D Annual Report 2008 – REINSURANCE INCOME AN Dexia Bank Belgium D ­ 45

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 46 Dexia Bank Belgium – Annual Report 2008 The amounts received and paid relating to insurance products to products insurance relating paid and received amounts The • • 11.1.2. • Insurance products of GAAP. local under DIS are This recorded products Insurance 11.1.1. D products. nonlife for life and (DIS) Services Insurance Dexia by performed mainly are Bank Dexia of activities Insurance item. separate a on identified are which provisions, technical for except sheet, balance the in nature their to according classified are activities insurance from arising items other All provision for credit commitments”. and loans on “Impairment under reported are activities, are to similar which banking activities, enhancement for credit provisions in changes and losses whereas activity, insurance from expense technical or income technical and premiums under respectively reported are claims) nonlife (including provisions but is entered as a financial liability financial a as entered is but provisions technical item the in mentioned not is liability The liability. of to income, the nor statement is of increase the the resulting accounted not is premium the of part this accounting deposit In 3). (Type feature participation discretionary a include not accounting rules Deposit apply to that do financial instruments 1 phase – 4 IFRS with accordance in measured contracts Insurance risk. insurance a significant contain that The nonlife only insurance includes insurance portfolio contracts • • • • • categories: following the into GAAP Belgian following classified are products insurance Life level. employer’s the on done is classification insurances, group for whereas policy, by policy done is Classification • • features: portfolio life insurance The are reversed. and equalizations catastrophes they are asqualified suchunderIFRS 4. However, provisions for if 17,applicable, are November 1994) of Decree (Royal GAAP group is mainly by constituted Belgian entities, for which Belgian

financial instruments issued with a discretionary profit discretionary a with issued instruments financial Type 3: Branch 21: investment products without profit without products 21:investment Branch 3: Type Type 7: Branch 23: investment products convertible to a to convertible products investment 23: Branch 7: Type Type 6: Branch 23: investment products convertible to a to convertible products investment 23: Branch 6: Type Branch 21 investment product with profit sharing. profit with product 21 investment Branch 23) (Branch risk with product 21 investment Branch risk without products investment 23: Branch 5: Type products UL – risk with products investment 23: Branch Type4: sharing sharing. rate interest with guaranteed and a profit product probable investment an to costs, without times, all at switch can Unit feature (DPF)); participation sharing (discretionary defined employeebenefit plans; accepted reinsurance treaties with exception of the in Type 2: Branch 21: investment products with profit sharing profit with products 21: investment Branch 2: Type without DPF or with products insurance guaranteed 21: Branch 1: Type and the contracts reinsurance including insurance contracts - C linked (UL) contracts stipulating that the policyholder policyholder the that stipulating contracts (UL) linked IS lassification activities: life and nonlife and life activities: - deposit. Manage deposit. - house house ­ To determine the need for a shadow loss adjustment Dexia Bank Bank Dexia adjustment loss would be if liabilities required, assuming determines additional shadow a for need the determine To 11.1.4. S some of features (DPF).” participation discretionary measurement the on with contracts effect investment and contracts insurance its of all or direct a have assets legal under insurer’s “if accounting, an on gains of realization the conditions shadow contract and/or apply to decided Bank Dexia unrealized the if, only and if, equity. in equity directly in recognized are losses or gains recognized be shall assets) intangible or costs acquisition deferred (or liability insurance the to adjustment related The does. loss or gain realized a that way same the in measurements account those affects his asset an change to required, not on gain or loss unrealized but that so a recognized ing but policies permitted, is insurer An 11.1.3. component. an insurance and into a deposit unbundled not insurance (as Typecontracts 1). This are means, these contracts normal for rules local to according measured are 2) (Type Financial with instruments afeature participation discretionary carrying the in decrease a in result of amount liability. the will but income of statement the to accounted not are Settlements income. of statement in the immediately are recognized commissions and fees ment and by separated management of the assets. the of management separated by and reserve carried the of basis the on happens calculation tional Propor equity. the of line separate a in features participation insurance and with contracts contracts investment discretionary the to related part the for proportionally categorized are DPF with contracts investment and contracts insurance backing investments from coming losses and gains unrealized All • • • benefits: additional benefits, guaranteed to supplement a as receive, to right contractual a is feature participation Discretionary 11.1.5. Discretionary left (P/L). income to charged be gains should increase liability additional capital the adjustment, loss unrealized shadow the accommodate to equity in insufficient be there Should any. if – Tests) to Adequacy after be all performed shadow adjustments 11.1.9. (see Liability test adequacy liability the requires This liabilities through a shadow premiumadjustment. deficiency increase and equity in recorded gains unrealized the decrease should deficiency the then liabilities, total than higher is required liabilities of level the If assets. the of return estimated the than rather yields investment market current

the contract. the - or issuer; by the held of assets pool - ified type of contract; of type ified - on: based contractually are that and issuer; the amount whose or timing at is of the contractually discretion contractual total the of benefits; portion significant a be to likely are that profit or loss of the company, fund or other entity that issues issues that entity other or fund company, the of loss or profit realized and/or unrealized investment returns on a specified specified a on returns investment unrealized and/or realized the performance of a specified pool of contracts or aspec of pool contracts of a specified the performance S hadow accounting hadow hadow loss adjustment loss hadow P articipation

F eature (D PF ) ­ ­ ­

If the issuer classifies part or that entire feature as a separate separate a as feature entire that or part classifies issuer the If 11.1.8. D contract. the to party a to specific not flows under its insurance contracts. insurance its under flows cash future of estimates current using adequate, are liabilities at assesses each date reporting whether its recognized insurance Bank Dexia DPF. with contracts investment and products An insurer applies a for test (LAT) adequacy liability its insurance 11.1.9. L minimum accordingly. this are adjusted liabilities sponding whether corre the date insufficiency, an of case in and met is reporting requirement each at reviews Bank Dexia element. guaranteed the to 39 IAS applying from result would that amount the than less be not shall contract whole the for recognized liability the equity, of component non a or index), or price commodity or equity an as (such variable financial a in change the to in an insurance contract if the surrender value varies in response does apply to a put option or cash option surrender embedded the host insurance liability. However, the requirement in 39 IAS of amount carrying the from differs price exercise the if even (or for an amount based on a fixedamount and an interest rate), amount fixed a for contract insurance an surrender to option policyholder’s a value, fair at measure and separate, to need As an exception to the requirement in IAS 39, Dexia Bank doesn’t for financial withinstruments DPF elements. prevail also DPF with for insurance contracts requirements The contract. insurance an is itself derivative embedded the unless 39 IAS applies to in embedded an derivatives insurance contract 11.1.7. unbundled. not are and 2) (Type feature participation discretionary with instruments financial as rules same the under fall 7) (Type sharing profit with 21) class (insurance product investment unit The of amount liability. the carrying the in decrease a in result will but income of statement the immedia recognized are to accounted not are Settlements income. of statement the in commissions and fees Management loss). and profit through value fair (at immediately income of statement the to accounted are side liabilities the on change resulting the and unit side of asset value the When the on change the subsequently,both fluctuates investments instruments. financial underlying by the value of the is on unit, which the based fair value of the This fair value is by determined the multiplying number of units applied are 39) sheet. balance the on at fair value measured are (IAS investments instruments the and liabilities The component. deposit the to financial for policies Accounting for Type (as 1). component insurance to the 4) Accounting are for policies applied (IFRS insurance contracts 6). & 4 (Type unbundled be will component deposit a and All unit (unbundling) 11.1.6. - E linked products linked that products contain both an insurance contract - I linked products that can be converted into a guaranteed guaranteed a into converted be can that products linked mbedded derivatives mbedded iability A iability nsurance contracts with deposit component component deposit with contracts nsurance PF in financial instruments financial in dequacy T dequacy ests - financial variable that is that variable financial - linked linked tely ­tely ­ • • • • • • business. life the to based on the Royal of Decree 14,November 2003 with respect For life insurance, LAT uses the which following parameters are loss. or profit in recognized be shall deficiency entire the flows, cash future estimated the of light the in inadequate is assets) intangible related and costs acquisition deferred related (less liabilities insurance its of amount carrying the that shows separately) portfolios If on that (based the assessment entire life and nonlife insurance business is accounted to the life insurance provisions. life toinsurance the is accounted business insurance life the for premiums unearned for provision The company. ceding the by communicated information the of basis the on calculated is premiums unearned for provision the treaties inward For commissions. of net premiums, the on based basis, daily a on calculated is premiums unearned for provision the business, primary For Provisions for unearned premiums 11.1.10. year). last the of expenses administrative and years 5 last the of burden loss (average a that is on reasoning based percentages Bank conducts Dexia portfolio, insurance the for burden loss of assessment the For expenses. handling claims the for estimates using calculations, runoff performs Bank Dexia opened, already files the for reserves Regarding sufficient. are reserves premium unearned the if examines and portfolios insurance for burden loss expected the of estimation an makes Bank Dexia part second a in and built the if examines Bank Dexia part first the During parts. two in is subdivided test The products. all for out is carried LAT An definitively. settle to and open to contracts the of duration theandtheoccur willwithin that contractual claim claims files opened the definitely settle to sufficient are provisions claim and premium the if examines LAT the insurance, nonlife For

real assigned costs take into account management expenses, expenses, management account into take costs assigned real tariff costs take into account the inventory surcharges, surcharges, inventory the account into take costs tariff mortality table: experience table of the country (Assuralia (Assuralia country the of table experience table: mortality costs. Deltas are then actualized to the LAT the to actualized then are Deltas costs. stipulated in the costs and the between tariff real assigned is delta annual the period expiration and death lapses, Considering indexed. are and group product by stipulated are costs These and commissions. claims handling expenses sums fixed and surcharges commercial costs booked the and costs on tariff the based updated last calculation costs: for Belgium) insurance liabilities backing interest rate yields cash for of flows: actualization the assets premiums inventory provided premiums: collected inventory premiums plus contractual contractual plus premiums inventory collected premiums: - up reserves for claim files already opened are sufficient sufficient are opened already files claim for reserves up T echnical provisions echnical Annual Report 2008 – - rate. Dexia Bank Belgium 47

non-consolidated consolidated financial statements financial statements management report Life insurance provision Provision for bonuses related to participation features Except for unit-linked insurance products this provision is and rebates calculated according to the current actuarial principles, taking This item includes the provision for bonuses related to participa­ into account the provision for unearned premiums, the ageing tion features that have been allocated but not yet awarded at reserves etc... the balance sheet date.

In theory, this provision is calculated separately for every The bonuses are awarded according to the procedures submit­ insurance contract. ted to the official authorities.

The life insurance provision is calculated taking into account the 11.2. Reinsurance legal restrictions and measures. Dexia Bank’s reinsurance contracts with third parties that The following rules apply: contain enough insurance risk to be classified as an insurance contract continue to be accounted for in accordance with Valuation according to the prospective method: Local GAAP. this method is applied to the provisions for conventional non- unit-linked life insurances and modern non-unit-linked universal A reinsurance asset is impaired if, and only if: life insurances offering a guaranteed interest rate on future premium payments. The calculations are based on the technical • there is objective evidence, as a result of an event that assumptions made in the contracts. occurred after initial recognition of the reinsurance asset, that the cedant may not receive all amounts due to it under Valuation according to the retrospective method: the terms of the contract; and this method is applied to the provision for the other modern • that event has a reliably measurable impact on the amounts non-unit-linked universal life insurances. Calculations are based that the cedant will receive from the reinsurer. on the technical assumptions made in the contracts, but do not take into account the future payments. To measure the solvency of a reinsurer, Dexia Bank refers to its management report management attributed credit rating and the impairment rules. Besides the rules set out above, an additional provision for low interest risks is constituted as required by local regulations.

12. NETWORK COSTS d For accepted business, a provision is constituted for each

ate individual contract based on the information supplied by the This item records commission paid to intermediaries associated d ceding company. by exclusive sales mandate for bringing in transactions with customers. Provision for claims outstanding

consoli The amount of the provision for claims outstanding for direct life business is equal to the amount due to the policyholder, 13. LOANS AND ADVANCES DUE FROM

financial statements financial increased by the costs of settling claims. BANKS AND TO CUSTOMERS

For claims reported in the non-life business, the provision is Loans categorized as “Loans and advances”, being those not d measured separately in each case or as an additional provision included within trading, designated at fair value through P/L ate for a set of policies, taking into account the costs of settling and AFS, are carried at amortized cost, being the outstanding d claims. principal amount, net of any deferred fees and material direct costs on loans and net of any unamortized premiums or When benefits have to be paid in the form of an annuity, the discounts. amounts to be constituted for that purpose are calculated using recognized actuarial methods.

non-consoli 14. FINANCIAL ASSETS OR FINANCIAL financial statements financial For claims incurred but not reported at balance sheet date, a LIABILITIES HELD FOR TRADING provision is constituted. The calculations are based on past OR FINANCIAL ASSETS OR LIABILITIES experience. For extraordinary events, additional amounts are MEASURED AT FAIR VALUE THROUGH added to the IBNR provision. PROFIT OR LOSS

For claims incurred but not enough reserved at balance sheet 14.1. Loans and securities held for trading date (IBNER), a provision is constituted if the procedures dem­ onstrate that the other provisions are insufficient to meet future Loans held for trading purposes are included in “Financial assets liabilities. held for trading” and are carried at fair value, with unrealized gains and losses recorded in earnings as “Net trading income”. If necessary, a provision is constituted on a prudent basis Interest income is accrued using the effective interest-rate for liabilities possibly related to claims files that are already method and is recorded under “Net interest income”. created. A provision for the internal cost of settling claims is calculated Trading securities are securities acquired for generating a at a percentage that is based on past experience. profit from short-term fluctuations in price or dealer’s margin, or are securities included in a portfolio in which a pattern of Additional provisions are also constituted as required by law, short-term profit taking exists. Trading securities are initially such as supplementary workmen’s compensation provisions. recognized at fair value and subsequently remeasured at fair value. All related realized and unrealized gains and losses are

48 Dexia Bank Belgium – Annual Report 2008 included in “Net trading income”. Interest earned during the Securities and loans and receivables intended to be held for an period of holding the trading assets is reported as “Interest indefinite period of time, which may be sold in response to income”. Dividends received are included in “Dividend needs for liquidity or changes in interest rates, exchange rates income”. or equity prices, are classified as available for sale (AFS).

All purchases and sales of trading securities that require delivery Securities and loans and receivables are initially recognized at within the time frame established by regulation or market fair value plus transaction costs. Interest is recognized based on convention (“regular way” purchases and sales) are recognized the effective interest-rate method and is recognized within net at trade date. Other trading transactions are treated as deri­ interest income. vatives until settlement occurs (see also 6. Trade date and settlement date accounting). Financial assets available for sale are subsequently remeasured at fair value based on quoted bid prices and/or bid prices derived 14.2. Liabilities held for trading from available market spreads or amounts derived from internal valuation models in case of inactive markets. Unrealized gains Liabilities held for trading follow the same accounting rules as and losses arising from changes in the fair value of financial those for loans and securities held for trading. assets classified as available for sale are recognized within equity. When securities are disposed of, the related accumu­ 14.3. Loans and securities measured at fair lated fair value adjustments are included in the statement of value through profit or loss income as “Net income on investments”.

Loans and securities designated at fair value through statement Investments held to maturity are carried at amortized cost of income follow the same accounting rules as those for loans using the effective interest method, less any allowance for and securities held for trading. impairment.

Under the fair value option, a financial asset, a financial liability or a group of financial instruments can be designated by the 16. DERIVATIVES entity as “at fair value through profit or loss”, provided that report management doing so results in more relevant information or increases Derivative financial instruments generally include foreign measurement reliability. The fair value option simplifies the exchange contracts, currency and interest-rate futures, forward application of IAS 39. It is used: rate agreements, currency and interest-rate swaps and currency and interest-rate options (both written and purchased). d

• when such designation eliminates or significantly reduces a All derivatives are initially recognized in the balance sheet at fair ate measurement or recognition inconsistency that would value and are subsequently remeasured at fair value. Fair values d otherwise arise; are obtained from quoted market prices, discounted cash-flow • when a group of financial assets, financial liabilities or both models or pricing models as appropriate.

is managed and its performance is evaluated on a fair value consoli basis, in accordance with a documented risk management Derivatives are reported as assets when fair value is positive and

or investment strategy; as liabilities when fair value is negative. statements financial • when an instrument contains a non-closely related embedded

derivative. The amount reported on these items of the balance sheet d includes the premium paid/received net of amortization, the

The use of the fair value option is an accounting policy choice revaluation to fair value and the accrued interest, the sum of all ate d which should be made for the entire financial instrument, at elements representing the fair value of the derivative. initial recognition and when certain conditions of documenta­ tion are fulfilled. Certain derivatives embedded in other financial instruments are treated as separate derivatives when: In order to avoid volatility in its equity and results, Dexia Bank has designated the assets and liabilities of unit-linked contracts • their risks and characteristics are not closely related to those non-consoli (Branch 23) at fair value through the statement of income. of the host contract; and statements financial • the hybrid contract is not carried at fair value with unrealized 14.4. Liabilities measured at fair value through gains and losses reported in the statement of income. profit or loss

The above comments on the fair value option are also valid for 17. HEDGING DERIVATIVES the liabilities. On the date a derivative contract is entered into, Dexia Bank may designate certain derivatives as either: 15. LOANS AND SECURITIES AVAILABLE FOR SALE AND SECURITIES HELD TO MATURITY • a hedge of the fair value of a recognized asset or liability or a firm commitment (fair value hedge); or Management determines the appropriate classification of its • a hedge of a future cash flow attributable to a recognized investments at initial recognition. However, under certain asset or liability or a forecasted transaction (cash flow hedge); conditions financial assets could be subsequently reclassified. or • a hedge of a net investment in a foreign entity (net invest­ Quoted securities with fixed maturity are classified as held to ment hedge). maturity (HTM) when management has both the intent and the ability to hold the assets to maturity.

Annual Report 2008 – Dexia Bank Belgium 49 If a derivative is not designated in a hedging relationship, it is 18. HEDGE OF THE INTEREST-RATE RISK to be deemed held for trading or part of a fair value option EXPOSURE OF A PORTFOLIO strategy. Dexia Bank has decided to apply IAS 39 as adopted by the Hedge accounting may be used for derivatives designated in EU because it better reflects the way Dexia Bank manages its this way, provided certain criteria are met. activities.

The criteria for a derivative instrument to be accounted for as The objective of the hedge relationships is to reduce the a hedge include inter alia: interest-rate risk exposure stemming from the selected category of assets or liabilities designated as the qualifying hedged • formal documentation of the hedging instrument, hedged items. item, hedging objective, strategy and relationship prepared before hedge accounting is applied; The entity performs a global analysis of interest-rate risk • the hedge is documented showing that it is expected to be exposure. It consists of assessing fixed rate exposure taking into highly effective (within a range of 80% to 125%) in offset­ account all the exposure coming from balance sheet and off- ting changes in fair value or cash flows attributable to the balance sheet items. This global analysis may exclude certain hedged risk in the hedged item throughout the reporting components of the exposure, such as financial market activities, period; and provided that the risk exposure stemming from the excluded • the hedge is effective at inception and on an ongoing activities are monitored on an activity-by-activity basis. The basis. entity selects assets and/or liabilities to be entered into the hedge of interest-rate risk exposure of the portfolio. The entity Entities of Dexia Bank use internal derivative contracts (internal defines at inception the risk exposure to be hedged, the length hedging) mainly to cover their interest-rate risk. Those internal of the time-bucket, the way and the frequency it performs contracts are offset with external parties. If the contracts cannot tests. The entity constantly applies the same methodology for be offset with third parties, the hedging criteria are not met. selecting assets and liabilities entering in the portfolio. Assets Internal derivative contracts between separate divisions within and liabilities are included on a cumulative basis in all the time management report management the same legal entity and between separate entities within the buckets of the portfolio. Hence, when they are removed from consolidated group can qualify for hedge accounting in the the portfolio, they must be removed from all the time buckets consolidated financial statements only if the internal contracts in which they had an impact.

are offset by derivative contracts with a party external to the d consolidated group. In this case, the external contract is The entity may choose which assets and/or liabilities it wishes

ate regarded as the hedging instrument. to classify into the portfolio provided they are included in the d global analysis. Demand deposits and savings accounts may Changes in the fair value of derivatives that are designated and be included in the portfolio based on behavioral study for qualify as fair value hedges and that prove to be highly effective estimating expected maturity date. The entity may designate

consoli in relation to hedged risk, are recorded in the statement of as qualifying hedged items different categories of assets or income, along with the corresponding change in fair value liabilities such as assets available for sale or loan portfolios.

financial statements financial of the hedged assets or liabilities that is attributable to that specific hedged risk. The hedging instruments are a portfolio of derivatives. Such a

portfolio of derivatives may contain offsetting positions. The d If the hedge no longer meets the criteria for hedge accounting hedging items are recognized at its fair value (including accrued ate (fair value hedge model), the adjustment to the carrying amount interest expense or income) with adjustments accounted for in d of a hedged interest-bearing financial instrument is amortized the statement of income. to net profit or loss over the period to maturity through an adjustment of the yield of the hedged item. Effectiveness tests consist of verifying that the hedging objec­ tive, i.e. reducing the interest-rate risk exposure, is fulfilled. Changes in the fair value of derivatives that are designated and Inefficiency can come only from overhedging due to non-

non-consoli qualify as cash flow hedges and are highly effective in relation contractual events occurring within the categories of assets or financial statements financial to the hedged risk, are recognized in the hedging reserve in liabilities. equity as “Gains and losses not recognized in the statement of income” (see “Consolidated statement of change in equity”). Hedged interest-rate risk revaluation of elements carried out at The non-effective portion of the changes in the fair value of amortized cost is included in the line “Fair value revaluation of the derivatives is recognized in the statement of income. Where portfolio hedge”. In case of hedging of AFS, the revaluation is the forecast transaction results in the recognition of a non- part of the item “Loans and securities AFS”. financial asset or a liability, the gains and losses previously deferred in equity are transferred from equity and included in the initial measurement of the cost of the asset or liability. 19. DAY ONE PROFIT OR LOSS Otherwise, amounts deferred in equity are transferred to the statement of income and classified as revenue or expense in the The best evidence of the fair value of a derivative at initial periods during which the hedged firm commitment or forecast recognition is the transaction price (i.e. the fair value of the transaction affects the statement of income. consideration given or received) unless the fair value of that instrument is evidenced by comparison with other observable Certain derivative transactions, while providing effective current market transactions in the same instrument (i.e. without economic hedges under Dexia Bank’s risk management modification or repackaging) or based on a valuation technique positions, do not qualify for hedge accounting under the specific whose variables include only data from observable markets. The rules in IFRS and are therefore treated as derivatives held for difference between the transaction price and the fair value trading with fair value gains and losses reported in income.

50 Dexia Bank Belgium – Annual Report 2008 based on a valuation technique is commonly referred to as “Day Expenditure that enhances or extends the benefits of real estate one Profit or Loss”. or fixed assets is capitalized and subsequently depreciated. Depreciation of buildings and other assets given in operating Where the fair value is determined using validated valuation lease are recorded in “Other net income”. models for which all inputs are market observable, Dexia Bank recognizes the day one profits or losses at initial recognition in Investment properties are those properties held to earn rentals the statement of income. Where such evidence does not exist, or for capital appreciation. Dexia Bank may also partly use day one profit or loss is deferred and recognized in the statement certain investment properties. If the “own use” portions can of income to the extent that it arises from a change in a factor be sold separately or leased out separately under finance lease, (including time) that market participants would consider in then these portions are accounted for separately. If the “own setting a price. The unrecognized amount of day one profit is use” portions cannot be sold separately, the property is an amortized on the remaining life of the transaction. If sub­ investment property only if Dexia Bank holds an insignificant sequently, the inputs become market observable, or when portion for its own use. the instrument is derecognized, the remaining amount of the deferred day one profit or loss, is taken entirely in the statement Investment properties are recorded at its cost less accumulated of income. depreciation and impairments. The investment properties are depreciated over their useful lives on a straight-line basis. Depreciation on buildings and on other assets given in operat­ 20. TANGIBLE FIXED ASSETS ing lease are booked in “Other net income”.

Tangible fixed assets include property, plant and equipment and investment properties. 21. INTANGIBLE ASSETS

All property, plant and equipment are stated at its cost less Intangible assets mainly consist of internally generated and accumulated depreciation and impairment. acquired software. Costs associated with maintaining computer software programs are recognized as expense as incurred.

Depreciation is calculated using the straight-line method to write However, expenditure that enhances or extends the benefits of report management down the cost of such assets to their residual values over their computer software programs beyond one year is used to increase estimated useful lives. the original cost of the software. Computer software develop­

ment costs recognized as assets are amortized using the straight- The main service lives are as follows: line method over their useful lives from the time the software d

is available for use. This amortization period is usually between ate • buildings (including acquisition costs and non-deductible 3 and 5 years. d taxes): 20 to 50 years; • computer equipment: 3 to 6 years; Where the carrying amount of an asset is greater than its esti­

• leasehold improvements, equipment and furniture: 2 to mated recoverable amount, it is written down to its recoverable consoli 12 years; amount. Gains and losses on disposals of intangible assets are

• vehicles: 2 to 5 years determined by reference to their carrying amount and are statements financial included in “Net income on investment”. Expenditure that

An item of property, plant and equipment can be composed of enhances or extends the benefits is capitalized and subsequently d significant parts with individually varying useful lives. In such a depreciated. case, each part is depreciated separately over its estimated ate d useful life. For the head offices used starting 2006 the following parts and corresponding depreciation have been defined: 22. GOODWILL

• investments relating to the structure of the building: 22.1. Positive goodwill 50 years;

• investments relating to the roof and frontage of the building: Goodwill represents the excess of the cost of an acquisition non-consoli 30 years; over the fair value of Dexia Bank’s share of the net assets of statements financial • investments relating to the technical installations in the the acquired subsidiary or associated undertaking at the date building: 10 to 20 years; of acquisition. Goodwill on acquisition occurring on or after • investments relating to the fixture and fittings of the building: January 1, 2004 is reported in the balance sheet as an intangi­ 10 to 20 years. ble asset. Goodwill is allocated to cash-generating units for the purpose of impairment testing. Cash-generating units may The exchange losses on liabilities for the acquisition of an asset be a legal entity or may be designed based on criteria of as well as the interest on specific or general borrowings to geographic area and business segment. finance the construction of qualifying assets are expensed immediately. Variations in percentage of ownership in fully-consolidated companies are considered as transactions with shareholders. Where the carrying amount of an asset is greater than its Therefore, neither fair value adjustments nor goodwill adjust­ estimated recoverable amount, it is written down to its recover­ ments are made, when percentage increases or decreases able amount. Gains and losses on disposals of property and take place without change in the consolidation method. The equipment are determined by reference to their carrying amount difference between purchase or sale of net asset and the and are included in “Net income on investment”. purchase or sale price is directly recorded in equity.

Annual Report 2008 – Dexia Bank Belgium 51 22.2. Impairment of goodwill 25. SALE AND REPURCHASE AGREEMENTS AND LENDING OF SECURITIES The carrying amount of goodwill is reviewed at year-end when circumstances or events indicate that there may be uncertainty Securities sold subject to a linked repurchase agreement over the carrying amount. It is written down for impairment (“repos”) remain in the financial statements recognized as when the recoverable amount of the business is insufficient to financial assets held for trading, financial assets available for support the carrying value. sale or financial assets held to maturity. The corresponding liability is included in “Due to banks” or “Customer borrowings and deposits” as appropriate. The asset is reported as pledged 23. OTHER ASSETS in the notes.

Other assets mainly comprise accrued income (non-interest Securities purchased under agreements to resell (“reverse repos”) related), prepayments, operational taxes and other accounts are recorded as: receivable. They also include insurance products (reinsurance, insurance premiums receivables, etc.), construction contracts, • an obligation to return securities within off-balance sheet inventories, plan assets relating to employee benefit obligations. items; and These other assets are recorded at amortized cost less any • “Interbank loans and advances” or “Loans to customers” as allowance for impairment if applicable or following the appli­ appropriate. cable standard. Plan assets are recognized in accordance with IAS 19 requirements. The difference between the sale and repurchase price is treated as interest income or expense and is accrued over the life of the agreements using the effective interest-rate method. Securities 24. LEASES lent to counterparts are retained in the financial statements.

24.1. A Dexia Bank company is the lessee Securities borrowed are not recognized in the financial statements. management report management A finance lease is a lease that transfers substantially all the risks and rewards incidental to ownership of an asset. An operating If they are sold to third parties, the gain or loss is included lease is a lease other than a finance lease. in “Net trading income” and the obligation to return them is

recorded at fair value in “Financial liabilities held for trading”. d Dexia Bank principally enters into operating leases for the

ate rental of equipment or real estate. Lease rentals are recognized d in the statement of income on a straight-line basis over the 26. BORROWINGS period of the lease. Borrowings are recognized initially at fair value, being their issue

consoli When an operating lease is terminated before the lease period proceeds net of transaction costs incurred. Subsequently has expired, any payment to be made to the lessor by way of borrowings are stated at amortized cost and any difference

financial statements financial penalty is recognized as an expense in the period in which between net proceeds and the redemption value is recognized termination takes place. in the statement of income over the period of the borrowings

using the effective interest-rate method. d If the lease agreement substantially transfers the risk and rewards ate of ownership of the asset, the lease is recorded as a finance Debts are included in the financial statements, based on the d lease and the related asset is capitalized. At inception the asset substance of their underlying contracts more than their legal is recorded at the lower of the present value of the minimum form. lease payments or fair value and is depreciated over its estimated useful life. The corresponding rental obligations are recorded as borrowings and interest payments are recorded 27. DEFERRED INCOME TAX

non-consoli using the effective interest-rate method. financial statements financial Deferred income tax is provided in full, using the liability method, 24.2. A Dexia Bank company is the lessor on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial When assets held are subject to a finance lease, the present statements. value of the lease payments is recognized as a receivable. The difference between the gross receivable and the present value The principal temporary differences arise from depreciation of of the receivable is recognized as unearned finance income. property, plant and equipment, revaluation of certain financial Lease income is recognized over the term of the lease using the assets and liabilities including derivative contracts, provisions net investment method (before tax), which reflects a constant for pensions and other post-retirement benefits, provisions for periodic rate of return. loan and other impairments and tax losses carried forward; and, in relation to acquisitions, from the difference between the fair values of the net assets acquired and their tax base. The rates enacted or substantively enacted at the balance sheet date are used to determine deferred income tax.

52 Dexia Bank Belgium – Annual Report 2008 are recorded gross in the related items of the assets. the of items related the in gross recorded are assets underlying the case which in entity Group a of policies non are assets the unless liability a as assets plan of net presented is obligation benefit defined The vested. become benefits the until period average the over basis line straight a on expense an as recognized are plan to, pension a resulting costs from Past service of,the introduction or changes of the plan participants. are recognized in income over assets) the average period remaining service plan any of value fair the of 10% or obligation benefit defined gross the of value present the of 10% than over cost gains actuarial and exceeding the losses (i.e. corridor the greater regular unrecognized the cumulative Net employees. spread of to lives as service so the income of statement the to charged is pensions providing of cost the method, this Under units creditprojected method. using the are plans,pension costs assessed benefit For defined 28.1.1. Definedbenefit plans companies. Bank Dexia relevant the by and employees from payments by funded generally are plans pension The funds. pension or companies insurance in separate held generally are which of assets the world, the throughoutplans contribution defined and benefit of defined a number operates Bank Dexia obligations 28.1. Pension 19. IAS with conformity in calculated and consistent are calculations results all that and ensures that Bank Dexia for assumptions actuary external an by valuation validated and All reviewed are obligations. benefit these internal outQualified carry and actuaries valuations of external into consideration also actuarial and demographic assumptions. taking and liability related the of terms the to approximating maturity to terms have which value AA, rated bonds corporate present the of at rates interest using outflows measured cash are future estimated the of obligations benefit Employee loss. or gain deferred the with together income of ment state the in recognized subsequently is and equity to directly charged or credited also is equity, to directly credited or for available of remeasurement value fair to related tax Deferred future. foreseeable in the reverse not will difference the difference controlledcan be temporary and it is that probable the of reversal the of timing the where except ventures, joint and associates subsidiaries, in investments from arising differences temporary on provided is tax income Deferred which against available be will profit the differencestemporary can be utilized. taxable future that probable is it that extent the to recognized are assets tax Deferred 28. 28. - sale investments and cash flow hedges, which are charged arewhich charged hedges, flow and cash investments sale EMPLO Y EE B ENEFITS - qualifying insurance insurance qualifying - ­ - 28.4. 28.4. Termination benefits recognized immediately. are costs service past and losses and gains actuarial case, this accordance with the unit projected credit method. However, in in calculated also are benefits those of costs expected The a number of completed the certain employees years of service. after premiums jubilee provide companies Bank Dexia Some 28.3. Other long-term benefits plans. pension benefit defined for the period of using employment, similar a to methodology that over accrued are benefits these of costs expected The period. service minimum a of completion the and age retirement to up service in remaining employee the on based usually is care benefits to their retirees.The entitlement to these benefits post provide companies Bank Dexia Some 28.2. Other post-retirement obligations behalf of the employee. on fund the into pay to agrees Bank Dexia that contributions the to limited is Bank plans Dexia of obligation pension The relate. they which to contribution year the in income of statement defined the to to charged are contributions Bank’s Dexia 28.1.2. Defined contributionpension plans to the balance sheet date. sheet balance to the up employees by rendered services of result a as leave service long and leave annual for liability estimated the for made is provision A employees. to accrue they when recognized are leave service long and leave annual to entitlements Employee entitlements Employee 28.6. into taking of time. period a certain expense into taken is are account blocked the up discount securities fact that for equity those This personnel. its for reserved increases capital the for discount a offers also Dexia data. market on and techniques valuation on The received. fair services value of the option is based calculated on based expense within recognized is option the of cost The Share options are granted to and directors to some employees. 28.5. Equity compensation benefits of withdrawal. possibility realistic no and plan formal detailed a have must Bank Dexia redundancy. voluntary encourage to order in made offer an of result a as benefits provide to or retirement of date normal the before employment the terminate to committed is Bank Dexia when recorded only is provision benefit termination A Annual Report 2008 – - retirement health health retirement Dexia Bank Belgium - 53

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 54 Dexia Bank Belgium – Annual Report 2008 For provisions For on the provisions loans above commitments, presumptions • in IAS 39. IAS in as cost amortized at measured assets financial of impairment for applied as methodology same the through applied are • • when value or amount. are Provisions recognized based on their discounted According to 37,IAS a is provision a of liability timing uncertain assets of the fair value portfolio. value fair the of assets saleforand available financial held for assets financial trading, assets financial advances, and loans interbank banks, central with balances and cash within included maturity remaining months 3 than less with balances comprise equivalents cash and cash flows, cash of statement the of purposes the For agent. or trustee nominee, as such capacity fiduciary a in acts Bank Dexia where statements financial these from excluded are customers to assets such return to undertakings related with together thereon arising income and Assets • • follows: as Group the by classified are feature participation discretionary with contracts insurance backing and sale for available as classified assets to relating losses and gains unrealized The features participation discretionary Insurance 30.3. note. events subsequent the in disclosed are date sheet balance the after declared are that year the for Dividends entity). the of discretion the at longer no and (authorized declared are they which in period the in equity in recognized are shares ordinary on Dividends shares ordinary on Dividends 30.2. combina business a of part tax. as income related any of net than equity from deducted are tion, other securities, equity new of issue the to attributable directly costs incremental External costs issue 30.1. Share

30. 30. 29. 32. CASH 32. 31. feature. made. be can obligation the of amount the of estimate reliable a and obligation; the settle to required be will benefits nomic it is probable that an outflow of resources embodying eco embodying resources of outflow an that probable is it events; past of result a as obligation or constructive legal has Bank a present Dexia contract holders; the to guaranteed return the of extent the to liability a as as a separate component of equity to the extent of that that of extent the to equity of component separate a as FI PRO SHARE D UCIAR V ISIONS AN CAPITAL D CASH D Y ACTI FOR VITIES AN EQUI RISKS D TREASUR V AN ALENTS D CHARGES Y SHARES ­ ­ Dexia caters for two types of clients: institutions and for of caters Dexia individual institutions two types clients: Dexia’s reportable segments are defined by using the “manage the using by internal Dexia’s defined reflect are segments These approach”. ment segments reportable Dexia’s assets or result revenue, separately. whose reported are and segments the all of more or 10% are customers external to sales from earned revenue of sub majority a is with Segments which segments. segment), other of those from different are that returns and risks to (geographic ject environment economic lar a within particu or services products or in providing segment) (business services or products providing in either engaged is that Bank Dexia of component distinguishable a is segment A reporting Segment directors. the with relations as well The equity with decisions. Relations operational or financial ultimate parent of the Group is in Dexia, incorporated Belgium. making in party other the over influence significant or exercise party to other the control ability the has party one if related to be considered are Parties commercial terms and market conditions. market and terms commercial by governed transfers, based level on agreements service normal and centers analytical are service to subject and/or retrocessions production and markets financial lines, business commercial between especially and lines business between Relations counterparties. external and lines business Group for both activities, associated and business room trading all second covering and (first sector, Markets line Financial and Treasury a also has Dexia lines). business specific a by covered are related to All activities customers. distribution these two markets • • • • Non The Services. Financial toBanking and results Personal Public and Wholesale realized, operations introducing this way 100% of the insurance the by concerned lines business the to reallocated is and exists longer no – them distributing were lines business other when products insurance the of production the handling was – which segment 1, Services January Since Insurance 2007 the • • • • follows: as organized is Dexia make decisions. business to management the by used are and structure organizational

Business segments RELATE 33. items non lines; business other to attributable not other building and tangible property, fixedintangible assets capital; share exceeding notequities portfolio toattributable other segments; Non Markets; Financial and Treasury Personal Financial Services; Banking; Wholesale and Public - allocated. - allocated part is mainly composed of: composed mainly is part allocated - attributable toattributable other segments. D PARTIES D - accounted companies are reported, as as reported, are companies accounted TRANSACTIONS ­ ­ ­ • include: also line business each of results The the balance sheet but do not necessarily indicate the amounts amounts the indicate necessarily not do but sheet balance the provide a basis for recognized on with comparison instruments of instruments financial types of certain amounts notional The • • sarily be compared from one financial institution to another. to institution financial one from compared be sarily and fair methods assumptions, value cannot neces disclosures liabilities. However, because other institutions may use differentand assets Dexia’s for value fair of measurement consistent a provide to developed been have techniques and Assumptions significantly. fluctuate can liabilities and assets financial or unfavorable and, thus the fair aggregate values of derivative favorable are instruments which to extent the hand, on ments instru financial derivative of amount notional or contractual aggregate The terms. their to relative risks credit or equity exchange, foreign interest, underlying the of fluctuations of result a as (liabilities) unfavorable or (assets) favorable become instruments derivative The risks. price or credit to exposure Dexia’s indicate not do therefore, and, instruments the of value fair current the or involved flows cash future of • • instruments: financial of use its with associated risks primary the particular in risks, of control and management its and to, exposure Dexia’s about information presents section This Management Report. the to refer we policies, management risk the on details For hedging activities Risk management policies and policies. accounting significant of summary the in described are of The the accounting the policies as same segments those line. business financial or commercial a by managed directly are they when except Therefore, they assets. intangible are to allocated Non The Chief liabilities. and assets tax as such items being liabilities, the of majority the balance sheet but excluding and assets operating comprise liabilities and assets Segment •

the interest on economic capital: economic capital is capital economic capital: economic on interest the the the earnings from including commercial the transformation, acceptable price to fund actual or proposed commitments. proposed or toactual fund price acceptable an at basis secured even or unsecured, an on market the in funds toborrow unable, tobe or due, when payment its exposure risk is the funding and risk liquidity of to unable being meet credit on arises and risk; settlement including forms, all in migrations rating or default part cost. funding the line; business of each performance the measure to used is capital economic on return the and purposes internal for lines business the to allocated long and of medium basis the on activity to this allocated equity Group the and transformation this of costs management credit risk is the risk of loss resulting from client or counter or client from resulting loss of risk the is risk credit spreads; and prices equity rates, exchange rates, interest as such variables market observable to exposure is risk market - term outstanding; O perations perations O fficer (C fficer OO ) manages main and tangible - allocated allocated ­ ­ ­ transaction that is not a forced liquidation or forced sales. sales. forced or liquidation a is not forced that transaction orderly an in asset financial the of holder the by received be would that price the i.e. considerations, business normal by motivated exchange length arm’s an in date measurement the on been have would price transaction the what reflects model valuation A models. valuation by provided is recourse market, active an on traded not is instrument financial a If rates. discount the and concerning both the amountsand timing of future cash flows made, assumptions underlying the by affected significantly are techniques these applying from derived values The dates. sheet at balance existing conditions market on based models) called (hereafter techniques or models valuation and estimation other or value present i.e. tions, assump market and model valuation proper bank’s the using quoted prices are available, the fair values have been estimated such no where instruments financial for Therefore, Dexia. by issued or held liabilities and assets financial the of number significant a for available however, not, are prices Quoted it is the best evidence of the fair value of a financialinstrument. (such as a are stock recognized exchange) used as fair value, as an arm’s in willing parties knowledgeable, or between a settled, liability Fair value is the amount for which an asset could be exchanged, • receivables: and loans of value fair the regarding made be could remarks following the assumptions, above the to addition In • • applied: are hypotheses simplifying some liquidity. For unquoted and immaterial market non the and instruments financial the of quality credit date as at well as the in calculation the conditions changes the market the possible as precisely as reflect to try models pricing the available, not are prices quoted which for AFS or For financial instruments classified as at fair valueP/L through equal is value Fair data. market items. these for amount carrying the to unobservable and/or observable either using flows cash discounted or models, pricing of basis the on estimated are values fair then available, not are prices market quoted If available. when prices market quoted to at fair are measured by value reference and for derivatives sale or assets at designated liabilities fair value available through P/L, liabilities, or assets trading as classified instruments Financial model. the into incorporated be should they available, are inputs observable that extent the To conditions. market current of consideration requires fair the Measuring asset. the pricing when consider would participants market that factors all account into take to attempt should model valuation The

F The carrying amount of financial instruments maturing maturing instruments financial of amount carrying The The The fair value of variable similar loans. similar on offered rates market current with granted were loans the when rates interest market comparing by estimated amounts. carrying their by approximated be to fair value. their to approximate to assumed be can 12months within The fair value of fixed of value fair The air air v - length transaction. Quoted prices on length transaction. an market active alue of financial instruments financial of alue - rate rate is financial instruments assumed - rate loans and mortgages are mortgages and loans rate Annual Report 2008 – - value of a financial instrument instrument financial a of value - derivative positions, Dexia Bank Belgium ­ 55

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 56 Dexia Bank Belgium – Annual Report 2008 Dexia used a Dexia oncash flowbaseddiscounted model, a discount F funding cost for the security depending on eligibility of refinanc of asset. the to buy willing be eligibility on would that participant market depending generic a of or available) (if ing security the for cost funding the of estimate best a is spread liquidity The indices. CDS on based movements market general in factoring data, II Basel specific security the from starting estimated is spread credit The risk. liquidity and credit both incorporates that spread • • year. the during market specific that in illiquidity the of evolution the reflect to order in developed market assumptions own on based available weighted, account dates valuation into different at observed taking information model internal an on based are disclosed values fair the data, market observable of ability unavail the assets and markets the of these illiquidity the to due possible reclassify to not is valuation 2 and 1 Level decided Since receivables. and Loans Dexia to available, longer no were market active an in prices quoted assets financial some for As assets. financial underlying and the of life remaining 2008 expected 30, September of as will frozen via be a interest amortized rate new on based effective the been has reserve AFS The L F AFS. Value Fair the to obtain market spreads available from derived prices bid and/or prices bid quoted on based calculated are Prices F 2008. 30, September per price quoted the than value higher in result not can value fair the consequence, By 2008. 30, September per value fair the of level the to value fair the to applied been has cap a However, AFS. as the fair value classified for asset the financial The combined credit spread and costs provide input liquidity to active market

or bonds classified in classified bonds or or bonds classified in trading or trading in classified bonds or or financial assets reclassified from from reclassified assets financial or & recent credit spreads available for calculating the fair value. the for calculating available spreads credit recent most the we included these, over time. For changes spread credit the portfolios of number a in that noted is it ence, experi on based However, lifetime. the over stable remains receivables. and of loans fair value the For most of the loans and receivables the credit spread spread credit the receivables and loans the of most For Cap, floor and prepayment options are included in determining determining in included are options prepayment and floor Cap, R on O on ctober, 1 2008 1 ctober, measured via a model a model via measured AFS still quoted on an an on quoted still AFS T rading or or rading to to AFS ­ ­ ­

W 2.1. II (1) SA Sociale Ingénierie Dexia NV Netherlands Funding Dexia Inc. Products Financial Dexia SA Pension Épargne Dexia SA Logement Crédits Dexia SA Finance Commercial Dexia Unltd Ireland Capital Dexia SA Lease Auto Dexia SA Holding Finance Asset Dexia SCRL Invest Delp SA Corona Unltd Industries Copharma NV CEVI SA Fin DKB – Fin CEB SA Consulting Sociale Ingénierie en Audit 2 Atrium 1 Atrium NV Cy AAMC Management Asset Assurance I NV Artesimmo Inc. Properties Artesia Inc. CMBS Mortgage Artesia Adinfo SA SA Adehis N .

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REPRESENTING Head office F-45380 La Chapelle St Mesmin Chapelle La F-45380 30064 BP Croquechâtaigne 13, rue NL-1077 Amsterdam ZX 3105Strawinskylaan floor 7th Atrium – USA Delaware 19801 Castle New Wilmington, Street 1209 Orange Paris F-75009 Victoire la de rue 76, Bruxelles B-1000 44 Pachéco Boulevard B-1210 Bruxelles 11 Rogier Place 1 Dublin IRL-IFSC Dock 6 George’s B-1210 Bruxelles 11 Rogier Place Bruxelles B-1000 44 Pachéco Boulevard B-5101 Loyers 2 Lives de Dessus des Avenue Park Office Namur B-1130 Bruxelles 2 Métrologie la de Avenue 1 IRL-Dublin Dock 6 George’s Centre Services Financial International Gent B-9000 Bisdomplein 3 Liège B-4000 38 Clarisses des Rue F-75014 Paris Leclerc Général du avenue 99bis, Bruxelles B-1000 40 Colonies des Rue Bruxelles B-1000 40 Colonies des Rue Antwerpen B-2000 5 Sudermanstraat Bruxelles B-1000 44 Pachéco Boulevard – USA Delaware 19801 Castle, New Wilmington, Street 1209 Orange – USA Delaware 19801 Castle, New Wilmington, 1013 Road Centre Bruxelles B-1000 44 Pachéco Boulevard Namur B-5020 12 Néverlée de Rue Rhisnes de Industriel Parc D ENTERPRISES

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AFFILIATE 20% 20% LEAST

D ENTERPRISES OF Annual Report 2008 – THE capital held capital of % 85 100 100 75 100 100 100 100 100 100 100 26.69 100 100 100 0 0 100 100 100 100 51 100 ISSUE

AN D (1) CAPITAL D ENTERPRISES Dexia Bank Belgium 30 49 21 25 6 15 49 5 10 21 28 28 34 9 30 21 21 28 31 21 21 34 34 code Business

IN 57

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 58 SA Fynergie SA Dexia Fiduciaire AG Rück Eurco Ltd Re Eurco Ltd Ireland Eurco (Ireland) Unltd Finance Eurco SA Eurco SA Elantis Echo Dublin Unltd Ltd Oak Dublin Finance) DVV (ex. SA Finance DIS Deximmo SA SA Belgium Securities Dexia SA Belgium Funding Secured Dexia Markets Capital Estate Real Dexia SA Re Dexia SA US Financing Facilities Public Dexia Ltd Overseas Dexia SA & Pensions Life Dexia SA Services Lease Dexia SA Belgium Lease Dexia SA Ireland Investments Dexia SA Company Investment Dexia SA Services & Pensions Insurance Dexia SA Invest Belgium Insurance Dexia SA Belgium Insurance Dexia (1) N ame % of capital held by holding company. holding by held % of capital Dexia Bank Belgium – Annual Report 2008

Head office B-1000 Bruxelles B-1000 44 Pachéco Boulevard Bruxelles B-1000 44 Pachéco Boulevard Zürich CH-8002 49 Beethovenstraße IRL-Dublin 1 Dock 6 George’s Centre Services Financial International 1 IRL-Dublin Dock 6 George’s Centre Services Financial International 1 IRL-Dublin Dock 6 George’s Centre Services Financial International L-1253 Luxembourg Bové Nicolas rue 2, Liège B-4000 38 Clarisses des Rue 1 IRL-Dublin Dock 6 George’s Centre Services Financial International IRL-Dublin 1 Centre Services Financial International 6 Block Plaza House Custom L-1253 Luxembourg Bové Nicolas rue 2, Bruxelles B-1000 48 l’Écuyer de Rue Bruxelles B-1000 44 Pachéco Boulevard Bruxelles B-1000 44 Pachéco Boulevard – USA WA 98027 Issaquah, # 202 Street 1180 Maple NW L-1253 Luxembourg Bové Nicolas rue 2, Bruxelles B-1000 44 Pachéco Boulevard Indies West British – Cayman Grand Drive 2 Jennifer’s L-1253 Luxembourg Bové Nicolas rue 2, B-1210 Bruxelles 11 Rogier Place B-1210 Bruxelles 11 Rogier Place 1 Dublin IRL-IFSC Dock 6 George’s Bruxelles B-1000 44 Pachéco Boulevard L-1253 Luxembourg Bové Nicolas rue 2, Bruxelles B-1000 96 II Joseph Rue Bruxelles B-1000 6 Livingstone Avenue

capital held capital of % 100 100 99.98 100 100 100 100 100 100 0 100 100 100 10 100 100 100 100 100 100 100 100 100 100 100 99.79

(1) 32 23 28 28 28 28 28 6 28 49 28 31 11 49 21 28 10 49 25 5 5 49 35 25 21 28 code Business

2.3. 2.2. (1) SA Léopold Espace Société SCRL Sepia SA 2000 Lex NV Leskoo NV Himba SA Erasme Foncière NV Finimmo NV Arlinvest Belgique de Communal Service Deschuytter Verzekeringen NV Bureau &SPRL Laveaux Martin Boonefaes Verzekeringen NV NV Interass – VDL Immobilier St-Mesmin SCI Realex SA SA Funding Penates ParfiparSA NV MBS NV Logins NV Building Livingstone SA Immorente Unltd Holdings IBRO N N N ame ame ame % of capital held by holding company. holding by held % of capital

Joint su Joint d Non-consoli

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b sid iaries d ate d by Head office Head office Head office B-9090 Melle B-9090 Brusselsesteenweg 346C St Mesmin Chapelle La F-45380 Croquechâtaigne 13, rue Bruxelles B-1000 99-101 Loi la de Rue Bruxelles B-1000 74 Cambre la de Boulevard L-1445 Luxembourg Aubépines des rue 180, B-1731 Asse 63 Pontbeek Mechelen B-2800 17 Wittelaan De Generaal Antwerpen B-2000 5 Sudermanstraat Bruxelles B-1000 44 Pachéco Boulevard 1 Dublin IRL-IFSC Dock 6 George’s B-1050 Bruxelles B-1050 15-17 Godecharle Rue Bruxelles B-1000 6 Livingstone Avenue Bruxelles B-1000 44 Pachéco Boulevard B-1200 St-Lambrechts-Woluwe Gemeenschappenlaan 100 Brugge B-8000 24-26 Hamiltonpark B-1160 Bruxelles 42 Hermann-Debroux Avenue Antwerpen B-2000 39 Pacificatiestraat Brugge B-8000 24-26 Hamiltonpark Bruxelles B-1040 53 b 13 d’Arlon Rue Poperinge B-8970 34 Hondstraat Neufchâteau B-6840 9 Clément Albert Rue Veurne B-8360 Sint-Walburgapark 1 the proportional metho proportional the

63.59 100 100 100 capital held capital of %

d Annual Report 2008 – costs Disproportional Non-significant Non-significant Non-significant capital held capital of % exclusion R capital held capital of % 100 100 100 10 100 0 100 100 100 100 33.33 50 49 48.94 50 50 50 50 eason for eason

(1) Dexia Bank Belgium 47 30 30 30 code Business code Business 30 32 28 49 21 21 34 28 31 10 16 19 code Business 31 31 28 31 31 31

59

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 60 2.7. see Branches 2.5. Rabot Invest NV Invest Rabot Promotion Léopold SA Ondernemerstalent NV Funéraire Prévoyance de Français Office NV Antwerpen Justinvest SA Isabel IP-2 IP-1 Inframan SA SA Foire Immo SA 64 Esplanade SA Infra+ DG SA Immorent Dexia SA Management Asset Dexia SA Nord du Crédit SA Company & Licence Brand Bogey SA SA Corporate BCC SA Company Funding Banking SA Aviabel Auxipar SA 2.4. Rainbow ICT-Services GIE GIE Inforum N N ame ame Dexia Bank Belgium – Annual Report 2008

A d Non-consoli ffiliate

companies accounte d companies

ate

d

j

oint su b sid for d for iaries Head office Head office B-2610 Antwerpen 129Heistraat Bruxelles B-1050 15-17 Godecharle Rue Diepenbeek B-3590 B gebouw Agoralaan Universiteit P/A Hasselt Orléans F-45000 Patay de 19-21, rue B-2610 Antwerpen 129Heistraat Bruxelles B-1000 13-15 l’Impératrice de Boulevard Liège B-4000 5 Sainte-Marie Rue Liège B-4000 5 Sainte-Marie Rue Bruxelles B-1000 44 Pachéco Boulevard L-1528 Luxembourg Foire la de boulevard 4, Bruxelles B-1050 15-17 Godecharle Rue Bruxelles B-1000 44 Pachéco Boulevard Bruxelles B-1000 44 Pachéco Boulevard L-1150 Luxembourg d’Arlon route 136, Paris F-75008 Haussmann boulevard 59, B-1130 Bruxelles 1426 Haecht de Chaussée B-1420 Braine-l’Alleud 1021d’Alsemberg Chaussée B-1130 Bruxelles 1426 Haecht de Chaussée B-1130 Bruxelles 1426 Haecht de Chaussée Bruxelles B-1050 54 Louise Avenue Bruxelles B-1000 6 Livingstone Avenue B-1000 Bruxelles B-1000 192 Royale Rue Bruxelles B-1040 53 d’Arlon Rue the equit by the

y metho

50 50 capital held capital of %

d costs Disproportional capital held capital of % Non-significant exclusion R 49 22.24 21.59 20 39.69 25 18 40 49 10 20 25 38 44.29 39.95 33.33 24 20.32 20.32 50 20 eason for eason

47 code Business 41 code Business 31 48 48 25 10 31 10 31 19 1 48 46 31 10 30 39 31 31 47 31 32

2.7. 2.6. SCRL Borinage Dexia CVBA Bonheiden Dexia SCRL Binche-Région Dexia CVBA Berchem-Wilrijk Dexia SCRL Basilix Dexia SCRL Auderghem-Boisfort Dexia CVBA Zuidrand Antwerpen Dexia CVBA Antwerpen-Noord Dexia CVBA Metropool Antwerpen Dexia CVBA Antwerpen-Centraal Dexia SCRL Anderlecht Dexia SCRL Aéropole Dexia CVBA Aarschot-Haacht Dexia NV Vandepitte-Laplae Zakenkantoor ASBL Conseil Agence Syneco SofibruSA Caring People Bedrijvencentrum Regio Mechelen NV NV Invest Vlabo SA Participations SLF SLF Immo SA SA Finances SLF N N N ame ame ame

DBB Branches DBB A ffiliate

companies not accounte not d companies

Head office Head office Head office B-3130 B-3130 Betekom Pater Damiaanstraat 5 Liège B-4000 5 Sainte-Marie Rue Liège B-4000 5 Sainte-Marie Rue Liège B-4000 5 Sainte-Marie Rue B-7080 Frameries Frameries B-7080 3-5 Dufrane J. Rue Bonheiden B-2820 Dorp 56 B-7130 Binche 56 Deliège Charles Avenue B-2610 Wilrijk 2 Heistraat Bruxelles B-1080 444 Gand de Chaussée Bruxelles B-1050 100 Cambre la de Bois du Avenue Hoboken B-2660 Kioskplaats 49 Kapellen B-2950 49 Antwerpsesteenweg Berchem B-2600 63-65 Statiestraat Antwerpen B-2060 1 Carnotstraat B-1070 Bruxelles 35 Vaillance la de Place Gosselies B-6041 2 Martyrs des Place Aarschot B-3200 44-48 Leuvensestraat Assebroek B-8310 37 Astridlaan Ciney B-5590 34 Dinot E. Rue Bruxelles B-1050 32 Stassart de Rue B-1130 Bruxelles 2 Métrologie la de Avenue Mechelen B-2800 11 regenboog De for d for

the equit by the

26 20 20 capital held capital of % 40 24.33 y metho

d Annual Report 2008 – Non-significant Non-significant Non-significant exclusion R capital held capital of % held capital of % Non-significant Non-significant 20.49 27.99 26 26 26 26 26 26 26 26 26 26 26 26 26 41.43 20.57 eason for eason

Dexia Bank Belgium 30 16 16 code Business code Business code Business 47 43 4 4 4 4 4 4 4 4 4 4 4 4 4 41 32 10 31

61

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 62 SCRL Geer-Visé Dexia SCRL Fléron-Beyne-Soumagne Dexia SCRL Famenne-Semois Dexia SCRL Ardenne Famenne Dexia SCRL Thiérache et Fagnes Dexia SCRL Etterbeek Dexia SCRL & Escaut Espierres Dexia SCRL Lessines Enghien Dexia SCRL Eghezée-Jodoigne-Perwez Dexia CVBA Druivenstreek Dexia SCRL Haut-Pays Quiévrain, Dour, Dexia CVBA Dilbeek-Lennik Dexia CVBA Voorkempen De Dexia CVBA Denderleeuw Dexia CVBA Demerstreek Dexia SCRL Ciney-Dinant Dexia SCRL Châtelet-Fleurus Dexia SCRL Charleroi-Sud Dexia SCRL Pont-à-Nôle Charleroi Dexia CVBA Kempen Centrum Dexia SCRL Centre-Hainaut Dexia SCRL Ardenne Centre Dexia SCRL Bruxelles-Centre Dexia SCRL Brugmann Dexia CVBA Brugge-Tillegem Dexia CVBA Brugge-Oostkust Dexia CVBA Brugge-Oost Dexia SCRL Boussu-Saint-Ghislain Dexia N ame Dexia Bank Belgium – Annual Report 2008 B-4680 Oupeye B-4680 39 Visé-Voie Rue Fléron B-4620 257 Martyrs des Avenue Beauraing B-5570 2 Ardennes des Rue Marche-en-Famenne B-6900 1 Liège de Chaussée Couvin B-5660 84 Faubourg Saint-Germain Bruxelles B-1040 6 Champs des Rue B-7712 Herseaux 28 Croisiers des Rue Enghien B-7850 72 Grand-Place Eghezée B-5310 30 Louvain de Chaussée Overijse B-3090 Stationsplein 17 Quiévrain B-7380 49 Grande Rue B-1700 Dilbeek 117Ninoofsesteenweg Brasschaat B-2930 Lage Kaart 31 Kaart Lage Denderleeuw B-9470 13Stationsstraat Bilzen B-3740 Markt 33 Ciney B-5590 1 Saint-Eloi Rue Châtelet B-6200 14 Calvaire du Rue Charleroi B-6000 76-82 Tirou Joseph Boulevard Marchienne-au-Pont B-6030 Place Albert 1 Albert Place Geel B-2440 116-120Stationsstraat Louvière La B-7100 Head office Rue Albert 1 Albert Rue Libramont B-6800 16 Bouillon de Avenue Bruxelles B-1000 41 Brouckère de Place B-1180 Bruxelles 247 Brugmann Avenue Sint-Andries Brugge B-8200 447 Steenweg Gistelse Brugge B-8000 200 Monnikenwerve Hertsberge B-8020 13 Rapaertstraat B-7331 Baudour 235 Goblet Louis Avenue

er

23 er 23

capital held capital of % 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26

code Business 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4

SCRL Louise Dexia CVBA Centrum Limburg Dexia SCRL Liège-Sud Dexia SCRL Liège-Ouest Dexia SCRL Liège-Centre Dexia CVBA Leuven-Oost Dexia CVBA Leuven Dexia CVBA Leeuw-Calevoet-Rode Dexia SCRL Lambermont Dexia SCRL Laeken Dexia CVBA Kortrijk Dexia CVBA Brabant Klein Dexia CVBA Kempen-Centraal Dexia CVBA Kempen Dexia SCRL Jette Dexia SCRL Hesbaye-Centre Dexia SCRL Herstal Dexia SCRL Liège de Hauts Dexia SCRL Haute-Senne Dexia SCRL Haute-Ardenne Dexia CVBA Haspengouw-West Dexia CVBA Haspengouw-Oost Dexia CVBA Deurne Groot Dexia CVBA Geraardsbergen-Ninove Dexia CVBA Zuid-Oost Gent Dexia CVBA Gent-Oost Dexia CVBA Noord-West Gent Dexia CVBA Gent-Ledeberg Dexia N ame Head office B-1050 Bruxelles B-1050 B 28 Flagey Place Houthalen-Helchteren B-3530 9 Guldensporenlaan Angleur B-4031 354 Sart-Tilman du Rue Ans B-4430 50 Albert Roi du Chaussée Liège B-4000 12 Mineurs des Rue Kessel-Lo B-3010 41-42 Remyplein Becker De Leuven B-3000 2 Brusselsestraat Sint-Pieters-Leeuw B-1600 Weerstandsplein 1 B-1030 Bruxelles 218 Helmet de Chaussée B-1020 Bruxelles 77 Wand de Rue Kortrijk B-8500 19 Doorniksewijk Willebroek B-2830 21 Nieuwstraat Grobbendonk B-2280 Astridplein 9 Mol B-2400 13 A Rondplein Bruxelles B-1090 2 A Nayer de Smet de Boulevard Hannut B-4280 5 Grand-Place Herstal B-4040 34 Jaurès Jean Place Rocourt B-4000 391 Tongres de Chaussée B-7190 Écaussinnes 67 Duray Camille Rue Vielsalm B-6690 21 C Marché Vieux du Rue Sint-Truiden B-3800 Clockemstraat 38 Zichen-Zussen-Bolder B-3770 Visesteenweg 227 Deurne B-2100 1 Hermanslaan Andree Geraardsbergen B-9500 Oudenaardsestraat 4-6 Oudenaardsestraat Merelbeke B-9820 Waterstraat 2 Destelbergen B-9070 Dendermondsesteenweg 461 Mariakerke B-9030 Brugsesteenweg 514 Gent B-9000 23-25 Zonnestraat

Annual Report 2008 – capital held capital of % 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26

Dexia Bank Belgium code Business 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4

63

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 64 SCRL Vert-Collines Pays Dexia SCRL Herve de Pays Dexia SCRL Bastogne de Pays Dexia SCRL Ourthe-Amblève Dexia CVBA Ostbelgien Dexia CVBA Oostende-Middelkerke Dexia SCRL Picardie Nord Dexia CVBA Limburg Noord-Oost Dexia CVBA Noord-Limburg Dexia CVBA Noorderkempen Dexia SCRL Nivelles-Tubize Dexia CVBA Neteland Dexia SCRL Namur-Ville Dexia SCRL Namur-Sud Dexia SCRL Namur-Ouest Dexia CVBA Mortsel-Kontich Dexia SCRL Mons-Sud Dexia SCRL Mons-Nord Dexia CVBA Midden-Waasland Dexia CVBA Midden-Limburg Dexia CVBA Midden-Brabant Dexia SCRL Namuroise Meuse Dexia SCRL Liégeoise Meuse Dexia CVBA Meetjesland Dexia CVBA Mechelen-Zemst Dexia SCRL Mariemont-Seneffe Dexia CVBA Maasland Dexia CVBA Noord Maaskant Dexia N ame Dexia Bank Belgium – Annual Report 2008 Head office B-7800 Ath B-7800 24 Grand-Place Battice B-4651 22 Marché du Place Bastogne B-6600 226 Vivier du Rue Aywaille B-4920 47 Thiry Joseph Place Eupen B-4700 11Rathausplatz Oostende B-8400 90-92 Pieterslaan Alfons Mouscron B-7700 52 Station la de Rue Meeuwen B-3670 51Dorpsstraat Overpelt B-3900 26 Markt Oude Wuustwezel B-2990 Bredabaan 423 Tubize B-1480 55 Mons de Rue Lier B-2500 13 Markt Grote Namur B-5000 1 Marchovelette de Rue Bouge B-5004 440 Louvain de Chaussée Saint-Servais B-5002 89 Gembloux de Route Mortsel B-2640 59 Statielei Mons B-7000 9 d’Avesnes Jean Avenue Mons B-7000 61-65 Nimy de Rue Stekene B-9190 15Kerkstraat Genk B-3600 Fruitmarkt 7 Heverlee B-3001 Tervuursesteenweg 202 Wépion B-5100 719 Dinant de Chaussée Jemeppe-sur-Meuse B-4101 36/38 Station la de Rue Eeklo B-9900 Markt 93 Zemst B-1980 Brusselsesteenweg 110 B-7160 Chapelle-lez-Herlaimont 55 Gouy de Rue Lanaken B-3620 12Stationsstraat Dilsen B-3650 Rijksweg 405

capital held capital of % 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 51 26 26 26 26 26 26 26

code Business 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4

SCRL Verviers-Spa Région Dexia SCRL Huy-Andenne Région Dexia SCRL Gembloux Région Dexia CVBA Zuid-Gent Regio Dexia CVBA Waregem Regio Dexia CVBA Turnhout-Hoogstraten Regio Dexia CVBA Torhout Regio Dexia CVBA Tienen Regio Dexia CVBA Izegem Roeselare Regio Dexia CVBA Poperinge Regio Dexia CVBA Oudenburg Regio Dexia CVBA Oostende Regio Dexia CVBA Middelkerke-Koekelare Regio Dexia CVBA Menen-Wevelgem Regio Dexia CVBA Menen Regio Dexia CVBA Kruishoutem Regio Dexia CVBA Ieper-Heuvelland Regio Dexia CVBA Hasselt Regio Dexia CVBA Harelbeke Regio Dexia CVBA Evergem-Zelzate Regio Dexia CVBA Erpe-Mere Regio Dexia CVBA Diksmuide-Westkust Regio Dexia CVBA Diest Regio Dexia CVBA Dendermonde Regio Dexia CVBA Deinze-Aalter-Latem Regio Dexia CVBA Buggenhout-Londerzeel Regio Dexia CVBA Asse-Ternat Regio Dexia CVBA Aalst Regio Dexia N ame Head office Kortrijkstraat 12Kortrijkstraat Kruishoutem B-9770 Markt 2 Ieper B-8900 29 Meensestraat Hasselt B-3500 Leopoldplein 41 Harelbeke B-8530 9-15Marktstraat Evergem B-9940 Hoeksken 10 St-Lievens-Houtem B-9520 Marktplein 36 Diksmuide B-8600 31 Markt Grote Diest B-3290 Sint-Jan Berchmansstraat 4 Dendermonde B-9200 Zuidlaan 2 Deinze B-9800 Veldstraat 50 Buggenhout B-9255 13Stationsstraat B-1730 Asse 2 Kattestraat Aalst B-9300 4 Stationsstraat B-4910 Theux B-4910 41 Perron du Place Huy B-4500 33 Ardennes des Avenue Gembloux B-5030 12 d’Agronomie Faculté la de Avenue Gent B-9000 142 Albertlaan Koning Waregem B-8790 Markt 12 Hoogstraten B-2320 109 Vrijheid Torhout B-8820 Markt 28 Tienen B-3300 36 Nieuwstraat Izegem B-8870 21 Markt Grote Poperinge B-8970 39 Markt Grote Oudenburg B-8460 2 Ettelgemsestraat Oostende B-8400 1 Kapellestraat Koekelare B-8680 17 Sint-Maartensplein Menen B-8930 16 Kerkomtrek Wevelgem B-8560

Annual Report 2008 – capital held capital of % 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26

Dexia Bank Belgium code Business 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4

65

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 66 CVBA Zoersel-Malle Dexia CVBA Zennevallei Dexia SCRL Woluwé Dexia CVBA West-Limburg Dexia CVBA Wemmel-Meise-Strombeek Dexia SCRL Waterloo Dexia SCRL Waremme-Hesbaye Dexia CVBA Zuid-Oost Waasland Dexia CVBA Noord-West Waasland Dexia CVBA Centrum Waasland Dexia CVBA Ardennen Vlaamse Dexia CVBA Vilvoorde-Zaventem Dexia SCRL Verviers-Heusy Dexia SCRL Lys la de Vallée Dexia SCRL Dyle la de Vallée Dexia SCRL Val Piéton du Dexia SCRL Val d’Heure Dexia SCRL Val Sambre de Dexia SCRL Uccle-Rhode Dexia SCRL Verne de Tournai-Val Dexia SCRL Tournai Dexia SCRL Sud-Luxembourg Dexia SCRL Stockel Dexia SCRL Seraing-Ougrée-Nandrin Dexia CVBA Schoten-Merksem Dexia CVBA Scheldeland Dexia SCRL Heure et Sambre Dexia CVBA Rupel Dexia N ame Dexia Bank Belgium – Annual Report 2008 Head office B-2980 Sint-Antonius-Zoersel Sint-Antonius-Zoersel B-2980 127 Handelslei Halle B-1500 13 Basiliekstraat B-1200 Bruxelles 49 Saint-Henri Parvis Lummen B-3560 2 Kerkstraat B-1780 Wemmel Markt 60-62 B-1410 Waterloo 306 Bruxelles de Chaussée Waremme B-4300 15 Wauters Joseph Rue Sint-Niklaas B-9100 Parklaan 33 Hamme B-9220 Marktplein 3 Zwijndrecht B-2070 135Statiestraat Oudenaarde B-9700 17Nederstraat Vilvoorde B-1800 4 Bergstraat Verviers B-4800 14 Crapaurue Warneton B-7784 19 Lille de Rue Wavre B-1300 8 Einstein Avenue Trazegnies B-6183 12 Grand-Rue Florennes B-5620 17 A Mettet de Rue Tamines B-5060 15-17 Station la de Rue B-1180 Bruxelles 1356 Waterloo de Chaussée Peruwelz B-7600 34 Grand-Place Tournai B-7500 105-109 Royale Rue Arlon B-6700 13 Poste la de Rue B-1150 Bruxelles 22 Dumon Place Seraing B-4100 37 Rotheux de Rue Schoten B-2900 Markt 26 Kalken B-9270 Kalkendorp 21 Thuin B-6530 9 Serstevens ‘t Rue Hemiksem B-2620 73 Provincialesteenweg

capital held capital of % 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26

code Business 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4

26. 25. 24. 23. 22. 21. 20. 19. 18. CVBA Molenland Zuid Dexia CVBA Zuiderkempen Dexia CVBA Zottegem-Oosterzele Dexia 17. 16. 15. 14. 13. 12. 11. 10. 9. 8. 7. 6. 5. 4. 3. 2. 1. N Business code

ame Nonlife insurance Nonlife insurance Life exchange currency Foreign company Trust company Guarantee sector financial in services professional Other research financial consultancy, engineering, Financial services advisory financial management, portfolio and Asset administration market Financial Other specific financing Infrastructure and construction financing construction and Infrastructure Factoring manager Fund funds Mutual company investment capital Variable broking Stock company Investment activities lending Other credits Consumer capital Development loans Home Leasing agency Banking institution credit Government bank savings Private institution credit Bank, Head office Heldenlaan 33 Heldenlaan B-8760 Meulebeke B-8760 21Holdestraat Schriek B-2223 8 Kempenaersstraat L. Zottegem B-9620

37. 36. 35. 34. 33. 32. 31. 30. 29. 28. 27. 50. 49. 48. 47. 46. 45. 44. 43. 42. 41. 40. 39. 38.

Other associations Other associations Banking business Computer welfare and Health party) (third agency estate Real portfolio) (proprietary estate Real broking and agency Insurance broking and agency product Financial insurance General reinsurance Captive Merchant banking Merchant Financing media payment computerized of distribution management, Production, activities service Other development and Research multimedia and publishing Book Water development Economic Energy services Other Transportation Telecommunications Recreation Sewage, road cleaning and maintenance and waste management waste and maintenance and cleaning road Sewage, Annual Report 2008 – capital held capital of % 26 26 26

Dexia Bank Belgium code Business 4 4 4

67

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 68 (4) (3) (2) (1) Other expenses non-cash Impairments amortization and Depreciation expenditures Capital O liabilities Subtotal Lia near the in change will they As reporting. 2008 pro the disclose for will we future, maintained were Group the within prices transfer as well as divisions various the of scope The III Subtotal assets Subtotal A Income A N (in thousands of EUR) thousands (in ssets ther segment information segment ther . et income income et s of Dec. 31, 2007 Dec. s of Of which investments in associates in investments which Of Of which net income from associates from income net which Of Includes IFRS 2 costs, Net allowances to provisions for restructuring costs, Net allowances to provisions related to IAS 19, Capital losses on exchange of assets. exchange on losses 19, Capital IAS to related provisions to allowances Net costs, goodwill. on Impairments restructuring for provisions to commitments, credit allowances for Net provisions 2 costs, and IFRS loans on Includes Impairments securities, on Impairments assets, intangible other and tangible on Impairments Includes companies. of insurance provisions Technical securities, Debt deposits, and borrowing Customer banks, to Due Includes specific assets Other associates, in Investments sale, for available companies. to insurance securities and Loans trading, for held securities and Loans customers, to advances and Loans banks, from Due Includes

b Dexia Bank Belgium – Annual Report 2008 B ilities USINESS (3) b (1) efore tax efore

REPORTING (2) - forma historical data. historical forma (4)

Wholesale Wholesale 12,594,912 Public and 37,377,671 (123,000) Banking 252,324 106,481 500,520 (10,548) 1,800 3,337 0 48,854,026 62,614,054 1,693,930 F P S 364,082 inancial inancial 278,470 ersonal ersonal (25,031) ervices 29,081 7,040 0 0 146,753,381 153,752,230 F T M inancial inancial 316,916 reasury 455,122 (12,586) arkets and 0 0 0 0 0

1,959,316 allocated allocated – C – (108,660) (107,000) 243,440 142,300 934,567 235,307 (15,483) (31,822) 75,384 A entral N ssets on-

233,919,645 230,920,513 Dexia Bank Dexia 2,884,879 1,075,622 (230,000) (108,660) 628,391 (63,648) 107,802 (22,982) G roup

(4) (3) (2) (1) Other expenses non-cash Impairments amortization and Depreciation expenditures Capital O liabilities Subtotal Lia Subtotal assets Subtotal A Income Tangible and intangible assets are allocated to “Non to allocated are assets intangible and Tangible • • • include: also line business each of results The conditions. market and terms commercial normal on based agreements level by service governed transfers, analytical and/or retrocessions to subject are centers service and production and markets financial lines, business commercial between especially and lines, business between Relations Since the Group’s business operations are conducted almost exclusively in the euro in the exclusively almost conducted are operations Group’s business the Since line. business A of EUR) thousands (in N ssets Interest on economic capital: economic capital is allocated to the business lines for internal purposes and the return on economic capital is used to cost. Funding used is capital economic on return the and purposes line; internal business for of each lines performance the measure business the to allocated is capital economic capital: economic on Interest activity this to long and of medium basis the on allocated equity Group the and transformation this of costs management the including transformation, commercial from earnings The ther segment information segment ther et income income et s of Dec. 31, 2008 Dec. s of Of which investments in associates in investments which Of Of which net income from associates from income net which Of Includes IFRS 2 costs, Net allowances to provisions for restructuring costs, Net allowances to provisions related to IAS 19, Capital losses on exchange of assets. exchange on losses 19, Capital IAS to related provisions to allowances Net costs, goodwill. on Impairments restructuring for provisions to commitments, credit allowances for Net provisions 2 costs, and IFRS loans on Includes Impairments securities, on Impairments assets, intangible other and tangible on Impairments Includes companies. of insurance provisions Technical securities, Debt deposits, and borrowing Customer banks, to Due Includes specific assets Other associates, in Investments sale, for available companies. to insurance securities and Loans trading, for held securities and Loans customers, to advances and Loans banks, from Due Includes b ilities (3) b (1) efore tax efore (2) (4) - term outstanding; term - allocated – Central Assets”, except when they are directly managed by a commercial or financial financial or commercial a by managed directly are they when except Assets”, Central – allocated

Public/ E nhancement 63,373,287 and and 37,195,994 (182,698) (129,600) 361,205 F 727,313 P inance 97,326 C roject roject 1,061 redit redit 891 0

- 45,694,398 zone countries, no geographical segment information is disclosed. information segment geographical no countries, zone 78,740,769 1,176,992 F P (217,924) S (617,037) inancial inancial 277,326 ersonal ersonal (41,442) ervices 19,792 0 0

Annual Report 2008 – 122,757,834 74,998,844 F T (733,649) (577,973) M inancial inancial reasury (88,113) arkets 1,580 and 0 0 0 0

1,519,440 2,275,751 allocated allocated – C – (218,928) (105,382) (113,587) (114,158) 146,400 (65,830) (46,121) (13,017) Dexia Bank Belgium A entral N ssets on-

218,632,340 207,923,977 Dexia Bank Dexia (1,647,542) 1,702,605 (653,620) (105,382) (195,430) 521,052 (25,438) (51,818) G roup 69

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 70 (2) (1) equivalents cash and cash in included which Of Mandatory reserve deposits deposits reserve mandatory than other banks central with Balances hand in Cash by nature Analysis 7.2. Other collaterals Cash reserves Mandatory 2. sale for held assets Non-current value fair at designated assets Financial trading for held assets Financial sale for available assets Financial banks from due advances and Loans banks central with balances and Cash 1. duration. remaining days 90 than less with balances following the comprises equivalents cash and cash statement, flow cash of the purpose the For 7.1. V report. Management to the refer we litigation, on details For V Nil V. report. Management to the refer we income, net the in included items the of details For I V. Total Total Total (in thousands of EUR) thousands (in of EUR) thousands (in of EUR) thousands (in II I

. Figures as of Dec. 31, 2007 have been restated. 31, been have of Dec. as 2007 banks. Figures central other with or ECB the with have must institutions credit deposits reserve minimum reserves: Mandatory Of which restricted cash restricted which Of by nature Analysis POST

. Dexia Bank Belgium – Annual Report 2008

SIGNIFICANT C LITIGATION

cash an cash N ash an ash otes on the assets of the consoli the of assets the otes on -B ALANCE cash equi d cash d (2) b alances w alances (1) ITEMS SHEET v INCLU alents ith central b central ith E V ENTS D E D IN THE anks NET d ate INCOME d b alance sheet alance

77,398,431 70,667,940 6,463,991 4,536,240 4,912,969 4,544,014 4,905,195 4,905,195 1,770,392 1,927,751 31/12/07 31/12/07 31/12/07 368,955 39,904 15,000 0 0 0 57,584,407 55,912,496 9,452,239 9,422,432 1,118,002 31/12/08 31/12/08 31/12/08 486,233 486,233 489,522 456,426 33,096 29,807 67,676 0 0 0 0 (1) 5. 4. 3. 2. lease finance in included which Of equivalents cash and cash in included which Of Less: Impaired debt instruments Impaired loans Debt instruments advances other and Loans agreements repurchase Reverse collaterals cash and accounts Nostro 1. 7.3. Total (in thousands of EUR) thousands (in See note 7.7. note See 12.1. note See 12.6. and 12.5. 12.4., notes See 7.15. note See impairment Collective instruments debt impaired or loans impaired on impairment Specific Figures as of Dec. 31, 2007 have been restated. 31, been have of Dec. as 2007 Figures Reclassification of financial assets (IAS 39 amended) 39 (IAS assets financial of Reclassification value fair the of Analysis rate interest and by maturity Analysis quality of Analysis by nature Analysis

L oans an oans d a dv ances d ances (1) ue from b from ue (1) anks Annual Report 2008 –

79,269,848 70,667,940 68,257,198 3,796,730 7,215,920 31/12/07 Dexia Bank Belgium 344 0 0 0 0 0 65,793,492 55,912,496 17,452,398 18,191,429 29,237,152 31/12/08 (48,953) 939,613 110,767 (97,499) 8,585 71 0

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 72 (1) 6. 5. 4. 3. Less: Impaired debt instruments Impaired loans Debt instruments advances other and Loans agreements repurchase Reverse 2. Less: Impaired debt instruments Impaired loans Other Public sector 1. 7.4. Of which included in finance lease lease finance in included which Of TOTAL of EUR) thousands (in Total of EUR) thousands (in

See note 7.7. note See 12.1. note See 12.6. and 12.5. 12.4., notes See 7.15. note See impairment Collective instruments debt impaired or loans impaired on impairment Specific advances and loans other which Of accounts current which Of loans term which Of loans mortgage which Of credit consumer which Of loans securitized which Of leases finance which Of acceptances own & bills which Of impairment Collective instruments debt impaired or loans impaired on impairment Specific Figures as of Dec. 31, 2007 have been restated. 31, been have of Dec. as 2007 Figures Reclassification of financial assets (IAS 39 amended) 39 (IAS assets financial of Reclassification value fair the of Analysis rate interest and by maturity Analysis quality of Analysis by nature Analysis Analysis by counterpart Dexia Bank Belgium – Annual Report 2008

L oans an oans d a dv ances to customers to ances (1) (1) (1) (1)

80,205,945 80,205,945 40,146,730 18,018,321 67,849,726 12,287,201 62,118,606 18,823,117 2,331,201 2,331,201 1,957,886 1,606,517 2,156,149 31/12/07 31/12/07 (450,876) (450,876) (120,589) (120,589) 640,483 640,483 764,700 63,426 0 0 0

103,520,175 103,520,175 48,480,392 85,284,593 80,979,463 18,352,871 18,016,576 15,974,709 2,989,643 4,641,425 2,563,813 2,563,813 1,620,976 8,933,612 31/12/08 31/12/08 (379,681) (379,681) (477,122) (477,122) 363,567 737,906 737,906 52,751 1,608 1,608 1. 7. 6. 5. 4. banks central the to refinancing for bills eligible other and bills Treasury 3. instruments variable-income and Equity instruments fixed-income and bonds Other bodies public by issued Bonds Loans 2. lease finance in included which Of equivalents cash and cash in included which Of Other Banks Public sector F value fair at designated assets Financial trading for held assets Financial 7.5. inancial assets hel assets inancial Total Total Total (in thousands of EUR) thousands (in of EUR) thousands (in of EUR) thousands (in of EUR) thousands (in

Analysis by counterpart See note 7.7. note See 12.1. note See 12.6. and 12.5. 12.4., notes See Nil. Reclassification of financial assets (IAS 39 amended) 39 (IAS assets financial of Reclassification value fair the of Analysis rate interest and by maturity Analysis banks other with agreements repurchase under pledged Securities banks central the to refinancing for bills eligible other and bills Treasury by nature Analysis

F inancial assets measure assets inancial d for tra for d d ing at fair v at fair alue through profit or loss or profit through alue Annual Report 2008 –

16,195,140 6,909,359 9,285,781 9,285,781 8,691,234 8,763,801 9,285,781 31/12/07 31/12/07 31/12/07 31/12/07 455,291 461,571 132,976 Dexia Bank Belgium 39,904 66,689 19,034 0 0 3,466,832 9,056,208 4,142,292 4,142,292 4,142,292 3,512,573 4,913,916 31/12/08 31/12/08 31/12/08 31/12/08 584,309 584,309 420,149 45,410 67,676 91,151 73 0 0

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 74 rating. credit similar a with issuers and for assets financial similar for applicable rates market available on based by thean value net is rate whereby present tool is determined interest The pricing model a flowcash by discounted Group Risk Management. determined non for value fair the Todetermine • • Fair Value The value fair the of Analysis 6. 5. instruments fixed-income and bonds other in Included bodies public by issued bonds in Included 4. 3. products insurance Unit-linked instruments variable-income and Equity instruments fixed-income and bonds Other bodies public by issued Bonds Loans 2. lease finance in included which Of equivalents cash and cash in included which Of Other Banks Public sector F 1.

inancial assets d assets inancial (in thousands of EUR) thousands (in Total Total (in thousands of EUR) thousands (in of EUR) thousands (in be met. be not will requirements accounting hedge isthe that athere risk at inception, when, orloss in profit volatility to reduce in order method as an alternative assets; containa not liabilities where financial

See note 12.1. note See 12.6. and 12.5. 12.4., notes See Nil Analysis by maturity and interest rate rate interest and by maturity Analysis banks other with agreements repurchase under pledged Securities banks central the to refinancing for bills eligible other and bills Treasury by nature Analysis Analysis by counterpart Dexia Bank Belgium – Annual Report 2008 O O (FV ption esignate ) for financial assets is mainly used in the following situations: following the in used ismainly assets ) financial for - listed financial instruments classified under the fair value option, the pricing tools used and procedures followed are followed procedures and used tools pricing the option, value fair the under classified instruments financial listed d at fair v at fair - closely related embedded derivative whereby the whereby return is derivative linked to related embedded in the closely poolof investment a insurer’s specified alue

6,909,359 6,909,359 6,039,769 2,070,767 4,791,154 31/12/07 31/12/07 693,496 31/12/07 149,597 15,000 20,397 47,438 10,155 6,100 M arket value 0 0

4,522,567 4,913,916 4,913,916 4,497,622 31/12/08 31/12/08 31/12/08 314,301 411,125 12,000 59,914 5,169 5,134 1,192 0 0 0 (1) 8. 7. 6. million) 50 EUR than greater (positions portfolio available-for-sale the in included bonds Convertible 5. instruments variable-income and Equity instruments fixed-income Other bonds and bodies public by issued Bonds Loans impairments) before investments (Financial nature by Analysis 4. 3. 2. Less: financial investments Impaired Other Banks Public sector 1. 7.6. Of which included in cash and cash equivalents cash and cash in included which Of Total T Total of EUR) thousands (in (in thousands of EUR) thousands (in

otal financial in otal financial See note 7.7. note See 12.1. note See Nil Nil 12.6. and 12.5. 12.4., notes See 7.15. note See investments financial impaired on impairment collective and Specific Several specific impairments were recorded in 2008, mainly on Lehman Brothers, Icelandic banks and Washington Mutual. Washington and banks Icelandic Brothers, Lehman on mainly in2008, recorded were impairments specific Several Reclassification of financial assets (IAS 39 amended) 39 (IAS assets financial of Reclassification value fair the of Analysis (IFRS 7, 12) Reclassification rate interest and by maturity Analysis quality of Analysis Analysis by counterpart

inancial Financial in

vestments v estments estments b efore impairment efore

64,434,980 18,063,173 42,017,252 4,036,571 31/12/07 317,984 AFS 45,631,880 18,431,593 23,676,124 3,437,385 31/12/08 86,778 (1) 31/12/07 130,310 106,193 24,117 HTM 0 0 Annual Report 2008 – 31/12/08 24,850 65,822 90,672 0 0

64,565,290 64,565,290 64,477,908 22,720,542 23,374,949 18,087,290 42,123,445 18,104,413 4,036,571 1,770,392 31/12/07 31/12/07 365,386 317,984 (87,382) Dexia Bank Belgium T otal

18,456,443 44,557,424 45,722,552 45,722,552 18,583,104 17,880,567 23,741,946 (1,165,128) 1,925,348 3,437,385 7,333,533 1,118,002 31/12/08 31/12/08 86,778 75

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements Expected cash flows will therefore depend from the evolution of short of evolution the from depend therefore will flows cash Expected interest the hedged, also was from 1.34%from to 47.7%). However, as interest the 76 • • Impact on future interest margin fixed include bonds Reclassified available. were prices market representative more no as markets different the on liquidity of the evolution the account into taking models valuation on based calculated is place taken not had reclassification the if recorded been have would that reserve AFS of change The assets. transferred these on quarter last the in recognized were losses impairment specific No 4Q 2008. the during bonds, reclassified including on were recorded Loans and to and Receivables, impairments ability hold future, for Collective to were the transferred Loans and foreseeable Receivables. spreads. Available particular very a has Bank Dexia Receivables and Loans to sale for Available from Transfer are Impacts future. above. table in the foreseeable mentioned the for hold to ability and intention the has it that and term near the in selling for holds longer no it that bonds quality in above, high the the credit illiquidity market, lack of market Bank described Dexia of reclassified prices” markets, “representative and availability inactive as forrecognized “Held were initially assets Trading” as toBank financial Due withinDexia term.themintended a trade to These short rare circumstances Receivables and Loans to trading for Held from Transfer from made been have Dexia Bank’s toandassets these financial intention ability to “Loans andreflects holdfor assets Receivables” future.these theReclassifications foreseeable Receivables and Loans towards to reclassification due P/L via quarter the during up set impairment Collective and Receivables to Loans portfolio Available-for-sale From portfolio to Available-for-sale Trading From Receivables and Loans to Trading From Receivables and to Loans portfolio Available-for-sale From portfolio to Available-for-sale Trading From Receivables and Loans to Trading From D 7.7. in intent, Dexia Bank reclassified certain assets from “Available for Sale” to “Loans and Receivables” (if the definition was met). The reclassification of reclassification The met). was definition the (if Receivables” and “Loans to Sale” for from “Available assets certain reclassified Bank Dexia intent, in change its Following term. near in the sale forheld noarelonger they because met) was definition the (if for Trading”“Held Receivables” and to “Loans from assets certain longer reclassify to no opted Bank did Dexia assets circumstance, rare that Given financial prices. broker’s some for indicative or prices prices “fairvalue”, distressed represent but observable crisis, financial subsequent the and Brothers Lehman of bankruptcy the after that considered – 7 IFRS & 39 IAS of amendment the apply to decided Bank Dexia

(in thousands of EUR) thousands (in of EUR) thousands (in ate Expected interest margins are EUR 50 millions in 2009 and EUR 37 millions in 2010. 37 millions EUR and in 2009 millions 50 EUR are margins interest Expected mark that the net impact on the result is zero. result the on impact net the that so of reserve, the frozen AFS by the amortization is on of the bond compensated the discount the amortization to from AFS L&R, transferred assets For For assets transferred from trading to L&R, the expected positive impact on impact from positive the transferred trading For margin to the interest assets for expected L&R, of future years coming the from negative amortization Dexia Bank Belgium – Annual Report 2008

R of eclassification of financial assets ( assets financial of eclassification - to O - reclassification nly nly forfinancialassets which no quoted priceson market active and no ofwere indications and available impairments that Dexia has the intention market of previous periods can be estimated at can on be EUR market estimated the 229 life This of will amount periods remaining be of millions. amortized previous the transferred. bonds O ctober 1, 2008 on. 1, 2008 ctober - rate risk is mainly a floating rate risk which is part of the ALM sensitivity. ALM the of part is which risk rate a floating is mainly risk rate - rate bonds (from zero coupon bonds to bonds paying 9.5% nominal coupon and with an effective interest rate varying varying rate interest effective an with and coupon 9.5% nominal paying bonds to bonds coupon zero (from bonds rate : 01/10/08 : - for - sale portfolio with a very long maturity, resulting in significant change in value due to a small change in change small a to due value in change significant in resulting maturity, long very a with portfolio sale

- rate risk of reclassified AFS bonds was hedged andtheinterest hedged was bonds AFS rate of risk reclassified 39 amen 39 IAS

reclassification C taken in in taken A arrying amount amount arrying mount not not mount at at of reclassified for some financial assets. In particular, Dexia Bank Bank Dexia particular, In assets. financial some for Assets Financial of Reclassification (103,198) R O 15,446,859 eserve due to to due ct. 1, 2008 ct. - 2,800,549 term interest rate. interest term AFS assets, assets, d

e d 0 )

T ax impact ax C at Dec. 31, 2008 Dec. at arrying amount amount arrying (2,070) of reclassified 7,822 15,174,419 2,694,464 0

assets assets 0

(95,376) 14,490 (5,467) reclassifiedassets N at Dec. 31, 2008 Dec. at - et rate risk of reclassified trading portfolios portfolios trading rate of risk reclassified 0 F air value of of value air 15,071,221 in in 2,711,023 amortization P & during L during the year year the 11,532 0 P /D /D A 0 mount not taken taken not mount

reclassification in in in in amortization AFS P & the year year the due to to L due R during during eserve eserve 16,560 70,397 P /D /D 0

(1) 4. SA France Management Asset Dexia SA Belgium Management Asset Dexia SA Finance SLF SA Luxembourg Management Asset Dexia Nord du Crédit 3. 2. Other Translation adjustments income of statement the in recognized not losses and gains of Share below) (see goodwill in Changes Dividend paid tax of Share 1. 7.8. Changes during the period the during Changes (out) consolidation of scope in Change tax before result of Share (out) consolidation of scope in Change (in) consolidation of scope in Change Disposals Acquisitions Total N A A A A of EUR) thousands (in C C of EUR) thousands (in (in thousands of EUR) thousands (in A

arr arr ccumulate ccumulate 31 ( Dec. of as cost cquisition 1 Jan. of as cost cquisition et carr et ssociates Discontinuation of recognition of share of loss (negative equity) (negative loss of share of recognition of Discontinuation 31,2008 Dec. of as associates major of List Nil Figures as of Dec. 31, 2007 have been restated. 31, been have of Dec. as 2007 Figures Positive goodwill included in carrying value carrying in included goodwill Positive value Carrying

in (1) y y vestments in associates ing ing ing y v v ing ing alue as of Dec. 31 Dec. of as alue 1 Jan. of as alue d d v d d alue as of Dec. 31 ( Dec. of as alue epreciation an epreciation an epreciation (1) d accumulate d accumulate A ) A )+(B)

C 548,652 254,075 131,567 arrying impairment as of Dec. 31 (B) Dec. of as d impairment 1 Jan. of as d impairment 49,657 49,216 64,137 value (1) 31/12/07

investment air value Fair 704,577 410,000 131,567 49,657 49,216 64,137 of

C 450,506 253,364 arrying 63,625 35,198 47,188 51,131 value Annual Report 2008 – 31/12/08

investment air value Fair 350,000 547,142 63,625 35,198 47,188 51,131

of

www.groupe-credit-du-nord.com 628,391 616,901 138,471 (30,669) (71,086) (22,077) (15,909) (17,756) (17,756) Dexia Bank Belgium 72,225 89,981 89,981 9,720 3,181 2007 2007 (152) 11 0 0 0 0

to website Reference 628,391 521,052 non-listed non-listed non-listed non-listed (63,057) (11,502) (17,756) (17,756) (19,713) 88,779 89,981 71,023 (5,325) (5,725) (1,202) (1,202) (6,165) 5,568 2008 2008 (597) 379 77 0 0

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 78 1. 7.9. Other Translation adjustments Transfers and cancellations of consolidation (out) scope in Change (in) consolidation of scope in Change Disposals Post-acquisition adjustment Subsequent expenditures Acquisitions Other Translation adjustments Transfers and cancellations consolidation (out) of scope in Change consolidation (in) of scope in Change Disposals Write-back Booked Post-acquisition adjustment as of Dec. 31, 2007 ( 31, 2007 Dec. of as A 1, 2007 Jan. of as A (in thousands of EUR) thousands (in A A 1, 2007 Jan. of as an as of Dec. 31, 2007 ( 31, 2007 Dec. of as N (B) 31, 2007 Dec. of as an

ccumulate ccumulate cquisition cost cquisition cost cquisition et et Net book value book Net Dexia Bank Belgium – Annual Report 2008

d d T angi b impairment impairment ook ook b v le fixe le alue d d

d d epreciation epreciation d A A assets ) )+(B)

1,049,498 O 1,137,747 (296,780) (215,834) L (169,138) 840,967 153,166 wn (46,709) (34,767) and and buildings O 30,865 59,961 14,154 wner (292) (661) U 292 475 (98) 55 se 0 0 0 0 0

F inance inance O wn L 3,808 3,006 3,275 ease (669) (269) (251) U 208 (72) (41) 23 se 0 0 0 0 0 0 0 0 0 0 0 0 0

O O (744,385) (233,355) (537,511) 643,603 ffice furniture and other equipment other and furniture ffice 106,092 213,304 867,323 (23,588) wn (13,822) O 24,682 13,770 (4,429) 3,324 3,315 wner (127) U (16) 80 16 se 0 0 0 0 0

F inance inance O wn L ease (639) (653) U 688 700 (53) (59) (12) 77 33 47 12 se 0 0 0 0 0 0 0 0 0 0 0 0

O perating perating (8,354) (7,862) L 8,967 8,610 ease (508) 373 613 (16) 16 0 0 0 0 0 0 0 0 0 0 0 0 0 0 I nvestment nvestment (519,028) (531,122) 888,445 865,795 346,767 P (44,324) 28,046 16,846 (17,113) roperty (5,021) 1,453 9,188 (292) 661 0 0 0 0 0 0 0 0 0 (1,500,093) (1,362,595) 2,660,087 2,818,372 1,297,492 (407,542) 215,260 187,694 (88,018) 31,000 34,180 (4,527) 3,379 1,093 7,082 T (292) (199) otal 103 (16) 16 0 0 0 Amount of commitments for acquisition of property, plant and equipment and plant property, of acquisition for commitments of Amount property investment develop or construct To purchase, 4. equipment and plant property, of construction the for capitalized Expenditures 3. valuation independent to an subject not Fair value valuation independent to an subject Fair value properties investment of values Fair 2. Other Translation adjustments Transfers and cancellations of consolidation (out) scope in Change (in) consolidation of scope in Change Disposals Post-acquisition adjustment Subsequent expenditures Acquisitions Other Translation adjustments Transfers and cancellations consolidation (out) of scope in Change consolidation (in) of scope in Change Disposals Write-back Booked Post-acquisition adjustment (in thousands of EUR) thousands (in of EUR) thousands (in of EUR) thousands (in A ( 31, 2008 Dec. of as A 1, 2008 Jan. of as A (in thousands of EUR) thousands (in A 1, 2008 Jan. of as an as of Dec. 31, 2008 ( 31, 2008 Dec. of as N (B) 31, 2008 Dec. of as an

ccumulate ccumulate cquisition cost cquisition cost cquisition et et Contractual obligations relating to investment property at end of period of end at property investment to relating obligations Contractual Expenditures Fair value Fair d d b impairment impairment ook ook v alue d d

d d epreciation epreciation A A ) )+(B)

1,155,845 O 1,137,747 (296,780) (339,845) L (121,980) 816,000 145,552 wn (45,374) and and buildings (14,933) O 11,375 (1,917) 2,213 wner U 96 se 0 0 0 0 1 0 0 0 0 0

F inance inance O wn L 2,990 3,397 3,275 ease (269) (407) (122) U 147 (70) (16) 45 se 0 0 0 0 0 0 0 0 0 0 0 0 0

O O (547,980) (537,511) 643,603 ffice furniture and other equipment other and furniture ffice 676,697 128,717 (23,895) wn (12,232) O 46,922 12,086 (1,662) 1,287 wner U 67 53 se (1) 0 0 0 0 0 0 0 0 0

F inance inance O wn L ease (653) (565) (118) U 590 700 129 (29) (12) 25 12 se (7) 0 0 0 0 0 0 0 0 0 3 0 0

Annual Report 2008 – O perating perating (8,354) (8,668) L 9,206 8,967 ease (395) 538 320 (81) 81

0 0 0 0 0 0 0 0 0 0 0 0 0 0 31/12/07 31/12/07 31/12/07 I nvestment nvestment 386,367 388,710 (506,612) (519,028) Dexia Bank Belgium 922,386 15,124 865,795 P 415,774 (23,570) (17,794) 2,343 (15,142) 1,850 roperty 92,144 22,145 8,065 500 3,159 0 0 0 0 0 0 0 0 0 0 0 (1,362,595) (1,404,077) 1,364,044 2,660,087 2,768,121 31/12/08 31/12/08 31/12/08 (138,942) 451,203 451,203 196,103 103,519 (87,609) (14,933) (37,837) 36,573 2,258 9,529 T otal 112 (12) 37 12 79 0 0 0 0 0 0 0 0 0

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 80 (1) 7.10. Other Post-acquisition adjustment Translation adjustments Transfers and cancellations (out) consolidation of scope in Change (in) consolidation of scope in Change Disposals Acquisitions Other Post-acquisition adjustment Translation adjustments Transfers and cancellations Disposal Write-back (out) consolidation of scope in Change (in) consolidation of scope in Change Booked A of EUR) thousands (in A N (B) 31, 2007 Dec. of as A 1, 2007 Jan. of as A cquisition cost as of Jan. 1, 2007 Jan. of as cost cquisition cquisition cost as of Dec. 31, 2007 ( 31, 2007 Dec. of as cost cquisition ccumulate ccumulate et et Other intangible assets include purchased softwares. purchased include assets intangible Other Dexia Bank Belgium – Annual Report 2008

I b ntangi ook ook v alue as of Dec. 31, 2007 ( 31, 2007 Dec. of as alue b d d le assets an assets le

d d epreciation an epreciation an d goo d d impairment impairment dw A )+(B) A ) ill

goodwill P 129,886 105,655 131,575 (25,920) (25,920) ositive ositive 1,688 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 developed developed I software nternally (307,246) (278,516) 350,847 391,838 (28,839) 84,592 41,542 (551) 109 0 0 0 0 0 0 0 0 0 0 0 0 0 intangible intangible (128,315) assets 114,033 170,971 (87,248) (42,387) (18,836) 26,785 12,986 11,360 (6,990) 33,614 (9,107) O 3,500 ther (82) 74 (3) (1) 0 0 0 0 0 0 (420,414) (432,751) 637,446 651,704 217,032 (42,938) (18,836) (37,946) 52,902 12,986 33,723 (6,990) 3,500 1,688 T otal (82) 74 (2) 0 0 0 0 0 (1) 9.2.) note (see assets tax Deferred taxes Current 7.11. Other Post-acquisition adjustment Translation adjustments Transfers and cancellations Disposal Write-back (out) consolidation of scope in Change (in) consolidation of scope in Change Booked Other Post-acquisition adjustment Translation adjustments Transfers and cancellations (out) consolidation of scope in Change (in) consolidation of scope in Change Disposals Acquisitions “ to “Taxassets” from tranferred is taxes operational representing thousand 22,294 EUR of amount An restated. 31,been have Dec. 2007 of as Figures O Total (in thousands of EUR) thousands (in N (B) 31, 2008 Dec. of as A 1, 2008 Jan. of as A A A of EUR) thousands (in ccumulate ccumulate ( 31, 2008 Dec. of as cost cquisition 1, 2008 Jan. of as cost cquisition ther assets”. et et Other intangible assets include purchased softwares. purchased include assets intangible Other

ax assets Tax b ook ook v alue as of Dec. 31, 2008 ( 31, 2008 Dec. of as alue d d

d d epreciation an epreciation an d d impairment impairment A )+(B) A )

goodwill P 105,655 131,575 131,575 (25,920) (25,920) ositive ositive 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Annual Report 2008 – developed developed I software nternally (334,436) (307,246) 426,367 391,838 (28,675) 36,489 91,931 (1,960) 1,485 0 0 0 0 0 0 0 0 0 0 0 0 0

intangible intangible 31/12/07 assets 458,727 126,897 114,033 (87,248) 423,118 (97,071) Dexia Bank Belgium 35,609 29,826 12,078 (9,284) O 1,027 (254) ther (551) (10) 22 13 (1) 0 0 0 0 0 0 0 0 0 1,096,387 1,047,439 31/12/08 (420,414) (457,427) 684,839 637,446 227,412 (37,959) 48,948 48,567 T (254) (933) otal 934 (10) 22 13 81 0 0 0 0 0 0 0 0 0

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 82 (2) (1) Other assets Discontinued operations sale for held assets intangible and Tangible sale for held subsidiaries of Assets 7.13. Less: assets insurance Impaired assets insurance Other costs acquisition Deferred issued to be still Premiums transactions insurance direct from resulting Receivables reserves technical the in reinsurers the of Share A 2. Other assets taxes Operational Inventories Long-term construction contracts Plan assets receivable accounts Other Deferred expenses income Accrued Analysis 1. companies insurance to specific assets Other Other assets 7.12. Total Total Total Total (in thousands of EUR) thousands (in of EUR) thousands (in of EUR) thousands (in of EUR) thousands (in nalysis Provisions on not impaired insurance assets insurance impaired not on Provisions Specific impairment See note 8.6.4.I. note See taxes. operational include now They restated. 31, been have of Dec. as 2007 Figures Other assets specific to insurance activities insurance to specific assets Other assets Other Dexia Bank Belgium – Annual Report 2008

N O on-current assets hel assets on-current ther assets by

(2) by (1) nature

nature ( acquisition d for sale for costs and share of reinsurers )

1,594,944 1,989,710 1,989,710 2,171,792 31/12/07 31/12/07 31/12/07 31/12/07 182,082 182,082 111,439 217,172 80,346 22,294 49,264 32,587 28,091 51,597 29,112 8,306 2,396 1,064 1,021 (850) 572 661 0 0 0 0 1,062,585 31/12/08 31/12/08 31/12/08 31/12/08 874,008 188,577 874,008 188,577 655,702 52,433 63,524 21,048 51,400 71,235 23,104 31,607 37,907 86,125 8,546 2,522 1,553 (579) 867 563 503 733 0 0 0 (1) period the during income of statement in recognized rents contingent of Amount follows as are leases operating non-cancellable under receivables lease minimum net Future B. receivable payments lease minimum uncollectible for allowance Accumulated lease finance of value fair Estimated lessees by unguaranteed values Residual period of end at losses loan for provision the in included receivables lease finance uncollectible of Amount period the during income of statement in recognized rents contingent of Amount follows as analyzed be may leases finance in investment net The leases finance in investment Gross A. 1. 7.14. Total Total S (in thousands of EUR) thousands (in of EUR) thousands (in of EUR) thousands (in of EUR) thousands (in N U u et in et nearne Later than 5 years than Later 5 years than later not and 1 year than Later 1 year than later Not 5 years than Later 5 years than later not and 1 year than Later 1 year than later Not 5 years than Later 5 years than later not and 1 year than Later 1 year than later Not Figures as of Dec. 31, 2007 have been restated. 31, been have of Dec. as 2007 Figures O F a lessor as Dexia b inance perating

total ( Leasing v estment in finance leases ( leases finance in estment future finance income on finance leases (B) leases finance on income finance d future A lease ) lease (1) A )-(B) (1) Annual Report 2008 –

2,319,587 2,319,587 2,847,129 1,199,081 2,131,418 31/12/07 31/12/07 31/12/07 31/12/07 823,267 674,268 609,310 973,780 527,542 111,445 887,010 Dexia Bank Belgium 20,066 43,252 23,412 48,127 11,538 33 0 0 3,281,879 2,557,468 2,557,468 2,314,501 1,516,969 1,174,776 1,103,741 31/12/08 31/12/08 31/12/08 31/12/08 950,354 503,373 724,411 590,134 26,040 35,085 33,295 77,614 16,153 9,234 83 0 0 0

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 84 period the during expense an as recognized payments sublease and Lease date sheet balance the at subleases non-cancellable under received to be expected payments sublease minimum future of Amount follows as are leases operating non-cancellable under payments lease minimum net Future B. 7.9. note See immaterial. are involved Amounts A. 2. Total Total (in thousands of EUR) thousands (in Sublease payments Sublease Contingent rents payments lease Minimum 5 years than Later 5 years than later not and 1 year than Later 1 year than later Not O F a lessee as Dexia Dexia Bank Belgium – Annual Report 2008 inance perating lease lease

31/12/07 112,250 24,524 31,562 16,301 31,487 71,425 3,878 75 0 31/12/08 222,930 105,582 22,564 85,793 28,164 31,555 (5,677) 8,318 77 (1) not specifically impaired loans(-) on impairment Collective assets financial Other receivable accounts Other activities insurance from Assets sale for available assets Financial Investments held to maturity customers to advances and Loans banks from due advances and Loans 3. assets financial other Impaired receivable other accounts Impaired activities insurance from Impaired assets sale for available assets financial Impaired to maturity held investments Impaired to customers advances and loans Impaired banks from due advances and loans in assets Impaired 2. (-) loans impaired specifically not on impairment Collective assets financial other Normal receivable accounts other Normal activities insurance from assets Normal sale for available assets financial Normal to maturity held investments Normal to customers advances and loans Normal banks from due advances and loans in assets Normal 1. 7.15. (in thousands of EUR) thousands (in (in thousands of EUR) thousands (in (in thousands of EUR) thousands (in Total Total Total Of which equity instruments equity which Of instruments equity which Of instruments equity which Of instruments income fixed which Of Of which fixed income instruments income fixed which Of instruments income fixed which Of Figures as of Dec. 31, 2007 have been restated. 31, been have of Dec. as 2007 Figures Normal + impaired Normal securities and loans impaired of Analysis securities and loans normal of Analysis

Q ualit y

of financial assets financial of

(1) (1)

(1) 226,487,802 60,398,409 64,434,980 79,269,848 80,777,189 4,036,571 1,009,278 1,596,021 31/12/07 31/12/07 (120,589) 640,483 334,366 365,386 182,932 130,310 217,111 31,020 2,345 1,064 G G ross amount ross amount 0 0 0 ( A (B) )+(B) 104,376,978 216,610,063 (1) 45,631,880 65,939,945 42,194,495 2,875,265 1,925,348 3,437,385 1,144,369 31/12/08 31/12/08 (428,634) 780,979 735,003 739,514 119,353 189,156 90,672 75,063 90,183

867 0 0 S S pecific loan loss allowance pecific loan loss allowance individual basis ( basis individual 31/12/07 31/12/07 (539,965) (539,965) (450,655) (450,655) (87,382) (72,926) (87,382) (72,926) (14,456) (14,456) (1,078) (1,078) (850) (850) 0 0 0 0 0 0 0 (C ) Annual Report 2008 – (1,819,630) (1,819,630) (1,165,128) (1,165,128) 31/12/08 31/12/08 C (653,655) (653,655) (511,473) (511,473) (477,123) (477,123) (97,499) (97,499) (79,301) (79,301) ) (579) (579)

0 0 0 0 0

225,478,524 225,947,837 60,383,953 79,269,848 79,269,848 64,069,594 80,326,534 60,367,389 64,347,598 80,136,706 3,963,645 3,702,205 1,594,943 1,593,676 31/12/07 31/12/07 31/12/07 (120,589) (120,589) 278,004 182,082 261,440 189,828 469,313 181,868 130,310 130,310 217,111 217,111 Dexia Bank Belgium 16,564 1,267 G ross amount ( 214 N N ( A 0 0 0 et amount et amount (B)+( )+(B)+(

214,790,433 103,899,855 213,734,798 103,637,464 C) 65,842,446 44,466,752 65,820,592 43,706,532 41,683,022 41,413,516 1,055,635 2,783,730 2,293,016 C 31/12/08 31/12/08 31/12/08 (428,634) (428,634) 644,820 188,289 269,506 760,220 188,577 ) 262,391 490,714 655,702

10,882 90,672 90,672 75,063 75,063 21,854 A ) 288 85 0 0

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 86 3. 2. Other customer deposits Term deposits Saving deposits Demand deposits 1. 8.2. 3. 2. borrowings Other banks Central activity Repurchase Term demand On 1. 8.1. V Other borrowings Other activity Repurchase T Total (in thousands of EUR) thousands (in of EUR) thousands (in Total Total customer III otal customer See note 12.1. note See 12.6. and 12.5. 12.4., notes See 12.1. note See 12.6. and 12.5. 12.4., notes See Analysis of the fair value value fair the of Analysis rate interest and by maturity Analysis by nature Analysis value fair the of Analysis rate interest and by maturity Analysis by nature Analysis Dexia Bank Belgium – Annual Report 2008

. Due to b to Due C

N ustomer otes on the lia the otes on anks b orro d b w orro eposits w ings an ings b ilities of the consoli the of ilities d

d eposits d ate d b alance sheet alance

113,091,738 76,079,030 22,503,977 75,762,860 74,795,761 22,193,827 14,455,157 22,277,411 27,411,983 1,283,269 2,685,974 1,181,252 31/12/07 31/12/07 452,383 143,927 102,017

104,027,770 48,459,449 62,265,730 69,815,391 18,821,436 20,874,471 18,109,007 11,316,067 21,233,157 19,875,511 4,910,090 2,694,312 7,549,661 7,519,956 31/12/08 31/12/08 29,705 1. 1. (1) funding. of cost of increase the and rating of downgrade the account into take to recorded was million 60 of income an 2008, in decreased has O FV in liabilities based on market available for rates and applicable similar taking into securities account our own credit rating. As the rating of Dexia Bank, having recorded 3. 2. Unit-linked products liabilities Subordinated liabilities Non-subordinated F 3. 2. Equity agreements Repurchase Other bonds bodies public by issued Bonds F value fair at designated liabilities Financial trading for held liabilities Financial 8.3. • “Fair Value The are set up by Group Risk Management. The pricing tool is a discounted cash flow model whereby the net present value is determined by an interest rate rate interest an by determined is value present net the whereby model flow cash a is discounted tool pricing The Management. Risk Group by up set are non for value fair the todetermine followed procedures the and used tools pricing The • inancial lia inancial inancial b lia Total Total Total (in thousands of EUR) thousands (in of EUR) thousands (in of EUR) thousands (in a specified pool of insurer’s assets (Unit assets of insurer’s pool a specified not a contain liabilities financial where business insurance by the liabilities of unit liabilities by companies issuing debt with embedded derivatives. embedded with debt issuing by companies Analysis by nature by nature Analysis by nature Analysis See note 12.1. note See 12.6. and 12.5. 12.4., notes See 12.1. note See 12.6. and 12.5. 12.4., notes See For details see list 8.5.5. Data for each subordinated debt, number 47. number debt, subordinated each for Data 8.5.5. list see details For Analysis of the fair value value fair the of Analysis rate interest and by maturity Analysis value fair the of Analysis rate interest and by maturity Analysis F inancial lia inancial O b - O (FV ption” linked contracts (branch 23) at fair value through the statement of income. statement the through at fair value 23) (branch contracts linked ilities ilities ilities hel b ilities measure ilities (1) d esignate ) for financial liabilities is mainly used in the following situations: following the in used ismainly liabilities ) financial for d ford tra d at fair - linked contracts). In order to avoid volatility in its equity and results, Dexia Bank has designated the assets and and assets the designated has Bank Dexia results, and equity in its volatility to avoid order In contracts). linked ing d at fair v at fair v alue alue alue through profit or loss or profit through alue - closely related embedded derivative whereby the return is linked to the investment in investment to the linked is return the whereby derivative embedded related closely - listed financial instruments classified under the fair value option, option, value fair the under classified instruments financial listed Annual Report 2008 –

4,299,007 5,091,350 1,902,820 7,052,683 5,091,350 1,961,333 1,961,333 31/12/07 31/12/07 31/12/07 792,343 Dexia Bank Belgium 53,654 4,859 0 0

9,003,296 9,224,831 9,003,296 5,459,437 3,196,823 31/12/08 31/12/08 31/12/08 210,880 221,535 221,535 347,036 3,233 7,422 87 0

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 88 5. 1. 8.5. 3. 2. bonds Non-convertible instruments dilutive Other debts Convertible certificates savings Customer Certificates ofdeposit 1. 8.4. 4. 3. 2. 33. number debt, subordinated each for Data 8.5.5. list see details For shares preference redeemable and capital Hybrid debt subordinated Non-convertible 4. 3. 2. Total Total R 1. (in thousands of EUR) thousands (in of EUR) thousands (in of EUR) thousands (in ef. See note 12.1. note See 12.6. and 12.5. 12.4., notes See See note 12.1. note See 12.6. and 12.5. 12.4., notes See Nil Other debt subordinated Perpetual Data for each subordinated debt subordinated each for Data Analysis by nature by nature Analysis value fair the of Analysis rate interest and by maturity Analysis by nature Analysis Analysis of the fair value value fair the of Analysis rate interest and by maturity Analysis debt subordinated convertible of Analysis Dexia Bank Belgium – Annual Report 2008 S De N u o. b b or t securities d inated EUR EUR EUR Currency BEF

d eb ts A units currency of in thousands mount 18,000 11,401 7,500 7,847

19/03/09 18/01/09 05/01/09 the duration the determining or method for M 24/12/09 date aturity

b) b) a) a) c) c) c) b) a) c) b) a) c) b) a) c) b) a)

C C none conditions specific no not applicable none conditions specific no not applicable none conditions specific no not applicable none conditions specific no not applicable C onditions for convertibility ircumstances for early redemption early for ircumstances onditions for subordination

26,820,484 10,443,814 11,203,779 1,642,221 2,585,617 5,172,891 31/12/07 31/12/07 31/12/07 C of compensations on Eurostoxx 50 Eurostoxx on linked index 50 Eurostoxx on linked index 50 Eurostoxx on linked index 6.00% 943,396 501,847 onditions

0 0

10,695,558 17,349,142 2,722,859 4,943,013 1,728,851 1,710,571

31/12/08 31/12/08 31/12/08 994,008 502,106 0 0 22. 21. 20. 19. 18. 17. 16. 15. 14. 13. 12. 11. 10. 9. R 8. 7. 6. 5. ef. N o. EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR Currency EUR EUR EUR EUR A units currency of in thousands mount 300,666 40,000 98,680 46,496 20,000 35,000 29,889 54,247 15,000 15,000 11,000 51,014 4,989 9,696 1,850 5,070 4,314 196

01/03/22 16/12/19 03/12/19 15/07/19 15/12/15 15/12/14 the duration the determining or method for M 2013 2012 2011 28/02/11 2010 14/04/10 29/03/10 2009 22/12/09 21/12/09 03/07/09 14/05/09 date aturity

b) b) a) a) c) c) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a)

C C none conditions specific no not applicable none conditions specific no not applicable none conditions specific no not applicable none conditions specific no not applicable none conditions specific no not applicable none conditions specific no not applicable none conditions specific no not applicable none conditions specific no not applicable none conditions specific no not applicable none conditions specific no not applicable none conditions specific no not applicable none conditions specific no not applicable none conditions specific no not applicable none conditions specific no not applicable none conditions specific no not applicable none conditions specific no not applicable none conditions specific no not applicable none conditions specific no not applicable C onditions for convertibility ircumstances for early redemption early for ircumstances onditions for subordination

Annual Report 2008 – C of compensations + bp 43 3 months Euribor linked CMS 6 to 20: year 8.875% 1 to 5: year = 7.55 rate 5%: >= 12 months Libor GBP if bp + 20 12 months Libor = GBP rate < 5%: 12 months Libor GBP if 4 to 20: year 8.00% 1 to 3: year CMS linked 500) S&P 50, Eurostoxx (Nikkei, linked basket CMS linked / / / 5.625% Variable CMS linked 6.25% / 6.00% CMS linked Health Eurostoxx on linked index 50 Eurostoxx on linked index onditions Dexia Bank Belgium

89

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 90 (1) 33. 32. 37. 31. 30. 29. 36. 35.

28. 34.

27. 26.

R 25. 24. 23.

ef. Hybrid subordinated debt. Dexia Bank Belgium – Annual Report 2008 (1) N

o. EUR USD EUR EUR EUR USD GBP

EUR FRF

EUR EUR

EUR Currency EUR EUR EUR A units currency of in thousands 1,498,662 mount 150,000 498,061 170,000 44,905 50,000 20,000 20,000 94,430 42,646 15,869 17,500 17,500 8,045 107

undetermined undetermined 15/05/09) date: (call undetermined 5 07/11) 15/ date: (call undetermined undetermined 23/09/09) date: (call 09/02/12) date: (call undetermined 09/02/17 18/11/09) date: (call undetermined 29/12/09) date: (call undetermined the duration the determining or method for M 29/12/11) date: (call undetermined undetermined 2/11/16) date: (call undetermined 01/03/17) date: (call 01/03/47 02/04/17) date: (call 02/04/37 04/04/22 date aturity

b) b) a) a) c) c) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a)

C C none conditions specific no period interest each of end the at then call, the of date the from BFIC, the of agreement the with possible, none conditions specific no period interest each of end the at then call, the of date the from BFIC, the of agreement the with possible, none conditions specific no period interest each of end the at then call, the of date the from BFIC, the of agreement the with possible, none conditions specific no period interest each of end the at then call, the of date the from BFIC, the of agreement the with possible, certificates profit-sharing in possible conditions specific no period interest each of end the at then call, the of date the from BFIC, the of agreement the with possible, none conditions specific no 12of years period each of end the at then call, the of date the from BFIC, the of agreement the with possible, none conditions specific no 12of years period each of end the at then call, the of date the from BFIC, the of agreement the with possible, none conditions specific no call the of time the at BFIC, the of agreement the with possible, none conditions specific no 12of years period each of end the at then call, the of date the from BFIC, the of agreement the with possible, none conditions specific no not applicable none conditions specific no 5 of years period each of end the at then call, the of date the from BFIC, the of agreement the with possible, none conditions specific no 5 of years period each of end the at then call, the of date the from BFIC, the of agreement the with possible, none conditions specific no not applicable C onditions for convertibility ircumstances for early redemption early for ircumstances onditions for subordination

C of compensations USD Libor 3 months + 250 bp 250 + months 3 Libor USD then: date, call till bp + 45 3 months Libor USD bp 250 + months 3 Libor USD then: date, call till bp + 45 3 months Libor USD bp 70 + months 3 GBP Libor then: date, call till 5.875% + 187 bp 6 months Euribor then: 1 to 12: 6.25%, year + 181 bp 3 months Euribor then: date, call till 4.922% + bp 190 3 months Euribor 07/08/16: after bp, + 90 3 months Euribor bp + 250 12 years IRS then: date, call till linked CMS bp + 200 10 years IRS then: date, call till 6.20% bp + 200 12 years IRS then: date, call till linked CMS 7.85% 5.04% 4.86% 6.00% onditions

(1) 47. 46. 45. 44. 43. 42. 41. 40. 39.

R 38. 49. 48.

ef. Subordinated liability measured at fair value through profit and loss, see note 8.3. note see loss, and profit through value at fair measured liability Subordinated (1) N

o. JPY JPY JPY JPY JPY JPY USD USD

Currency USD USD EUR EUR

10,000,000 15,000,000 15,000,000 10,035,068 10,035,068 A units currency of in thousands 5,000,000 mount 100,000 180,000 295,603 99,230 49,633 32,616

27/11/27) date: (call 01/11) / 29 date: (call undetermined undetermined 9/01/11) / 29 date: (call 29/01/29) date: (call undetermined undetermined 11/09/25 11/09/25 21/09/10) date: (call 25/08/10) date: (call undetermined undetermined the duration the determining or method for M 31/01/09) date: (call undetermined 30/09/13) date: (call 30/09/13) date: (call 30/09/18 30/09/18 20/06/13) date: (call 20/06/18 date aturity

b) b) a) a) c) c) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a)

C C none conditions specific no period interest each of end the at then call, the of date the from BFIC, the of agreement the with possible, none conditions specific no period interest each of end the at then call, the of date the from BFIC, the of agreement the with possible, none conditions specific no period interest each of end the at then call, the of date the from BFIC, the of agreement the with possible, none conditions specific no call the of date the at BFIC, the of agreement the with possible, none conditions specific no 5 years every 29/01/31 after period, interest each of end the at then call, the of date the from BFIC, the of agreement the with possible, none conditions specific no 5 years every of each interest period, after 29/01/31 29/01/31 after period, interest each of end the at then call, the of date the from BFIC, the of agreement the with possible, none conditions specific no period interest each of end the at then call, the of date the from BFIC, the of agreement the with possible, none conditions specific no not applicable none conditions specific no not applicable none conditions specific no period interest each of end the at then call, the of date the from BFIC, the of agreement the with possible, none conditions specific no period interest each of end the at then call, the of date the from BFIC, the of agreement the with possible, none conditions specific no period interest each of end the at then call, the of date the from BFIC, the of agreement the with possible, C onditions for convertibility ircumstances for early redemption early for ircumstances onditions for subordination

Annual Report 2008 –

C of compensations bp + 350 3 months Euribor then: date, call till bp + 300 3 months Euribor bp + 350 3 months Euribor then: date, call till bp + 300 3 months Euribor + 150 bp 12 months Euribor then: date, call till 5.25% 5 years every changed be may bp + 250 swap JPY 5 years then: 5.00% 1 to 30: year 210+ bp 6 months Libor JPY then: date, call till 3.65% 210+ bp 6 months Libor JPY then: date, call till 3.65% + bp 190 6 months Libor JPY then: date, call till USD) (in 4.50% 6.10% 11/9/04: after 6.37% 6.10% 11/9/04: after 6.37% + 175 bp 3 months Libor USD then: date, call + till 75 bp 3 months Libor USD + 175 bp 3 months Libor USD then: date, call + till 75 bp 3 months Libor USD bp 250 + 3 months Libor USD then: date, call till bp + 45 3 months Libor USD onditions Dexia Bank Belgium

91

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 92 (2) (1) 3. (non-insurance) provisions Other contracts Onerous commitments credit sheet off-balance for Provision benefits employee long-term Other Other post-retirement obligations plans benefit defined Long-term Restructuring claims Litigation 1. 8.6. Other movements (out) Transfers consolidation of scope in Changes 2. Other movements Transfers (out) consolidation of scope in Changes (in) consolidation of scope in Changes year the during Utilized Unused amounts reversed provisions Additional difference Exchange (in) in of scope Changes consolidation year the during Utilized Unused amounts reversed provisions Additional difference Exchange Total A (in thousands of EUR) thousands (in A A A (in thousands of EUR) thousands (in (in thousands of EUR) thousands (in

s of Dec. 31, 2007 Dec. s of s of Jan. 1, 2008 Jan. s of 1, 2007 Jan. s of s of Dec. 31, 2008 Dec. s of See note 12.6. note See Claims with major risks are analyzed in detail in the Management report, chapter Litigations. chapter report, Management the in detail in analyzed are risks major with Claims claims. other and administrative for taxes, to staff, to relating provisions include litigations, for Provisions Analysis by maturity Analysis by nature Analysis Analysis of movements of Analysis Dexia Bank Belgium – Annual Report 2008 Pro ( 2 ) v isions an (1) d other o b ligations

L L itigation itigation (107,649) 235,254 130,666 130,666 131,514 (49,295) (67,258) (16,056) 63,849 50,458 15,300 claims claims (1,398) 5,305 3,083 (90) 11 0 0 0 0 Restructuring Restructuring 116,233 116,233 142,164 104,130 (30,202) (28,221) 19,312 (2,749) (1,213) 5,042 (41) 38 0 0 0 0 0 0 0 0 employee and other employee and other Pensions Pensions benefits benefits 550,904 499,616 519,032 519,032 (54,879) (53,452) (19,683) 96,838 (4,362) 91,106 (2,771) (1,510) (38) 32 0 7 0 0 0 0

commitments commitments Provision for Provision for sheet credit credit sheet sheet credit credit sheet off-balance off-balance off-balance (11,916) 20,838 16,816 15,378 (6,367) (1,451) 1,527 1,527 423 (65) (24) 0 0 0 0 0 0 0 0 0

contracts contracts 31/12/07 O O 108,263 130,666 901,613 116,233 451,775 nerous nerous 25,892 25,892 35,054 53,329 25,892 22,097 25,891 45,160 (6,032) (7,617) 1,527 6,125 (92) 0 0 0 0 0 0 0 0 0 0 0 provisions provisions 31/12/08 488,650 108,263 108,263 912,751 104,130 (63,847) 131,514 (11,493) 55,801 53,329 15,898 55,801 98,515 35,709 16,816 46,613 19,164 (5,332) (7,336) (9,136) O O (443) ther ther 0 0 0 0 0 0 0 0 4. Provisions for pensions and other long-term benefits

A. Change in benefit obligation

(in thousands of EUR) 31/12/07 31/12/08

Benefit obligation at beginning of year 1,644,800 1,453,658 Current service cost 64,794 60,910 Interest cost 71,623 77,883 Plan participants’ contributions 2,466 3,247 Amendments 6,238 0 Actuarial (gains)/losses (248,350) (80,319) Benefits paid (76,786) (90,505) Expenses paid (21) (33) Taxes paid 0 0 Premiums paid (2,402) (2,407) Acquisitions/divestitures(1) 897 16,095 Plan curtailments (3,624) 0 Plan settlements (4,094) 0 Exchange rate changes (1,883) (6,075)

Benefit obligation as of end of year 1,453,658 1,432,454

B. Change in plan assets

(in thousands of EUR) 31/12/07 31/12/08

Fair value of plan assets at beginning of year 1,104,603 1,091,013 report management Expected return on plan assets 50,113 62,694 Actuarial gains/(losses) on plan assets (24,412) (108,583) Employer contributions 42,946 46,120

Member contributions 2,466 2,466 d Benefits paid (76,786) (90,505) ate

Expenses paid (21) (33) d Taxes paid 0 0 Premiums paid (2,402) (2,407) Plan settlements (3,596) 0

Acquisitions/divestitures 0 12,673 consoli Exchange rate changes (1,898) (5,937)

statements financial Fair value of plan assets as of end of year 1,091,013 1,007,501

d C. Amounts recognized in the balance sheet ate d (in thousands of EUR) 31/12/07 31/12/08

Present value of funded obligations 1,062,931 1,020,079 Fair value of plan assets 1,091,013 1,007,501 Deficit/(surplus) for funded plans (28,082) 12,578 Present value of unfunded obligations 390,727 411,640 non-consoli financial statements financial Unrecognized net actuarial gains/(losses) 143,735 111,523 Unrecognized past service (cost)/benefit 0 0 Effect of paragraph 58b. limit 4,346 6,873

Net liability/(asset) 510,726 542,614

Amounts in the balance sheet

Liabilities 519,032 551,160 Assets (8,306) (8,546)

Net liability/(asset) 510,726 542,614

(1) There has been a transfer of assets and liabilities for the same amount. It involves the allocation of insurance contracts which a pension fund concluded to pay annuities to pensioners. In the past, these insurance contracts used to be processed as follows: at the time of the conclusion of the insurance contract, the single premium was stated as a payment, along with a reduction of the liabilities. This is not fully compliant with the IAS 19 principles, because this insurance contract was not taken out in favor of the pensioner, but in favor of the trustee. Consequently, there remains a liability on behalf of Dexia Bank.

Annual Report 2008 – Dexia Bank Belgium 93 non-consolidated consolidated management report financial statements financial statements Actual return on reimbursement assets reimbursement on return Actual assets plan on return Actual Settlement (gain)/loss recognized (gain)/loss Settlement recognized (gain)/loss Curtailment limit 58b. paragraph of Effect §58a. incl. (gain)/loss net of Amortization §58a. incl. cost service past of Amortization assets reimbursement on return Expected assets plan on return Expected Interest cost cost service Current 94 Plan contributionsparticipants – defined contributionplans Belgium – (gain)/loss adjustment rate Exchange combinations/divestitures) business any of effect the (including in/(out) transfer Net Credit to reimbursements year financial the in bycompany directly paid Benefits year financial the in made contributions Employer year financial the in SORIE in recognized Amounts year financial the in income of statement the in recognized expense Pension liability/(asset) sheet Balance E. D. (1) liabilities plan on losses and (-) Total gains assets plan on return expected and actual the between Difference G. Other estate Real securities Debt Equity securities F. A T Balance sheet lia sheet Balance (in thousands of EUR) thousands (in A of EUR) thousands (in (in thousands of EUR) thousands (in A

otal pension cost recogni cost otal pension ctual return on assets on return ctual mounts recogni mounts sset category Percentage of present value of plan liabilities plan of value present of Percentage Amount assets plan of Percentage Amount Includes qualifying Includes insurancequalifying policies. B C H P Dexia Bank Belgium – Annual Report 2008 lan omponents alance istory (1) assets of sheet experience of reconciliation b z pension e ilit in statement of income of statement d in (asset) as of en of as y (asset) gains cost z e in the statement of income of statement the d in and losses of d of y ear

P ercentage of plan assets plan of ercentage 31/12/07 31/12/07 31/12/07 31/12/07 -16.00% (80,000) 510,726 73.98% 467,721 (22,042) 41.00% (30,875) 25.61% -2.00% (12,071) (50,113) 64,794 85,022 85,022 71,623 0.00% 25,701 (3,753) (3,091) 4,346 2,066 (850) 897 32 0 0 0 0 0

31/12/08 31/12/08 31/12/08 31/12/08 (108,583) -10.78% 542,614 (45,889) 510,725 (62,694) (35,487) (80,319) 87.59% 11.26% (10,633) -5.61% 72,278 72,278 77,883 60,910 (6,348) 0.00% 1.15% 4,590 2,527 360 781 0 0 0 0 0 0 0 • • (2) (1) EUR and 5,310,000 EUR 7,237,000. respectively are plans contribution defined for expense an as recognized amounts the 2008, and 2007 For amounts. in the included not are pensions to legal Contributions 5. • amounts: 2008 on consequences following to the lead would rate of 25 of interest bp increase/decrease An S 31, of Dec. as 884,771 to EUR 2008. amounts assets plan of the fair value The by Ethias. issued policies insurance are assets plan Bank’s Dexia of the Some J. I. H. United United Kingdom Europe United Kingdom Europe Long-term obligations Outstanding asset reported in the financial statements financial the in reported asset Outstanding The expected return on assets is based on the mix of return of bonds and shares of the portfolio. of the shares and of bonds of return mix the on is based assets on return expected The premium. a risk into account takes shares on Return assets. in a plan bonds on to return is equal rate discount principle, a general As Comment on assumptions:

T T T T T of EUR) thousands (in 31/12/08 31/12/07 ensibility to changes of interest rates interest of changes to ensibility

of actuarial gains. Without this last element, the decrease/increase of net pension cost would be 2.88/3.03%. be would cost pension of net decrease/increase the element, last this Without gains. of actuarial by 2009 in decrease/increase would cost pension net total The by 4.70/4.70%. increase/decrease would assets by 1.57/1.62% cost and interest by would increase/decrease the 2.66/2.97%, return on cost for The plan service the year would 2009 decrease/increase difference. the absorb would losses and gains actuarial the as unchanged The Benefit Benefit The

otal assets relating to insignificant plans insignificant to relating otal assets otal outstan otal assets anal otal assets otal lia otal lia Outstanding liability relating to other long-term employee benefits employee long-term to other relating liability Outstanding obligations post-retirement other to relating liability Outstanding plans benefit defined to relating liability Outstanding See note 7.12.1. note See 8.6.1. note See C R R Defined contribution plan contribution Defined oncentration econciliation ange

of b b O ilti ilit bligation as of end of the year 2008 would decrease/increase by 2.30/2.45% but the amount reported in “provision” would remain remain would “provision” in reported amount the but 2.30/2.45% by decrease/increase would 2008 year the of end of as bligation assumptions relating to insignificant plans insignificant to y relating y calculate d ing lia ing

with yz risk e d b

by actuarials financial ilit d to y reporte by actuarials

determine - 5.50% 4.42% 5.00% - 5.75% 5.00% Discount rateDiscount rateDiscount

statements 6.40% 5.80% in the financial statements financial the d in pension (2) I I expense nflation nflation - 4.98/3.60% as this additional increase of 25 bp would result in a higher amortization amortization higher a in result would 25bp of increase additional this as 4.98/3.60% 3.30% 3.20% 2.50% 2.25% E E xpected return xpected return xpected - 5.80% 3.80% - 5.60% 5.00% on assets on assets on (1) 6.78% 7.69% E E xpected return xpected return xpected - 6.00% 5.00% - 5.50% 3.50% Annual Report 2008 – on bonds on bonds 6.40% 5.80% E E xpected return xpected return xpected

- 9.00% 8.00% - 8.50% 6.50% on shares on shares on 31/12/07 519,032 519,032 451,775 8.80% 9.40% Dexia Bank Belgium 22,097 45,160 8,306 8,306 0 0 S S 2.50% - 5.50% 2.50% 2.50% - 5.50% 2.50% alary alary alary 31/12/08 I I 488,650 ncrease ncrease ncrease 551,160 551,161 15,898 46,613 4.80% 4.70% 8,546 8,546 rate rate 95 0 1

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 96 liabilities insurance Other transactions reinsurance from resulting Debts transactions insurance direct from resulting Debts assignees from deposits for Debts 2. liabilities Other Long-term construction contracts taxes Operational Shareholder dividends payable (payable) charges social and Salaries Other granted amounts received payable accounts Other Subsidies Deferred income costs Accrued 1. activities insurance to specific liabilities Other companies) to insurance relating (except liabilities Other 8.8. 9.2.) note (see liabilities tax Deferred tax income Current Analysis by nature 8.7. (2) (1) Nil 8.9. Total Total Total Total (in thousands of EUR) thousands (in of EUR) thousands (in of EUR) thousands (in of EUR) thousands (in

Figures as at Dec. 31, 2007 have been restated. They now include operational taxes. operational include now They liabilities”. restated. “Other to 31, been at have Dec. as 2007 liabilities” “Tax Figures from transferred is taxes operational representing thousand 56,960 of EUR amount An restated. been 31/12/07 have as Figures Liabilities specific to insurance activities insurance to specific Liabilities liabilities Other Dexia Bank Belgium – Annual Report 2008

T L O ax ax lia ia ther b lia b ilities inclu ilities b ilities ilities (1) d e d in d in isposal groups hel groups isposal (2) d for sale for

2,968,845 2,798,888 2,798,888 2,333,468 31/12/07 31/12/07 31/12/07 31/12/07 169,957 169,957 174,949 185,412 111,475 56,960 73,943 34,872 30,297 36,339 37,604 23,610 17,540 261 0 0 1 0 1,920,640 1,758,002 1,758,002 1,246,971 31/12/08 31/12/08 31/12/08 31/12/08 162,638 172,804 162,638 232,100 110,811 59,445 24,833 32,362 19,465 21,454 71,653 44,198 27,455 285 110 0 0 0 Commodity derivativesCommodity Credit derivatives Equity derivatives Commodity derivativesCommodity Credit derivatives Equity derivatives derivatives Interest-rate derivatives exchange Foreign 3. derivatives Interest-rate derivatives exchange Foreign 2. entities foreign in investment a of net hedge as designated Derivatives hedge portfolio of Derivatives hedges flow cash as designated Derivatives hedges value fair as designated Derivatives trading for held Derivatives nature by 1. Analysis 9.1. IX Total (in thousands of EUR) thousands (in of EUR) thousands (in (in thousands of EUR) thousands (in Total Total

. swaps default credit which Of equity other which Of options equity which Of futures equity which Of forwards equity which Of rate interest other which Of futures interest which Of forwards which Of agreements Detail of derivatives designated as fair value hedges value fair as designated derivatives of Detail Of which other equity other which Of options equity which Of swaps interest-rate which Of swaps currency cross which Of rate forward which Of swaps interest-rate which Of collar/swaption Of which option/cap/floor/ option fx which Of forward fx which Of Of which cross currency swaps currency cross which Of Detail of derivatives held for trading trading for held derivatives of Detail

O Deriv ther notes on the consoli the on notes ther ativ es

895,278,440

756,986,091 809,470,303 15,376,085 30,443,925 44,874,297 30,443,925 36,681,999 30,516,897 10,474,330 T T 11,975,894 11,975,894 12,693,819 12,977,662 2,276,837 2,276,837 3,076,941 o receive o receive 6,223,149 1,379,738 4,199,601 1,123,354 1,123,354 N N otional amount otional amount otional 15,585 51,580 31,453 0 0 0 0 0

884,161,039 808,065,303 756,937,447 d 16,678,757 45,208,907 20,633,693 20,633,693 10,237,486 12,070,849 13,053,577 12,070,849 30,775,745 12,515,362 38,471,167 T T 2,236,622 4,539,636 2,236,622 ate 1,379,585 2,371,286 1,123,354 1,247,932 o deliver o deliver 5,575,111 122,739 137,032 15,650 4,295 d 31/12/07 31/12/07 b 0 0 0 0

alance sheet alance 13,522,537 11,246,702 11,114,953 1,308,714 897,531 434,295 289,544 544,014 544,014 409,785 874,387 102,339 132,375 101,245 132,375 607,411 607,411 157,745 157,745 A A 18,996 13,322 27,439 1,971 ssets ssets ssets 32 0 0 0 0 0 0

12,513,079 10,377,091 10,511,326 L L 1,471,612 iabilities iabilities 14,943,021 13,522,537 926,247 144,440 639,384 639,384 106,992 352,662 142,423 142,423 696,166 164,212 164,212 775,143 122,100 211,359 26,558 62,224 19,203 13,267 82,216 395,060 897,531 127,893 A 540 303 145 ssets ssets 31/12/07 0 0 0 0

815,845,393 0 671,016,963 743,351,910 14,751,992 42,840,202 32,909,594 12,778,431 14,981,097 T T 56,507,276 12,778,431 11,945,130 17,708,151 17,708,151 8,969,902 4,367,040 o receive o receive 7,540,749 1,310,356 1,310,356 N N 663,205 960,706 663,205 833,341 otional amount otional amount otional 15,225 22,116 Annual Report 2008 – 4,644 8,589 14,306,907 12,513,079 L iabilities 926,247 122,477 745,104 0 0 0 0

813,073,752 671,063,803 743,701,341 15,610,382 56,396,518 32,922,662 12,880,719 15,529,707 12,880,719 43,163,242 16,213,726 16,213,726 T T 4,934,082 5,020,984 9,995,443 9,280,100 o deliver o deliver 1,541,911 1,187,752 1,187,752 0 960,480 663,205 628,524 878,706 80,882 30,256 10,121 1,907 31/12/08 31/12/08 33,839,959 0 0 0 32,763,492

591,542 427,873 32,763,492 26,049,831 Dexia Bank Belgium 26,421,362 A 57,052 2,386,362 1,424,906 2,797,398 1,312,788 2,119,826 2,119,826 ssets ssets 31/12/08 389,019 177,660 187,870 A A 80,886 57,052 38,582 38,582 20,739 31,232 15,103 15,103 3,367 3,367 4,975 1,278 ssets ssets ssets 0 495 531 0 0 0 0

36,301,702 31,397,704 31,397,704 25,859,538 25,487,718 1,293,360 L L L 1,293,360 2,866,290 1,349,484 1,349,484 2,376,871 3,147,053 1,322,392 1,210,560 1,084,126 1,084,126 iabilities iabilities iabilities 463,585 225,454 473,617 112,031 112,031 141,185 30,859 25,865 80,973 14,504 71,338 97,203 4,830 1,298 351 97 0 0 0 0 0

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 98 2. which: Of assets/(liabilities) tax income deferred Net 1. 9.2. derivatives Interest-rate derivatives exchange Foreign derivativesCommodity Credit derivatives Equity derivatives derivatives Interest-rate derivatives exchange Foreign 5. 4. year the of Movements 6. (in thousands of EUR) thousands (in of EUR) thousands (in Total Total A of EUR) thousands (in of EUR) thousands (in A

s of Jan. 1 Jan. s of s of Dec. 31 Dec. s of Detail of derivatives of portfolio hedge portfolio of derivatives of Detail hedges flow cash as designated derivatives of Detail Unrecognized deferred income tax assets tax income deferred Unrecognized assets tax income Deferred liabilities tax income Deferred swaps interest-rate which Of Other movements differences Exchange consolidation of scope in Changes rates tax in change of Effect rates tax in change of Effect equity by computed directly Items charge/credit income of Statement Of which cross currency swaps currency cross which Of Movements Analysis Nil entities foreign in investment a net of hedge as designated derivatives of Detail Dexia Bank Belgium – Annual Report 2008 d Deferre taxes – –

equity income of statement 51,999,062 60,878,109 60,825,109 60,825,109 51,999,062 T T o receive o receive N N otional amount otional otional amount otional 53,000 53,000 0 0 0 0

60,868,790 51,999,062 60,825,109 60,825,109 51,999,062 T T o deliver o deliver 43,681 43,681 31/12/07 31/12/07 0 0 0 0

395,060 127,893 395,060 118,764 118,764 A A ssets ssets ssets ssets 9,129 9,129 0 0 0 0

L L iabilities iabilities 122,477 745,104 745,104 32,340 32,340 90,137 90,137 0 0 0 0

55,794,662 55,794,662 55,794,662 59,121,181 T T 59,121,181 o receive o receive N N otional amount otional otional amount otional 0 0 0 0 0 0

55,794,662 55,794,662 55,794,662 59,121,181 T T 59,121,181 o deliver o deliver

31/12/08 31/12/08 0 0 0 0 0 0

31/12/07 250,889 385,514 461,626 385,514 (38,508) (37,604) 92,472 42,333 2007 (144) (169) 591,542 427,873 591,542 416,614 416,614 133 A A 11,259 11,259 ssets ssets ssets ssets 0 0

0 0 0 0

L L 1,019,984 1,104,288 1,019,984 3,147,053 31/12/08 3,147,053 iabilities iabilities 463,585 385,514 573,217 (56,849) 438,574 438,574 (27,455) 61,439 25,011 25,011 2008 (280) (555) 256 412 (19) 0 0 0 0 Other Other shares treasury and associates of reserves interest, Minority status tax special with Entities provisions free tax Legal forward carried Tax credit forward carried Tax losses companies insurance to specific Liabilities Pensions Provisions securities debt of issuance and deposits Borrowings, Derivatives Securities B. Other forward carried Tax credit forward carried Tax losses companies insurance to specific assets Other assets fixed intangible and Tangible in associates Investment Derivatives Securities provisions loss loan and loans Cash, A. N 3. Tax losses carried forward carried Tax losses Temporary difference Total Total Total (in thousands of EUR) thousands (in of EUR) thousands (in (in thousands of EUR) thousands (in ature D D Expiry date of unrecognized deferred tax assets tax deferred unrecognized of date Expiry eferred eferred tax tax coming coming from from liabilities assets of the of the balance

balance L ess than ess 1 year sheet sheet 0 0 0

1 to 1 5 to years 0 0 0 O Annual Report 2008 – ver 5 years 5 years ver 0 0 0

U ndetermined 31/12/07 31/12/07 maturity (162,357) 228,936 222,832 195,086 132,237 (56,849) (23,894) (32,955) (79,148) Dexia Bank Belgium 74,809 61,644 67,409 15,907 (8,877) 81,714 11,735 4,843 1,270 0 0 4 0 0 0 0 0

31/12/08 31/12/08 (464,337) (135,124) 600,055 529,392 216,607 476,779 551,807 (56,849) (23,894) 110,939 (32,955) (19,869) 52,906 60,552 81,380 97,535 (6,227) 1,268 T otal 99 0 0 4 0 0 0 0 0

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 100 (1) expenses claim in reinsurers of Share Transferred claims reserves 31 Dec. at as reserve Claims scope of variation to due opening in Variation 1 Jan. at as reserve Claims paid claims Gross C Breakdown business of direct reserves premium less premiums, earned Gross L (UPR) reserves premium unearned of change in reinsurer of Share (UPR) reserves premium unearned gross in Change toceded Premiums reinsurers Gross premiums written Premium income a 1. 9.3. ife premiums ife (in thousands of EUR) thousands (in after reinsurance N (in thousands of EUR) thousands (in of EUR) thousands (in N laims expenses .

et premium et et claims incurre claims et Group contracts contracts Individual reinsurance Accepted business Direct Discretionary Participation Features. INCOME AND EXPENSES AND INCOME contracts Life Insurance contracts Dexia Bank Belgium – Annual Report 2008 d

(268,260) (125,236) (136,931) 470,893 474,580 (18,446) 12,324 (3,670) R R etail etail I I contracts contracts nsurance nsurance (17) 29 0 0

Wholesale Wholesale (112,166) (132,862) 323,525

261,332 (62,146) 20,090 13,908 (8,506) (4,796) 31/12/07 (47) 2007 0 0

I I nvestment contracts contracts nvestment nvestment contracts contracts nvestment 3,049,543 3,049,173 (345,675) (454,548) 135,632 (34,533) R R 7,752 with D with with D with etail etail (370) 22 0 0 0

PF PF Wholesale Wholesale (1) (1) (96,955) (97,118) 88,257 87,403 (854) (623) 460 0 0 0 0 0

(186,881) (172,545) 402,937 397,996 (34,997) 18,446 (4,924) (1,208) R R 3,423 etail etail I I contracts contracts nsurance nsurance (17) 0 0

Wholesale Wholesale (102,543) (112,991) 259,063 318,465

(59,387)

16,595 (9,887) 4,796 (914) (142) 31/12/08 (15) 2008 0 3,765,325 3,524,123 31/12/07

241,202 170,533 (1,214,859) I I (1,226,615) nvestment contracts contracts nvestment nvestment contracts contracts nvestment 2,752,687 2,752,981 (22,671) 34,533 R R with D with with D with etail etail (294) (471)

365 0 0 0

PF PF Wholesale Wholesale 3,338,778 3,155,919 31/12/08 (1) (1) 182,859 188,914 (18,946) (19,185) 52,419 53,341 (905) (354) (434) 404 623 (17) 0 0 (1) Nil L reserve profit-sharing transferred in reinsurers of Share share profit paid in reinsurers of Share 31 Dec. at as reserve profit-sharing in reinsurers of Share 1 Jan. at as reserve profit-sharing in reinsurers of Share Transferred profit-sharing reserve share profit Paid 31 Dec. at as reserve Profit-sharing scope of variation to due opening in Variation 1 Jan. at as reserve Profit-sharing reserve in Change profit-sharing reserve insurance life transferred in reinsurers of Share 31 Dec. at as reserve insurance life in reinsurers of Share scope of variation to due opening in Variation 1 Jan. at as reserve insurance life in reinsurers of Share reserve insurance life Transferred 31 Dec. at as reserve insurance Life scope of variation to due opening in Variation 1 Jan. at as reserve insurance Life reserve insurance in life Change C osses resulting from L from resulting osses reser N reser N (in thousands of EUR) thousands (in of EUR) thousands (in hanges in technical reserves

et change in profit-sharing profit-sharing in change et insurance life in change et Discretionary Participation Features. v v e e iability A iability

dequacy T dequacy

(1,628,088) (3,965,357) 2,367,363 (10,391) (32,125) 12,053 (8,999) (4,455) R R 4,772 etail etail I I (228) contracts contracts nsurance nsurance 369 est ( est 0 0 0 0 0 0 0 0

Wholesale Wholesale LAT (918,709) (147,240) 743,962

(12,651) ) 27,244 (3,965) (5,393) 8,392 6,527 (871) (201) 284 211 2007 2007 0 0 0 0 0 0

(9,450,260) (1,445,224) I I nvestment contracts contracts nvestment contracts nvestment 8,005,782 (42,557) (90,614) 48,057 R R with D with D with etail etail (746) 0 0 0 0 0 0 0 0 0 0 0 0

PF PF Wholesale Wholesale (1) (1) (306,562) 228,486 (78,076) (1,558) (1,872) 314 0 0 0 0 0 0 0 0 0 0 0 0 0

(2,743,415) 3,965,357 Annual Report 2008 – (227,352) 938,955 (58,468) (12,053) (11,605) 12,567 (2,678) R R 8,999 2,421 etail etail I I contracts contracts (102) nsurance nsurance (81) 0 0 0 9 0 0

Wholesale Wholesale (820,963) (100,999) (169,130)

918,709 (29,917) 12,651 (6,436) (6,527) 3,042 3,787 6,116 (284) (158) 368 (25) 2008 2008 0 0 0 0

Dexia Bank Belgium (12,059,339) I I (2,697,680) nvestment contracts contracts nvestment contracts nvestment 9,450,260 (88,723) 81,378 90,614 (9,082) R R with D with D with etail etail (154) 122 0 0 0 0 0 0 0 0 0 0

PF PF Wholesale Wholesale (1) (1) (269,420) 306,562 (66,542) (29,402) (1,251) 1,872 562 (59) 101 (2) 0 0 0 0 0 0 0 0 0 0

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements Other technical reserves reserves technical Other (UPR) reserves premium unearned Gross Claims reserves 102 (1) equity in included feature participation Net discretionary reserves technical other in reinsurers of Share claims reserves in reinsurers of Share reserve insurance life in reinsurers of Share S 39 IAS of to results due Reserves adjustments accounting to shadow due Reserves Test) Adequacy (Liability LAT of to results due Reserves GAAP local reserve insurance Life G B. Discretionary participation feature included in equity in included feature participation Discretionary to two products. Their amounts are not significant. not are amounts Their products. to two arelimited loss and profit through fair and valued to separated be need that derivatives have that embedded DPF with contracts or investment Insurance T T T (in thousands of EUR) thousands (in of EUR) thousands (in (in thousands of EUR) thousands (in hare of reinsurers of hare ross reserves ross

otal gross reser otal gross otal share of reinsurers reinsurers of otal share reser insurance otal life Discretionary Participation Features. ASSETS AND LIABILITIES AND ASSETS Dexia Bank Belgium – Annual Report 2008

v es v e

3,734,830 3,738,005 3,760,985 11,479 17,237 R R (3,175) 9,632 8,918 1,785 etail etail I I contracts contracts nsurance nsurance 62 101,656 0 0 0 R

etail Wholesale Wholesale C ontracts with D

768,256 749,580 751,834

12,493 3,882 3,228 2,254 2,740 31/12/07 31/12/07 31/12/07 284 204 47 Wholesale 0 0

13,369 I I nvestment contracts contracts nvestment nvestment contracts contracts nvestment 9,331,591 9,361,537 9,456,114 (29,946) 34,062 90,461 R R PF with D with with D with etail etail

(1) 0 0 0 0 0 0 0

PF PF Wholesale Wholesale (1) (1) 240,280 240,020 238,198 115,025 (1,822) T 1,813 otal 269 0 0 0 0 0 0 0

2,790,017 2,743,415 2,743,415 14,439 34,997 12,567 11,605 R R 1,818 etail etail I I contracts contracts nsurance nsurance 54 0 0 0 0 R

etail Wholesale Wholesale 0 C

ontracts with D 822,437 838,822 820,963

3,609 9,887 6,437 3,041 1,474 31/12/08 31/12/08 31/12/08 200 368 61 Wholesale 0 0

12,059,339 12,091,093 12,059,339 I I nvestment contracts contracts nvestment contracts nvestment 22,672 0 R R PF 9,082

with D with D with etail etail (1) 0 0 0 0 0 0 0 0

PF PF Wholesale Wholesale (1) (1) 269,420 269,420 271,122 T 1,251 otal 434 0 17 0 0 0 0 0 0 0 Variation of scope of consolidation of scope of Variation changes Other interest technical of Attribution life on and death on Results Claims paid Test) Adequacy (Liability LAT of to results due reserves Additional adjustments to shadow due reserves Additional receivable premiums / received payments Net Share of reinsurers reinsurers of Share Transferred claims reserves 31 Dec. at as reserve Claims 1 Jan. at as reserve Claims paid claims Gross C toceded Premiums reinsurer Gross premiums written Premium income A. 2. reserve the of Classification rate interest Guaranteed C R Share of reinsurers in change of Unearned Premium Reserve (UPR) Reserve Premium Unearned of change in reinsurers of Share (UPR) Reserves Premium Unearned gross in Change as at Dec. 31 atas Dec. T L 1 atas Jan. (in thousands of EUR) thousands (in of EUR) thousands (in N N of EUR) thousands (in C L econciliation of changes in life insurance reserve insurance life in changes of econciliation laims expenses rate interest guaranteed 26by and 21 branch insurance life for reserve the of lassification ife insurance reser insurance ife ife insurance reser insurance ife otal net earne otal net hange in net unearne net in hange et claims incurre claims et ( reinsurance after premiums et INCOME AND EXPENSES AND INCOME contracts Nonlife

4.75% 9% premiums ( d premiums

d

v v

4.50% e e premium reser d premium 4%

3.75% A )+(B) 12%

G A ross amount ) 11,377,955 14,056,454 3.50% C 3,566,079 ontracts (692,075) (550,516) (62,286) 6% 414,183 (79,426) 82,540 v e ( UPR 3.30% 0

7% ) (B) R einsurance einsurance 2007 3.25% amount 13% (15,790) 16,531 12,372 21,602 (6,469) (2,269) (3,753) 2,520 0 0 3.00%

7% N 11,361,424 14,044,082 et amount 3,544,477 2.80% (544,047) (676,285) (62,286) 411,663 (77,157) 86,293 2% 0 2.75%

10% G Annual Report 2008 – ross amount 14,056,454 15,894,611 (1,462,068) C 3,291,930 ontracts (531,898) 2.50% (131,092) 637,123 34,162 1% 0 0

2.25%

2% R einsurance einsurance 2008 31/12/07 31/12/07 (597,838) (221,519) (198,419) 568,388 Dexia Bank Belgium amount 376,881 349,106 345,192 (27,775) 2.00% (17,583) 12,372 (4,054) 15,608 (3,914) 19,665 (3,254) 6,350 4,014 1% 140 394 0 0 0 0

23% N 0% 14,044,082 et amount 15,879,003 (1,444,485) 3,272,265 31/12/08 31/12/08 (233,738) (627,553) (217,935) (532,292) (127,838) 408,750 370,878 597,838 377,797 (30,953) 633,109 (6,984) 13,912 (6,919) 34,162 other 3% 103 65 0 0 0

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements Unearned Premium Reserve (UPR) Reserve Premium Unearned reserves technical Other 104 UPR in reinsurers of Share reserves technical other in reinsurers of Share IBNR in reinsurers of Share ULAE reserves in reinsurers of Share reserves claims in reinsurers of Share S (IBNR) Reported Not But Incurred claims for Reserves LAT) (nonlife reserves deficiency Premium (ULAE) Expenses Adjustment Loss Unallocated Reserves Claims reserves G B. business Direct reinsurance Accepted N reserves insurance nonlife other transferred in reinsurers of Share 31 Dec. at as reserves insurance nonlife other in reinsurers of Share 1 Jan. at as reserves insurance nonlife other in reinsurers of Share reserves insurance nonlife other Transferred 31 Dec. at as reserves insurance nonlife Other 1 Jan. at as reserves insurance nonlife Other C Nil L osses resulting from from resulting osses T T S of EUR) thousands (in T of EUR) thousands (in T of EUR) thousands (in N of EUR) thousands (in hare of reinsurers of hare hange in other nonlife insurance reserves insurance nonlife other in hange ross reserves ross onlife insurance by product group by product insurance onlife otal gross reser otal gross otal share of reinsurers of otal share reser otal claims 31, 2008 atotal as Dec. hare of reinsurers in total claims reser total claims in reinsurers of hare et changes in insurance lia insurance in changes et Accidents at work at Accidents Health distribution Nonlife Credit and suretyship branches / other Cars liability party / third Cars / accidents risks All Fire and other damage to property to damage other and Fire ASSETS AND LIABILITIES AND ASSETS Dexia Bank Belgium – Annual Report 2008 v L v iability iability es es A dequacy dequacy b ilities

premiums T est ( est 398,920 401,766 116,467 134,016 earned earned 54,003 59,238 18,582 15,566 G 2,846 1,048 ross ross LAT 0 v ) e (246,625) (245,971) incurred (62,879) (33,606) (26,887) (15,556) (92,163) (14,176) C laims (654) (704) 0 reinsurance T echnical echnical (14,815) (11,366) (14,727) (3,419) result 1,850 (680) (279) (777) (88) (56) 0 (140,489) (140,353) (46,342) (25,722) (39,557) (18,276) (4,686) (2,486) (3,279) C (136) osts (5) N on capital on et income income et 24,277 25,191 11,746 3,086 4,902 2,473 1,120 845

914 48 57 31/12/07 31/12/07 31/12/07 703,308 529,683 597,838 (18,692) 18,343 29,222 62,631 65,537 86,777 38,933 62,631 18,693 2,057 (241) 12,656 (741) 11,705 12,611 849 849 (3,192) O (1,176) 4,774 (946) (159) ther (175) 0 0 0 0 0 951 (32)

T 31/12/08 31/12/08 31/12/08 otal otal 740,345 627,553 561,107 (19,031) 68,077 18,692 33,851 37,684 31,233 20,108 35,213 19,031 65,137 93,761 (3,668) 65,137 10,173 (1,748) 3,833 2,122 1,511 7,166 (849) (370) (316) P 625 818 818 & 0 0 0 0 0 L Liabilities on claims current year current claims on Liabilities years previous on charges claim in Change years previous on paid Claims 2008 2007 2006 2005 2004 figures) (gross costs total triangle Runoff C R C (in thousands of EUR) thousands (in (in thousands of EUR) thousands (in L C econciliation of changes in claims reserves claims in changes of econciliation laims development laims iquidation year iquidation laims reser laims laims reser laims v v es as at Dec. 31 at as es Dec. es as at Jan. 1 at as es Jan.

G ross amount Previous 568,388 265,685 315,668 221,503 187,434 399,171 597,838 155,057 (38,479) (87,128)

R einsurance einsurance 2007 amount 226,614 117,739 68,463 56,355 65,632 47,640 62,630 (2,073) (3,597) 2004 2,668

N et amount 502,756 240,024 129,240 535,208 O 152,389 (34,882) (85,055) 60,287 74,701 ccurrence year ccurrence 2005

G Annual Report 2008 – ross amount (111,465) 597,838 237,067 132,559 170,294 627,553 (29,114) 76,732 2006

R einsurance einsurance 2008 Dexia Bank Belgium 144,842 amount 267,167 (22,367) 62,630 29,558 (4,684) 65,137 2007

N et amount (106,781) 535,208 285,228 562,416 140,736 (6,747) 2008 105

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements No provisions were recorded on loans given to related parties. to related given loans on recorded were provisions No 106 Group the by received Guarantees and commitments Group the by provided Guarantees andissued commitments Net commission Interest expense Deposits income Interest Loans Group the by received Guarantees and commitments Group the by provided Guarantees andissued commitments Net commission Interest expense Deposits income Interest Loans 1. 9.4. (4) (3) (2) (1) report. 11 page on Management of the is reported information This 3. payments Share-based Termination benefits Other long-term benefits Post-employment benefits Short-term benefits 2. Share Post Short (in thousands of EUR) thousands (in (in thousands of EUR) thousands (in (in thousands of EUR) thousands (in

Unused lines granted. lines Unused conditions. market at general granted were parties. parties related as related with Transactions considered longer no are states 2008, December 24 of IAS Draft Exposure the In 2) conditions. market at general concluded were 1) Transactions with concluded reasons: transactions following disclose the not did for Bank Dexia states the etconsignations. dépôts des Caisse Communal, Holding Arcofin, (2007-2008): of Dexia shareholders main the to here We refer Committee. Managing the and of Directors Board the includes Key management Related parties transactions Compensation of the Auditor the of Compensation Key management compensations - employment benefits include the service cost calculated in accordance with IAS IAS 19. with accordance in calculated cost service the include benefits employment R Dexia Bank Belgium – Annual Report 2008 - - term benefits include the salaries, bonuses and other advantages. other and bonuses salaries, the include benefits term (3) (3) based payments include the cost of stock options and the discount given on capital increase allowed to the key to management. the allowed increase capital on given discount the and options of stock cost the include payments based elate (3) (3) d parties transactions (4) (4)

31/12/07 management personnel S 31/12/07 ubsidiaries Directors and key and Directors 233 149 (2) 0 0 0 0 3,684 6,693 222 (76) 0 0 0 31/12/08 150 171 (3) 0 0 0 0 31/12/08

3,838 2,045 (1) 31/12/07 470,904 204,739 149,478 (10,418) (61) 65,294 62 11,325 6,968 0 0 0 A ssociates 31/12/08 232,334 301,972 126,973 319,683 31/12/07 P 40,449 12,050 15,529 13,022 arent company 41,125 (7,577) (5,198) 4,438 4,644 0 entity the which in 31/12/07 23,000 14,854 12,201 ventures Joint (1,298) is a venturer is 31/12/08 385 425 628,937 (48,929) 40 28,635 36,373 2,695 1,202 0 31/12/08

14,854 15,296 12,960 5,204 (803) E 621 ntities with joint control or significant influence 36 31/12/07 31/12/07 606,499 over the entity the over 107,839 913,701 12,280,078 28,447 11,265,956 49,567,746 57,091,196 (1,533) O 1,942,090 6,880 2,521 31/12/07 (716,757) ther related parties 656 148 0 0 0 765 53,060,669 13,902,882 11,427,074 11,783,137 (2) 1,749,938 2,751,433 31/12/08 31/12/08 31/12/08 (996,477) 347,000 507,033 121,634 51,024 (1,090) 4,087 7,269

521 210

0 0 0

borrower) and guaranteed by the Flemish Region. The guarantee of the Flemish Region was transferred to the SPV. The original size of the transaction transaction the of size original The SPV. the to transferred was Region Flemish the of guarantee The Region. Flemish the by guaranteed and borrower) Atrium repaid. been A1 class has while A2 class under outstanding still is million 99.3 31, EUR 2008 December at As Aaa). currently Aa2, (initially government Flemish the of size of the transaction was EUR 188 million. Two classes of fixed of Two classes 188million. EUR was transaction the of size original The (SPV). vehicle purpose to special the transferred was Region Flemish of the guarantee The Region. Flemish by the guaranteed and borrower) six compartments, of which three with activity. with three of which compartments, six ( vehicle securitization is a Belgian (DSFB) NV Belgium Funding Secured Dexia Fitch). and by Moody’s Aa1/AA rated and by and Fitch) EUR Moody’s 3.7 B class under million (currently rated Aaa/AAA (still A3 class under is There EUR 29.8 outstanding million outstanding. by Aaa/AAA Moody’s and Fitch) and one junior class (called class B and rated A3/A by Moody’s and Fitch). As at December 31, 2008 there is still EUR 33.5 million Atrium 31, 31, 1,92616,100 to EUR and 2007 at December amount as 2008. at December as million million companies of these assets total The Backed Floating Rate Notes due 2041 (Fitch AAA/ S&P AAA); EUR 160 million Class B Mortgage B Class million 160 EUR AAA); S&P AAA/ (Fitch 2041 due Notes Rate Floating Backed Penates Penates O closing. since amount nominal outstanding 31,initial are at their all notes at December 2008 As 2041due Note Rate (NR). E Class Floating Subordinated million 80 EUR and BBB) (Fitch EUR 120 million Class C Mortgage O activated. been have two of which compartments, three currently with (SIC) vehicle securitization is a Belgian NV Funding Penates Bank. by Dexia part a for minor and Group’s entities by Dexia subscribed fully been have transactions DSFB The of A. a have rating notes the and outstanding still are 928 31, EUR milion At 2008, December notes. the on interest and of principal payment timely and full the guaranteed has Bank Dexia (S&P). agency on launched was transaction milion 928 EUR DSFB of A/A1/AA a have rating notes the and 1,611 31, EUR At 2008, December outstanding notes. the still on are milion interest and S&P, and Moody’s by Fitch, was respectively Dexia Bank issued. notes, rated has at the guaranteed full closing AA/Aa1/AA+ and timely payment of principal 2008. 28, April on launched was 1,621 transaction EUR This million regions. Belgian three the of one by guaranteed 100% DSFB of A/A1/AA a have rating currently 31,on of and Bank the has interest at Dexia payment the As principal notes. guaranteed December there is and the 2008 1,632notes outstanding million was on launched transaction June 28, 2007. DSFB Backed Floating Rate Notes due 2041 (Fitch AAA/ S&P AAA); EUR 72 million Class B Mortgage B Class million 72 EUR AAA); S&P Class C 72 Mortgage EUR million AAA/ (Fitch 2041 due Notes Rate Floating Backed was launched on November 25, 1998. Four floating Four 1998. 25, November on launched was MBS activity. with one of which compartments, six has MBS A2. class under outstanding is still 31, 73.6 million EUR 2008 at December As Aaa). currently Aa2, (initially was EUR 129.3 million. Two of classes fixed Atrium vehicles: securitization five has Bank Dexia 9.5. The notes can be used as collateral in repurchase agreements with the ECB. the with agreements in repurchase collateral as used be can notes The group’s entities. Dexia by other and (95%) Bank by Dexia subscribed fully been have transactions Penates The date. closing since amount nominal outstanding 31,initial are at their all notes at December 2008 As 2041due Note Rate (NR). E Class Floating Subordinated million 36 EUR and BBB) (Fitch n December 15, 2008, Dexia Bank closed a EUR 3,636 million RMBS securitization transaction. The SPV, Penates Funding acting through its compartment compartment its through acting Funding Penates SPV, The transaction. securitization RMBS million 3,636 EUR a closed Bank Dexia 2008, 15, December n n O - S - - - ctober 27, 2008, Dexia Bank closed a EUR 8,080 million RMBS securitization transaction. The SPV, Penates Funding acting through its compartment compartment its through SPV,The acting Funding Penates transaction. securitization RMBS 27, million a ctober EUR Bank closed 8,080 Dexia 2008, 4 is a securitization transaction of Belgian residential mortgage loans. The transaction, which had 4 loans. The amount of an of transaction, mortgage is Belgian residential original outstanding EUR transaction a 272.7securitization million, 1 is a securitization transaction of loans granted to public entities in Belgium or 100% guaranteed by such public entities. This EUR 1.7 billion billion 1.7 EUR This entities. public such by guaranteed 100% or Belgium in entities public to granted loans of transaction securitization a is 1 2 (using the second ring fenced compartment of DSFB NV) is a securitization transaction of All the granted loans to are loans entities. public Belgian transaction of is 2 DSFB a NV) ring the (using fenced securitization second compartment 3 (using the third ring fenced compartment of DSFB NV) is a securitization transaction of loans granted to Belgian public and social entities. This This entities. social and public Belgian to granted loans of transaction securitization a is NV) DSFB of compartment fenced ring third the (using 3 ecuriti - - 1 is a securitization transaction of social housing loans pursuant to a long a to pursuant loans housing social of transaction securitization a is 1 2 is a securitization transaction of social housing loans pursuant to a long a to pursuant loans housing social of transaction securitization a is 2 - - 1, securitized Belgian residential mortgage loans originated by Dexia Bank and issued five classes of notes: EUR 7,600 million Class A Mortgage A Class EUR million notes: of 7,600 classes five issued and Bank by Dexia originated loans mortgage residential Belgian 1, securitized 2, securitized Belgian residential mortgage loans originated by Dexia Bank and issued five classes of notes: EUR 3,384 million Class A Mortgage A Class million 3,384 EUR of notes: classes five issued and Bank by Dexia originated loans mortgage residential Belgian 2, securitized z ation - - Backed Floating Rate Notes due 2041(Fitch A); EUR 72 million Class D 72 Mortgage EUR million A); 2041(Fitch due Notes Rate Floating Backed Backed Floating Backed Rate Floating Notes due EUR A); 2041(Fitch 120 million Class D Mortgage - . - rate rate notes were issued on June 19, 1997, a both rating carrying Moody’s equal to that of the Flemish government O ne tranche of floating rate notes, rated AA/Aa1/AA+ at ne closing tranche by of S&P,resp. ratefloating notes,AA/Aa1/AA+ andMoody’s rated Fitch, was issued. O ctober 9, 2008. This one tranche floating rate notes issuance was rated A+ at closing by a single rating rating single a by closing at A+ rated was issuance notes rate floating tranche one This 2008. 9, ctober - 1, Atrium - rate tranches of obligations were issued, three senior classes (called class A1 through A3 and rated rated and A3 A1 through class (called classes senior three issued, were obligations of tranches rate - 2, MBS, Dexia Secured Funding Belgium and Penates. and Belgium Funding Secured Dexia 2, MBS, - rate notes were issued on April 30, 1996, both carrying a Moody’s rating equal to that that to equal rating Moody’s a carrying both 1996, 30, April on issued were notes rate (SIC) under Belgian law) with currently currently with law) Belgian under (SIC) en créances d’investissement société - - term credit facility between Dexia Bank and Domus Flandria NV (the (the NV Flandria Domus and Bank Dexia between facility credit term term credit facility between Dexia Bank and Domus Flandria NV (the (the NV Flandria Domus and Bank Dexia between facility credit term Annual Report 2008 – - - Backed Floating Rate Notes due 2041 (Fitch AA); AA); (Fitch 2041 due Notes Rate Floating Backed Backed Floating Rate Notes due 2041 (Fitch AA); AA); (Fitch 2041 due Notes Rate Floating Backed - - Backed Floating Rate Notes due 2041due Notes Rate Floating Backed Backed Floating Backed Rate Floating Notes due 2041 Dexia Bank Belgium O ne tranche of floating rate rate floating of tranche ne - . 107 - -

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 108 (1) capital of repayment the and dividends of distribution the on restrictions including restrictions, and preferences Rights, 31 Dec. of as Outstanding 1 Jan. of as Outstanding share of categorie By 9.7. sold subsidiary the in equivalents cash and cash Less: cash) (in sale from Proceeds liabilities Other companies insurance of provisions Technical securities Debt derivatives of value Negative loss and profit through value fair at measured liabilities Financial deposits and borrowings Customer to banks Due Other assets derivatives of value Positive investments Financial loss and profit through value fair at measured assets Financial customers to advances and Loans banks from due advances and Loans Cash and cash equivalents follows. as are disposed liabilities and assets The O Year 2008 21, December on 2007. sold was Fidexis 15, May on sold 2007. was SA Assurances Belstar Year 2007 2. in nor 2008. in 2007 acquisitions significant no were There 1. 9.6. Value per share per Value N N of EUR) thousands (in (in thousands of EUR) thousands (in mega 8/10 was sold on July 4, 2008. 4, July on sold was 8/10 mega et cash inflo cash et assets et Number of shares reserved for issue under stock options and contracts for the sale of shares of sale the for contracts and options stock under issue for reserved shares of Number shares treasury of Number canceled shares of Number issued shares of Number paid fully not and issued shares of Number paid fully and issued shares of Number issued not and authorized shares of Number Belstar: including EUR 9 million gains and losses not recognized in the statement of income and discretionary participation features of insurance contracts. of insurance features participation discretionary and of income statement the in recognized not losses and gains 9 million EUR including Belstar: Main disposals Main acquisitions Main

E A Dexia Bank Belgium – Annual Report 2008 quit cquisitions an cquisitions y (1) on sale w on d d isposals of consoli of isposals d ate d companies

A ssurances (557,906) 559,389 (34,666) (55,533) (33,372) (19,479) Belstar 65,549 23,609 70,096 25,991 55,798 65,160 (4,547) 4,547 9,262 9,182 2007 0 0

n

359,412,616 359,412,616 359,412,616 n o nominal (182,013) 180,630 (21,586) (14,526) F 14,526 (9,426) idexis 2,290 value 9,750 5,100 2007 386 637 (40) 0 0 0 0 0 0 0 0 0 0 0 0 0

359,412,616 359,412,616 359,412,616 o nominal O 12,732 (7,815) mega mega value 6,863 4,166 7,036 2008 2008 8/10 (924) (173) 173 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

(5) (4) (3) (2) (1) Liabilities for withalternatives arrangements settlement arrangement Liabilities for cash-settled Arrangements with settlement alternatives arrangementsCash-settled arrangements Equity-settled Valuation model date grant at instrument granted per Fair value Settlement conditions Vesting (years) life Contractual grant of date the at price Share price Exercise granted instruments of Number Grant date 23.25 - 22 21.25 - 18.62 18.20 - 18.03 17.23 - 17.86 15.88 - 15.17 14.58 - 13.81 11.88 - 13.66 11.37 - 10.97 - 10.09 4.95 period of end at Exercisable period of end at Outstanding period the during Expired period the during Exercised period the during Forfeited period the during Granted period of beginning at Outstanding shares Dexia in settled Plans Option Stock 9.8. T Total expenses (in thousands of EUR) thousands (in S R tock tock otal lia ange of exercise prices ( prices exercise of ange Figures as of Dec. 31, 2007 have been restated. 31, been have of Dec. as 2007 Figures of allowance. date at the party. third acquired are rights a non-related The from obtained value fair the used Bank Dexia employees, Bank’s Dexia towards offered plan option stock the For 3 years. next the over vested yearly is 20% immediately, vested is 40% following: the are conditions vesting The 13.56 share. EUR 13.64 and per EUR respectively was 2008 and 2007 for price exercise average weighted The Share- O ption ption b ilities b ase P lans settled in Dexia shares Dexia in settled lans d

P a y ments EUR (1) (5) )

of outstanding outstanding of 5,353,805 3,751,672 3,401,048 3,113,650 3,524,275 1,704,672 1,012,052 N 628,933 options umber 0

exercise price price exercise 31/12/07 Weighted average average ( 14.56 17.86 11.37 11.92 15.17 EUR 0.00 0.00 0.00 0.00 )

S shares Dexia plan Dexia’s Dexia’s plan tock option contractual (3) note See (2) note See employees remaining remaining Weighted P life (year) life 3,113,650 29/06/07 lan 2007 2007 lan average average 10 years 23.25 23.35 0.80 0.00 2.36 9.48 5.68 3.45 5.57 3.65 7.23 8.13

of outstanding outstanding of Annual Report 2008 – shares Dexia (4) note See (3) note See P 2,983,248 3,401,048 3,524,275 1,704,672 3,748,672 5,125,629 3,113,650 23/09/08 lan 2008 lan N 10 years 608,663 126,948 options 184,074 umber 10.20 10.09 3.62

exercise price price exercise shares Dexia 31/12/08 (3) note See (2) note See N 22,487,602 22,490,107 (3,108,445) Weighted P 7,563,765 umber of of umber 3,113,650 30/06/08 31/12/07 31/12/07 lan 2008 lan average average O 10 years Dexia Bank Belgium (12,137) (12,137) 0.8968 77,500 ptions (2,040) ( 10.28 14.58 13.08 18.03 12.65 17.86 11.37 EUR (660) 0.00 0.00 0.00 0.00 0 0 0 0 0 )

Dexia shares Dexia contractual See note (3) note See See note (2) note See 14,444,439 N 24,393,931 22,490,107 remaining remaining (1,150,924) Weighted 2,856,300 P life (year) life 3,060,748 umber of of umber 30/06/08 31/12/08 31/12/08 31/12/08 lan 2008 lan average average O 10 years (6,000) ptions (7,258) (7,258) 10.28 10.09 2.00 3.00 8.50 0.83 4.56 5.05 6.26 9.50 7.23 1.72 109 0 0 0 0 0 0

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 110 (1) 9.9. Variation of scope of consolidation consolidation of scope of Variation Translation adjustments period the for income Net Dividends capital of Increase consolidation of scope of Variation Translation adjustments period the for income Net Dividends capital of Increase A A A of EUR) thousands (in A s of Jan. 1, 2008 Jan. s of 31, 2007 Dec. s of 1, 2007 Jan. s of s of Dec. 31, 2008 Dec. s of The change in scope of consolidation for 2007 includes the participation of Dexia Crédit Local in Dexia Épargne Pension. Épargne Dexia in Local Crédit of Dexia participation the includes 2007 for of consolidation scope in change The

M Dexia Bank Belgium – Annual Report 2008 inorit y interests – C ore equit (1) y 0 0 (26,322) 18,809 69,423 10,499 10,056 25,782 67,435 67,435 27,123 (1,284) 5,758 (998) X. IX. VIII. VII. VI. XI. V. IV. VI. VI. VIII. VII. II. I. (2) (1) XII. XI. XIII. XII. III. II. I. 9.10. X. V. IV. III. IX. Total assets (in thousands of EUR) thousands (in T

otal lia

Figures as of Dec. 31, 2007 have been restated. 31, been have of Dec. as 2007 Figures Group. Services Insurance Dexia includes “Insurance” item The

C ontri Intangible Intangible assets assets fixed Tangible in associates Investments hedge portfolio of at fair value measured assets Financial Fair value revaluation Derivatives investments Financial Tax assets goodwill and through profit or loss or profit through to customers advances and Loans of portfolio hedge of portfolio at fair value measured liabilities Financial Technical provisions Subordinated debts securities Debt Fair value revaluation borrowings Customer to banks Due Liabilities included Liabilities liabilities Other sale for Other assets banks from due advances and Loans banks central with Cash and balances Non-current assets held assets Non-current Tax liabilities other obligations Derivatives loss or profit through and deposits for sale for held groups disposal in Provisions and companies insurance of b ilities b ution (2)

(2) (2)

(2) by

activ

it y

241,964,062 238,944,829 113,086,137 26,820,484 79,953,448 48,750,632 14,305,673 75,790,214 79,135,087 14,932,512 and other 10,155,371 1,904,690 2,649,334 1,235,640 activities 2,869,210 4,912,956 2,727,199 Banking (109,849) 376,300 659,923 598,102 90,061 36,655 29,112 0 0 0

31/12/07 I nsurance 22,733,466 14,929,260 20,367,138 15,727,276 4,325,484 6,039,769 288,816 218,254 252,497 241,690 126,971 134,761 267,102 319,511 30,289 82,427 10,509 37,288 61,852 1,234 5,601 13 (1) 0 0 0 0 0

264,697,528 259,311,967 113,091,738 26,820,484 80,205,945 79,269,848 14,306,907 64,477,908 14,929,260 76,079,030 14,943,021 16,195,140 2,968,845 3,087,464 7,052,683 4,912,969 1,297,492 2,171,792 (109,849) 628,391 458,727 901,613 217,032 73,943 29,112 T otal 0 0

Annual Report 2008 – 240,491,222 238,559,886 103,953,907 101,561,037 33,834,830 29,488,667 65,644,630 36,301,032 and other 69,611,953 17,349,142 3,006,365 6,028,008 activities 4,533,641 1,632,322 1,138,465 1,541,525 Banking 490,980 489,508 636,582 800,555 843,652 100,628 40,575 23,104 0 0 0

31/12/08 I nsurance 22,601,667 21,020,634 15,068,757 16,731,674 4,522,567 3,196,823 1,959,138 Dexia Bank Belgium 148,862 203,438 218,600 288,318 262,030 225,579 126,784 252,735 276,170 73,863 30,072 31,078 5,129 670 14 (1) 0 0 0 0 0

263,092,889 259,580,520 104,027,770 103,520,175 33,839,959 44,557,424 65,793,492 36,301,702 69,815,391 16,731,674 17,349,142 1,364,044 9,056,208 3,224,965 1,096,387 9,224,831 1,062,585 1,920,640 1,541,525 489,522 521,052 912,752 227,412 23,104 71,653 T otal 111 0 0

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 112 (2) (1) parent the of to shareholders Attributable costs acquisition Deferred & amortization Depreciation costs Network expense administrative and General Staff expense income net Other activities insurance from Technical expense activities insurance from income technical and Premiums commissions and fees Net investments on income Net loss or profit through value atfair instruments financial from income Net associates from income Net Dividend income margin Interest Attributable to minority interest to minority Attributable tax) of (net operations Discontinued Tax expense goodwill on Impairment assets intangible and Impairment on tangible for credit commitments provisions and loans on Impairment correspond to the published financial statements of Dexia Insurance Belgium published under BE under published Belgium Insurance Dexia of statements financial published to the correspond not does andtherefore andtransactions, balances of intercompany elimination after IFRS under is presented statements to the financial contribution The G E I N of continuing operations N N (in thousands of EUR) thousands (in ncome xpenses et income income et income et income et ross operating income operating ross Figures as of Dec. 31, 2007 have been restated. 31, been have of Dec. as 2007 Figures Group. Services Insurance Dexia includes “Insurance” item The Dexia Bank Belgium – Annual Report 2008 (2) (2) b efore tax efore

(2) (2)

(1,507,367) and other 2,458,439 activities 1,738,929 (494,808) (100,869) (604,187) (307,503) Banking 848,482 848,482 889,672 951,072 846,302 115,987 (60,030) 105,309 411,092 (26,176) (41,190) 63,053 50,245 (1,370) 2,180 0 0 0 0 0

31/12/07 I nsurance (4,826,133) 4,518,424 (240,455) (103,230) 426,440 189,305 189,305 185,985 185,950 154,696 (70,048) (59,386) 469,092 185,732 41,498 64,305 (7,791) 3,355 3,573 1,993 2,493 (35) 72 (1) 0 0 0 0

(4,826,133) (1,747,822) 2,884,879 1,075,622 4,518,424 1,037,787 1,037,787 1,137,057 2,208,021 1,032,034 (564,856) (366,889) (108,660) (707,417) 452,590 270,683 (60,065) (37,835) (24,183) 107,802 114,550 63,125 (1,370) 5,753 T otal 0 0 0

- GAAP. (1,533,726) and other 1,969,438 2,242,825 activities (558,854) (308,965) (381,860) (368,677) (135,445) (135,445) (498,774) (129,799) (630,173) Banking (137,827) 406,746 435,712 (95,814) (25,750) 56,840 (5,646) (6,657) 39,314 2,382 0 0 0 0 0

31/12/08 I nsurance (4,386,499) 4,100,789 (523,863) (266,833) (523,821) (739,605) (464,761) (464,761) (257,030) (103,659) (436,057) (82,530) (28,704) (61,273) 615,373 111,070 59,060 32,331 (9,568) (2,282) 1,678 312 42 (1) 0 0 0 0

(4,386,499) (1,790,756) (1,121,465) 1,702,605 4,100,789 2,858,198 (600,206) (600,206) (653,620) (370,238) (581,304) (733,832) (105,382) (370,959) (558,812) (573,884) 439,077 150,384 (26,322) (88,151) (25,438) 58,518 53,414 (6,657) T otal 0 0 0 form this annex. 2007 to(entrusted figureshave undersinceand been custody assets restated arefrom thirdnot asparties) andconsidered commitment have beenexcluded received Commitments – activity Banking given Commitments – activity Banking received Commitments – activity Insurance given Commitments – activity Insurance 10.4. customers from obtained lines Unused institutions credit from obtained lines Unused customers to granted lines Unused institutions credit to granted lines Unused 10.3. states the from received Guarantees Guarantees received from customers from received credit Guarantees institutions Guarantees given to customers institutions credit to given Guarantees 10.2. assets of sales and received to be Borrowings assets of purchases and delivered to be Loans 10.1. X US dollar lira Turkish New dollar Singapore Swedish krona New Zealand dollar krone Norwegian Mexican peso Yen Shekel Forint dollar Kong Hong Pound sterling Euro krone Danish republic) (Czech Koruna franc Swiss Canadian dollar dollar Australian 9.11. (in thousands of EUR) thousands (in of EUR) thousands (in of EUR) thousands (in of EUR) thousands (in . N

otes on the consoli the on otes E R L O G xchange rates egular egular oan commitments uarantees ther commitments w a y tra d e d AUD CHF CAD DKK CZK EUR NOK ILS HUF HKD MXN JPY GBP NZD SEK USD TRY SGD ate

d off- b

alance sheet items sheet alance

C losing rate losing 164.9005 252.6639 26.5940 16.0587 11.4774 1.0000 1.4439 5.6635 1.8995 0.7336 1.7060 7.9643 1.6552 9.4219 1.6749 7.4575 1.4718 2.1186 31/12/07

A Annual Report 2008 – verage rate verage 162.0907 251.3037 15.0657 10.7598 27.7016 1.0000 1.6462 5.6338 2.0697 9.2636 1.8628 1.3794 0.6874 1.4676 1.6359 1.7719 8.0113 7.4518

C 161,441,518 22,340,830 13,243,840 28,283,217 losing rate losing 93,997,934 1,578,364 8,816,590 1,545,415 5,357,168 31/12/07 31/12/07 31/12/07 31/12/07 126.6890 265.2744 Dexia Bank Belgium 108,608 10.8841 10.8275 26.8551 19.3270 26,802 33,005 5.2880 1.0000 2.0305 7.4488 2.4253 0.9535 1.6943 1.4861 2.0130 1.3971 9.7371 2.1332 5,985 31/12/08 0 0

A 177,183,590 verage rate verage 78,069,625 30,585,471 33,674,037 31,922,177 3,056,486 6,232,004 1,099,256 1,928,977 9,771,794 8,017,577 31/12/08 31/12/08 31/12/08 31/12/08 250.3233 151.4854 16.3725 25.0188 11.4473 33,302 31,445 8.2804 2.0689 1.0000 5.2337 0.8018 9.6779 1.9053 1.5787 1.7506 1.5655 2.0913 1.4707 7.4553 5,985 113 0

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 114 (1) goodwill on Impairment tax of Share tax before associates from Income 11.3. value fair at designated assets Financial trading for held assets Financial sale for available assets Financial 11.2. 11.1. XI I hedging for used Derivatives trading for held Derivatives value fair at designated assets Financial trading for held assets Financial I Other assets impaired on Interest Investments held to maturity sale for available assets Financial customers to advances and Loans banks from due advances and Loans banks central with balances and Cash I Derivatives used for hedging for used Derivatives trading for held Derivatives value fair at designated liabilities Financial trading for held liabilities Financial I states the by guaranteed amounts to the linked Expenses Other capital hybrid and shares Preferred Subordinated debts securities Debt deposits and borrowings Customer to banks Due nterest expense of lia of expense nterest at fair assets of income nterest nterest income of assets not at not fair assets of income nterest nterest expense of lia of expense nterest Total Total I (in thousands of EUR) thousands (in of EUR) thousands (in I of EUR) thousands (in N nterest expense nterest income . et interest income interest et Figures as of Dec. 31, 2007 have been restated for share-based payments. share-based for restated 31, been have of Dec. as 2007 Figures N Dexia Bank Belgium – Annual Report 2008

I NET Di nterest income – otes on the consoli the on otes v i income from associates from income den d income b b ilities not at not fair ilities ilities at fair ilities I nterest expense (1) d v ate alue v v d alue alue statement of income of statement v alue

(52,624,237) (38,665,636) (43,921,039) 54,832,258 38,830,664 10,324,538 44,507,720 (5,233,382) (8,703,198) (2,212,277) (5,373,163) 2,664,908 2,208,021 3,599,456 5,144,582 3,931,928 31/12/07 31/12/07 31/12/07 (141,840) (945,181) 114,550 107,802 138,471 497,661 (18,808) (30,669) (24,599) 111,101 88,267 34,813 10,743 25,167 (3,213) (6,138) 4,069 1,375 2,074 0 0

(54,032,340) (39,866,520) (45,371,510) 45,844,245 56,890,538 11,046,293 (8,660,830) (5,356,006) 39,991,652 (2,302,293) (5,162,543) (1,018,787) 5,406,328 2,694,858 3,774,206 2,858,198 4,439,913 31/12/08 31/12/08 31/12/08 (125,854) (141,410) 423,340 150,384 146,803 (25,438) (18,583) (24,621) (19,713) 23,358 14,604 93,658 22,925 (5,725) (8,149) (7,574) 2,206 5,696 1,375 0 hedge Portfolio operation a in foreign investments net of Hedges occur) to expected longer no flows (cash accounting hedge flow cash of Discontinuation hedges flow Cash hedges Fair value R strategy option value a in fair included derivatives trading which (1) Among differences exchange and activity Forex risk credit own in Change derivatives related the from result and loss or profit through value atfair designated instruments financial of result Net accounting hedge of result Net income trading Net 11.4. Total Total (in thousands of EUR) thousands (in of EUR) thousands (in esult of esulthe of Fair value changes of the hedging derivatives hedging the of changes Fair value item hedged the of changes Fair value portion – ineffective derivatives hedging the of changes Fair value portion – ineffective derivatives hedging the of changes Fair value derivatives hedging the of changes Fair value risk hedged to the attributable item hedged the of changes Fair value

N et income from financial instruments at fair v at fair instruments financial from income et d ge accounting accounting ge (1) alue through profit an profit through alue Annual Report 2008 – d loss

31/12/07 31/12/07 (223,364) (520,533) (113,971) Dexia Bank Belgium 531,473 233,141 (24,183) 18,960 18,960 10,940 45,036 22,782 25,792 (1,747) 9,777 (10) (10) 0 0 0

(2,263,740) (1,075,056) 2,345,377 31/12/08 31/12/08 1,157,167 (496,893) (370,959) (135,324) 166,995 166,995 202,627 34,466 59,797 81,637 82,111 2,987 2,987 260 115 0 0

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 116 securities on Impairment losses Other liabilities on Losses sale for held liabilities and assets on Losses assets fixed intangible on Losses assets fixed tangible on Losses maturity to held investments on Losses sale for available assets financial on Losses advances and loans on Losses gains Other liabilities on Gains sale for held liabilities and assets on Gains assets fixed intangible on Gains assets fixed tangible on Gains maturity to held investments on Gains sale for available assets financial on Gains advances and loans on Gains 11.5. Securities available for sale for available Securities Securities held to maturity Securities available for sale for available Securities Securities held to maturity (in thousands of EUR) thousands (in Total N Total Total A of EUR) thousands (in A Total Total et impairment et s of Dec. 31, 2007 Dec. s of s of Dec. 31, 2008 Dec. s of Dexia Bank Belgium – Annual Report 2008

N et income on in on income et L G osses ains v estments

A (1,133,367) llowances (1,133,367) (21,633) (21,633) S pecific risk 0 0

Write-backs 31/12/07 (210,817) (198,126) 270,683 483,710 461,859 19,423 51,294 19,423 51,294 12,639 (2,210) (2,025) (7,046) (2,133) 2,464 4,420 1,975 (686) (801) 100 250 0 3 0 0 0

(1,082,073) (1,082,073) (1,082,073) (1,121,465) 31/12/08 (529,590) (719,393) (189,422) 442,346 680,001 224,768 (2,210) 11,861 (2,210) 1,012 T (328) otal (44) (9) 0 0 0 0 7 7 0 0 0 Other technical expenses technical Other reserves technical in Change Claims incurred paid contributions and Premiums to transferred reinsurers received Premiums 2. income technical Other reinsurers of – part reserves technical in Changes reinsurers of part – incurred Claims and received Premiums contributions 1. 11.7. Other Securities lending Clearing and settlement banking Private Servicing fees of securitization securities of placements and Issues Custody than safekeeping other securities on Services engineering Financial brokers to non-exclusive Commissions Payment services funds mutual and trusts unit of sale and Purchase securities of sale and Purchase Credit activity Insurance activity funds mutual and trusts unit of Administration funds mutual and trusts unit of Management 11.6. E I Total (in thousands of EUR) thousands (in of EUR) thousands (in (in thousands of EUR) thousands (in ncome xpenses Technical expense from insurance activities insurance from expense Technical activities insurance from income technical and Premiums

T F echnical margin of insurance acti ee an ee d commission income an income commission

554,590 173,703 I d ncome ncome 38,381 93,548 73,299 23,435 24,057 37,444 25,708 24,770 11,585 14,719 6,466 2,872 2,530 1,063 1,010 expense 0 vities 31/12/07 (102,000) E (21,548) (13,289) xpense xpense (10,331) (11,966) (4,387) (3,754) (2,357) (1,045) (1,969) (2,315) (9,514) (8,197) (9,159) (1,714) (229) (226) 0 452,590 171,734 (10,417) 72,000 29,222 69,545 16,573 11,469 13,726 13,674 16,194 37,218 4,109 7,198 (651) N 781 215 et 0 Annual Report 2008 – 539,566 106,672 I 147,911 28,294 ncome ncome 25,672 25,798 21,286 12,007 88,619 17,788 39,151 6,849 1,069 1,662 1,316 7,700 7,772 0

31/12/08 (1,008,020) (3,419,340) (4,826,133) 4,518,424 4,312,786 31/12/07 31/12/07 (100,489) E (172,253) (131,705) Dexia Bank Belgium 178,638 (94,815) (10,056) (19,385) xpense xpense (17,009) (11,499) 28,752 (5,386) (5,504) (2,504) (2,739) (6,710) (7,986) (2,941) (7,219) (1,752) (980) (180) (144) (247) 0

(4,386,499) (1,856,683) (1,749,270) 3,936,473 4,100,789 31/12/08 31/12/08 (553,670) (130,413) 439,077 126,371 (96,463) 145,172 32,094 13,300 19,088 87,287 33,765 (8,987) 11,027 28,114 83,115 4,345 6,289 8,663 5,851 4,759 1,415 1,172 N 553 117 et 0

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 118 (2) (1) Other Employees Senior executives Other expenses expenses Restructuring benefits employee Long-term Stock compensation expense Other post-retirment benefits plans contribution defined – costs Pension plans benefit defined – costs Pension costs insurance and security Social Wages and salaries 11.9. activities other on expense Other Other banking expenses year financial current the during income generated that properties investment on maintenance and Repair taxes Exploitation on inventory Impairment in Changes inventory activities other on income Other Other banking income income Rental taxes Exploitation inventory on impairment of Write-back in Changes inventory 11.8. Total Total Total O O ( (in thousands of EUR) thousands (in of EUR) thousands (in A ther expense ther income Figures as of Dec. 31, 2007 have been restated for share-based payments (see note 9.8.). note (see payments share-based for restated 31, been have of Dec. as 2007 Figures 8.6.5. note See verage verage Dexia Bank Belgium – Annual Report 2008

S O taff expense ther net income FTE ) (2)

consolidated (1) 9,028 8,745 F ully ully 268 15 P roportionally roportionally consolidated 31/12/07 1 5 1 3 9,033 8,748 T otal 269 16 consolidated

8,657 8,921 F ully ully 248 16

P roportionally roportionally consolidated 31/12/08 31/12/07 31/12/07 (149,490) (505,921) (236,169) (214,138) (707,417) 299,294 271,338 (54,615) (21,970) (12,137) 25,948 23,414 63,125 (4,632) (5,310) 2,008 1,198 (61) 76 1 3 1 1 0 0 0 0 0 0

31/12/08 31/12/08 (529,996) (733,832) (159,256) (189,417) (171,456) 220,073 247,935 (39,898) (12,283) (17,961) 12,490 58,518 26,913 (2,377) (7,258) (1,452) 8,924 8,658 6,198 T otal 879 249 70 17 0 0 0 0 0 0 Amortization of intangible assets intangible of Amortization assets tangible other on Depreciation buildings and land on Depreciation 11.11. expense administrative and general Other taxes Operational valuable and mail of Transportation pension) to related (except Insurance staff than other costs Restructuring expenses maintenance and Repair costs development and research and costs Software costs system and Technology Marketing advertising and public relations fees Professional costs) system and technology (except leases Operating Occupancy 11.10. Other Employees Senior Executives Other Employees Senior Executives Total Total Total Total (in thousands of EUR) thousands (in of EUR) thousands (in as of Dec. 31, 2008 31, Dec. of as 2007 31, Dec. of as ( ( A A verage verage verage

Depreciation an Depreciation G eneral an eneral FTE FTE ) )

d

a d ministrati d amorti Belgium Belgium 8,350 8,459 8,576 8,703 239 221 5 5 z ation ation v e expense e F F rance rance 106 125 132 112 12 11 8 8 Luxembourg Luxembourg 104 98 63 69 6 6 0

S S witzerland witzerland 0 0 1 1 1 0 1 0 I I reland reland Annual Report 2008 – 29 26 27 31 4 3 0 0 K K ingdom ingdom U U nited nited nited

23 29 32 27 5 6 0 0 (564,856) 31/12/07 31/12/07 (108,660) (186,726) Dexia Bank Belgium (45,300) (98,336) (23,646) (28,249) (24,954) (48,010) (52,477) (30,081) (43,219) (47,068) (37,946) (8,355) 1,830 (979) USA USA 48 77 43 70

5 7 0 0 Dexia Bank Bank Dexia Bank Dexia 31/12/08 31/12/08 (581,304) (105,382) (179,600) (115,348) (58,065) (53,664) (46,237) (23,924) (25,947) (35,221) (41,465) (41,945) (27,022) (31,841) (5,564) 8,924 8,658 9,033 8,748 T T (992) otal otal otal 249 269 149 119 16 17

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 120 (1) Nil 11.14. year. a is recorded. once of impairment least at a reversal impairment, basis, existing the than regular a is lower on sale on loss expected performed the If is conditions sales and market the of review A met. are criteria the when recorded are Impairments assets intangible on Impairment Impairment on long-term construction contracts sale for held assets on Impairment assets tangible other on Impairment buildings and land on Impairment property investment on Impairment 11.13. Loans 1. 11.12. Commitments Commitments receivables Other companies insurance from Assets customers to advances and Loans banks from due advances and Loans Commitments receivables Other companies insurance from Assets customers to advances and Loans 2. (in thousands of EUR) thousands (in Total Total Total Total (in thousands of EUR) thousands (in (in thousands of EUR) thousands (in (in thousands of EUR) thousands (in

Is published in item XII. of the Assets. of the XII. item in published Is Collective impairment Collective Specific impairment Dexia Bank Belgium – Annual Report 2008

I I I mpairments on tangi on mpairments mpairment on loans an loans on mpairment mpairment on goo on mpairment (1) (1) dw (1) (1) b ill le an le

d pro A llowances d intangi (23,974) (23,974) v isions for cre for isions

b le fixe le 31/12/07 A A llowances llowances (282,514) (132,729) R (106,412) (85,993) (78,780) (97,580) (25,970) eversal (20,151) 7,621 7,621 d (337) d (10) (10) assets it commitments it (16,353) (16,353) R R 40,321 70,097 33,106 21,816 92,151 eversal eversal 6,852 T otal 236 352 8 2 3 31/12/08 31/12/07 A llowances (316,797) (316,797) (10,716) (17,511) L L (6,795) (5,077) (5,100) osses osses osses osses (23) 0 0 0 0 0

31/12/08 R R ecoveries ecoveries 31/12/07 R eversal (1,370) (1,370) 8,481 9,208 9,208 8,481 1,966 1,966 0 0 0 0 0 0 0 0 0 0 0 0

31/12/08 (108,288) (251,223) (307,589) (307,589) (78,428) (39,426) (43,712) (13,299) (51,201) (6,657) (2,738) (3,919) (4,154) T T T (124) otal otal otal (8) (7) 0 0 0 0 The difference between these two rates can be analyzed as follows: as analyzed be can rates two these between difference The 2008. and 2007 for 0.0% and 6.63% respectively was rate tax effective Bank Dexia 33.99%. was 2008 and in 2007 in Belgium applicable rate tax standard The Effective corporate income tax charge Deferred taxes year current on tax Income 11.15. Tax base charge tax statutory in (decrease) increase Other Impairment on goodwills rate a reduced at taxed Items rates tax in change of Tax effect assets tax deferred unrecognized of reassessment from Tax effect loss or profit in recognized previously not benefit tax on Tax effect losses tax unrecognized previously of utilization of Tax effect expenses deductible non-tax of Tax effect revenues non-taxable of Tax effect jurisdictions other in rates of Tax effect rate tax Statutory method equity the by for accounted companies from losses and Income Provision for tax litigations tax for Provision year previous on taxes Deferred year previous on tax Income (in thousands of EUR) thousands (in T E T T Tax N of EUR) thousands (in Total ( O ax on current current on ax ax on current current on ax statutor using expense ax ffecti et income income et ther tax expense (B) expense tax ther b

T ase ax ax expense v A e tax rate e tax )+(B) b efore tax efore y y ear result ( result ear ear result ear y rate A ) Annual Report 2008 –

1,090,286 31/12/07 31/12/07 (242,947) Dexia Bank Belgium 333,087 979,957 979,957 (98,364) (64,989) 110,329 33.99% (37,835) (39,018) (67,941) 64,989 33,375 21,398 12,426 6.63% 72,125 (3,333) 27,154 (2,613) 9,089 (128) (2) 0 0

31/12/08 31/12/08 (653,620) (628,182) (628,182) (213,519) (38,846) 33.99% (98,953) 226,192 (25,438) (30,057) (52,758) 38,846 14,568 36,378 91,604 53,414 31,495 21,224 (4,537) 8,247 (745) 0% 121 (3) 0 0 0

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements These assets are included in the lines “Loans and advances due from banks” and “Loans and advances to customers”. advances and “Loans and banks” from due advances and “Loans lines in the included are assets These interest the of remeasurement the to corresponds hedges” portfolio of revaluation value “Fair line The 122 (2) (1) securities”. “Debt and deposits” and to banks”, “Due lines in the borrowings “Customer included are liabilities These of the interest to the remeasurement corresponds hedges” of line portfolio “Fair The revaluation value the in unchanged as considered been has liabilities on spread fair value. of the credit determination own value”,the fair at “designated and trading” for “held liabilities for Except sale for held groups disposal in included Liabilities liabilities Other Subordinated debts securities Debt hedge portfolio of revaluation Fair value Derivatives at fair value designated liabilities Financial trading for held liabilities Financial deposits and borrowings Customer to banks Due B. sale for held assets Non-current Other assets in associates Investments hedge portfolio of revaluation Fair value Derivatives Investments held to maturity sale for available assets Financial at fair value designated assets Financial trading for held assets Financial to customers advances and Loans banks from due advances and Loans banks central with balances and Cash A. 1. policies. Accounting see of items, kinds some for value to accounting is equal fair value rules, valuation our with accordance In 12.1. to key management. provided internally information on based are 7.34 disclosures by IFRS requested As XII Total Total (in thousands of EUR) thousands (in (in thousands of EUR) thousands (in

breakdown Includes “Technical provision of insurance companies”, “Provisions and other obligations”, “Tax liabilities” and “Other liabilities”. “Other and liabilities” “Tax obligations”, other and “Provisions companies”, of insurance provision “Technical Includes assets”. “Other and “Taxassets” goodwill”, and assets “Intangible assets”, fixed “Tangible Includes B value fair of Breakdown .

reakdown Dexia Bank Belgium – Annual Report 2008 N

F air air otes on risk exposure risk on otes value (1) (2) of of

fair fair value value of of

liabilities assets 264,697,528 259,311,967 113,091,738 26,820,484 80,205,945 79,269,848 14,306,907 64,347,598 18,873,661 76,079,030 14,943,021 6,909,359 3,087,464 9,285,781 5,091,350 4,912,969 4,145,043 1,961,333 C C (109,849) 628,391 130,310 arrying arrying 29,112 value value 0 0

264,208,439 31/12/07 31/12/07 259,393,455 113,081,654 14,306,907 76,275,250 64,347,598 18,873,661 26,763,622 14,943,021 79,260,213 79,544,114 F F 6,909,359 3,039,678 9,285,781 5,091,350 4,912,969 4,145,043 1,961,333 air value value air air value value air (109,849) 784,316 129,269 56,605 0 0 Difference Difference (489,089) (661,831) 196,220 155,925 (56,862) (10,084) (47,786) 81,488 27,493 (9,635) (1,041) 0 0 0 0 0 0 0 0 0 0 0 0 0 263,092,889 259,580,520 104,027,770 103,520,175 44,466,752 - 33,839,959 65,793,492 36,301,702 69,815,391 19,636,719 17,349,142 rate risk on liabilities covered by portfolio hedges. hedges. by covered portfolio rate risk on liabilities 9,003,296 3,224,965 3,750,428 4,142,292 1,541,525 - 4,913,916 C C rate risk on assets covered by portfolio hedges. hedges. portfolio by covered assets on risk rate 489,522 521,052 221,535 arrying arrying 90,672 23,104 value value 0 0

104,854,464 31/12/08 31/12/08 104,050,828 264,667,615 260,018,114 44,466,752 33,839,959 36,301,702 17,458,656 65,912,521 19,636,719 70,030,173 F F 9,003,296 3,750,428 3,315,205 4,142,292 1,541,525 4,913,916 air value value air air value value air 489,522 221,535 617,688 48,022 90,526 0 0 Difference Difference 1,334,289 1,574,726 437,594 214,782 109,514 119,029 90,240 96,636 23,058 24,918 (146) 0 0 0 0 0 0 0 0 0 0 0 0 0 (3) (2) (1) 11.4). (disclosure income” trading in “Net recognized are amounts The up taken profit Day one immaterial. to backed perfectly are that transactions) back, the day structure one (like profitis up recognized products complex or (IRS) Swaps Rate Interest like products, simple sells Bank Dexia as Indeed, Day deferred as recognized are amounts significant No 3. Subordinated debts securities Debt hedge portfolio of revaluation Fair value Derivatives at fair value designated liabilities Financial trading for held liabilities Financial deposits and borrowings Customer to banks Due B. hedge portfolio of revaluation Fair value Derivatives Investments held to maturity sale for available assets Financial at fair value designated assets Financial trading for held assets Financial to customers advances and Loans from banks due advances and Loans A. 2. (in thousands of EUR) thousands (in of EUR) thousands (in Total Total

Fair value based on pricing models for which some key market data are unobservable. are data key market some which for models pricing on based value Fair data. market observable on based value Fair market. active in quoted prices market on based value Fair Disclosure of difference between transaction prices and modeled values (deferred Day One Profit) Profit) Day One (deferred values modeled and prices transaction between difference of Disclosure L A instruments financial of value fair of Analysis iabilities ssets

- front amounts respectively to EUR 19 million and EUR 3.5 million as of Dec. 31, 31, of Dec. as of Dec. as and 3.5 million 2007 EUR 19 and to 2008. EUR million respectively amounts front

- front. front. 64,133,555 79,761,812 4,325,484 6,205,709 6,287,292 9,285,781 1,961,333 L L evel 1 evel 1 evel 129,269 O 7,498 nly few transactions, nly of have amounts few non insignificant transactions, 475 (1) (1) 0 0 0 0 0 0 0 0

233,556,849 174,051,327 113,081,653 76,275,250 26,763,622 13,630,780 14,440,196 79,260,213 79,544,114 O 3,039,678 L L ne Profit (D Profit ne (109,848) evel 2 evel 2 evel 765,866 703,650 213,002 31/12/07 31/12/07 (2) (2) 0 0 0 0

O P) as of December 2007, nor as of December 2008. 2007, of December as nor of December as P) L L evel 3 evel 3 evel 496,367 495,327 675,652 675,652 1,040 (3) (3) 0 0 0 0 0 0 0 0 0 0 0 0 0

254,309,506 240,519,793 113,081,653 14,306,907 76,275,250 26,763,622 14,943,021 79,260,213 64,347,597 79,544,114 6,909,359 3,039,678 5,091,350 9,285,781 1,961,333 (109,848) 129,269 T T otal otal 0

33,326,884 24,089,563 4,638,394 3,678,281 3,657,815 3,414,774 L L Annual Report 2008 – evel 1 evel 1 evel 132,300 709,675 221,535 (11,855) 90,526 21,506 - observable parameters. Deferred D Deferred parameters. observable (1) (1) 0 0 0 0 0 0

104,050,828 193,602,772 230,780,162 87,533,115 32,393,575 65,012,540 13,682,091 70,030,173 34,113,343 5,588,522 6,845,425 3,315,205 1,541,525 L L 275,522 evel 2 evel 2 evel 1,070 31/12/08 31/12/08 0 0 0 (2) (2)

Dexia Bank Belgium 32,832,299 13,531,764 16,611,674 1,458,239 5,943,418 3,776,565 2,166,853 L L evel 3 evel 3 evel 462,941 767,681 (3) (3) 0 0 0 0 0 0 0 0 0

O 104,854,464 240,381,395 104,050,828 259,761,955 44,466,752 P is therefore 33,839,959 36,301,702 17,458,656 65,912,521 70,030,173 9,003,296 3,315,205 4,142,292 1,541,525 4,913,916 221,535 90,526 T T otal otal 123 0

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements C sector. activity and region geographical guarantor’s to the by a third is guaranteed exposure risk Credit is risk and region exposure into broken taking by down by This account means that counterpart the obtained. geographical when guarantees credit 124 (1) Other institutions Financial self-employed SME, Individuals, finance Project ABS/MBS Monoline Corporate sector public Local governments Central B. Other Japan Southeast Asia America Central and South Canada and States United Turkey Europe of Rest countries EU Other Luxembourg Italy Germany France Belgium A. 31, at Dec. as restated. not were Figures 2007 exposure. risk credit future potential of the estimation an As from onwards, the 2008 is credit risk related to exposure contracts the mark derivative • • • is: and management to the reported as way same in the is disclosed exposure risk Credit 1. 12.2.

total (in thousands of EUR) thousands (in Total of EUR) thousands (in omparative information in respect of previous period previous of respect in information omparative maximum amount Dexia Bank is committed to pay for the guarantees it has granted to third parties. to third granted has it guarantees the for to pay is committed Bank Dexia amount maximum the full commitment amount for off for amount commitment full the mark the balance for value carrying net the Includes supranational entities, like the European Central Bank. Central European the like entities, supranational Includes E E exposure Bank Dexia total of Analysis xposure xposure Dexia Bank Belgium – Annual Report 2008

(1) C re - to d it risks exposure - market value for derivatives contracts; derivatives for value market by by category geographical of - sheet assets other than derivative contracts (i.e. accounting value after deduction of specific impairment); of specific deduction after value accounting (i.e. contracts derivative than other assets sheet - counterpart - part whose weighted risk (for Basel regulations) is lower than that of the direct borrower, the exposure is reported is reported exposure the borrower, of that direct than the is lower regulations) Basel (for risk weighted whose part balance sheet commitments. The full commitment amount is either the undrawn part of liquidity facilities or the the or facilities liquidity of part undrawn the either is amount commitment full The commitments. sheet balance region - to - market market value. In 2007, it also an included add

248,033,940 248,033,940 29,405,382 42,580,367 21,326,684 48,146,922 23,198,053 58,145,892 14,703,679 99,811,740 98,937,195 21,655,120 11,151,379 5,584,285 2,072,083 2,530,215 4,671,435 4,138,295 6,031,017 31/12/07 31/12/07 31/12/07 562,088 323,550 749,195 315,110 28,194

- on representing on representing 256,965,884 256,965,884 113,447,716 84,609,439 48,663,079 19,409,265 28,025,758 42,262,172 10,645,176 31,185,562 17,031,857 61,002,711 25,111,324 6,346,895 3,308,841 1,254,687 1,865,836 4,766,042 1,624,009 5,036,977 7,093,047 31/12/08 31/12/08 749,031 472,101 20,243 Advances and and Advances O goodwill). collateral is Physical on of mainly or composed residential mortgages small business real commercial and estate on pledges (receivables, various other assets issuers). banking or The bulk of the financialis collateral of composed cash and collaterals and term todeposits, aof extent, lesser grade bonds (AAA investment granted commitments Guarantee Loan commitments granted instruments financial Other Derivatives investments maturity to Held cost) amortized (at advances and Loans securities) income variable (excluding trading for held assets Financial securities) income variable (excluding value fair at designated assets Financial securities) income variable (excluding sale for available assets Financial exposure sheet Off-balance instruments financial Other Loans and advances securities Debt at as restated. Figures not 31, were onwards. 2007 Dec. 2008 from as category instrument financial by exposure risk credit its of breakdown detailed a provide to decided Bank Dexia 2. Dexia Bank holds financial collateral and physical collateral. physical and collateral financial holds Bank Dexia Total Total of EUR) thousands (in (in thousands of EUR) thousands (in nly financial collateral eligible under Basel II and directly held by Dexia Bank are considered. For this reason, collateral held mainly covers Loans and and Loans covers mainly held collateral reason, this For considered. are Bank Dexia by held directly and II Basel under eligible collateral financial nly Credit risk exposure by class of financial instruments instruments financial of by class exposure risk Credit O ff - balance sheet commitments. sheet balance Annual Report 2008 – Dexia Bank Belgium

- 256,965,884 248,033,942 125,364,599 136,987,975 AA sovereigns sovereigns AA 12,233,384 41,448,092 40,462,731 37,828,066 69,973,228 31,339,139 4,228,490 3,955,907 31/12/08 31/12/07 973,605 113,966 90,644 125

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 126 sector. public in the active is mainly Bank Dexia as point by this is concerned operation major No 4. Moody’s). or & Poor’s Standard (Fitch, ratings on external based is calculated risk credit for which positions for ABS except II, I of Pillar Basel context the within risk for credit requirements of capital for are Ratings indicated the Internal Ratings either Based Approach) internal Dexia Bank or the ones. Indeed, (Advanced calculation applies AIRBA external granted commitments Guarantee Loan commitments granted instruments financial Other Derivatives Investments held to maturity cost) amortized (at advances and Loans securities) income variable (excluding trading for held assets Financial securities) income variable (excluding value fair at designated assets Financial securities) income variable (excluding sale for available assets Financial exposure sheet Off-balance instruments financial Other Loans and advances securities Debt impaired. nor due past neither assets financial of quality credit present they onwards, 2008 from as while impaired not assets financial of quality credit presented 31,figures Dec. 2007 at As at as Figures onwards. 2008 from restated. as not 31, were 2007 Dec. category instrument financial by exposure risk credit its of breakdown detailed a provide to decided Bank Dexia 3. (in thousands of EUR) thousands (in Total Total of EUR) thousands (in

Carrying value of financial assets with renegociated terms that otherwise should be past-due or impaired or past-due be should otherwise that terms renegociated with assets financial of value Carrying Credit quality of financial assets neither past due nor impaired nor due past neither assets financial of quality Credit Dexia Bank Belgium – Annual Report 2008

165,442,061 AAA 86,266,377 19,449,291 26,220,913 27,815,777 2,316,493 3,214,719 111,478 to 47,013 AA 0 -

170,962,044 AAA 24,058,062 A 13,286,684 36,225,335 52,494,672 69,697,052 85,671,193 8,482,537 9,472,836 1,541,075 + to BBB- to + 8,738,117 642,828 to 43,630 2,127 AA 0 - 31/12/08 investment investment A 14,660,520 59,316,593 16,274,492 27,414,585 11,153,257 12,511,147 1,306,380 1,826,720 + to BBB- to + 3,116,369 283,175 83,365 grade 7,318 N 31/12/07 305 on- on- 0 0 investment investment or unrated or 17,251,526 11,847,362 2,384,088 6,038,611 3,837,562 1,190,059 1,815,707 U 973,605 376,543 565,351 122,592 nrated 91,042 86,170 grade N on- on- 56 0

255,838,244 136,029,057 247,530,163 124,933,140 40,406,771 69,959,223 41,308,418 37,825,537 12,231,029 31,314,198 3,955,907 4,226,913 973,605 113,966 90,643 T T otal otal Other Other Investment property plant and Property equipment Loans and advances Debt instruments instrument Equity Cash N 6. As an example, if a counterparty fails to pay the required interests at due date, the entire loan is considered as past due. past as is considered loan entire the date, at due interests required the to fails pay a if counterparty example, an As by contract. isconsidered This due. contractually when tomake payment a has failed counterparty the when due past is asset A financial 5. instruments financial Other to maturity held Investments cost) amortized (at advances and Loans securities) income variable (excluding sale for available assets Financial Loans and advances securities Debt Cash represents collaterals obtained for derivatives for EUR 84 million while another EUR 109 million was obtained for a for tri obtained was 109 million EUR another while million 84 EUR for derivatives for obtained collaterals represents Cash the in obtained were of a tri framework instruments Debt bankruptcy. Brother’s Lehman of framework the in obtained collaterals are instruments debt and cash 2008, In of Codesecurities). (seizure and the Guarantees is Financial upon the Code of based Judicial (seizure property) methodology the adopted taken Concerning collateral into possession, “Impairments on financial assets”. financial on “Impairments made in as to according are impaired the the are policies determined Accounting description assets and mainly retail Financial corporate. Past due outstandings business (receivables, assets other various on goodwill). pledges and estate real commercial small or residential on mortgages of composed mainly are held Collaterals (in thousands of EUR) thousands (in Total Total Total (in thousands of EUR) of thousands (in EUR) of thousands (in ature

Information on past-due or impaired financial assets Collateral and other credit enhancements obtained by taking possession of collateral held of the - partite repo agreement with Euroclear. with agreement repo partite

assets

P P ast-due but not impaired financial assets financial impaired not but ast-due ast-due but not impaired financial assets financial impaired not but ast-due obtained 90 days ≤ 90 days ≤ 90 253,606 253,606 475,648 487,514 11,866 0 0 0 during 180 days ≤ 180 days ≤ 180 days > 90 days > 90 58,640 30,849 30,849 58,626 the 14 0 0 0 period > 180 days > 180 days > 180 by 54,077 53,850 18,706 18,706 taking 227 0 0 0 possession C C 31/12/08 31/12/07 arrying value of individually individually of value arrying arrying value of individually individually of value arrying impaired financial assets, assets, financial impaired impaired financial assets, assets, financial impaired before deducting any any deducting before before deducting any any deducting before of

impairment loss impairment loss a Annual Report 2008 – collateral 1,730,161 640,483 858,867 780,978 671,503 90,316 31,020 0

C C 31/12/07 - ollateral received on past past on received ollateral ollateral received on past past on received ollateral partite repo with Euroclear. with repo partite Dexia Bank Belgium 18,145 C due or impaired loans loans impaired or due due or impaired loans loans impaired or due 9,051 7,975 and debt instruments and debt instruments arrying value arrying 624 479 16 0 0

1,383,896 1,601,726 31/12/08 194,696 419,052 419,052 261,126 261,126 18,187 4,355 592 127 0 0 0 0 0 0

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements financial assets financial assessed collectively for allowances specific and assets financial on losses reported not but incurred for Allowances receivable accounts Other activities insurance from Assets assets financial assessed collectively for allowances specific and assets financial on losses reported not but incurred for Allowances receivable accounts Other activities insurance from Assets 128 (1) sale for available assets Financial to customers advances and Loans banks from due advances and Loans assets financial for individually assessed Specific allowances sale for available assets Financial to customers advances and Loans banks from due advances and Loans assets financial for individually assessed Specific allowances 7. Total (in thousands of EUR) thousands (in Total of EUR) thousands (in Of which equity instruments equity which Of instruments instruments equity which Of instruments Of which fixed income fixed which Of income fixed which Of Figures as of Dec. 31, 2007 have been restated. 31, been have of Dec. as 2007 Figures Allowances movements for credit losses losses credit for movements Allowances Dexia Bank Belgium – Annual Report 2008 (1) (1)

(486,486) (688,353) (584,492) (660,776) (450,875) (540,185) (103,861) (120,591) (94,330) (87,382) (72,925) (14,457) (96,152) Jan. 1, Jan. 1, Jan. (1,822) (1,078) A A 2008 2007 (850) (989) (865) s of s of s 0 0

U U tilization tilization 32,288 32,570 46,959 68,919 32,570 21,606 21,606 68,919 285 278 69 0 0 0 0 0 0 0 0 4 (1,712,528) (1,395,731) estimated estimated estimated estimated (1,133,367) A A probable probable set aside aside set set aside aside set (146,350) (505,681) (627,686) (122,376) (316,797) (106,119) mounts mounts mounts mounts (85,993) (97,580) (15,908) (12,838) (23,974) (78,781) (3,070) losses losses loan loan (337) (10) (12) for for for for 0 estimated estimated estimated estimated A A probable probable reversed reversed reversed reversed s t n u o m s t n u o m 96,499 84,985 89,297 33,327 45,723 93,972 69,425 19,626 51,294 19,632 losses losses 8,987 5,571 7,202 loan loan 236 353 for for for for 6 0 8 4 3 (16,560) (16,757) 25,346 (5,868) (1,503) (1,268) O O 8,509 8,467 3,093 4,327 1,234 (235) (397) ther ther 200 197 42 78 73 0 0 (2,248,265) (1,819,629) (1,165,128) (653,654) (428,636) (660,776) (450,875) (540,185) (120,591) (511,474) (477,121) Dec. 31, Dec. Dec. 31, Dec. (79,302) (87,382) (72,925) (97,499) (14,457) (1,078) A A 2008 2007 (850) (579) s of s s of s 0

recognized recognized R R ecoveries ecoveries ecoveries ecoveries in profit in profit directly directly directly directly or loss or loss 8,481 8,481 8,481 1,966 1,966 1,966 0 0 0 0 0 0 0 0 0 0 0 0 0 0

C C harges-offs harges-offs recognized recognized harges-off harges-off in profit in profit directly directly directly directly (10,716) (17,511) (17,511) or loss or loss (6,795) (5,077) (5,077) (5,077) 0 0 0 0 0 0 0 0 0 0 0 0 0

(1) 9. 8. The change in credit spread is not significant and credit risk is not hedged. not is risk credit and significant is not spread in credit change The payments. these with associated uncertainty the reflects that rate discount a at value present a to payments the discounting and assets the from flows cash future of the amount the fair of by value the loans calculating estimates Bank Dexia to risk. credit exposure the maximum is to held mitigate derivative credit No

(in thousands of EUR) thousands (in of EUR) thousands (in 2008 A 2007 A 2008 A 2007 A (in thousands of EUR) thousands (in of EUR) thousands (in

s of Dec. 31, s Dec. of 31, s Dec. of 31, s Dec. of 31, s Dec. of This amount includes the premium/discount and the change in the market value. value. market the in change the and premium/discount the includes amount This Credit risk information about financial liabilities designated at fair value through profit or loss loss or profit through value fair at designated liabilities financial about information risk Credit loss or profit through value fair at designated loans for information risk Credit

exposure to to exposure to exposure M M credit credit risk credit risk aximum aximum 718,101 59,914

credit derivatives mitigate the the mitigate derivatives credit the mitigate derivatives credit A A maximum exposure to credit credit to exposure maximum credit to exposure maximum mount by which any related related any by which mount related any by which mount risk declared in in declared risk in declared risk exposure to credit risk credit to exposure risk credit to exposure

C C arrying value arrying value arrying M M 9,003,295 5,091,349 aximum aximum aximum 0 0 in the credit risk of the liability the of risk credit the in liability the of risk credit the in value attributable to changes changes to attributable value changes to attributable value A A of the period the of period the of of the period the of period the of mount of change in the fair fair the in change of mount fair the in change of mount in the loans at fair value value fair at loans the in value fair at loans the in attributable to changes changes to attributable changes to attributable through profit and loss loss and profit through loss and profit through A A C C C C in the credit risk credit the in risk credit the in (59,797) mount of change change of mount change of mount hange hange hange hange hange hange 0 0 0

Annual Report 2008 – C C C C umulative umulative umulative umulative umulative umulative amount amount amount amount (59,797)

0 0 0

derivative or similar instrument instrument similar or derivative instrument similar or derivative which mitigate the maximum maximum the mitigate which maximum the mitigate which A A carrying value and contractual contractual and value carrying contractual and value carrying of the period the of period the of value of any related credit credit related any of value credit related any of value mount of change in the fair fair the in change of mount fair the in change of mount credit credit risk exposure credit risk exposure value required to be paid paid be to required value paid be to required value Dexia Bank Belgium C C hange hange hange Difference between between Difference between Difference 0 0

at maturity at maturity C C umulative umulative umulative amount amount 83,699 (4,800) 129 (1) (1) 0 0

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 130 was amount reimbursement 31, of Dec. as 31, billion 2008. of Dec. as 28.6 agreements EUR and billion 2007 23.4 EUR Repurchase restated. therefore were 31, 2007 Dec. of as Figures borrowed. effectively amount the to limited not is amount Carrying Bank. Central European the to and banks central to debts and agreements repurchase collateralize to pledged mainly are Assets collateral as pledged assets Financial conditions the 2. determine which Contracts activities. lending bond of and activities agreement practice. market is a common Repledge repurchase department. of framework the either are repledge within of obtained are Collaterals assets Non-financial Loans and advances Debt instruments instrument Equity N 1. 12.3. (in thousands of EUR) thousands (in Total (in thousands of EUR) thousands (in ature

Information on financial assets pledged as collateral collateral as pledged assets financial on Information repledged or sold be can collateral this if collateral as received assets the of Nature Dexia Bank Belgium – Annual Report 2008

I nformation ab of the assets O verseas Securities Lending Agreement ( Agreement Lending Securities verseas received out collaterals as

F collateral air value of collateral collateral of value air C pledged assets financial of value arrying C ollateral received as of Dec. 31, 2007 Dec. of as received ollateral as collateral as of Dec. 31, 2007 Dec. of as collateral as F or liabilities 67,525,542 67,525,542 67,180,233

held O 0 0 0 SLA) – possibly amended by the legal department or the ones written by the legal legal the by written ones the or department legal the by amended possibly – SLA) F air value of collateral collateral of value air F sold/repledge or contingent contingent or 67,525,542 67,525,542 liabilities 0 0 0 0 F air value of collateral collateral of value air C pledged assets financial of value arrying C ollateral received as of Dec. 31, 2008 Dec. of as received ollateral as collateral as of Dec. 31, 2008 Dec. of as collateral as F or liabilities 137,441,594 27,830,079 21,134,549 1,099,836 5,595,694 held 0 F air value of collateral collateral of value air F sold/repledge or contingent contingent or 20,587,840 20,587,840 liabilities 0 0 0 0 (1) sale for held assets Non-current Other assets Tax assets goodwill and assets Intangible assets fixed Tangible in associates Investments hedge portfolio of revaluation Fair value Derivatives to maturity held Investments sale for available assets Financial value fair at designated assets Financial for trading held assets Financial to customers advances and Loans banks from due advances and Loans banks central with balances and Cash 1. 12.5.). note (see sensitivity ALM in observed the is realized on approach based latter This data. assumptions behavioral on than rather standpoint, accounting an from reset are rates interest which at date next the until maturity remaining in are the presented column “At deposits Current and savings accounts takes into below sight and account the on presented as demand” the information 12.4. (in thousands of EUR) thousands (in Total

An amount of EUR 22,294 thousand representing operational taxes is transferred from “Tax assets” to “Other assets”. “Other to assets” “Tax from transferred is taxes operational representing thousand 22,294 of EUR amount An Assets

Interest-rate repricing risk: (1) (1)

28,462,441 10,568,553 10,443,137 1,323,867 4,905,195 demand 1,011,139 A and on on and 199,441 t sight sight t 1,535 9,574 102,171,385 11,798,205 3 months 61,310,475 21,118,766 7,355,911 455,301 109,722 23,005 U b p to p reak 0

M 26,032,964 14,786,377 3 months 3 months to 1 to year 6,865,906 3,678,349 ore than than ore d 605,237 o 42,786 37,594 16,715 w n 0 by M 27,386,337 19,315,641 1 year to to 1 year ore than than ore 7,387,469 remaining maturit 5 years 400,183 181,646 82,354 15,173 3,871 0

23,545,795 54,627,021 28,116,690 1,843,008 5 years 5 years 997,055 120,102 O 4,371 31/12/07 ver 0 0 11,164,437 U maturity 4,374,494 2,798,311 1 ndeter , 486,329 6 680,793 135,953 4 2 2 mined mined 2 3 9 9 16,150 1 y 8 2 7 7 7 , , , , , until next refixing interest-rate 2 0 4 2 3 5 3 3 9 9 Annual Report 2008 – 7 2 2 0 5 1 0 -

3,577,232 1 A interest , 890,549 373,489 437,894 7 ccrued ccrued 86,498 7 3,209 6,701 1 7,774 , 1 0 12 0 6

F 11,978,147 1 air value value air 3 (566,293) (494,497) ( 1 adjust , (35,968) 1 0 7 ment 9 8,306 4,533 1 , , 8 9 Dexia Bank Belgium 4 1 9 0 5 0 0 0 -

)

(702,436) (571,465) I ( mpair (87,382) 3 (1,936) ( ment 8 3 , , 5 1 0 4 8 5 0 0 0 0 0 0 0 - )

)

264,697,528 80,205,945 79,269,848 64,347,598 1 6,909,359 4 9,285,781 4,912,969 1 2,171,792 ( , , 1 6 9 4 130,310 2 2 0 2 5 4 9 1 2 T 9 8 d 8 3 7 7 9 otal , , , , , , 8 , 0 4 7 3 0 ate 1 131 4 3 2 9 2 9 1 9 1 2 2 2 1 7 )

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 132 (1) gap sensitivity sheet On-balance 3. liabilities Other Tax liabilities other obligations and Provisions companies insurance of Technical provision Subordinated debts securities Debt Derivatives value fair at designated liabilities Financial for trading held liabilities Financial and deposits borrowings Customer to banks Due 2. The balance The (in thousands of EUR) thousands (in (in thousands of EUR) thousands (in Total

An amount of EUR 56,960 thousand representing operational taxes is transferred from “Tax liabilities” to “Other liabilities”. “Other to liabilities” “Tax from transferred is taxes operational representing thousand 56,960 of EUR amount An Net position Net Liabilities Dexia Bank Belgium – Annual Report 2008 - sheet sensitivity gap is hedged through derivatives. through is hedged gap sensitivity sheet (1)

(1)

135,118,904 71,507,545 59,791,075 2,280,439 1,526,041 demand A and on on and t sight t 6,528 7,226 50

(106,656,463) 10,484,748 35,395,412 59,133,378 3 months 11,708,375 218,525 651,034 277,633 397,651 U demand A and on on and p to p t sight t

M 14,665,622

3 months to 1 to year 5,543,380 5,086,871 2,798,530 than ore 995,677 118,379 54,257 68,528 43,038,007 3 months U M 10,225,802 p to p to 1 year than ore 7,276,952 5 years 472,904 987,450 421,780 971,530 92,928

2,258 11,367,342 31/12/07 M 3 months 2,206,644 3,772,466 to 1 to year 1,152,001 than ore 5 years 5 years 333,603 50,990 20,949 O 5,522 2,757 31/12/07 ver 20,865,686 1 U maturity 4 4,324,190 , ndeter 144,240 349,242 M 9 17,160,535 9 mined mined 2 53,407 7 42,417 47,374 0 to 1 year than ore 9 3 1 , , 5 years , 9 2 6 6 4 1 3 3 0 0 ­

4,252,843 2 A interest , 386,300 239,042 8 ccrued ccrued 712,187 36,806 69,777 0 2,259 4,769 1 , 7 50,854,555 0 3

5 years 5 years F 1 11,277,266 O air value value air 1 (283,644) , ver 5 adjust- 0 59,180 (3,960) ment 5 (684) , 984 2 186 U 0 0 4 ndetermined

259,311,967 113,091,738 (9,701,249) 26,820,484 1 1 76,079,030 2,968,845 4 maturity 4 3,087,464 5,091,350 1,961,333 , , 3 9 9 0 2 7 0 T 9 3 6 1 otal , , , , 9 9 2 6 6 4 0 1 3 3 0 7 On-balance sheet sensitivity gap sensitivity sheet On-balance 3. liabilities Other Tax liabilities other obligations and Provisions companies insurance of Technical provision Subordinated debts securities Debt Derivatives value fair at designated liabilities Financial for trading held liabilities Financial and deposits borrowings Customer to banks Due 2. sale for held assets Non-current Other assets Tax assets goodwill and assets Intangible assets fixed Tangible in associates Investments hedge portfolio of revaluation Fair value Derivatives to maturity held Investments sale for available assets Financial value fair at designated assets Financial for trading held assets Financial to customers advances and Loans banks from due advances and Loans banks central with balances and Cash 1. The balance sheet sensitivity gap is hedged through derivatives. through is hedged gap sensitivity sheet balance The (in thousands of EUR) thousands (in Total Total (in thousands of EUR) thousands (in (in thousands of EUR) thousands (in

Net position Net Liabilities Assets

36,490,626 24,924,534 10,614,930 90,600,858 demand 48,349,247 A 40,725,143 and on on and 1,202,205 467,364 106,707 demand 367,651 t sight sight t A 288,877 and on on and t sight t 8,528 35,386 912 0 0 0

63,099,991 3 months 35,329,630 17,411,116 6,847,385 3,310,920 13,833,496 59,153,940 3 months 82,711,148 (54,110,232) 1,944,691 18,869 84,561 7,353,849 U 87,514 9,996 200,346 221,070 p to p U demand A 3,756 and on on and p to p t sight t

M 16,100,360 3 months 3 months to 1 to year ore than than ore

8,731,013 1,612,781 4,787,134 826,468 M 18,483,624 74,337 59,702

3 months to 1 to year 5,256,660 8,925 2,808,551 than ore 3,744,436 5,713,117 861,365 44,563 54,932 0 (19,611,157) M 32,445,632 3 months 23,571,769 1 year to to 1 year ore than than ore 8,314,226

5 years 273,432 222,591 49,305 14,309 U M p to p to 1 year 1,394,644 than ore 6,601,561 3,565,757 5 years 774,602 765,139 0 0 32,828 60,520

8,071 42,362,080 69,313,552 25,917,494 5 years 5 years 395,044 255,905 292,155

90,874 (2,383,264) O 31/12/08 31/12/08 M ver 3 months 1,321,080 to 1 to year than ore 0 0 5 years 5 years 554,034 265,239 240,746 100,418 65,277 70,259 25,107 O 31/12/08 12,155,367 U maturity 1 4,542,229 2,843,533 1 ver , ndeter , 3 665,406 1 5 742,768 2 mined mined 6 5 66,435 2 2 2 4

3 9 1 7 , , , , , 0 2 0 2 4 22,005,036 4 3 5 5 1 Annual Report 2008 – 1 U maturity 2 6 2 4 2 0 0 0 - 6 3,197,690

ndeter 25,844,071 , M 635,243 387,595 7 9 mined mined 55,666 12,631 7 1 3 to 1 year than ore 3,722,201 2 1 1 A 1 interest , , , 5 years , 6 7 6 132 359,032 630,014 771,930 9 ccrued ccrued 5 5 37,805 7 1 3,289 6,339 3 0 4 2 3 ­ ,

0 727 5 12 0 3

4,904,607 3 A interest , F 342,408 32,076,431 184,990 4 748,061 3 ccrued ccrued (1,043,120) air value value air 60,885 6 1 98,713 1 (768,724) , 2,860 4 , 2,214 adjust 9 390,650 5 (40,471) , 2 4 4 ment 61,119 67,992,472 8,546 6 1 7 , , 6 9 5

Dexia Bank Belgium 0 2 adjustment 5 years 5 years 0 5 6 0 0 -

32,952,606 3 (2,311,271) O (1,165,128) 2 (856,803) (146,453) I ver , ( mpair (79,890) 8 (87,622) 117,766 5 82,867 3 ( ment value value (3,213) 6 6 1,806 3,776 7 , , , 8 air Fair 1 2 4 4 U 2 8 9 0 0 0 0 0 0 - 6 0 ndetermined ) )

259,580,520 263,092,889 104,027,770 (9,849,669) 103,520,175 3 69,815,391 44,466,752 1 3 17,349,142 65,793,492 9,003,296 maturity 3,224,965 1,920,640 6 1 1 6 1,062,585 3 4,142,292 1 4,913,916 , , , , , , 3 0 221,535 3 489,522 7 9 8 5 5 2 6 9 7 1 0 90,672 3 3 2 2 4 2 T T 4 2 1 6 1 1 9 1 1 3 7 otal otal , , , , , , , , , , , 6 7 7 0 6 3 0 1 9 5 4 133 0 5 5 4 0 7 8 5 2 5 1 2 4 2 3 4 7 2 4 2 5 9

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements (5) 134 (4) (3) (2) (1) Global factor risk By Global factor risk By A. VaR. spread credit – a historical desks trading for – only and method a on historical VaR based (vs. million 50.9 EUR to an 10Equity amounted (99% days), method Risk on VaRRate and parametrical FX based an mainly in Interest at 2008 Bank calculated Dexia Value below). (see part the banking for average sensitivity in TFM’s followed are the which exposure denominated 2008, Bond Finance In Public the and CSP below. portfolios the table include doesn’t the It 2007). in in million 25.0 EUR disclosed is Bank Dexia of usage VaR detailed The at Value in run put been have which portfolios, Bond Finance Public and (CSP) Portfolios Spread Credit manages also TFM in trading. risk the of dd Risk Committee 7,policy TFM November activities, reorientation to decided 2008 reduce VaR limits of in TFM, especially the fieldof credit spread as well as non activities trading assumes TFM Group. the for function a as support oriented mainly are Bank of Dexia activities (TFM) Markets Financial and Treasury The 1. ­ Long • exposure denominated Bond Finance Public and (CSP) portfolio spread credit for sensitivity ­ Spread delegated) Management Liabilities and / Asset (CLM) Management Liquidity and Credit (including ­ Value at Risk • follows: as presented are measures risks’ Market 12.5. •

Va Va (in millions of EUR) millions (in of EUR) millions (in - ALM interest ALM Treasury Financial Market activities ALM equity exposure – Listed shares sensitivity shares – Listed exposure equity ALM Insurance sensitivity of DIS of sensitivity Insurance

Limit Maximum Average Maximum Average Limit Maximum Average Maximum Average IR & FX: without ALM LT (local and directional). and LT (local ALM without & FX: IR Other risks: inflation, commodities & CO commodities inflation, risks: Other EQT: equities. forex. FX: rate. interest IR: V activities Market Financial and Treasury R R alue Dexia Bank Belgium – Annual Report 2008 (10d, 99%) (10d, 99%) (10d,

M - Value at Risk and sensitivity ALM term arket risk & ALM & risk arket R isk (99%, 10 days) (in millions of of millions (in 10 days) (99%, isk at - R rate risk rate isk

( ( 10.3 13.0 11.6 T T 9.8 1Q 1Q rading and Banking) rading and Banking) - life IR IR 10.9 12.5 15.9 16.1 2 . 2Q 2Q (1) (1) & & FX FX 10.3 13.0 (2) (2) - 9.9 7.3 3Q 3Q trading risk positions that from arise risk trading short positions

EUR 18.3 14.3 12.7 (5) (5) ) 9.4 4Q 4Q 13.4 4.3 6.4 9.0 1Q 1Q 10.3 Trading Trading 5.2 9.5 6.1 2Q 2Q EQT EQT (3) (3) 16.0 11.8

8.9 6.7 3Q 3Q 14.1 9.3 5.5 4Q 4Q 7.6 2008 2007 - 50.9 43.7 89.1 25.0 87.2 97.2 term balance sheet and capital management activities. Following Following activities. management term and sheet balance capital 24.4 26.9 6.8 5.4 1Q 1Q S S pread pread 38.5 49.7 5.7 4.1 2Q 2Q T T rading rading 48.0 32.6 21.5 6.8 3Q 3Q 22.4 25.6 19.9 61.8 4Q 4Q 3.5 0.0 0.0 1.8 1Q 1Q - off. O O ther risk ther risk 2.4 0.0 0.0 1.3 2Q 2Q 3.2 2.6 0.0 0.0 3Q 3Q (4) (4) 3.9 2.7 0.7 4Q 4Q 7.5

(2) (1) exposure denominated bond finance Public book) (CSP-banking portfolio Credit spread increase. spread point a basis after in fair value sensitivity the estimates sensitivity spread credit The C rate. of interest to change sensitivity limited a very has it Therefore, spread. The interest I exposure denominated bond finance Public book) (CSP-banking portfolio Credit spread A exposure denominated bond finance Public book) (CSP-banking portfolio Credit spread E B. nterest-rate sensitivity nterest-rate (in millions of EUR) millions (in of EUR) billions (in xposure redit spread sensitivity verage rating verage This is the part of public finance business operated in bond format and not only via loans; the main assets classes are local authorities and public sector related bodies. related sector public and authorities local are classes assets main the loans; via only not and format bond in operated business finance of public part the is This ABS. and MBS bonds, covered banks, are classes assets main The C redit - rate rate risk of the “Credit and Spread Portfolio” the is “Public as portfolio” Finance hedged, exposure bond is its denominated purpose the credit spread portolio P and ublic (1) (2) finance bond denominated ( exposure Annual Report 2008 – banking book

only Dexia Bank Belgium (12.9) 2007 2007 2007 30.2 AA- AA- (7.0) ) 8.8

(12.2) 2008 2008 2008 29.9 (6.2) AA 6.8 A+ 135

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 136 (3) (2) (1) Insurance ALM companies Banking Insurance ALM companies Banking 12.4.). note (see date repayment legal on not and customers of our of until residual maturity interest refixing next the calculation, For portfolio the sensitivity curve. entire the by 1% rise across rates interest if value economic net sheet balance in the change the measures sensitivity The Long A. 2. B. (in millions of EUR) millions (in of EUR) millions (in

VaR 10d, 99% VaR 10d, Sensitivity 99% VaR 10d, Sensitivity 99% VaR 10d, Sensitivity 99% VaR 10d, Sensitivity Sensis to 1 bp shift. 1 to bp Sensis 1%to shift. Sensis excluded. CLM and delegated ALM L ALM interest-rate risk B ong anking - Dexia Bank Belgium – Annual Report 2008 term ALM falls under the direct decision and control authority of the ALC of the authority control and decision direct the under falls ALM term - ALM ALM term

and

insurance interest (1) (1)

- companies rate

(204.0) risk (64.0) 56.0 10.0 61.0 9.0 1Q 1Q – ALM – ALM exposure

I I nterest nterest rate nterest nterest rate (98.0) (37.0) 62.0 79.0 8.0 5.0 2Q 2Q

(62.0) (23.0) 54.0 90.0 8.0 9.0 3Q 3Q (2) (2)

sensitivity (90.0) (38.0) 147.0 57.0 8.0 6.0 4Q 4Q

Group (ALM Committee), which meets on a monthly basis. a on monthly meets which Committee), (ALM O Group 104.0 237.0 66.0 73.0 1Q 1Q DIS- of - rate rate date is onbehavior using defined assumptions the observed 205.0 106.0 58.0 73.0 2Q 2Q E E 2008 2007 quity quity life 144.0 190.0 54.0 78.0 3Q 3Q 225.0 170.0 55.0 69.0 4Q 4Q (9.0) (9.0) 1Q 1Q

C C redit spread redit spread (9.0) (9.0) 2Q 2Q

(8.0) (9.0) 3Q 3Q (3) (3)

(10.0) (8.0) 4Q 4Q December 31, 2008 December 2008 30, September 2008 30, June 31, 2008 March 31, 2007 December 2007 30, September 2007 30, June 31, 2007 March B. 31, 2008 December 2008 30, September 2008 30, June 31, 2008 March 31, 2007 December 2007 30, September 2007 30, June 31, 2007 March A. Committee. Default by the shares individual these on is pronounced The the in of days. 10 period holding a and for impact 99% of of confidence the measures (EaR) level a with Risk at experienced be can that Earnings loss potential the of measure a Equity is Bank Dexia by the VaR calculated Equity whereas The VaR materializes. value, the if result market accounting in change potential the measures (VaR) Risk at Value Equity The 3. (in millions of EUR) millions (in of EUR) millions (in

I B sensitivity shares – Listed exposure equity ALM - nsurance 25% column represents 25% the that column impairment could represents be in recorded if accounting results there is a in decline value of 25% and if a impairment structural anking

companies

companies (ALM

portfolio portfolio )

M M arket value arket value 2,236 1,004 2,397 2,030 2,635 1,985 2,451 1,601 1,727 906 600 898 298 663 424 811 Va Va 205 104 106 144 237 225 190 170 54 58 66 78 69 73 73 55 R R Annual Report 2008 – % Va % Va % 18.4% 12.2% 12.7% 11.0% 14.1% 6.0% 6.4% 6.4% 5.2% 6.9% 8.6% 9.0% 8.5% 9.6% 7.3% 7.7% R R Dexia Bank Belgium (440) (369) (307) (153) Ea Ea (99) (46) (36) (23) (71) (71) (17) (11) (3) (1) (1) R R 0 -25% -25% (628) (248) (796) (763) (597) (133) (125) (48) (85) (65) (37) (91) (91) (18) (19) (11) 137

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 138 (1) sale for held assets Non-current Other assets Tax assets goodwill and assets Intangible assets fixed Tangible in associates Investments hedge portfolio of revaluation Fair value Derivatives to maturity held Investments sale for available assets Financial value fair at designated assets Financial for trading held assets Financial to customers Loans and advances banks from due Loans and advances banks central with Cash and balances 1. date. repayment fixed no have they “At though column even in the demand” on and included sight are deposits savings and Current accounts Management”. “Risk Report, crisis. Management to Wethe refer capacity. liquidity funding and secured proven its financial exceed never should current needs funding the future of light the in reviewed been has management risk liquidity to approach Bank’s Dexia 12.6. Total (in thousands of EUR) thousands (in

An amount of EUR 22,294 thousand representing operational taxes is transferred from “Tax assets” to “Other assets”. “Other to assets” “Tax from transferred is taxes operational representing thousand 22,294 of EUR amount An Assets Dexia Bank Belgium – Annual Report 2008

Liqui (1) d (1) it y

risk:

b

26,636,230 reak 10,568,522 9,926,602 4,905,195 1,193,048 demand A and on on and t sight sight t 41,328 1,535 Breakdown of gross amount and premium/discount and amount gross of Breakdown d o 0 0 w 71,209,258 60,099,417 3 months n 1,729,064 9,182,079 120,789 by 23,005 39,904 15,000 U p to p resi 0

19,481,941 3 months 3 months d to 1 to year 8,030,488 3,949,966 7,322,794 ual maturit 42,446 81,589 37,943 16,715 M than ore 0

to 5 to years 26,758,615 13,785,023 11,339,616 523,800 535,509 488,012 1 year 82,354 M 4,301 than ore y 0

38,964,963 44,216,687 94,205,103 8,900,825 1,950,380 5 years 5 years 127,588 44,660 O 31/12/07 ver 0 0 11,553,438 U maturity 2,834,063 4,374,494 1 ndeter , 486,329 290,026 6 135,953 4 2 760,166 2 mined mined 2 3 9 9 1 8 2 7 7 7 , , , , , 2 0 4 2 3 5 3 3 9 9 0 2 2 0 7 5 1 -

3,577,232 1 A interest , 890,549 373,489 437,894 7 ccrued ccrued 86,498 7 3,209 6,701 1 7,774 , 1 0 12 6 0

adjustment 11,978,147 1 3 (566,293) (494,497) ( 1 , (35,968) 1 0 7 value value 9 8,306 4,533 1 , air Fair , 8 9 4 1 9 5 0 0 0 0

)

(702,436) (571,465) O I ( mpair (87,382) 3 verall policy is that its its that is policy verall (1,936) ( ment 8 3 , , 5 1 0 4 8 5 0 0 0 0 0 0 0 -

) )

264,697,528 80,205,945 79,269,848 64,347,598 1 6,909,359 4 9,285,781 4,912,969 1 2,171,792 ( , , 1 6 9 4 130,310 2 2 0 2 5 4 9 1 2 T 9 8 8 3 7 7 9 otal , , , , , , 8 , 0 4 7 3 0 1 4 3 2 9 2 9 1 9 1 2 2 2 7 1 ) central banks in case of liquidity need. of liquidity in case banks central This table does not take into account the liquidity nor the eligibility to refinancing the asset; some listed long listed some asset; the to refinancing eligibility the nor liquidity the into take not account does table This (1) Net liquidity gap liabilities Other Tax liabilities other obligations and Provisions companies insurance of Technical provision Subordinated debts securities Debt Derivatives value fair at designated liabilities Financial trading for held liabilities Financial and deposits borrowings Customer to banks Due 3. 2. (in thousands of EUR) thousands (in Total (in thousands of EUR) thousands (in

An amount of EUR 56,960 thousand representing operational taxes is transferred from “Tax liabilities” to “Other liabilities”. “Other to liabilities” “Tax from transferred is taxes operational representing thousand 56,960 of EUR amount An Net liquidity gap liquidity Net Liabilities (1)

(1)

A on demand t sight and and sight t 134,807,086 71,443,956 59,776,923 1,296,044 2,277,960 4,977 7,226 Breakdown of gross amount and premium/discount and amount gross of Breakdown 0 0

(108,170,856) 55,031,592 A 3 months 34,142,183 11,310,744 8,683,462 on demand t sight and sight t 135,273 397,642 277,706 84,582 U p to p 0

M 12,936,339

3 months to 1 to year 2,825,281 than ore 4,536,106 3,781,541 200,000 995,677 458,795 56,663 82,276 16,177,666 3 months U M to 5 to years 15,662,140 p to p 8,540,635 3,448,814 1,343,630 than ore 590,957 501,498 472,959 761,390 1 year

2,257 31/12/07 6,545,602 M 10,873,400 18,418,772 3 months 4,279,574 to 1 to year 1,847,012 than ore 998,546 5 years 5 years 347,103 64,853 O 5,526 2,758 31/12/07 ver U maturity 6,925,929 Annual Report 2008 – 1,024,487 4,324,190 ndeter 144,240 349,242 M 11,096,475 9 mined mined to 5 to years 46,806 53,407 7 0 than ore 8,001 3 1 , , 9 6 1 year 4 1 - 3 3 0 ­ term assets may be sold or refinanced with with refinanced or sold may be assets term

4,252,843 2 A interest , 386,300 239,042 8 ccrued ccrued 712,187 36,806 69,777 0 2,259 4,769 1 , 7 75,786,331 0 3

Dexia Bank Belgium adjustment 5 years 5 years 1 11,277,266 O 1 (283,644) , ver 5 0 59,180 (3,960) value value 5 (684) , air Fair 984 2 186 U 0 0 4 ndetermined

259,311,967 113,091,738 26,820,484 1 14,929,260 76,079,030 4,627,509 2,968,845 maturity 4 3,087,464 5,091,350 1,961,333 , 3 9 0 7 0 T 3 6 1 otal , , , 9 9 6 4 0 1 139 3 3 7

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 140 liabilities Other Tax liabilities other obligations and Provisions companies insurance of Technical provision Subordinated debts securities Debt Derivatives value fair at designated liabilities Financial trading for held liabilities Financial and deposits borrowings Customer to banks Due 2. sale for held assets Non-current Other assets Tax assets goodwill and assets Intangible assets fixed Tangible in associates Investments hedge portfolio of revaluation Fair value Derivatives to maturity held Investments sale for available assets Financial value fair at designated assets Financial for trading held assets Financial to customers Loans and advances banks from due Loans and advances banks central with Cash and balances 1. Total Total (in thousands of EUR) thousands (in (in thousands of EUR) thousands (in

Liabilities Assets Dexia Bank Belgium – Annual Report 2008

A on demand 24,625,220 35,109,285 t sight and and sight t 9,850,720 demand 40,660,829 48,046,819 A 90,125,092 105,448 and on on and 467,364 1,129,250 t sight sight t 59,911 268,877 19,317 Breakdown of gross amount and premium/discount and amount gross of Breakdown 622 0 0 Breakdown of gross amount and premium/discount and amount gross of Breakdown 0 0 0 43,437,705 31,287,277 10,911,944 3 months 1,058,091 58,451,366 75,001,767 3 months 13,758,913 18,869 84,474 67,053 2,315,564 U 9,997 202,018 p to p 237,724 27,724 U 3,748 4,710 p to p 0

13,691,849 3 months 3 months to 1 to year 1,405,840 6,328,144 5,284,120

528,734 M 61,044 74,337 11,798,481 3 months M to 1 to year 9,630 than 5,263,242 2,624,989 2,795,204 than ore ore 133,866 718,654 159,479 44,408 58,639 0

to 5 to years 32,903,659 19,327,250 11,456,317 1,563,168 493,306 1 year 49,308 14,310 M M than to 5 to years 15,216,332 3,958,788 than ore 6,829,750 ore 1,751,544 2,181,956 341,582 0 0 1 year 84,062 60,570

8,080 56,272,849 28,997,006 92,136,492 3,717,060 2,671,211 5 years 5 years 387,492 90,874 O 31/12/08 31/12/08 ver 23,393,168 11,768,406 1,689,994 3,277,881 1,089,174 5,123,166 0 0 5 years 5 years 100,530 278,740 65,277 12,326,538 O U 1 maturity 4,542,229 2,925,904 1 ver , ndeter , 3 665,407 1 5 742,769 2 mined mined 6 5 88,798 66,435 2 2 2 4 3 9 1 7 , , , , , 0 2 0 2 4 4 3 5 5 1 U maturity 6 2 4 2 2 0 0 1,453,968 6,188,467 - 3,197,690

ndeter 455,162 9 mined mined 55,694 28,785 7 12,631 1 3,722,201 1 2 1 A interest , , , 359,032 630,014 9 6 7 771,931 132 ccrued ccrued 37,805 1 5 5 6,338 3,289 3 0 2 3 ­ ,

0 727 5 12 0 3

adjustment 4,904,607 3 A interest , 32,076,431 3 4 184,990 342,407 748,061 ccrued ccrued (1,043,120) 1 60,885 6 1 98,712 (768,723) , , 4 2,861 2,214 9 390,650 5 (40,472) , 2 4 4 value value 61,119 8,546 6 1 7 , , air Fair 7 9 5

0 2 adjustment 0 5 6 0 0

32,952,606 (2,311,271) 3 (1,165,128) 2 (856,803) (146,453) I , ( (79,890) mpair 8 5 (87,622) 117,766 82,868 ( 3 ment value value 6 (3,213) 6 1,806 3,776 7 , , 8 , 1 air Fair 2 4 4 2 8 9 0 0 0 0 0 0 - 5 0 ) )

263,092,889 259,580,520 104,027,770 103,520,175 44,466,752 3 65,793,492 3 69,815,391 16,731,674 17,349,142 1 9,003,296 1 3,224,965 1,062,585 3 1,920,640 6 4,142,292 1 4,913,916 , , , , , 3 0 489,522 8 5 5 221,535 3 9 2 6 9 90,672 3 2 2 7 4 1 0 2 T T 4 6 9 1 1 2 1 3 1 7 otal otal , , , , , , , , , , 0 3 0 1 9 5 6 7 7 4 4 0 8 5 0 5 2 5 5 1 7 4 4 2 2 5 9 2 2 3 central banks in case of liquidity need. of liquidity in case banks central DIS is active in life (more than 89% of gross premium written) and nonlife activities and has no major concentration of risks. Some of the risks are reinsured reinsured are risks the of Some risks. of concentration major no has and activities nonlife and written) of of insurance change risks Bank, and Dexia activities total with premium comparison in activities DIS of size the and gross risks the of of part a of reinsurance the 89% activities, its of Because than 9.3.). note (see (more life in active is DIS reinsurance and “11. Insurance policies Accounting (see (DIS) Group Services activities”). Insurance Dexia by Bank Dexia in performed are activities Insurance 12.8. equity and Total liabilities Total assets equity and Total liabilities Total assets 12.7. Net liquidity gap 3. This table does not take into account the liquidity nor the eligibility to refinancing the asset; some listed long listed some asset; the to refinancing eligibility the nor liquidity the into take not account does table This The on The (in thousands of EUR) thousands (in N N (in thousands of EUR) thousands (in (in thousands of EUR) thousands (in et on- et on- et Net liquidity gap liquidity Net

C Insurance risks - balance position is hedged by derivatives, so that nearly all foreign exchange positions are closed. are positions exchange foreign all nearly that so by derivatives, is hedged position balance urrenc b b alance position alance position alance y risk - technical variables will not have a significant impact on the financial position of Dexia Bank. Dexia of position financial the on impact a have significant not will variables technical

A (55,015,807) on demand t sight and sight t

202,370,983 193,490,477 206,720,937 209,704,719 (31,564,062) 8,880,506 2,983,782 3 months U EUR EUR p to p

EU EU 23,923,292 12,423,582 16,064,101 24,109,177 1,893,368 currencies currencies 3,640,519 M 3 months 185,885 to 1 to year than ore O O 31/12/08 ther ther

Annual Report 2008 – 31/12/08 31/12/07 (10,602,474) 40,858,894 32,099,236 M 40,821,188 30,218,714 (8,759,658) 17,687,327 to 5 to years than ore 1 year - US US term assets may be sold or refinanced with with refinanced or sold may be assets term D D 68,743,324 5,224,833 1,536,083 6,462,571 3,089,476 7,998,654 2,135,357 Dexia Bank Belgium 5 years 5 years O O O ther ther ver U ndetermined 263,092,889 263,092,889 264,697,528 264,697,528 6,138,071 maturity T T otal otal 141 0 0

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements Deductions and prudential filters prudential and Deductions liabilities Subordinated Perpetuals 142 (4) (3) (2) (1) ratio adequacy Capital 1 capital Tier regulatory Hybrid filters prudential and Deductions 2. Participation Discretionary companies. to insurance relate statements. only Features financial these in published are those from companies differ insurance interests minority purposes, Therefore, method. regulatory equity For the by adequacy”. for accounted “Capital policies Accounting in described are requirements regulatory on Comments contracts insurance of features participation Discretionary interests Minority equity Total shareholders’ 1. 12.9. Operational risk Operational Market risk Credit risk 1) Tier in (eligible interests Minority – Group adjustments translation Cumulative equity shareholders’ Core This table is presented differently from 2007. from differently is presented table This to 8%. equal at least be must Ratio Adequacy Capital reported. periods the for rules capital regulatory all with complied has Bank Dexia Tier 1 ratio Tier (in thousands of EUR) thousands (in Total equit S Weighte of EUR) thousands (in Add T T of EUR) thousands (in

otal regulator v ol ier 1 capital ier of income statement the in recognized not losses and gains which Of equity core which Of Tier 1 ratio 2007 is recalculated applying Art. II.1 § 1 1°) b ix) of the new CAD guidelines. CAD new of the II.1b ix) § 1 1°) Art. applying recalculated is 2007 1 ratio Tier Luxembourg. Funding Dexia by issued Management. million, 500 Asset EUR for Dexia as capital such Hybrid companies investment and Nord) du (Crédit institutions credit Group), (DIS companies insurance Mainly Mainly subsidiaries Adinfo, Adehis. Regulatory capital, total weighted risks and solvency ratios solvency and risks weighted total capital, Regulatory requirements regulatory for calculated as equity total and statements) (financial equity total Comparison Dexia Bank Belgium – Annual Report 2008

itional o S enc ol v y d (4) enc ratios risks y w y n fun capital (after profit appropriation) profit (after y capital d s (3) (2) (2) (1)

statements 5,385,561 5,198,620 F inancial inancial 115,025 67,435 71,916 4,481 31/12/07 R egulatory egulatory 5,213,699 5,198,620 purposes 15,079 15,079 0 0

statements 62,372,594 60,297,573 5,079,804 5,852,816 3,473,645 3,512,369 2,075,021 5,430,177 F 31/12/07 31/12/07 (854,063) (981,730) inancial inancial 766,764 773,012 987,978 497,525 (30,699) 69,423 38,724 Basel Basel 15,079 (8,914) 9,4% 8,1% 31/12/08 0 I

R egulatory egulatory 51,805,328 47,099,955 purposes 3,489,984 6,855,423 6,690,521 3,473,538 (1,219,111) 7,622,007 3,834,128 1,334,913 31/12/08 31/12/08 (672,486) 931,486 498,061 815,684 871,245 Basel Basel 16,446 16,446 16,446 (6,923) 12,9% 14,7% II 0 0

non-consolidated consolidated management report financial statements financial statements 144 Dexia Bank Belgium – Annual Report 2008 you have entrusted to us. This report includes our opinion on the consolidated financial statements together with the required required additionalthe comment.with together statements financial consolidated the on opinion our includes report This us. to entrusted have you requiredAs by law and the company’s of association, we articles are to to pleased you report on the audit assignment which To the shareholders BankDexia Belgium SA 2008 December ended 31 year the for statements financial consolidated the on report Auditor’s Statutory BankDexia Belgium SA Dexia Bank Belgium SA relating to the impact of the financial crisis on the liquidity position of Dexia. of position of liquidity the on crisis report financial the of management impact the the to in relating SA Belgium included Bank Dexia comments the to attention the draw we opinion, unqualified our amending Without Belgium. in applicable requirements regulatory and legal as the with and EU Standards the by Reporting adopted Financial International with accordance in ended, then year the for flows cash its and results its of and In our give opinion, the financialstatements aconsolidated true and fairview of the Group’s positionfinancial as of 312008, December opinion. our for basis a reasonable for provides obtained have we evidence requests audit the that our We believe all information. and to explanations replied have company the of officers responsible and directors of board statements, the Finally, financial whole. a consolidated as taken the of presentation the assessments, and company risk the by made those estimates accounting of making reasonableness In error. or fraud to due an opinion on the effectiveness of theexpressing Group’s of whether internalpurpose the for control. not but We havecircumstances assessed thethe basis in of the accountingappropriate are that policiesprocedures used, statements, audit the design to financial order in consolidated statements the of financial presentation fair and preparation Group’s the to relevant control consolidated internal the considered have of we misstatement material of of the risks onthe assessment including our depend judgment, selected Theprocedures statements. financial in the consolidated and disclosures amounts the about evidence audit to obtain procedures we have performed standards, these with accordance In assurance whether the consolidatedreasonable financial statements areobtain freeto from materialaudit misstatement. the perform and plan we that require standards Those Bedrijfsrevisoren”. der d’Entreprises/Instituut in as Belgium, by issued des applicable Reviseurs the “Institut and standards auditing audit in requirements with legal accordance O circumstances. in the reasonable are that estimates accounting making and policies, accounting appropriate applying and fair and preparation the of to presentation that financialconsolidated statements are responsibility relevant free from whetherThis due material control misstatement, tofraud orinternal error, selecting maintaining statements. and implementing financial designing, things: consolidated the other of among includes preparation the for responsible is company the of directors of board The EUR. (000) 573,884 of ended then year the for share) (Group loss consolidated a shows statement income consolidated EUR the and (000) 263,092,889 of assets total shows sheet balance consolidated The significant notes. of explanatory summary other the and as policies well accounting as ended, then year the for statement flow cash consolidated the and equity in changes of comprise the balance consolidated sheet as at 31 the 2008, December income the consolidated statement, statement consolidated statements financial consolidated Those paragraph Belgium. in the applicable by requirements adopted regulatory and as legal the with Standards and Union European Reporting Financial explanatory International with with accordance in its prepared and Group”), company”) “the (“the SA (jointly BELGIUM subsidiaries BANK statements, DEXIA of statements financial consolidated financial accompanying the audited have We consolidated the on opinion audit Unqualified consolidated financialstatements for the year ended december 31 2008 Statutory Auditor’s report to the Shareholders’ Meeting on the ur responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our our conducted We audit. our on based statements financial consolidated these on opinion an express to is responsibility ur

• statements: financial consolidated the on opinion O of directors. of board the are responsibility the statements The and preparation the of assessment the information that should be included in on the report the directors’ financial consolidated Additional comment

ur responsibility is to include in our report the following additional comment which does not change the scope of our audit audit our of scope the change not does which comment additional following the report our in include to is responsibility ur information obtained in the context of our appointment. our of context the in obtained information on its future development. We can, nevertheless, confirm that the information factors given iscertain not of in obviousinfluence contradictionsignificant or with anyevolution, future status, the on or Group, the confronting uncertainties and risks agreement in with theis consolidatedand financiallaw statements. by However, required we are unableinformation toexpress the anopinion on thedescription includes of the principalstatements financial consolidated the on report directors’ The Frank Verhaegen

O DEL ITTE Bedrijfsrevisoren / Reviseurs d’Entreprises Reviseurs / Bedrijfsrevisoren ITTE BV o.v.v.e.BV s.f.d. SCRL SC / CVBA The statutory auditor Antwerp, 24 March 2009 24 March Antwerp, Represented by Annual Report 2008 – Bernard De Meulemeester Dexia Bank Belgium 145

non-consolidated consolidated financial statements financial statements management report 146 Dexia Bank Belgium – Annual Report 2008 as at dec. 31, 2008 non-consolidated financial statements (be-gaap)

Balance sheet 148

Off-balance sheet 150

Statement of income 151

Approbation account 152

Accounting principles 153

Progress of the non-consolidated balance sheet and the statement of income 157

Notes to the non-consolidated financial statements 159

Social report 202

Report of the Auditor 206

Annual Report 2008 – Dexia Bank Belgium 147 non-consolidated consolidated management report financial statements financial statements Balance sheet (after appropriation) (after sheet Balance XII. XI. X. IX. VIII. VII. VI. V. IV. 148 III. II. I. TOTAL (in thousands of EUR) thousands (in ASSETS

Dexia Bank Belgium – Annual Report 2008

Formation expenses and intangible fixed assets fixed intangible and expenses Formation Deferred charges and accrued income accrued and charges Deferred Other assets shares Own assets fixed Tangible D. C. B. A. assets fixed Financial securities variable-yield other and Shares B. A. securities fixed-income other and securities Debt Loans and advances to customers to advances and Loans Loans and advances to credit institutions credit to advances and Loans B. A. Treasury bills eligible for refinancing with central banks central with refinancing for eligible bills Treasury banks Office Post and banks central with balances hand, in Cash ASSETS by participating interests by participating linked enterprises other to and enterprises to affiliated loans Subordinated assets fixed financial as held shares Other interests participating by linked enterprises other in interests Participating enterprises affiliated in interests Participating borrowers other by Issued bodies public by Issued Other loans and advances (with agreed maturity dates) maturity agreed (with advances and loans Other demand on Repayable

244,673,943 18,324,860 93,574,598 80,342,145 82,174,338 39,513,251 37,783,311 7,250,820 1,729,940 1,027,237 1,832,193 8,130,074 31/12/07 396,483 189,209 293,562 369,052 289,035 371,634 887,819 12,045 0

232,677,028 63,643,864 45,942,943 28,290,971 44,746,539 10,898,213 52,745,651 83,131,090 8,090,937 1,196,404 9,170,641 31/12/08 384,467 589,220 456,574 818,341 647,969 141,944 106,017 420,140 12,551 0 XIII.

XII. XI. X.

IX. VIII. VII.

VI. V. IV.

III.

II.

I. TOTAL CAPITAL (in thousands of EUR) thousands (in LIA

B ILITIES

Profits (losses (-)) brought forward brought (-)) (losses Profits D. C.

B. A. Reserves Revaluation surpluses account premium Share B. A. Capital Subordinated liabilities Subordinated Risks Banking General for Fund B.

A. charges accrued and income Deferred Other liabilities Other B. A. Debts evidenced by certificates

B. A. customers to owed Amounts C. B. A. institutions credit to owed Amounts LIA

AN Reserves available for distribution for available Reserves Untaxed reserves Untaxed 2. Other 2. 1. In respect of own shares held shares own of 1. respect In Reserves not available for distribution for available not Reserves Legal reserve Legal Uncalled capital (-) capital Uncalled Subscribed capital Subscribed Deferred taxes Deferred 3. Other liabilities and charges and liabilities Other 3. 2. Taxation 2. 1. Pensions and similar obligations similar and 1. Pensions Provisions for liabilities and charges and liabilities for Provisions Other Debt securities and other fixed-income securities incirculation securities fixed-income other and securities Debt 3. As a result of the rediscounting of trade bills trade of rediscounting the of a result As 3. 2. With agreed maturity dates or periods of notice of periods or dates maturity agreed With 2. 1. Repayable on demand on 1. Repayable Other debts Other Savings deposits Savings Other debts with agreed maturity dates or periods of notice of periods or dates maturity agreed with debts Other Amounts owed as a result of the rediscounting of trade bills trade of rediscounting the of a result as owed Amounts Repayable on demand on Repayable B ILITIES D RESER V ES Annual Report 2008 –

244,673,943 112,232,517 28,028,285 22,588,939 45,070,289 73,098,574 10,760,340 14,470,670 95,687,513 17,779,373 97,761,847 3,864,043 6,896,297 2,980,571 1,808,871 1,398,441 2,638,672 1,182,816 31/12/07 Dexia Bank Belgium 345,864 958,066 958,066 209,232 988,737 199,227 231,333 176,753 65,404 77,540 81,233 2,344 2,344 4,164 238 0 0 0 0 232,677,028 103,296,132 84,305,426 63,040,274 91,268,903 19,246,783 43,793,491 12,027,230 21,265,152 27,491,135 3,458,066 3,458,066 6,350,549 5,624,371 1,538,443 1,952,398 3,029,473 6,915,098 31/12/08 238,888 564,549 668,875 209,232 988,737 282,317 174,969 172,723 73,600 75,465 33,747 2,344 2,344 4,439 235 149 0 0 0 0

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements O IV. 150 III. II. I. (in thousands of EUR) thousands (in

ff Dexia Bank Belgium – Annual Report 2008 Uncalled amounts of share capital share of amounts Uncalled Assets lodged with the credit institution credit the with lodged Assets B. A. E. D. C. B. A. to a risk rise give could which Commitments E. D. C. B. A. liabilities Contingent - Safe custody and equivalent items equivalent and custody Safe purposes fiduciary for institution credit the by held Assets Commitments as a result of open-ended sale and repurchase agreements repurchase and sale open-ended of a result as Commitments commitments placing and Underwriting lines credit confirmed on margin Undrawn securities other or transferable of purchases spot of a result as Commitments commitments credit Firm parties third of behalf on security collateral as charged Assets credits Documentary guarantees Other substitutes credit direct as serving Guarantees acceptances Non-negotiated balance sheet balance

102,385,001 102,385,001 19,466,944 33,326,390 18,075,697 41,519,797 2,370,000 1,283,695 5,070,245 31/12/07 753,162 107,552 40,841 0 0 0 0

23,062,775 21,394,938 40,914,815 87,098,551 87,098,551 47,302,787 3,620,000 1,574,374 31/12/08 2,112,177 655,794 93,462 56,812 0 0 0 0 Statement of income (presentation in list form) XXIII. XXII. XXI.

XX.

XIX XIX.

XVIII.

XIII. XII. XIV. XI. X. IX. VIII. XV. XVII. XVI. VII.

VI. V. IV.

III. II. I. (in thousands of EUR) thousands (in

bis

. Profits (Losses (-)) for the period available for approbation for available period the for (-)) (Losses Profits reserves untaxed from Transfer (-) reserves untaxed to Transfer period the for (-)) (Losses Profits B. A. taxes Income B. A. taxes before period the for (-)) (Losses Profits E. D. C. B. A. charges (-) Extraordinary E. D. to a risk” rise give could which Commitments “II. and liabilities” Contingent “I. items sheet off-balance the in included those than other charges and liabilities for Provisions to a risk” rise give could which Commitments “II. and liabilities” Contingent “I. items sheet off-balance the in included those C. Risks Banking General for Fund the to) (Transfer from Transfer than other charges and liabilities for provisions of write-backs and Utilization securities orvariable-yield fixed-income other and shares securities, debt of portfolio investment the on write-downs in (-)) (Increase Decrease to a risk” rise give could which Commitments “II. and liabilities” Contingent “I. items sheet off-balance for provisions in and receivables on write-downs in (-)) (Increase Decrease assets fixed tangible and expenses, intangible formation (-) on write-downs other and of (Amortization) Depreciation B. Other operating income B. A. income Extraordinary taxes before activities ordinary on (-)) (Losses Profits charges operating Other A. (-) expenses administrative General B. A. transactions financial on (-)) (Loss Profit (-) payable Commissions Commissions receivable Commissions D. C. B. A. securities variable-yield from Income Interest payable and similar charges (-) charges similar and payable Interest securities fixed-income from which: Of income similar and receivable Interest Adjustment of income taxes and write-back of tax provisions tax of write-back and taxes income of Adjustment Income taxes (-) taxes Income Transfer from deferred taxes deferred from Transfer Transfer to deferred taxes (-) taxes to deferred Transfer Other extraordinary charges extraordinary Other Loss on disposal of fixed assets fixed of disposal on Loss Provisions for extraordinary liabilities and charges and liabilities extraordinary for Provisions Write-downs on financial fixed assets fixed financial on Write-downs on formation expenses and intangible and tangible fixed assets fixed tangible and intangible and expenses formation on write-downs extraordinary and of (amortization) depreciation Extraordinary Other extraordinary income extraordinary Other Gain on disposal of fixed assets fixed of disposal on Gain Adjustments to provisions for extraordinary liabilities and charges and liabilities extraordinary for to provisions Adjustments Adjustments to write-downs on financial fixed assets fixed financial on to write-downs Adjustments expenses administrative Other and tangible fixed assets fixed tangible and intangible on write-downs to other and of (amortization) to depreciation Adjustments pensions and costs security social Remuneration, On disposal of investment securities investment of disposal On On trading of securities and other financial instruments financial other and securities of trading On From other shares held as financial fixed assets fixed financial as held shares other From From participating interests in other enterprises linked by participating interests participating by linked enterprises other in interests participating From From participating interests in affiliated enterprises affiliated in interests participating From From shares and other variable-yield securities variable-yield other and shares From

Annual Report 2008 –

,

(8,609,333) (1,051,828) 9,665,238 1,929,663 (440,940) 31/12/07 (610,888) (201,813) (219,518) (215,417) (411,792) Dexia Bank Belgium 840,436 184,290 793,208 104,352 158,605 742,290 295,861 781,864 152,287 497,889 237,796 480,151 213,051 317,664 (48,924) (32,345) (74,863) 171,757 (69,734) (14,669) (41,377) (17,438) 48,386 (2,367) 37,123 (7,560) 3,325 1,709 7,547 (800) (934) 261 0 0 0 0 0

10,296,900 (8,756,531) (1,110,602) 1,986,461 31/12/08 (385,322) (650,479) (466,010) (452,926) (460,123) (241,592) (473,133) (111,680) 482,264 149,346 149,393 597,483 131,438 553,751 (73,248) 137,847 167,871 (70,899) 147,073 151,103 (11,569) 13,084 32,317 (9,383) 13,413 (9,876) 11,415 (1,306) (4,831) 6,906 8,457 7,151 (548) (527) (618) 151 23 47 0 0 0 0 0 0

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements Approbation account Approbation

152 (1) F. E. D. C. B. A. (in thousands of EUR) thousands (in

Only applicable to Belgian limited liability companies. Dexia Bank Belgium – Annual Report 2008 1. (-) profits of Distribution Result to be carried forward carried to be Result 3. 2. losses of respect in contribution Shareholders’ 2. 1. 3. 2. 1. (-) reserves and to capital Appropriations 2. 1. reserves and capital from Transfers 2. 1. appropriated be to (-)) (Losses Profits Dividends Other allocations Other entitlements Director’s forward carried to be Losses (-) forward carried be to Profits Toreserves other Toreserve legal account premium share and To capital reserves From account premium share and capital From forward brought (-)) (Losses Profits approbation for available period the for (-)) (Losses Profits (1) (1) (1)

(500,000) 31/12/07 (275,000) (275,000) (509,451) 781,864 788,615 (4,164) (4,164) (9,451) 6,751 0 0 0 0 0 0 0 0

31/12/08 (140,000) (147,555) 155,267 151,103 (4,439) (4,439) (3,273) (3,273) (7,555) 4,164 0 0 0 0 0 0 0 0 Accounting principles Accounting on non on and receivables uncertain on booked are off written Amounts off written 1.1. Amounts meantime the in made due. interest the plus and reimbursements any less available, made amounts the at sheet balance the in included are Receivables Specific – rulesassets knowledged. ac are results the which on day the on rate the at EUR into converted are currencies foreign in costs and Income deferrals. and accruals in the booked are but variances, conversion the of balance the calculating when account into taken systematically applied not be are may borrowings method valuation a then whereby the conversion variances relating to currency, the aforementioned corresponding are components financedby means of long rate If non exchange on the date of the transaction. Non balance the on rate average the at EUR into converted are currencies foreign in expressed obligations and rights assets, debts, Monetary expressly indicated. is question in exception or apply. option the allowed, exception Decree an or Royal made be to choice a for provide legislation the aforementioned Should the in down laid provisions the rules, valuation is of made specific mention express Unless O Septem of institutionscredit of statements financial the on Decree Royal the with accordance in up drawn were Bank Dexia of statementsfinancial the to applicable rules valuation The rules General an into EUR into 1. 2. 1. ctober 6, 1992. 6, ctober - A L C monetary components are converted into EUR at the the at EUR into converted are components monetary d egislation on mounts recei mounts - customers collectable and doubtful receivables. doubtful and collectable ber 23, 1992, published in the the in published 1992, 23, ­ber v ersion of foreign currencies foreign of ersion - sheet date. sheet v a b le from from le - Belgian Gazette Belgian term term funding in the b anks - monetary monetary of of ­ balance on the market value at their is market a are valued there liquid to to be Securities and invested be securities realized for which concerned. separately, indicated from but the deducted items in the assets not are amounts These institutions. credit of statements 35 Article in down laid limits the within established is fund security internal The bank. the of volume risk the of basis the on annually established is which of extent the risks, extraordinary future possible for fund precautionary a constitutes fund security internal The 1.3. Internal security fund assets. the in account adjustment an in booked is but profits, the in included not is interest this caution, of and booked as an actual amount receivable. Given the principle calculated is risk problem a considered receivables on Interest 1.2. Reserved income balance the on value market their or value acquisition their at valued Non lower. is this if date balance the on value market their or value acquisition their at valued are support liquidity as used securities The • • use: intended their of basis the on subportfolios following the into subdivided are portfolio investment the in securities The I 2.2.2. lower. is this if date sheet at their value, acquisition or at their market value on the balance 2.2.1. rules Valuation 2.2. are additional costs also charged immediately. The price. acquisition average the or price individualized the of principle the with accordance in determined is value acquisition the subportfolio, the of nature the on Depending value 2.1. Acquisition

securities S 2. the investment portfolio itself portfolio investment the support liquidity for subportfolio the - fixed tocks an tocks T nvestment portfolio nvestment rade portfolio rade - - sheet sheet date. If there is no liquid market, they are valued sheet date if this is lower. this if date sheet - income securities in the investment portfolio are are portfolio investment the in securities income bis d shares an shares of the Royal Decree on the financial Annual Report 2008 – d other Dexia Bank Belgium - sheet sheet - 153

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 154 Dexia Bank Belgium – Annual Report 2008 2.2.3. A 2.2.3. the future income from the arbitrage. fixed 35 Article are in processed transactions accordance with the of provisions arbitrage these of results the out, carried be they Should securities. investment these on return in improvement real a in of that results time period short a relatively within securities fixed of sale and purchase combined each portfolio: fixed the on out carried Fixed non and costs additional other costs, installation of consisting costs additional life, useful limited a with assets taxes regards As non-reclaimable and costs Additional 4.1. revalued. be may assets these value, book their with compared value in increase lasting and definite a display assets the If depreciation. less value acquisition their at valued are assets fixed Tangible uncertain. partially or is entirely collection their when booked are off written amounts assets, fixed financial fixed and receivables regards As item). on the basis of the of price principle by (item the individualized price to be taken into account when out booking is determined the acquisition interests, selling When shares and participating value. book their exceeds lastingly and definitely on as the established basis of the for usefulness the institution, Shares interest may and participating be revalued if their value, is observed. of value loss a if long booked are off written amounts item, this under fall that interests participating and shares For charged are costs procurement acquisition. of year financial to the additional The value. acquisition attheir sheet balance in the areincluded assets fixed Financial principle. market” or “lower of the cost with accordance in valued are instruments similar other and perpetuity in long a of event the in booked are off written amounts nature, their to due return actuarial their of basis the on value to difficult are O concerned. assets the from deducted are off written amounts long a if booked are off written amounts section, portfolio investment the in securities For 35 Article in defined as transactions Arbitrage maturity. upon value reimbursement their of account taking and on the basis of upon return, purchase their calculated actuarial 3. 3. 4. T 4. n fixed n - F reclaimable taxes are written off in accordance with the the with accordance in off written are taxes reclaimable - - income securities are in included income securities the with result together income securities in the investment portfolio are valued valued are portfolio investment the in securities income inancial fixe inancial angi mounts written off written mounts - - income securities in the investment portfolio which which portfolio investment the in securities income term reduction in or loss of value. Loans contracted contracted Loans value. of loss or in reduction term ter, ter, b §5, whereby losses and gains from the sale of of sale the from gains and losses whereby §5, le fixe le d - d assets income securities in the investment investment the in securities income assets - term loss is observed. The The observed. is loss term - income securities in the in securities income - term reduction in or in or reduction term ter, ter, §5 may be be may §5 - income income • • • • • 2008 2008 in branches of the bank, safe January 1 starting investments new for applies also rule This date. invoicing the of as earliest the at account into taken be only can depreciation the of year in which the loans are granted. are loans the which in year to financial are ofthe charged loans to related issue the Costs relate. they which to year financial the in full in ciated Formation expenses are included under the assets and depre­ • • • • • • • • • are assumed: lifespans useful following The under construction. time furniture, protected safes, The depreciation on investments acquired as of January 1, 2003 2003 1, off during the year January of for acquisition of a full annuity. as written The be longer no therefore acquired may assets These prorated. is investments on depreciation The investments to applicable remain 1, 2002. January before undertaken Corporation Banking Artesia of rules depreciation the neutrality, To fiscal maintain degressive. straight is depreciation and life economic expected the of basis the on determined are rules depreciation The rules Depreciation 4.3. assets. fixed tangible the of principles valuation the in included not is and assets the in included not is interest Intercalary Intercalary4.2. interest relate they which to component main ( the of system depreciation acquisition by means of a write a of means by acquisition such as non with an useful unlimited life,regards assets costs As additional pro rata pro

fixe F 5. installations, machines, installations, equipment, furniture and rolling stock: safe other tangible fixed assets – buildings and that are not are that and buildings – assets fixed tangible other assets under construction: 24 to 34 years 24 34 to construction: under assets years 34 to 9 company: the to related years 33 to 10 out: leased estate real – assets fixed tangible other years 9 to 4 buildings: years 68 to 5 rights: similar and leasing years 9 to 3 years 20 to 9 installations: heating 10 to 9 years installations: conditioning air time 4 to 34 years 34 to 4 telephoneexchange, telephony and telephone installation: 20 years surpluses: – revaluation buildings years 34 to 24 offices: head provincial and branches – buildings years 34 to 28 outbuildings: – buildings years 34 to 24 buildings: major other and office head – buildings other tangible fixed assets – costs of fitting out rented out fitting of costs – assets fixed tangible other ormation expenses an expenses ormation - d - deposit boxes, deposit courier safes, safes, furniture, protected lock furniture: 9 to 33 years 33 to 9 furniture: lock basis). assets - reclaimable taxes are in taxes charged full reclaimable to the year of - off. - lock furniture and branches branches and furniture lock - deposit boxes, deposit courier safes, d intangi b pro rata pro - line or line le

amount of which has not been determined. been not has which of amount balance the on certain or probable are losses and costs, the nature of which iscover clearly described,to that established are charges and risks for provisions The circulation. to the added also is claimed not but due interest capitalization, optional With interest. capitalized the by increased is circulation the capitalization, For with bank compulsory savings certificates before maturity. repayments by reduced and date effective the before trations isby increased regis of The circulation bank certificates saving date. due the on value repayment the of of the return upon calculated sale actuarial and taking account basis the on periodically revalued are notes promissory These institution. credit the to available made amount the at sheet balance the the value repayment from differs the issue price are included in which for notes promissory by represented payable Amounts nominal value. their at sheet balance the in included are premium share without notes promissory by represented payable Amounts interim. the in made repayments any of deduction after available made money of sum the at sheet balance the in included are customers and banks to payable Amounts Specific – rules liabilities incurred. are they which in year financial the for costs as entirely are processed customers with for in Fees bringing transactions charged are software own for incurred. are they which in years financial costs the to full in development and Research years. five of maximum a over depreciated is assets the in included are altogether equal to at but least the EUR 500 criterion. Software 500 EUR than less represent that parts several in made is delivery the if or resource operating per value acquisition network branch the of restructuring to the and straight in are subject included the assets of part as incurred Costs assets as of an of in amount or assets excess toas equal the EUR 500 fixed as in intangible are included the purchases assets License over five years. ciation risks an risks by customers 3. 3. 2. 1. A P A promissor ro mounts pa mounts mounts pa mounts v isions, fun isions, d d eferre y y y notes a a b b s for general general ds for le to b to le le represente le d taxes anks an anks - sheet date but the the but date sheet d - d line line depre b ank ­ ­ items Specific – rules off assets. revalued the on booked depreciation the of amount the to proportion in reserve available the to transfer a of means by annually is reduced surpluses revaluation of amount these The capital. the into incorporated are they until or realized are concerned assets the until item this under kept are They value. book their exceeds lastingly and definitely institution, the for usefulness the of that basis the on shares determined and as value, interests participating are part of the financialfixedand can assets be revaluedwhen their assets fixed Tangible 4.1. Revaluation surpluses volume. at 1%risk set weighted of the currently is threshold minimum The institutions. credit by undertaken business the to linked latently are materialized, yet not have they although which, risks future against bank the to protect fund precautionary a is Risks Banking General for Fund The variances are included in the accruals and deferrals. and accruals in the included are variances non a on negative traded the are and positive the both valuation variances are included in the result. If market, the transactions liquid a on traded are their market value on the balance short a making to view a with concluded are transactions Trading transactions Trading 1.2. transactions. trading as processed themselves are transactions trading cover to intended are that Transactions for effectiveness. and its tested documented be things, other amongst must, transaction hedging The component. hedged of the costs and of income allocation the to symmetrical is income of statement the in transactions hedging on losses and profits of Processing fluctuations. interest date, value of risk the against partially or entirely hedge to concluded are transactions Hedging 1.1. Hedging transactions the financialstatements of credit institutions. 36 Article from exemption an of subject the be may interest on actions trans­ Forward transactions. trading or transactions hedging involves it whether on depending varies indexes and shares interest, dates, value on transactions of forward valuation The variances are included in the results; positive valuation valuation positive results; the in included are variances 4. 4. 1. F C - term term profitareon The valued investment. transactions at inancial instruments inancial apital an apital bis bis §2 §2 of the Royal of Decree 23, September 1992 on d reser - liquid market, only negative valuation valuation negative only market, liquid Annual Report 2008 – - v balance sheet - sheet sheet date. If the transactions es - rate or price price or rate Dexia Bank Belgium 155

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 156 Dexia Bank Belgium – Annual Report 2008 of strategic positions. By means of the exemptions to Article Article to exemptions the of means By positions. strategic of basis the on return additional generate to is context this in • • exemption: following the Bank Dexia 14, granted 1994, June of of the Royal aforementioned Decree and its framework decision in a letter dated 18,January 2002, in accordance with 38 Article insti credit of statements tutions the Finance (Banking, and BFIC Insurance Commission), financial the on 1992 23, September 36 Article to exemption an As 1.3. Management transactions of financial transactions”.of financial sum The of is the under item the “Results booked latent losses latter. (non the to further liabilities the and assets the of components managed jointly on gains capital latent any of account taking transaction forward the of basis) market” or cost of (“lower lower transaction, is whichever the price, of duration relevant the along with a valuation – either at over the cost price or at the market prorated are results event of the In a single transaction only. ever is lower (“lower of cost or market” – basis) of the forward valuation – either at the cost a price or at with the market price, along which transaction, the of duration relevant the over a With multi ALC an by validated be to have transactions these that sense the in transactions are strategic transactions accepted as a of category ALM specific financialstatements of credit institutions granted by theBFIC, 36 interest forward of purpose The transactions Strategic 1.4. •

bis bis the profitability and solvency of the bank. All transactions transactions All bank. the of solvency and profitability the reduce the interest owr interest Forward processed in the item “Interest rate and similar results”. similar rate and “Interest item in the processed and transaction the of duration relevant the over prorated ALC the by validated be interest the reduce to likely results”. similar and rate “Interest item relevant duration of and the under the processed transaction the over prorated are results The documented. be must must be validated by the ALC interest the reduce to likely ment) context of overall balance interest Forward results”. similar rate and “Interest item the under processed and transaction the of duration relevant the over prorated are results The year. one to equal or than less of duration a with transactions are These management. treasury of Forward interest Forward §2 of the Royal Decree of September 23, 1992 on the the on 1992 23, September of Decree Royal the of §2 - currency or are EUR strategy, prorated the results currency - - O rate transactions concluded in the context in the context concluded rate transactions rate transactions in EUR concluded in the the in concluded EUR in transactions rate - rate transactions in foreign currencies currencies foreign in transactions rate . - rate rate risk but within a on limit depending - currency strategy (except for EUR), the the for EUR), (except strategy currency and documented. The results are are results The documented. and O - sheet management (ALM sheet manage (ALM management - booked) market valuation of the the of valuation market booked) - rate risk. All transactions must must transactions All risk. rate bis bis O - . In addition, the transactions rate transactions concluded concluded transactions rate §2 of the Royal Decree of of Decree Royal the of §2 - rate risk or not likely to likely not or risk rate ­ ­ ­ sion July 8, 1996. 8, July sion Commis Insurance and Finance Banking, the from circular the accounting off The of context the in themselves”. contracts “in internal asymmetric of processing institution the of results the on impact that results is that results, autonomous of registration methods. valuation different use that entities or services two between are concluded internal internal contracts contracts Asymmetric form first The rule. valuation same the contracts. apply that departments between contracts asymmetrical internal concerns and symmetrical between main branch) within is the A same made institution. distinction (subbranch/ entities two between or entity same the within services two between transactions are contracts Internal B 2. - circular circular FIC balance sheet transactions is undertaken in accordance with with accordance in undertaken is transactions sheet balance I nternal contracts, exemption: contracts, nternal O nly asymmetric internal contracts give rise to the the to rise give contracts internal asymmetric nly d ate d Jul 8, 1996 y 8, ­ sheet and the statement of income non the of Progress The increase of The increase EUR 9.7 billion in certificates. in deposit invested fall in balances profit. profit. the of appropriation the and capital the in billion 2.5 EUR of increase an of result a as 2007 of end the at than more lion Risks the including reserves and Capital transactions. costs deposits and loans Interbank forward of value the in increase transactions. an to main the in due is income in billion 9.9 EUR of increase The Belgium. Insurance of Dexia capital in the The rise in portfolio. trading in the by a fall 5.5 billion of EUR offset partly portfolio investment the in 11.9 billion EUR of rise the following lion securities income fixed other and Bonds loans. in mortgage 9.8 billion EUR O year. one than less of receivables in billion 23.5 EUR of fall a of result a as mainly advances and loans Interbank certificates. of treasury holdings the in increase an of result a as 131million EUR by increased refinancing bank central for eligible securities Government At31, December the 2008 sheet Balance The The fall in accounts. term and current on balances 13.7 in EUR of billion fall the to main in 11.4 EUR billion of fall The deposits. in interbank a and fall 8 of billion EUR securities of discounting the on 1.1debts in EUR of billion fall a to tially year. previous of the that on 232.74.9% EUR down billion, 2. 1. A utstanding utstanding amounted at the end of 2008 to EUR 6.6 billion, EUR 2.6 bil­ 2.6 EUR billion, 6.6 EUR to 2008 of end the at amounted Lia is due mainly to an increase in the value of forward ssets b debts evidenced by securities by evidenced debts financialfixed assets ilities fell by EUR 10.4 billion including including billion 10.4 EUR by loans fell to customers balance-sheet balance-sheet total fell by EUR 8.9 billion due essen due billion 8.9 EUR by fell were down by EUR 18.5 billion billion 18.5 EUR by down were customer deposits customer can be attributed to an increase increase an to attributed be can deferred income and accrued and income deferred accrued and costs deferred Fund for General Banking General for Fund increased by EUR 6.4 bil­ 6.4 EUR by increased is due essentially to the the to essentially due is amounted to to amounted is due in the the in due is - ­

consolidated balance balance consolidated dividends received from subsidiaries. subsidiaries. from received dividends in increase the of result a as mainly million 360 EUR by 2007 on increased securities income variable from revenue 2008 In mil­ 1,540 EUR to 1,056 in EUR 2007. million against as amounted lion, 2008 during margin interest net The year. accounting of the end the at thousand 23 EUR to amounted and 2007 in achieved that the In 2008 Statementincome of These provisions amounted to EUR 61 million in 2008 as opposed opposed as 2008 in million 61 EUR to in 2007.97to EUR million amounted provisions These securities. to the increase in write essentially due is rise 2007. in The million 50 EUR to opposed as 2008 in million 627 EUR to came item this under Amounts person in million 40 EUR by – costs. 19 management EUR and in other million costs nel 2007 on million 59 EUR up 2008, 1,110 in EUR to million increased costs management General securities. and in bonds transactions of value market the and value book the between difference the in fall a and ALM on made gains in drop the of - EUR to amounted in with comparison million EUR in +480 2007 transactions mainly as a result financial from Profit the of result a as mainly million, funds. trust unit on 77 received fall in commissions EUR by fell commissions Net 2. 2. 1. 7. 6. Write- 5. 4. 3. securities P N N G R P ro rofit from financial transactions financial from rofit e et interest margin interest et et commissions eneral management costs management eneral v v enue from from enue isions for other risks an risks other for isions fell by EUR 742 million on on 742 million EUR by fell profit operating total d o wns - downs downs on and receivables fixedincome v Annual Report 2008 – aria b le income le d costs Dexia Bank Belgium 453 million million 453 ­ 157

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 158 Dexia Bank Belgium – Annual Report 2008 Tax, including deferred tax, amounted to EUR 9 million in in 2008. million 9 EUR to amounted tax, deferred including Tax, assets. fixed financial non the by explained be can 2008 and 2007 between difference net the of Most 2007). in million 220 EUR against (as 12 EUR million to amounted costs 317 EUR the extraordinary than less – in 2007 whereas million – 2008 in 149 million EUR to amounted income Extraordinary 9. 9. E 8. T ax xtraor d inar y income an income - recurring sale or liquidation of of liquidation or sale recurring d costs statements Notes to the non Undated 5 years Over to 5 years up 1 year Over to 1 year up 3 months Over less and 3 months 4. 3. Subordinated loans 2. interests participating by linked enterprises To other Toenterprises affiliated 1. II b) a) 2. b) a) 1. I . (in thousands of EUR) thousands (in of EUR) thousands (in of EUR) thousands (in of EUR) thousands (in of EUR) thousands (in .

STATEMENT

STATEMENT Nil established is institution credit the where countries or country the of bank central the with refinancing for eligible Trade bills - Undated 5 years - Over to 5 years up 1 year - Over to 1 year up 3 months - Over less and - 3 months maturity remaining to the according Analysis Nil established is institution credit the where orcountries country the of bank central the with refinancing for eligible Trade bills Nil advances and loans Subordinated interests participating by linked enterprises other to advances and Loans -  enterprises to affiliated advances and - Loans Other loans and advances to credit institutions (with agreed maturity dates or periods of notice) (Assets item III.B.) item (Assets notice) of periods or dates maturity agreed (with institutions credit to advances and loans Other Analysis according to the remaining maturity remaining the to according Analysis Subordinated loans Loans and advances a whole as item the For OF OF LOANS LOANS AN AN D A D D A D DV DV ANCES ANCES - consolidated financial TO TO CRE CUSTOMERS D IT INSTITUTIONS ( A ssets item I item ssets ( Annual Report 2008 – A ssets item III item ssets V.)

26,004,497 13,998,539 41,083,851 50,927,699 19,710,137 2,683,545 4,024,295 8,463,416 1,740,744 31/12/07 31/12/07 31/12/07 31/12/07 .) Dexia Bank Belgium 21,815

47,044,447 33,932,950 44,763,927 21,581,607 12,717,642 27,147,429 3,826,382 5,506,687 5,237,556 1,757,583 1,576,126 2,175,100 31/12/08 31/12/08 31/12/08 31/12/08 31/12/08 928,522 58,062 21,815 159

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 160 (1) b) a) 4. (V.B.) borrowers other By (V.A.) bodies public By 3. loans subordinated representing Securities 2. linked interests by enterprises participating Other enterprises Affiliated 1. III 7. Foreign countries To Belgium 6. advances and loans Other 1 year over a maturity with loans term Other loans Mortgage loans Fixed-rate agreements similar and leasing of a result as advances and Loans acceptance) own (including Trade bills 5. (in thousands of EUR) thousands (in of EUR) thousands (in of EUR) thousands (in of EUR) thousands (in of EUR) thousands (in of EUR) thousands (in of EUR) thousands (in

. - Remaining maturity of over one year one over of maturity Remaining - year to one up of maturity - Remaining securities Unlisted - securities - Listed Nil Trade bills should be analyzed by reference to the beneficiary of the credit. the of beneficiary the to reference by analyzed be should bills Trade Listing and maturity and Listing issued securities the of analysis Country Securities representing subordinated loans by issued Securities contracts capitalization and insurance life to linked or capital of reconstitution with loans mortgage of Details analysisCountry by type Analysis

STATEMENT Dexia Bank Belgium – Annual Report 2008 D OF (1) E B T SECURITIES AN D OTHER FIXE D- INCOME ( SECURITIES A

ssets item V.) item ssets C arrying value arrying 22,753,340 70,821,258 12,542,029 44 989 271 989 44 18,557,082 35,286,112 37,697,747 1,442,603 2,175,261 31/12/07 31/12/07 31/12/07 31/12/07 Belgium 220,902 528,524 672 953 393,561 29,287 62,530

M arket value 39,080,248 33,265,650 32,204,510 43 982 227 982 43 19,603,939 43,973,163 63,527,151 1,443,833 8,760,681 1,969,780 1,843,812 countries 31/12/08 31/12/08 31/12/08 31/12/08 31/12/08 802,843 530,390 352,202 F 50,288 oreign oreign 42,373 Impact Impact on result Transfers 8. value carrying and lower) (if value redemption between Difference value carrying and higher) (if value redemption between Difference 7. mark-to-market) securities (for cost acquisition and higher) (if value market between Difference 6. b) a) 5. period the during Movements period preceding of end at As Realized exchange gains/losses (+/-) gains/losses exchange Realized period the during Movements period preceding of end at As D. C A A B. B. A A of EUR) thousands (in of EUR) thousands (in of EUR) thousands (in of EUR) thousands (in

. W s at en s at en s at en . - From the trading portfolio to the investment portfolio (+) portfolio investment to the portfolio trading the - From Investment portfolio Investment Investment portfolio Investment Trading portfolio - Excess written back (-) back written - Excess Recorded - - Sales (-) Sales - - Acquisitions Analysis of the carrying value of investment securities investment of value carrying the of Analysis Trading portfolio by portfolio Analysis B TRANSFERS CARR ACQUISITION RITE Y -D of perio d of of perio d of of perio d of V ING O W NS ALUE ET COST W d (B) d ( d (a) EEN AS C AT ) PORTFOLIOS EN D OF PERIO D ( A )+(B)-( C ) Annual Report 2008 – Dexia Bank Belgium

38,844,873 41,748,081 41,748,081 29,874,154 16,201,313 (7,287,987) 2,929,755 4,194,862 2,758,021 31/12/08 31/12/08 31/12/08 31/12/08 406,412 171,734 26,547 22,739 13,428 57,393 79,120 4,024 (216) 161

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 162 5. mark-to-market) securities (for cost acquisition and higher) (if value market between Difference 4. portfolio Investment Trading portfolio 3. securities Unlisted Listed securities 2. Foreign issuers Belgian issuers 1. I Nil period the during Movements period preceding of end at As period the during Movements period preceding of end at As V. C B. B. AS A of EUR) thousands (in of EUR) thousands (in of EUR) thousands (in of EUR) thousands (in of EUR) thousands (in D. AS

. W . Analysis of the carrying value of investment securities investment of value carrying the of Analysis Trading portfolio - Sales (-) Sales - - Acquisitions Analysis by portfolio Analysis Listing securities of issuers the of analysis Country - Excess written back (-) back written - Excess Recorded -

B TRANSFERS CARR ACQUISITION STATEMENT AT AT Dexia Bank Belgium – Annual Report 2008 RITE EN EN Y -D D D V ING OF OF O W PERIO PERIO NS ALUE ET COST W OF D (a) D (c) EEN AS SHARES AT ( PORTFOLIOS EN D OF AN PERIO D OTHER D b ) D ( A )+(B)-( V C ARIA ) B LE -Y IEL D SECURITIES D ( A ssets item V item ssets

C arrying value arrying 31/12/07 31/12/07 236,897 333,399 132,049 134,737 I .) 38,235 9,895

M arket value 31/12/08 31/12/08 31/12/08 31/12/08 198,591 102,274 126,963 267,805 132,758 (92,764) 75,444 30,908 23,550 45,627 96,317 14,981 96,317 (4,078) 1,404 Nil 2. assets fixed financial as held shares Other interests by participating linked in enterprises other interests Participating enterprises in affiliated interests Participating B. assets fixed financial as held shares Other interests by participating linked in enterprises other interests Participating in enterprises other interests Participating A. 1. V. period the during Movements period preceding of end at As period the during Movements period preceding of end at As D. C (in thousands of EUR) thousands (in AS B. B. AS A of EUR) thousands (in of EUR) thousands (in

. W

. - Excess written back (-) back written - Excess Recorded - - Sales and disposals (-) disposals and Sales - - Acquisitions LISTING Analysis of the carrying value, as at end of period, of Assets items VII.A., B. and C. and B. VII.A., items Assets of period, of end at as value, carrying the of Analysis OF SECTOR ECONOMIC C. B., VII.A., items Assets of Analysis STATEMENT RE NET ACQUISITION AT AT RITE V ALUATION EN EN CARR -D D D OF OF O Y W V ING PERIO PERIO NS COST ( SURPLUSES OF ALUE D ( D ( FINANCIAL A C ) ) AS items AT b ) EN D OF FIXE PERIO D ASSETS D D (

A )+(B)-( ( C A ) ssets item V item ssets

31/12/07 31/12/07 C 208,403 160,590 170,935 redit institutions II 48,068 45,401 .) 8,090,937 A 8,108,914 7,268,797 Listed ffiliated 852,488 (V (12,371) 0 17,977 17,977 II . A Annual Report 2008 – .) 0 0

31/12/08 31/12/08 208,403 86,631 42,627 76,970 41,371 interests (V E by participating nterprises 0 384,467 399,531 388,133 (16,746) L inked 5,348 3,048 3,666 II 7,250,820 7,202,752 618 .B.) 31/12/07 31/12/07 Dexia Bank Belgium 188,080 351,082 0 18,274 28,619

Unlisted O ther 8,048,310 8,090,937 31/12/08 31/12/08 343,096 176,064 106,017 (86,088) 190,749 107,510 (V 19,386 29,047 O 2,849 1,540 1,493 II ther .C (47) 163 .) 0

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements A. period the during Movements 164 (1) B. 4. c b linked interests by enterprises participating Other enterprises Affiliated a 3. NET (in thousands of EUR) thousands (in NET of EUR) thousands (in . . .

- Realized exchange gains/losses (+/-) gains/losses exchange - Realized (-) Reimbursements - - Additional Dexia Bank Belgium SA prepares and publishes consolidated financial statements including the financial statements of Dexia Bank. Dexia of statements financial the including statements financial consolidated publishes and prepares SA Belgium Bank Dexia N B-1210 To Declaration on consolidated financial statements D Nil • • YES institutions: credit of statements financial 23, 1992 consolidated the on of September and in report with astatements accordancedirector’s financial theand prepares The consolidated consolidated Royalpublishes credit institution Decree If the financial statements are consolidated at several levels, give details of the largest and smallest aggregate to which the reporting institution belongs as a subsidiary and for which which for and subsidiary a as belongs institution reporting the which to aggregate smallest and largest the of consolidated financialstatements are andprepared published. details give levels, several at consolidated are statements financial the If P Dexia To A S VII.D. item Assets of Analysis

ubordinated lace lace r. 0458.548.296 etails mount Dexia Bank Belgium – Annual Report 2008 may be obtained be may above the where place the state law, foreign by governed are companies or company parent the If are institution reporting the of statements financial the or consolidated which company in parent the statements of financial number consolidated enterprise the the law, publishing Belgian and by preparing governed companies enterprises for and, office registered the of address full and Name CARR CARR be be C SA completed completed harles harles S Y Y aint-Josse- of V ING V ING of subordinated R (1) subordinated ogier 11 ogier ALUE ALUE : loans (1) T . en- by by AS AS N all credit AT AT oode oode to EN EN credit D D loans loans institutions OF OF PERIO PR institutions e CE evidenced D D ING which PERIO by D are listed solely securities

or jointly 31/12/07 C 273,876 redit institutions - 0 held

enterprises subsidiaries A 31/12/08 ffiliated 300,000 289,872 586,615 580,415 - mentioned consolidated financial statements statements financial consolidated mentioned (9,796) 6,539 0

31/12/07 15,996 participating interests 3,690 E nterprises linked by linked nterprises O ther

31/12/08 (1,085) 6,200 2,605 3,690 2,605 0 0

and other enterprises in which it has rights representing at least 10% of their issued capital, shall be listed hereafter. listed be shall capital, issued their of 10% least at representing rights has it which in enterprises other and 1992,23, September of Decree Royal the of meaning the within interest participating a holds institution reporting the which in enterprises All V (1) 0884.525.182 B-1130 Bruxelles 1442 Haecht de Chaussée SA Company Funding Banking 0403.248.004 Bruxelles B-1050 54 Louise Avenue SA Aviabel 0414.259.878 Bruxelles B-1000 6 Livingstone Avenue Auxipar SA F-75014 Paris Leclerc Général du avenue bis, 99 Consulting Sociale Ingénierie en Audit 0432.790.739 Antwerpen B-2000 5 Sudermanstraat NV Company Management Asset Assurance 0419.838.467 Bruxelles B-1000 44 Pachéco Boulevard I SA Artesimmo - USA Castle / New Delaware US-19801 Wilmington Street 1209 Orange Inc. Properties Artesia - USA Castle / New Delaware US-19801 Wilmington 1013 Road Centre Inc. CMBS Mortgage Artesia 0480.175.140 Brugge B-8000 24-26 Hamiltonpark NV Arlinvest 0878.929.173 B-1702 Groot-Bijgaarden Alfons Gossetlaan 32 Arkafund 0453.634.752 Bruxelles B-1080 221 Jette de Chaussée AIA-POOL SCRL 0414.914.926 Bruxelles B-1000 44 Pachéco Boulevard SA Belgium ADINFO 861.023.666 Namur B-5020 12 Néverlée de Rue SA Adhesis Company number and office Registered Name, I §1. os = ordinary shares = os ordinary

LIST

OF

ENTERPRISES

IN W HICH

Type THE (1)

Held Held directly CRE Number 144,660 959,850 595,210 13,278

5,000 D 1,249 Rights IT

INSTITUTION

99.92 13.60 21.59 49 25 51 %

Held by Held diaries subsi- 26.09 0.08 100 100 100 100 100 100 HOL 20 10 %

statements Annual Report 2008 – D Financial 30/12/07 31/12/06 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 S recent financial statements available statements financial recent A PARTICIPATING

most the from Data Currency USD USD EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR Dexia Bank Belgium reserves currency currency units) INTEREST Capital (thousands of 10,499 53,734 38,017 10,136 15,172 8,088 4,308 1,823 (+) or (-) or (+) 0.10 0.10 and and 588 724 122

result 4,258 2,094 5,605 1,602 (306)

964 Net 429 527 136 165 50 25

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 166 (1) IRL-Dublin 1 Dock 6 George’s Unltd Industries Copharma 0860.972.295 Gent B-9000 Bisdomplein 3 NV Cevi 0462.095.429 Liège B-4000 38 Clarisses des Rue SA Fin CEB 0899.572.456 B-1130 Bruxelles 2 Métrologie la de Avenue Caring People 0429.260.830 Neufchâteau B-6840 9 Clément Albert Rue Bureau &SPRL Laveaux Martin 0884.499.250 B-1130 Bruxelles 1442 Haecht de Chaussée Company & Licence Brand 0448.670.530 Veurne B-8630 Sint-Walburgapark 1 Boonefaes Verzekeringen NV 0447.921.551 B-1420 Braine-l’Alleud 1021d’Alsemberg Chaussée Bogey SA 0884.639.010 Bruxelles B-1050 8 Maurice Avenue SA Estate Real Bervoets 0441.629.617 Bruxelles B-1040 95-99 Froissart Rue SA 2000 Berlaymont 0416.612.904 Bruxelles B-1000 34-42 Lombard du Rue Company SA & Investment Construction – Flemish BEM 0436.674.895 Waregem B-8790 1 Kalkhoevestraat BedrijvenCentrum Waregem NV 0428.667.645 Mechelen B-2800 11 Regenboog De BedrijvenCentrum Mechelen NV 0883.523.807 B-1130 Bruxelles 1426 Haecht de Chaussée BCC Corporate Company number and office Registered Name, os = ordinary shares = os ordinary Dexia Bank Belgium – Annual Report 2008

Type ps ps ps ps (1)

Held Held directly Number 32,046

5,338 2,793 Rights 500 500 150 123 30

1

22.24 24.33 16.64 14.85 12.05 0.08 49 20 15 %

Held by Held diaries subsi- 26.69 99.92 100 100 100 40 %

statements Financial 30/11/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 recent financial statements available statements financial recent

most the from Data Currency EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR

reserves currency currency units) Capital (thousands of 14,155 5,367 1,096 9,991 1,861 2,194 1,145 (+) or (-) or (+) and and 208 538 297 105 154 70

result 2,154

(36) (14) Net 452 154 (4) (3) (3) 44 46 45 20

(1) 0473.622.393 Bruxelles B-1050 100 Cambre la de Bois du Avenue SCRL Auderghem-Boitsfort Dexia 522192325 L-1150 Luxembourg d’Arlon route 136, SA Luxembourg Management Asset Dexia 0893.860.839 Bruxelles B-1000 44 Pachéco Boulevard Holding Finance Asset Dexia 0473.526.977 Hoboken B-2660 Kioskplaats 49 CVBA Zuidrand Antwerpen Dexia 0462.317.341 Kapellen B-2950 49 Antwerpsesteenweg CVBA Antwerpen-Noord Dexia 0475.204.681 Berchem B-2600 63 Statiestraat CVBA Metropool Antwerpen Dexia 0458.287.188 Antwerpen B-2060 1 Carnotstraat CVBA Antwerpen-Centraal Dexia 0466.378.176 B-1070 Bruxelles 35 Vaillance la de Place SCRL Anderlecht Dexia 0476.491.813 Gosselies B-6041 2 Martyrs des Place SCRL Aéropole Dexia 0473.644.565 Aarschot B-3200 44-48 Leuvensestraat CVBA Aarschot-Haacht Dexia 0442.328.116 Poperinge B-8970 34 Hondstraat Deschuytter Verzekeringskantoor NV 0890.583.427 B-5101 Loyers Park Office Namur SCRL Invest DELP Lille F-59000 Rihour Place 28, SA Nord du Crédit 0403.263.939 B-1130 Bruxelles 2 Métrologie la de Avenue SA Corona Company number and office Registered Name, os = ordinary shares = os ordinary

Type ps ps ps ps ps ps ps ps (1)

Held Held directly 6,379,943 9,256,131 Number

7,539 Rights 770 770 770 770 770 770 770 770

25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 100 49 10 %

Held by Held diaries subsi- 92.88 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 100 100 %

statements Annual Report 2008 – Financial 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 recent financial statements available statements financial recent

most the from Data Currency EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR Dexia Bank Belgium 1,196,900 reserves 438,826 140,500 currency currency units) Capital (thousands of 20,844 (+) or (-) or (+) and and 300 285 233 270 251 319 314 410 311

165,291 336,109 result 2,284 3,108

Net 100 350 195 117 167 58 22 85 43 70

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 168 (1) 0473.632.192 Libramont-Chevigny B-6800 16 Bouillon de Avenue SCRL Ardenne Centre Dexia 1 Dublin IRL-IFSC Dock 6 George’s Unltd Ireland Capital Dexia 0473.622.096 Bruxelles B-1000 41 Brouckère de Place SCRL Bruxelles-Centre Dexia 0466.378.374 B-1180 Bruxelles 247 Brugmann Avenue SCRL Brugmann Dexia 0463.669.995 Sint-Andries B-8200 447 Steenweg Gistelse CVBA Brugge-Tillegem Dexia 0465.840.025 Brugge B-8000 200 Monnikenwerve CVBA Brugge-Oostkust Dexia 0468.498.221 Hertsberge B-8020 13 Rapaertstraat CVBA Brugge-Oost Dexia 0467.000.560 B-7331 Baudour 235 Goblet Louis Avenue SCRL Saint-Ghislain Boussu Dexia 0464.955.642 Frameries B-7080 3-5 Dufrane J. Rue SCRL Borinage Dexia 0475.734.025 Bonheiden B-2820 Dorp 56 CVBA Bonheiden Dexia 0475.737.983 B-7130 Binche 56 Deliège Charles Avenue SCRL Binche-Région Dexia 0475.740.062 B-2610 Wilrijk 2 Heistraat CVBA Berchem-Wilrijk Dexia 0473.623.779 Bruxelles B-1080 444 Gand de Chaussée SCRL Basilix Dexia 0461.783.247 B-1210 Bruxelles 11 Rogier Place SA Lease Auto Dexia Company number and office Registered Name, os = ordinary shares = os ordinary Dexia Bank Belgium – Annual Report 2008

Type ps ps ps ps ps ps ps ps ps ps ps ps (1)

Held Held directly 2,209,602,426 Number

Rights 770 770 770 770 770 770 770 770 770 770 770 770

1

25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 0.02 100 %

Held by Held diaries subsi- 99.98 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 %

statements Financial 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 recent financial statements available statements financial recent

most the from Data Currency EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR 1,175,601 reserves currency currency units) Capital (thousands of 1,363 (+) or (-) or (+) and and 300 338 295 267 263 325 379 187 162 472 415 516

75,753 result 2,716

Net 383 236 180 281 195 193 159 316 174 211 4 3

0468.523.064 Overijse B-3090 Stationsplein 17 CVBA Druivenstreek Dexia 0468.851.874 Quiévrain B-7380 49 Grande Rue SCRL Haut-Pays Quiévrain, Dour, Dexia 0476.492.308 B-1700 Dilbeek 117Ninoofsesteenweg CVBA Dilbeek-Lennik Dexia 0862.652.375 Brasschaat B-2930 301 Kaart Lage CVBA Voorkempen De Dexia 0475.132.229 Denderleeuw B-9470 13Stationsstraat CBVA Denderleeuw Dexia 0467.093.701 Bilzen B-3740 Markt 33 CBVA Demerstreek Dexia 0405.549.377 Bruxelles B-1000 44 Pachéco Boulevard SA Logements Crédits Dexia 0440.627.349 B-1210 Bruxelles 11 Rogier Place SA Finance Commercial Dexia 0467.001.154 Ciney B-5590 1 Saint-Eloi Rue SCRL Ciney-Dinant Dexia 0464.104.022 Châtelet B-6200 14 Calvaire du Rue SCRL Fleurus Châtelet Dexia 0468.859.495 Charleroi B-6000 76-82 Tirou Joseph Boulevard SCRL Charleroi-Sud Dexia 0468.860.683 Marchienne-au-Pont B-6030 Place Albert 1 Albert Place SCRL Pont-à-Nôle Charleroi Dexia 0473.587.058 Geel B-2440 116-120Stationsstraat CVBA Kempen Centrum Dexia 0465.013.743 Louvière La B-7100 (1) 1 Albert Rue SCRL Centre-Hainaut Dexia Company number and office Registered Name, os = ordinary shares = os ordinary

er 23 er

23

Type ps ps ps ps ps ps ps ps ps ps ps ps ps (1)

Held Held directly Number

17,724 Rights 770 770 770 770 770 770 770 770 770 770 770 770

99.99 25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 %

Held by Held diaries subsi- 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.01 100 %

statements Annual Report 2008 – Financial 31/12/06 31/12/06 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 recent financial statements available statements financial recent

most the from Data Currency EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR Dexia Bank Belgium reserves currency currency units) Capital (thousands of 54,048 6,693 (+) or (-) or (+) and and 448 240 295 423 350 339 292 372 231 194 231 86

15,824 result 2,977

Net 196 221 163 157 197 131 118 169 67 93 93 1

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 170 (1) 0468.561.864 Destelbergen B-9070 Dendermondsesteenweg 461 CVBA Gent-Oost Dexia 0456.775.473 Mariakerke B-9030 Brugsesteenweg 514 CVBA Noord-West Gent Dexia 0460.955.084 Gent B-9000 23-25 Zonnestraat CVBA Gent-Ledeberg Dexia 0468.670.247 Oupeye B-4680 39 Visé-Voie Rue SCRL Geer-Visé Dexia NL-1077 Amsterdam ZX 3105Strawinskylaan NV Netherlands Funding Dexia 0460.950.928 Fléron B-4620 257 Martyrs des Avenue SCRL Fléron-Beyne-Soumagne Dexia – USA – Delaware Wilmington Street 1209 Orange Inc. Products, Financial Dexia 0474.536.866 Beauraing B-5570 2 Ardennes des Rue SCRL Famenne-Semois Dexia 0471.656.362 Marche-en-Famenne B-6900 1 Liège de Chaussée SCRL Ardenne Famenne Dexia 0461.504.521 Couvin B-5660 84 Faubourg-St-Germain SCRL Thiérache et Fagnes Dexia 0455.967.405 Bruxelles B-1040 6 Champs des Rue SCRL Etterbeek Dexia 0472.305.767 B-7712 Herseaux 28 Croisiers des Rue SCRL & Escaut Espierres Dexia Paris F-75009 Victoire la de rue 76, SA Pension Épargne Dexia 0473.630.907 Enghien B-7850 72 Grand-Place SCRL Lessines Enghien, Dexia 0467.012.339 Eghezée B-5310 30 Louvain de Chaussée SCRL Eghezée-Jodoigne-Perwez Dexia Company number and office Registered Name, os = ordinary shares = os ordinary Dexia Bank Belgium – Annual Report 2008

Type ps ps ps ps ps ps ps ps ps ps ps ps ps (1)

Held Held directly Number

1,000 Rights 770 770 770 770 770 770 770 770 770 770 770 770 20

25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 100 100 %

Held by Held diaries subsi- 74.65 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 %

statements Financial 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 recent financial statements available statements financial recent

most the from Data Currency USD EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR reserves 121,892 currency currency units) Capital (thousands of 5,937 1,754 (+) or (-) or (+) and and 300 385 268 356 266 227 278 570 279 337 279 361

result 1,997 7,660

Net 823 234 254 395 395 148 275 291 122 155 111 51 51

(1) 0405.764.064 Bruxelles B-1000 6 Livingstone Avenue SA Belgium Insurance Dexia 18621931 LU L-1253 Luxembourg Bové Nicolas rue 2, SA Services & Pensions Insurance Dexia Saint-Mesmin Chapelle La F-45380 Croquechâtaigne 13, rue SA Sociale Ingénierie Dexia 0893.787.296 Bruxelles B-1000 44 Pachéco Boulevard Immorent Dexia 0459.659.640 Hannut B-4280 5 Grand-Place SCRL Hesbaye-Centre Dexia 0455.940.481 Herstal B-4040 34 Jaurès Jean Place SCRL Herstal Dexia 0462.372.967 Rocourt B-4000 391 Tongres de Chaussée SCRL Liège de Hauts Dexia 0468.852.666 B-7190 Écaussinnes 67 Duray Camille Rue SCRL Haute-Senne Dexia 0464.665.929 Vielsalm B-6690 21 C Marché Vieux du Rue SCRL Haute-Ardenne Dexia 0464.680.280 Sint-Truiden B-3800 Clockemstraat 38 CVBA Haspengouw-West Dexia 0464.705.323 Zichen-Zussen-Bolder B-3770 Visesteenweg 227 CVBA Haspengouw-Oost Dexia 0473.611.705 Deurne B-2100 1 Hermanslaan Andree CVBA Deurne Groot Dexia 0468.504.258 Geraardsbergen B-9500 4-6 Oudenaardsestraat CVBA Geraardsbergen-Ninove Dexia 0468.502.674 Merelbeke B-9820 Waterstraat 2 CVBA Zuid-Oost Gent Dexia Company number and office Registered Name, os = ordinary shares = os ordinary

Type ps ps ps ps ps ps ps ps ps ps ps (1)

Held Held directly 2,574,640 Number

Rights 400 770 770 770 770 770 770 770 770 770 770

25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 99.79 40 %

Held by Held diaries subsi- 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 100 85 %

statements Annual Report 2008 – Financial 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 recent financial statements available statements financial recent

most the from Data Currency EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR Dexia Bank Belgium reserves 424,125 currency currency units) Capital (thousands of 11,212 (+) or (-) or (+) and and 960 345 299 362 205 267 267 321 361 217 311

104,204 result 2,431 (899)

Net 264 225 109 195 128 193 172 171 34 58 95

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 172 (1) 0465.019.978 Leuven B-3000 2 Brusselsestraat CVBA Leuven Dexia 0456.766.763 St-Pieters-Leeuw B-1600 Weerstandsplein 1 CVBA Rode Calevoet, Leeuw, Dexia 0427.903.127 B-1210 Bruxelles 11 Rogier Place SA Services Lease Dexia 0431.916.551 B-1210 Bruxelles 11 Rogier Place SA Belgium Lease Dexia 0462.793.631 B-1030 Bruxelles 218 Helmet de Chaussée SCRL Lambermont Dexia 0468.521.876 B-1020 Bruxelles 77 Wand de Rue SCRL Laeken Dexia 0466.460.726 Kortrijk B-8500 19 Doorniksewijk CVBA Kortrijk Dexia 0475.123.519 Willebroek B-2830 21Nieuwstraat CVBA Brabant Klein Dexia 0468.248.296 Grobbendonk B-2280 Astridplein 9 CVBA Kempen-Centraal Dexia 0466.424.597 Mol B-2400 13 A Rondplein CVBA Kempen Dexia 0463.693.850 Bruxelles B-1090 2 A Nayer de Smet de Boulevard SCRL Jette Dexia P 4886676 IE 1 Dublin IRL-IFSC Dock 6 George’s Unltd Ireland Investments Dexia 0878.760.909 Bruxelles B-1000 44 Pachéco Boulevard Company Investment Dexia L-1253 Luxembourg Bové Nicolas rue 2, SA Finance Services Insurance Dexia Company number and office Registered Name, os = ordinary shares = os ordinary Dexia Bank Belgium – Annual Report 2008

Type ps ps ps ps ps ps ps ps ps ps ps ps (1)

Held Held directly 539,999,999 Number

Rights 770 770 770 770 770 770 770 770 770

25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 100 %

Held by Held diaries subsi- 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 100 100 100 100 %

statements Financial 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 recent financial statements available statements financial recent

most the from Data Currency EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR 5,558,318 1,187,642 reserves 325,014 currency currency units) Capital (thousands of 14,567 6,739 (+) or (-) or (+) and and 400 398 246 334 226 337 247 192 251

213,277 84,825 43,437 19,772 result 3,928

306 206 Net 255 153 121 90 43 53 4

(1) 0468.888.694 Wépion B-5100 719 Dinant de Chaussée SCRL Namuroise Meuse Dexia 0475.741.250 Jemeppe-sur-Meuse B-4101 36-38 Station la de Rue SCRL Liégeoise Meuse Dexia 0468.559.488 Eeklo B-9900 Markt 93 CVBA Meetjesland Dexia 0462.322.388 Zemst B-1980 Brusselsesteenweg 110 CVBA Mechelen-Zemst Dexia 0466.987.197 B-7160 Chapelle-lez-Herlaimont 55 Gouy de Rue SCRL Mariemont-Seneffe Dexia 0461.343.579 Lanaken B-3620 12Stationsstraat CVBA Maasland Dexia 0473.667.232 Dilsen B-3650 Rijksweg 405 CVBA Noord Maaskant Dexia 0465.123.116 Bruxelles B-1050 B 28 Flagey Place SCRL Louise Dexia 0473.708.210 Houthalen-Helchteren B-3530 9 Guldensporenlaan CVBA Centrum Limburg Dexia 18421978 LU L-1253 Luxembourg Bové Nicolas rue 2, SA Luxembourg & Pensions Life Dexia 0458.893.043 Angleur B-4031 354 Sart-Tilman du Rue SCRL Liège-Sud Dexia 0475.741.448 Ans B-4430 50 Albert Roi du Chaussée SCRL Liège-Ouest Dexia 0460.558.473 Liège B-4000 12 Mineurs des Rue SCRL Liège-Centre Dexia 0465.198.142 Leuven B-3000 41-42 Remyplein Becker De CVBA Leuven-Oost Dexia Company number and office Registered Name, os = ordinary shares = os ordinary

Type ps ps ps ps ps ps ps ps ps ps ps ps ps (1)

Held Held directly Number

Rights 770 770 770 770 770 770 770 770 770 770 770 770 770

25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 %

Held by Held diaries subsi- 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 100 %

statements Annual Report 2008 – Financial 31/12/06 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 recent financial statements available statements financial recent

most the from Data Currency EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR Dexia Bank Belgium reserves currency currency units) Capital (thousands of 82,314 (+) or (-) or (+) and and 338 246 329 226 180 245 278 670 146 376 169 218 171

result 5,405

386 Net 632 188 140 327 261 175 212 151 173 69 72 47

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 174 (1) 0473.583.395 Meeuwen B-3670 51Dorpsstraat CVBA Limburg Noord-Oost Dexia 0473.590.424 Overpelt B-3900 26 Markt Oude CVBA Noord-Limburg Dexia 0475.811.328 Wuustwezel B-2990 Bredabaan 423 CVBA Noorderkempen Dexia 0466.977.596 Tubize B-1480 55 Mons de Rue SCRL Nivelles-Tubize Dexia 0476.503.788 Lier B-2500 13 Markt Grote CVBA Neteland Dexia 0464.103.329 Namur B-5000 1 Marchovelette de Rue SCRL Namur-Ville Dexia 0464.982.366 Bouge B-5004 440 Louvain de Chaussée SCRL Namur-Sud Dexia 0466.454.489 Saint-Servais B-5002 89 Gembloux de Route SCRL Namur-Ouest Dexia 0476.374.720 Mortsel B-2640 59 Statielei CVBA Mortsel-Kontich Dexia 0465.013.644 Mons B-7000 9 d’Avesnes Jean Avenue SCRL Mons-Sud Dexia 0464.187.263 Mons B-7000 61-65 Nimy de Rue SCRL Mons-Nord Dexia 0479.386.668 Stekene B-9190 15Kerkstraat CVBA Waasland Midden Dexia 0466.987.001 Genk B-3600 Fruitmarkt 7 CVBA Midden-Limburg Dexia 0459.671.419 Heverlee B-3001 Tervuursesteenweg 202 CVBA Midden-Brabant Dexia Company number and office Registered Name, os = ordinary shares = os ordinary Dexia Bank Belgium – Annual Report 2008

Type ps ps ps ps ps ps ps ps ps ps ps ps ps ps (1)

Held Held directly Number

Rights 770 770 770 770 770 770 770 770 770 770 770 770 770 770

25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 %

Held by Held diaries subsi- 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 %

statements Financial 31/12/06 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 recent financial statements available statements financial recent

most the from Data Currency EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR reserves currency currency units) Capital (thousands of (+) or (-) or (+) and and 544 466 369 245 379 291 255 149 361 274 159 316 173 40

result

Net 426 257 168 243 140 231 199 571 319 42 20 33 16

(1) 0463.653.367 Deinze B-9800 Veldstraat 50 CVBA Deinze-Aalter-Latem Regio Dexia 0467.005.411 Buggenhout B-9255 13Stationsstraat CVBA Buggenhout-Londerzeel Regio Dexia 0464.672.659 B-1730 Asse 2 Kattestraat CVBA Asse-Ternat Regio Dexia 0464.206.861 Aalst B-9300 4 Stationsstraat CVBA Aalst Regio Dexia USA – Washington – Issaquah WA 98027 202 Suite Street, 1180 Maple NW Markets Capital Estate Real Dexia L-1253 Luxembourg Bové Nicolas rue 2, SA Re Dexia 0894.448.678 Bruxelles B-1000 44 Pachéco Boulevard US Financing Facilities Public Dexia 0476.507.055 Ath B-7800 24 Grand-Place SCRL Vert-Collines Pays Dexia 0462.318.628 Battice B-4651 22 Marché du Place SCRL Herve de Pays Dexia 0475.723.731 Bastogne B-6600 226 Vivier du Rue SCRL Bastogne de Pays Dexia Indies West British – Cayman Grand Drive 2 Jennifer Ltd Overseas Dexia 0463.712.062 Aywaille B-4920 47 Thiry Joseph Place SCRL Ourthe-Amblève Dexia 0476.578.519 Eupen B-4700 11Rathausplatz SCRL Ostbelgien Dexia 0459.673.397 Oostende B-8400 90-92 Pieterslaan Alfons CVBA Oostende-Middelkerke Dexia 0473.635.360 Mouscron B-7700 52 Station la de Rue SCRL Picardie Nord Dexia Company number and office Registered Name, os = ordinary shares = os ordinary

Type ps ps ps ps ps ps ps ps ps ps ps (1)

Held Held directly Number 150,000 19,999

Rights 100 770 770 770 770 770 770 770 770 770 770 770

99.99 25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 100 100 %

Held by Held diaries subsi- 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.01 100 %

statements Annual Report 2008 – Financial 31/12/06 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 recent financial statements available statements financial recent

most the from Data Currency USD USD EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR Dexia Bank Belgium reserves currency currency units) Capital (thousands of 77,384 2,393 1,104 (+) or (-) or (+) and and 400 204 398 246 250 225 292 255 138 313 313

result 8,064

409 Net 180 326 525 269 156 130 121 175 30 73 4 2

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 176 (1) 0479.484.163 Oudenburg B-8460 2 Ettelgemsestraat CVBA Oudenburg Regio Dexia 0463.670.985 Oostende B-8400 1 Kapellestraat CVBA Oostende Regio Dexia 0456.783.391 Koekelare B-8680 17 Sint-Maartensplein CVBA Middelkerke-Koekelare Regio Dexia 0464.214.482 Menen B-8930 16 Kerkomtrek CVBA Menen-Wevelgem Regio Dexia 0466.390.648 Wevelgem B-8560 12Kortrijkstraat CVBA Menen Regio Dexia 0473.703.458 Kruishoutem B-9770 Markt 2 CVBA Kruishoutem Regio Dexia 0473.708.408 Ieper B-8900 29 Meensestraat CVBA Ieper-Heuvelland Regio Dexia 0473.588.444 Hasselt B-3500 Leopoldplein 41 CVBA Hasselt Regio Dexia 0464.961.976 Harelbeke B-8530 9-15 Marktstraat CVBA Harelbeke Regio Dexia 0473.606.755 Evergem B-9940 Hoeksken 10 CVBA Evergem-Zelzate Regio Dexia 0466.990.959 St-Lievens-Houtem B-9520 Marktplein 36 CVBA Erpe-Mere Regio Dexia 0464.991.373 Diksmuide B-8600 31 Markt Grote CVBA Diksmuide-Westkust Regio Dexia 0461.505.214 Diest B-3290 Sint-Jan Berchmansstraat 4 CVBA Diest Regio Dexia 0463.700.184 Dendermonde B-9200 Zuidlaan 2 CVBA Dendermonde Regio Dexia Company number and office Registered Name, os = ordinary shares = os ordinary Dexia Bank Belgium – Annual Report 2008

Type ps ps ps ps ps ps ps ps ps ps ps ps ps ps (1)

Held Held directly Number

Rights 770 770 770 770 770 770 770 770 770 770 770 770 770 770

25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 %

Held by Held diaries subsi- 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 %

statements Financial 31/12/06 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 recent financial statements available statements financial recent

most the from Data Currency EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR reserves currency currency units) Capital (thousands of (+) or (-) or (+) and and 405 238 294 303 322 232 320 263 335 231 314 170 174 411

result

Net 180 225 269 201 341 270 153 139 241 117 112 80 23 59

(1) 0862.458.078 Schoten B-2900 Markt 26 CVBA Schoten-Merksem Dexia 0463.671.480 Kalken B-9270 Kalkendorp 21 CVBA Scheldeland Dexia 0466.452.610 Thuin B-6530 9 Serstevens ‘t Rue SCRL Heure et Sambre Dexia 0467.003.035 Hemiksem B-2620 73 Provincialesteenweg CVBA Rupel Dexia 0474.573.488 Theux B-4910 41 Perron du Place SCRL Verviers-Spa Région Dexia 0464.663.058 Huy B-4500 33 Ardennes des Avenue SCRL Huy-Andenne Région Dexia 0464.656.922 Gembloux B-5030 12 d’Agronomie Faculté la de Avenue SCRL Gembloux Région Dexia 0464.994.937 Gent B-9000 142 Albertlaan Koning CVBA Zuid-Gent Regio Dexia 0463.668.908 Waregem B-8790 Markt 12 CVBA Waregem Regio Dexia 0463.702.758 Hoogstraten B-2320 109 Vrijheid CVBA Turnhout-Hoogstraten Regio Dexia 0468.461.401 Torhout B-8820 Markt 28 CVBA Torhout Regio Dexia 0459.668.350 Tienen B-3300 36 Nieuwstraat CVBA Tienen Regio Dexia 0456.777.750 Izegem B-8870 21 Markt Grote CVBA Izegem Roeselare Regio Dexia 0464.214.284 Poperinge B-8970 39 Markt Grote CVBA Poperinge Regio Dexia Company number and office Registered Name, os = ordinary shares = os ordinary

Type ps ps ps ps ps ps ps ps ps ps ps ps ps ps (1)

Held Held directly Number

Rights 770 770 770 770 770 770 770 770 770 770 770 770 770 770

25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 %

Held by Held diaries subsi- 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 %

statements Annual Report 2008 – Financial 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 recent financial statements available statements financial recent

most the from Data Currency EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR Dexia Bank Belgium reserves currency currency units) Capital (thousands of (+) or (-) or (+) and and 298 394 385 360 238 232 232 256 249 539 227 158 318 141

result

206 Net 236 378 570 183 167 149 214 110 177 44 39 79 13 9

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 178 (1) 0475.224.378 Verviers B-4800 14 Crapaurue SCRL Verviers-Heusy Dexia 0462.410.579 Warneton B-7784 19 Lille de Rue SCRL Lys la de Vallée Dexia 0459.668.845 Wavre B-1300 8 Einstein Avenue SCRL Dyle la de Vallée Dexia 0475.739.567 Trazegnies B-6183 12 Grand-Rue SCRL Val Piéton du Dexia 0473.617.247 Florennes B-5620 17 A Mettet de Rue SCRL Val d’Heure Dexia 0461.824.423 Tamines B-5060 15-17 Station la de Rue SCRL Val Sambre de Dexia 0469.209.883 B-1180 Bruxelles 1356 Waterloo de Chaussée SCRL Uccle-Rhode Dexia 0473.660.007 Péruwelz B-7600 34 Grand-Place SCRL Verne de Tournai-Val Dexia 0462.410.480 Tournai B-7500 105-109 Royale Rue SCRL Tournai Dexia 0466.444.195 Arlon B-6700 13 Poste la de Rue SCRL Sud-Luxembourg Dexia 0458.895.815 B-1150 Bruxelles 22 Dumon Place SCRL Stockel Dexia 0463.713.448 Seraing B-4100 37 Rotheux de Rue SCRL Seraing-Ougrée-Nandrin Dexia 0442.757.389 Bruxelles B-1000 44 Pachéco Boulevard SA Belgium Securities Dexia 0890.181.767 Bruxelles B-1000 44 Pachéco Boulevard Belgium Funding Secured Dexia Company number and office Registered Name, os = ordinary shares = os ordinary Dexia Bank Belgium – Annual Report 2008

Type ps ps ps ps ps ps ps ps ps ps ps ps ps (1)

Held Held directly Number 10,839

6,200 Rights 770 770 770 770 770 770 770 770 770 770 770 770

99.99 25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 10 %

Held by Held diaries subsi- 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.01 %

statements Financial 31/12/06 31/12/06 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 recent financial statements available statements financial recent

most the from Data Currency EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR reserves currency currency units) Capital (thousands of 11,155 (+) or (-) or (+) and and 344 464 445 244 395 329 226 232 207 379 216 213

result 2,357

409 Net 280 354 269 249 292 143 127 132 212 212 68

(1) 0468.779.818 Schriek B-2223 8 Kempenaersstraat L. CVBA Zuiderkempen Dexia 0460.956.965 Zottegem B-9620 33 Heldenlaan CVBA Zottegem-Oosterzele Dexia 0871.252.713 Sint-Antonius-Zoersel B-2980 127 Handelslei CVBA Zoersel-Malle Dexia 0454.765.692 Halle B-1500 13 Basiliekstraat CVBA Zennevallei Dexia 0468.589.479 B-1200 Bruxelles 49 Saint-Henri Parvis SCRL Woluwé Dexia 0467.006.597 Lummen B-3560 2 Kerkstraat CVBA West-Limburg Dexia 0465.156.966 B-1780 Wemmel 60-62 Markt CVBA Wemmel-Meise-Strombeek Dexia 0465.137.368 B-1410 Waterloo 306 Bruxelles de Chaussée SCRL Waterloo Dexia 0456.784.183 Waremme B-4300 15 Wauters Joseph Rue SCRL Waremme-Hesbaye Dexia 0865.262.368 Sint-Niklaas B-9100 Parklaan 33 CVBA Zuid-Oost Waasland Dexia 0465.017.505 Hamme B-9220 Marktplein 3 CVBA Noord-West Waasland Dexia 0459.350.230 Zwijndrecht B-2070 135Statiestraat CVBA Waasland-Centrum Dexia 0459.674.288 Oudenaarde B-9700 17Nederstraat CVBA Ardennen Vlaamse Dexia 0476.492.110 Vilvoorde B-1800 4 Bergstraat CVBA Vilvoorde-Zaventem Dexia Company number and office Registered Name, os = ordinary shares = os ordinary

Type ps ps ps ps ps ps ps ps ps ps ps ps ps ps (1)

Held Held directly Number

Rights 770 770 770 770 770 770 770 770 770 770 770 770 770 770

25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 25.67 %

Held by Held diaries subsi- 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 %

statements Annual Report 2008 – Financial 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 recent financial statements available statements financial recent

most the from Data Currency EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR Dexia Bank Belgium reserves currency currency units) Capital (thousands of (+) or (-) or (+) and and 442 466 209 447 362 220 322 347 526 292 189 276 169 119

result

308 Net 352 256 526 109 157 310 175 151 417 179 52 47 55 74

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 180 (1) 0416.799.201 Bruxelles B-1000 44 Pachéco Boulevard SA Dexia Fiduciaire 0434.197.536 Bruxelles B-1000 B 5 36 Ravenstein Rue Europay Belgium SCRL 15610600 LU L-1253 Luxembourg Bové Nicolas rue 2, SA Eurco Zürich CH-8002 49 Beethovenstraße AG Rück Eurco IRL-Dublin 1 Dock 6 George’s Ltd Re Eurco IRL-Dublin 1 Dock 6 George’s Ltd Eurco IRL-Dublin 1 Dock 6 George’s Unltd Finance Eurco 0888.411.419 Bruxelles B-1050 15-17 Godecharle Rue SA 64 Esplanade 0404.228.296 Liège B-4000 38 Clarisses des Rue SA Elantis IRL-Dublin 1 Dock 6 George’s Echo Unltd 0436.825.642 1 Antwerpen B-2018 37 Oomsstraat Karel NV Flandria Domus 0878.881.762 Bruxelles B-1000 96 II Joseph Rue SA Invest DIB 0894.555.972 Bruxelles B-1000 44 Pachéco Boulevard INFRA+ DG 0436.006.090 Bruxelles B-1000 48 l’Écuyer de Rue Deximmo SA 0468.495.449 Meulebeke B-8760 21Holdestraat CVBA Molenland Zuid Dexia Company number and office Registered Name, os = ordinary shares = os ordinary Dexia Bank Belgium – Annual Report 2008

Type ps ps ps ps ps (1)

Held Held directly Number 338,866 35,000

4,800 6,463 1,500 4,592 1,499 Rights 300 770

90.36 99.98 18.05 25.67 99.93 13.28 17.46 100 % 5

Held by Held diaries subsi- 99.98 9.64 0.33 0.02 0.07 100 100 100 100 100 20 %

statements Financial 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 recent financial statements available statements financial recent

most the from Data Currency EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR CHF 1,719,536 reserves 108,292 currency currency units) Capital (9,578) (thousands of 72,969 19,646 26,655 17,400 1,353 1,503 1,665 1,197 (+) or (-) or (+) and and 236 226 592

83,827 67,382 result 6,690 1,272 2,921 2,190 5,185

Net 780 426 459 (8) 36 3 1

(1) 0899.503.368 Liège B-4000 5 Sainte-Marie Rue IP-1 0406.062.883 Brugge B-8000 42 Boeveriestraat CVBA Huisvesting voor Maatschappij Interbrugse 0891.786.920 Bruxelles B-1000 44 Pachéco Boulevard Inframan 0472.721.679 Bruxelles B-1040 53/4 d’Arlon Rue GIE Inforum 0406.206.306 Bruxelles B-1000 44 Pachéco Boulevard Immorente 127.782 B Lux L-1528 Luxembourg 4 Foire la de Boulevard SA Foire Immo 0245.830.563 Louvière La B-7100 Ville de Hôtel IHF SC 0258.258.738 Arlon B-6700 98 l’Arc-en-Ciel de Drève SCRL Finances Lux IDE 0205.797.475 Arlon B-6700 98 l’Arc-en-Ciel de Drève SCRL Lux IDE 1 Dublin IRL-IFSC Dock 6 George’s Unltd Holdings IBRO 0870.505.516 Brugge B-8000 24-26 Hamiltonpark HIMBA NV 0455.739.850 Bruxelles B-1000 44 Pachéco Boulevard SA Fynergie 0891.137.515 B-1160 Bruxelles 42 Herrmann-Debroux Avenue Erasme Foncière 0436.044.197 Antwerpen B-2000 39 Pacificatiestraat Finimmo NV (antérieurement Gimogem) Company number and office Registered Name, os = ordinary shares = os ordinary

Type ps ps (1)

Held Held directly Number

1,000 1,249 1,092 3,719 Rights 999 505 558 161 50 50

36.87 99.90 20.33 24.62 99.92 11.12 50 50 50 20 %

Held by Held diaries subsi- 33.33 12.18 0.08 0.10 100 99 %

statements Annual Report 2008 – Financial 30/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 recent financial statements available statements financial recent

most the from Data Currency EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR

Dexia Bank Belgium reserves currency currency units) Capital (thousands of 16,985 43,979 54,012 27,179 1,129 (+) or (-) or (+) and and 388 285 624 132 251

result 1,716

(28) Net 704 753 123 319 181 32 11 1 4

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 182 (1) L-2953 Luxembourg d’Esch route 69, ParfiparSA 0441.784.223 Louvain-la-Neuve B-1348 10 Fleming Avenue SA Orfival 0883.079.288 Diepenbeek B-3590 D gebouw Agoralaan – Hasselt universiteit P/A Ondernermerstalent NV Orléans F-45000 Patay de rue 19/21, Funéraire Prévoyance de Français Office 0240.277.017 Charleroi B-6000 Boulevard Tirou 167 Maison Notre 0465.853.089 Bruxelles B-1050 Trône du 173Rue SCRL Belgium Label Havelaar Max 0458.715.671 Mechelen B-2800 17 Wittelaan De Generaal NV Logins 0441.221.920 Antwerpen B-2000 5 Sudermanstraat NV Building Livingstone 0403.364.996 Bruxelles B-1000 44 Pachéco Boulevard Lex 2000 0439.077.824 B-1200 Sint-Lambrechts-Woluwe Gemeenschappenlaan 100 NV Leskoo 0476.658.097 B-2610 Antwerpen-Wilrijk 129Heistraat NV Antwerpen Justinvest 0427.213.140 Bruxelles B-1000 1 Zinner Rue SA Zinner J. 0455.530.509 Bruxelles B-1000 13-15 l’Impératrice de Boulevard SA Isabel 0899.503.536 Liège B-4000 5 Sainte-Marie Rue IP-2 Company number and office Registered Name, os = ordinary shares = os ordinary

Dexia Bank Belgium – Annual Report 2008

Type ps (1)

Held Held directly Number 240,034 128,156 74,339

2,096 Rights 310 50 50 50

44.29 38.09 20.33 33.33 13.33 13.10 100 24 %

Held by Held diaries subsi- 18.22 11.90 11.91 100 100 40 50 %

statements Financial 30/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 recent financial statements available statements financial recent

most the from Data Currency EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR reserves 404,201 currency currency units) Capital (thousands of 13,500 13,952 5,205 2,506 5,193 1,137 (+) or (-) or (+) and and 360 366 422 129 67

(5,571) 50,991 10,077 result 1,294

(48) (41) Net 779 133 314 (5) (1) 3

(1) 0435.890.977 Bruxelles B-1050 15-17 Godecharle Rue SA Léopold Espace Société 0450.994.372 Liège B-4000 3 Lombard Lambert Rue SA Guillemins Liège de développement de Société 0480.029.739 Liège B-4000 5 Sainte-Marie Rue SA Participations S.L.F. 0480.029.838 Liège B-4000 5 Sainte-Marie Rue SA Immo S.L.F. 0203.978.726 Liège B-4000 5 Sainte-Marie Rue SA Finances S.L.F. 0403.166.147 Bruxelles B-1040 53 d’Arlon Rue SC Belgique de Communal Service 0403.251.467 Bruxelles B-1000 6 Livingstone Avenue SCRL Sepia Saint-Mesmin Chapelle La F-45380 Croquechâtaigne 13, rue Immobilier Mesmin Saint SCI 0403.288.584 Bruxelles B-1000 99-101 Loi la de Rue Realex SA 0473.453.139 Bruxelles B-1000 192 Royale Rue Rainbow ICT-Services GIE 0479.758.733 B-2610 Wilrijk 129Heistraat NV Invest Rabot 0875.090.844 Bruxelles B-1000 55/14 Royale Rue Publipart SA 0439.904.896 Bruxelles B-1050 15-17 Godecharle Rue Promotion Léopold SA 0438.533.436 Bruxelles B-1000 19 Sainte-Gudule Place SA Haan De Park Company number and office Registered Name, os = ordinary shares = os ordinary

Type ps ps (1)

Held Held directly Number 209,993 191,400 42,289 85,993 34,351

6,660 Rights 300 100 101 60

33.30 20.49 20.57 63.59 16.50 19.05 10.76 27.99 25 15 %

Held by Held diaries subsi- 21.50 16.70 100 100 50 50 %

statements Annual Report 2008 – 30/09/08 Financial 31/12/04 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 recent financial statements available statements financial recent

most the from Data Currency EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR Dexia Bank Belgium reserves 218,764 currency currency units) 175,155 Capital (3,587) (thousands of 36,532 30,678 62,727 8,402 3,130 (+) or (-) or (+) (80) and and 186 211 111 68 25

result 8,321 2,595 1,365 8,319

(180) 7,117

(10) Net 893 243 776 (1) 183 29

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements FULL 184 (1) Nil V 0404.221.368 Westerlo B-2260 39 Markt Grote CV Kempen Zonnige 0466.037.092 Assebroek B-8310 37 Astridlaan NV Vandepitte-Leplae Zakenkantoor 0441.188.464 B-3130 Betekom Pater Damiaanstraat 5 NV Vlabo-Invest 0435.551.972 Bruxelles B-1000 36/5 Ravenstein Rue SCRL Belgium Visa 0431.686.127 Melle B-9090 C 346 Brusselsesteenweg NV Interass – VDL 0400.067.788 Gent B-9000 Sint-Michielsplein 16 NV Spaarbank VDK 0460.180.470 Ciney B-5590 34 Dinot E. Rue Conseil Agence Syneco 0447.389.833 Bruxelles B-1050 32 Stassart de Rue SA SOFIBRU 0426.091.207 Namur B-5000 49 Dewez Rue location-financement de wallonne Société SA – Sofibail Company number and office Registered Name, I . §2. os = ordinary shares = os ordinary Dexia Bank Belgium – Annual Report 2008 Y LIA Y

ENTERPRISES

B

LE

PARTNER

FOR W OR MEM HICH THE B

ER Type CRE ps ps ps (1)

D Held Held directly IT Number INSTITUTION

2,000 8,771 Rights 145 26 25

14.36 19.42 41.43 17.79 20 %

HAS Held by Held diaries subsi- 16.29 100 UNLIMITE 20 26 %

statements Financial 31/12/03 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 31/12/07 recent financial statements available statements financial recent D LIA

most the from Data Currency B ILIT EUR EUR EUR EUR EUR EUR EUR EUR EUR Y IN ITS reserves currency currency units) 231,192 Capital (thousands of 26,205 16,148 2,107 2,155 1,717 CAPACIT (+) or (-) or (+) and and 277 873 60

28,067 result 1,688

Y

940 Net 832 126 OF 52 24 55 12

Net carrying value as at end of period of end at as value carrying Net period the during Movements period preceding of end at as value carrying Net 1. V (1) 2. period the during Movements period preceding of end at As period the during Movements period preceding of end at As (in thousands of EUR) thousands (in C AS B. AS A (in thousands of EUR) thousands (in II

. . - Amortization (-) Amortization - - Cancellations (-) Cancellations - Recorded - - Sales and disposals (-) disposals and Sales - construction own including - Acquisitions, If the amounts are significant. are amounts the If Formation expenses Intangible fixed assets fixed Intangible . AMORTI NET ACQUISITION

AT AT STATEMENT EN EN CARR D D Z OF OF ATION Y V ING PERIO PERIO COST AN ALUE OF D (B) D (a) D W FORMATION AS RITE AT -D EN O D W OF NS PERIO EXPENSES D ( A )-(B) AN D INTANGI D

B LE FIXE G oodwill D ASSETS D Annual Report 2008 – 0 0 0 0 0 0 0 0 0 ( A ssets item V item ssets intangible 65,035 70,219 52,991 12,551 57,668 assets O 4,681 5,188 fixed ther Dexia Bank Belgium (4) (4)

0 1 III new business for attracting commissions .) art. 27 art. O 31/12/08 f which bis 185 (1) (1) 0 0 0 0 0 0 0 0 0

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements which Of Movements during period period preceding of end at As Movements during period period preceding of end at As

186 V Movements during period period preceding of end at As AS D. AS W C AS B. B. AS (in thousands of EUR) thousands (in A III . D . - Plant, machinery and equipment and machinery - Plant, - (-) Cancellations - Recorded - - (-) Cancellations - - (-) disposals and Sales - - RITE RE NET ACQUISITION . to another (+/-) item one from Transfers to another (+/-) item one from Transfers to another (+/-) item one from Transfers including own including construction Acquisition, AT AT AT AT Dexia Bank Belgium – Annual Report 2008

EPRECIATION TANGI V ALUATION EN EN EN EN -D CARR O D D D D WNS OF OF OF OF Y B V ING PERIO PERIO PERIO PERIO LE

COST SURPLUSES FIXE AN ALUE D ( D (c) D ( D (a) D A b D ASSETS D ) )+(B)-( C )

( 1,393,379 A buildings 1,113,339 (198,408) (286,717) 792,344 150,559 610,726 585,193 (63,239) ssets item IX item ssets (17,074) (17,745) 82,580 34,535 23,751 (4,740) L and and

equipment machinery 444,331 434,868 489,734 460,939 45,403 38,578 19,247 (9,784) (9,784) P lant, .) and and 0 0 0 0 1 0

F urniture vehicles 134,564 102,638 130,410 100,122 31,926 (2,285) (2,374) 4,801 6,529 and (1) 0 0 0 0 0

L similar easing rights other and 425 422 413 410 12 12 3 0 0 0 0 0 0 3 0 0

tangible 160,991 270,791 114,528 207,625 169,101 (11,405) (11,410) 75,018 assets O 4,864 4,728 3,745 fixed (442) (450) (136) ther 0

construction & advance payment 12,600 42,703 33,639 A 30,103 under under 9,930 9,977 2,931 ssets (620) (209) (246) (99) 0 0 0 0

buildings 66,648 50,953 55,472 rented 63,757 (2,736) (2,736) 11,176 5,522 C 7,158 osts 105 for 97 0 0 0 0

Over 5 years Over to 5 years up 1 year Over to 1 year up 3 months Over less and 3 months 2. interests participating by linked enterprises to other due Amounts enterprises to affiliated due Amounts 1. XI income Accrued charges Deferred X significant) is item this in amount the (if Analysis IX (in thousands of EUR) thousands (in of EUR) thousands (in of EUR) thousands (in of EUR) thousands (in . . . - Other assets Other - assets – taxes Deferred - options for paid Premiums - out written swaptions for paid Premiums - resale for Assets - metals Precious - For amounts owed to credit institutions (other than those repayable on demand), analysis of their remaining remaining their of analysis C.) and demand), I.B. on item repayable (Liabilities those maturity than (other institutions credit to owed amounts For a whole as item the For D STATEMENT OTHER EFERRE ( ASSETS D CHARGES OF AMOUNTS A ssets item item ssets AN D ACCRUE O W XI E .) .) D TO D D ( INCOME CRE D IT INSTITUTIONS A ssets item item ssets XII ( L .) ia b Annual Report 2008 – ilities item I item ilities

.) 10,573,176 1,572,824 31/12/07 Dexia Bank Belgium

86,775,938 27,846,537 16,155,525 1,668,533 2,749,313 31/12/08 31/12/08 31/12/08 31/12/08 444,434 208,487 938,958 104,753 225,218 92,840 75,119 9,080 7,591 187

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 188 5 years Over to 5 years up 1 year Over to 1 year up 3 months Over less and 3 months 2. 1. XIII Undated 5 years Over to 5 years up 1 year Over to 1 year up 3 months Over less and 3 months demand on Repayable 3. countries foreign in Customers Belgium in Customers 2. linked interests by enterprises participating Other enterprises Affiliated 1. XII (in thousands of EUR) thousands (in of EUR) thousands (in of EUR) thousands (in of EUR) thousands (in

Nil Analysis according to the remaining maturity remaining the to according Analysis enterprises linked by participating interests other or enterprises affiliated to due are knowledge, institution’s reporting the of best the to which Debts maturity remaining the to according Analysis analysisCountry to owed Amounts .

. Dexia Bank Belgium – Annual Report 2008 STATEMENT

STATEMENT OF OF AMOUNTS D E B TS E V I O D ENCE W E D TO D D BYCERTIFICATES D CUSTOMERS

( L (lia ia b ilities item II item ilities b ilities item III item ilities .) .)

29,494,406 28,028,285 40,642,281 55,045,232 22,744,432 16,071,553 3,689,427 6,713,549 5,017,414 31/12/07 31/12/07 31/12/07 310,488

54,254,567 30,050,859 21,091,361 28,957,211 13,152,678 14,341,112 3,800,576 2,018,690 6,734,709 7,078,214 6,102,819 31/12/08 31/12/08 31/12/08 31/12/08 905,362 190,470 410,148

c B. A X significant) is item this in amount the (if Analysis X Deferred income Accrued charges X significant) is item this in amount the (if Analysis 3. payable Taxes 2. 1. XI (in thousands of EUR) thousands (in of EUR) thousands (in of EUR) thousands (in of EUR) thousands (in of EUR) thousands (in f . V V V.

V. Other liabilities Other - Other enterprises linked by participating interests participating by linked enterprises Other - enterprises Affiliated - activities banking Provision - buildings of Dismantlement - contracts Loss-making - experts and lawyers of Costs - maintenance and repairwork - Large disputes Current - paid to be - Dividend swaptions issued from received Premiums - - Suppliers debts social and tax - Other options issued from received Premiums - Nil Taxes Taxes, remuneration and social security II I or the item as a as item the or

harges as a result of su of a result as harges . ACCRUE

. OTHER PRO

STATEMENT VISIONS

LIA D CHARGES B ILITIES

FOR w OF hole, amounts amounts hole,

SU

OTHER (lia B AN b OR or D D b d D ilities item

inate LIA INATE EFERRE d B d lia ue to ue ILITIES D LIA b D ilities (lia INCOME

B AN I V.) ILITIES D CHARGES (lia b b ilities item V.) item ilities ilities item VIII (lia b ilities item VI Annual Report 2008 – .) . A

.3.) 17,401,411 1,386,057 31/12/07 31/12/07 31/12/07 Dexia Bank Belgium 164,817 377,962 152,744 115,045 25,891 16,719 2,500 8,777 0

26,939,428 1,965,647 31/12/08 31/12/08 31/12/08 31/12/08 31/12/08 188,880 260,073 122,689 125,462 142,550 551,707 40,083 22,442 10,065 11,000 21,477 43,155 3,273 4,476 189 0

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements C 190 13. 12. 11. 10. 9. 8. 7. 6. 5. 4. 3. 2. 1. R s . ef. u Dexia Bank Belgium – Annual Report 2008 N b o. or d inate EUR EUR EUR JPY EUR JPY JPY EUR EUR EUR EUR EUR EUR Currency loans: (lia d loans: 10,000,000 10,000,000 15,000,000 A units currency of in thousands b mount ilities item V item ilities 300,666 228,470 40,000 98,940 20,000 53,603 4,800 1,850 7,271 446

14/04/10 24/12/09 22/12/09 27/11/27) date (call undetermined 21/12/09 11/09/25 11/09/25 03/07/09 03/12/19 the duration the determining or method for M 18/11/09) date (call undetermined 05/01/09 29/03/10 28/02/11 III date aturity . continue

d

) b) b) a) a) c) c) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) C C none conditions specified no BFIC the of approval with unless redemption early no none conditions specified no BFIC the of approval with unless redemption early no none conditions specified no BFIC the of approval with unless redemption early no none conditions specified no date call on or BFIC the of approval with and issuer the of situation fiscal in change unless redemption, early no none conditions specified no BFIC the of approval with unless redemption early no none conditions specified no BFIC the of approval with unless redemption early no none conditions specified no BFIC the of approval with unless redemption early no none conditions specified no BFIC the of approval with unless redemption early no none conditions specified no date call on or BFIC the of approval with and issuer the of situation fiscal in change unless redemption, early no none conditions specified no BFIC the of approval with and date, call from starting months, six every possible redemption early none conditions specified no BFIC the of no early redemption unless with approval approval with unless redemption early no none conditions specified no BFIC the of approval with and issuer the of situation fiscal in change unless redemption, early no none conditions specified no BFIC the of approval with unless redemption early no C onditions for convertibility ircumstances for early redemption early for ircumstances onditions for subordination

C CMS linked 6.01% 6.01% 5 years every changed be may + 2.50% swap JPY 5 years thereafter: 5.00% 1 to 30: year CMS linked 0.12% + JPY in issuer the of option the at AUD or EUR USD, in payable 6.05%, 11/09/04: after 6.37%; 0.12% + JPY in issuer the of option the at AUD or EUR USD, in payable 6.10%, 11/09/04: after 6.37%; Health Eurostoxx on linked index 0.01%, = 7.55% rate ≥ 5.00% 12 months Libor - GBP if bp + 20 12 months Libor = GBP rate < 5.00% 12 months Libor - GBP if 4 to 20: year from 8.00% 1 to 3: year from 1.87% + months 6 Euribor thereafter: 1 to 12: 6.25% year Eurostoxx on linked index 0.01%, 6.25% 5.70% of compensations onditions

28.

27.

26.

25.

24. 23. 22. 21. 20. 19. 18. 17. 16. 15. R 14. ef. N o. USD

USD

USD

USD

USD JPY JPY JPY EUR EUR EUR EUR EUR EUR Currency EUR 10,000,000 15,000,000 A units currency of in thousands 5,000,000 mount 50,000 35,000 15,000 15,000 95,525 15,869 11,000 32,616 17,500 17,500 47,768 8,045

15/5/09) date (call undetermined 21/9/10) date (call undetermined 25/8/10) date (call undetermined 23/9/09) date (call undetermined 31/1/09) date (call undetermined 29/01/29) date (call 01/11) / 29 date (call undetermined undetermined 9/01/11) / 29 date (call undetermined 29/12/11) date (call undetermined the duration the determining or method for M 29/12/09) date (call 15/7/11) undetermined date (call undetermined 16/12/19 15/07/19 15/12/15 15/12/14 date aturity

b) b) a) a) c) c) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) C C none conditions specified no BFIC the of approval with and date, call from months, three every possible none conditions specified no BFIC the of approval with unless redemption early no none conditions specified no BFIC the of no early redemption unless with approval approval with unless redemption early no none conditions specified no BFIC the of approval with and date, call possible every three months, from from months, three every possible none conditions specified no BFIC the of approval with and date, call from months, three every possible none conditions specified no date call on or BFIC the of approval with unless redemption early no none conditions specified no date call on or BFIC the of approval with unless redemption early no none conditions specified no date call on or BFIC the of approval with unless redemption early no none conditions specified no BFIC the of approval with unless redemption early no none conditions specified no BFIC the of approval with unless redemption early no none conditions specified no BFIC the of approval with unless redemption early no none conditions specified no BFIC the of approval with unless redemption early no none conditions specified no BFIC the of approval with unless redemption early no none conditions specified no BFIC the of approval with unless redemption early no none conditions specified no BFIC the of no early redemption unless with approval approval with unless redemption early no C onditions for convertibility ircumstances for early redemption early for ircumstances onditions for subordination Annual Report 2008 –

C of compensations + 250 bp 250 + 3 months Libor USD 15/05/09: after bp, + 45 3 months Libor USD + 176 bp 3 months Libor USD date: call + 76after bp 3 months Libor USD + 176 bp 3 months Libor USD date: call after + 76 bp, 3 months Libor USD bp 250 + 3 months Libor USD date: call after bp, + 45 3 months Libor USD bp 250 + 3 months Libor USD date: call after bp, + 45 3 months Libor USD 1.91% + 6 months Libor JPY 29/01/29: after 4.51%, thereafter 2.10% + 6 months Libor JPY 29/01/31 till 3.66% thereafter 2.10% + 6 months Libor JPY 29/01/31 till 3.66% bp + 200 12 years IRS date: call after CMS linked bp + 200 10 years IRS date: call after 6.20% bp + 250 12 years IRS date: call after CMS linked linked CMS 6 to 20: year 8.875% 1 to 5: year CMS linked 500 S&P 50, Eurostoxx Nikkei, on linked Index 0.01% CMS linked Dexia Bank Belgium onditions

191

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 192

42. R 41. 40. 39. 38. 37. 36. 35. 34. 33. 32. 31. 30. 29. ef. Dexia Bank Belgium – Annual Report 2008 N o.

EUR Currency EUR GBP EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR A units currency of in thousands mount 498,061 148,623 44,905 46,496 20,000 20,000 29,889 11,401 51,014 9,696 5,070 4,314 7,847 196

the duration the determining or method for M 02/04/17) date (call 02/04/37 01/03/17) date (call 01/03/47 09/02/12) date (call 02/11/16) date (call 01/03/22 09/02/17 2013 2012 2011 2010 2009 undetermined 14/05/09 19/03/09 18/01/09 04/04/22 date aturity

b) b) a) a) c) c) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) a) c) b) C C following the call date and with the the with and date call the following 5 of years period each of end the at and date, call the from possible redemption early none conditions specified no BFIC the of approval the with and date coupon following each on date, call the from possible redemption early 14d) § 1.2° Art. BFIC 14d) § 1.2° Art. BFIC 14d) § 1.2° Art. BFIC 14d) § 1.2° Art. BFIC 14d) § 1.2° Art. BFIC none conditions specified no BFIC the of approval the with and date coupon following each on date, call the from possible redemption early none conditions specified no BFIC the of approval with unless redemption early no none conditions specified no BFIC the of approval with unless redemption early no none conditions specified no BFIC the of approval with unless redemption early no none conditions specified no BFIC the of approval with unless redemption early no none conditions specified no BFIC the of no early redemption unless with approval approval with unless redemption early no none conditions specified no BFIC the of approval the with and date call the following 5 of years period each of end the at and date, call the from possible redemption early none conditions specified no BFIC the of approval C onditions for convertibility ircumstances for early redemption early for ircumstances onditions for subordination

C of compensations 4.86% 5.04% bp + 73.25 3 months Libor GBP 09/02/12: from 5.91%, + 181 bp 3 months Euribor 02/11/16: after 4.92%, 50 Eurostoxx on coupon annual linked, index 50 Eurostoxx on coupon annual linked, index 50 Eurostoxx on coupon annual linked, index 6.00% + bp 43 3 months Euribor onditions

6. non-issued capital Authorized 5. 4. 3. 2. b s a. 1. X

A R

45. 44. (in thousands of EUR) thousands (in 43. s . V

ef. s at en Authorized capital non-issued Share issuance commitments 2. increase period: the during - Changes period preceding of end at As - Nil Nil Nil Nil up paid not Capital Shares not representing capital shares Own Capital 1. III u tructure of the capital the of tructure - Bearer shares shares - Registered shares bearer or Registered - Category A Category - shares of Categories N b .

o. scri STATEMENT of perio d of b e capital ( d capital Currency EUR EUR USD d

OF L ia

CAPITAL b ilities item item ilities A units currency of in thousands mount 300,000 100,000 180,000

IX

. A the duration the determining or method for M 20/06/13) date (call 30/09/13) date (call 30/09/18 30/09/13) 20/06/18 date (call 30/09/18 .) date aturity

b) b) a) a) c) c) c) b) a) c) b) a) c) b) a) C C none conditions specified no BFIC the of approval the with and date coupon following each on date, call the from possible redemption early none conditions specified no BFIC the of approval the with and date coupon following each on date, call the from possible redemption early none conditions specified no BFIC the of approval the on each following coupon date and with with and date coupon following each on date, call the from possible redemption early C onditions for convertibility ircumstances for early redemption early for ircumstances onditions for subordination Annual Report 2008 –

in thousands thousands in thousands in

3,458,066

A A C of compensations + 150 bp 12 months Euribor 5.25% thereafter: 20/06/13 till bp + 350 Euribor thereafter: bp + 300 Euribor 30/09/13 till bp + 350 Libor USD thereafter: bp + 300 Libor USD 30/09/13 till Dexia Bank Belgium mounts mounts onditions of of 25,000 EUR EUR 0 0

359,412,616 359,412,616 3,458,066 2,500,000 of shares of shares of N N 958,066

umber umber

193 0 0

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements

t B. TO

194 (4) (3) (2) (1) interests participating by linked enterprises other towards Total commitments enterprises affiliated towards Total commitments interests participating by linked enterprises other of behalf on liabilities Total contingent enterprises affiliated of behalf on liabilities Total contingent XXII A security collateral as promised irrevocably or given assets own institution’s Reporting XXI Nil XX Total liabilities Total assets XIX

(in thousands of EUR) thousands (in of EUR) thousands (in of EUR) thousands (in t . Nil 2. 1. Amount of the assets concerned. assets of the Amount concerned. assets of the value Carrying of mortgage. amount Hypotecated mortgaged. properties immovable of the value carrying the and mortgage of the amount hypotecated of the Lower an A . o secure thir o secure o secure the reporting institution’s institution’s reporting the o secure . . Dexia Bank Belgium – Annual Report 2008 FI . - Other - - Derivatives credit of Lines - items sheet Off-balance - Other deposits Other - loans of Sales - item Liabilities CURRENC SECURE d

RISK STATEMENT D commitments UCIAR ( O D D ff- Y TRANSACTIONS Y Y d b E -part ANAL B alance sheet items I items sheet alance contingent contingent OF TS y AN Y d SIS e b D ts an ts COMMITMENTS d commitments W ITHIN LIA d e b B ts ILITIES THE . an . MEANING d II AN .) D OF

OF THE M ARTICLE ortgages W COMMITMENTS (1) 0 0 0 0 0

27 TER F charges loating § 1 PARAGRAPH 1 § (2) 0 0 0 0 0

HICH

O 184,303,084 180,622,386 or pledged 26,806,686 80,942,684 ther assets 18,049,009 16,236,616 13,472,557 1,402,030 7,180,918 31/12/07 COUL charged I n euro n 1,157 123 (3) D 3

GI F or pledged V uture assets assets uture (equivalent 48,373,944 52,054,642 14,728,492 17,053,093 E currencies I n foreign n 31/12/08 charged RISE 610,274 in EUR in 959 (4) (4) 0 0 0 0 0 )

C

B.

Notes: • • o D. A XXIII

(in thousands of EUR) thousands (in (in thousands of EUR) thousands (in operating . office of the enterprises concerned. enterprises the of office andof thehead C. to withreference III.B. theoflocation items analysis ainclude country should statements of financial chart to notes The the standard to another. category market one from manner different significantly a in organized are activities banking ordinary of provision and sale the if market geographical and of activity bycategory analysis aseparate include should statements of financial chart to notes standard the the operations, to foreign regard With .

XIV. VI. 2. 2. 1. IV. PRO 3. III. III. 2. I. 1 1. EMPLO bis perating results results perating PERSONNEL OTHER Compensation missing coupon equities significant is amount the if charges operating other of Analysis charges operating Other - Taxes - Charges Income - Other - equities coupon missing received Compensation - Banksys recovery Cost - affiliates of recovery Cost - received Rents - significant is amount the if XIV., item income of statement of Analysis Nil Pensions charges personnel Other insurance extra-statutory for premiums Employer’s security social for contribution Employer’s benefits social direct and Remuneration Charges to the enterprise (thousands of EUR) of (thousands enterprise to the Charges hours working actual of Number (FTE) equivalent full-time in employees of number Average date closing the at register personnel the in recorded employees of Number Number of actual working hours working actual of Number (FTE) equivalent full-time in employees of number Average date closing the at register personnel the in recorded employees of Number OTHER

.

. INFORMATION Other operating income operating Other - Profit on disposal of investment securities investment of disposal on - Profit instruments financial other and securities of trading on - Profit transactions financial on Profit Commissions receivable Commissions - enterprises in affiliated -interests From participating securities variable-yield other and shares From - securities variable-yield from Income Interests receivable and similar income similar and receivable Interests TEMPORAR participating interests participating by linked enterprises other in interests participating From V ISIONS Y OPERATING OPERATING EES RESULTS

CHARGES RECOR FOR Y PERSONNEL PENSIONS IN by origin D INCOME (statement of income item item income of (statement CHARGES E ON RELATION D IN OPERATING THE AN PERSONNEL D TO PERSONS AFFILIATE RESULTS PLACE REGISTER D ENTERPRISES D AT (statement of I of (statement D THE X ISPOSAL V.)

operations OF 7,070,286 304,649 152,287 493,216 Belgian Belgian 182,153 157,759 48,386 THE 32,503 31/12/07 ncome items I items ncome ENTERPRISE Annual Report 2008 – operations 2,594,952 F oreign oreign (8,788) 4,620 4,673 2,137 846 0 0

. to X to . operations 8,230,780 9,628,956 7,683,405 6,746,599 31/12/07 (378,081) 6,708.10 Dexia Bank Belgium 478,321 130,566 425,742 118,824 Belgian Belgian 553,751 167,331 V.) 42,397 15,836 14,001 59,376 32,317 71,247 13,184 26,193 2,096 3,758 7,664 7,594 3,188 1.18 31/12/08 68 0 0 0

operations 11,572,478 9,672,540 8,730,570 2,613,495 31/12/08 6,714.87 452,298 F 126,871 (87,929) 40,696 73,960 oreign oreign 63,033 74,375 13,581 21,786 21,491 37,720 17,728 5,380 2,896 3,943 3,752 1,572 7,471 0.86 (917) 540 195 61 1 0 0

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements THE FINANCIAL

196 (5) (4) (3) (2) (1) B. A. XX management liability and asset of part As management cash of part As INTEREST effect B. other 3. currenc 2. securities 1. T a. XXI

(in thousands of EUR) thousands (in

(in thousands of EUR) thousands (in (in thousands of EUR) thousands (in Interest-rate transactions Interest-rate Losses on transfers of fixed-assets to affiliated enterprises affiliated to fixed-assets of transfers on Losses enterprises affiliated to assets fixed of transfers on Gains sales and purchases forward Other options Currency swaps interest-rate currency Cross transactions exchange foreign Forward Nil XVIII.E.) item income of (statement charges extraordinary Other Nil XVII.E.) item income of (statement income extraordinary Other Forward purchases and sales of transferable and negotiable securities negotiable and transferable of sales and purchases Forward - : Negative difference between the market value and results accounted for. accounted results and value market the between difference - : Negative for. accounted results and value market the between difference + : Positive amount. reference / notional Nominal price. Agreed buying/selling reference amount. Nominal/notional delivered. be to Amounts V. Y V. Dexia Bank Belgium – Annual Report 2008 MEANING - Other futures contracts futures Other - - Other options contracts options - Interest-rate agreements rate - Forward futures - Interest-rate swaps - Interest-rate PE

extraor

FOR OF - FINANCIAL RATE ON Y TRANSACTION W TRANSACTIONS TRANSACTIONS W INSTRUMENTS AR RESULTS

TRANSACTIONS OF D dinar INSTRUMENTS OFF OFF OF -B (2) y -B ALANCE results EXEMPTION ( 1 ALANCE ) (3) HICH SHEET SHEET FROM ARE TRANSACTIONS NOT item II item V THE COMMITMENTS ALUATION .

RULE ON SECURITIES REFERRE THAT

COUL D TO 815,956,750 112,903,794 125,190,171 38,562,022 31/12/08 55,042,420 29,974,884 55,700,945 19,279,381 25,501,426 , 31/12/08 IN CURRENCIES D 958,114 25,345 58,924 36 ARTICLE GI V (4) E

RISE market between Difference value and carrying value carrying and value bis 31/12/07 TO (211,621) AN 80,849 , § 2, , § 2, O A D f which transactions W RISK OTHER RELATING

not intended 706,371,160 111,629,756 54,220,804 29,924,860 25,501,426 18,532,176 (1,593,326) as hedges 1,460,816 31/12/08 ITHIN 958,114 (46,122) 25,345 58,924 43,351 TO (30) (5)

a B.

A XX main B. A XX D. status C

. . anal . effect (in thousands of EUR) thousands (in of EUR) thousands (in 2. 1. 2. 1. OF FINANCIAL Gains on shares on Gains INFLUENCE 2. Value a Value 2. 1. Nil position) financial institution’s 1. V V mounts retaine mounts

Withholding taxes on investment income investment on taxes Withholding Payroll withholding taxes withholding Payroll institution reporting the By To the reporting institution (deductible) institution To reporting the - paid or due taxes income for charges - Additional periods prior on taxes Income Extraordinary charges Extraordinary - Estimated additional charges for income taxes (included in liabilities item IV.) item liabilities in (included taxes income for charges additional - Estimated assets in included taxes withholding and prepayments tax income of - Excess paid or due taxes withholding - Taxes and period current the of taxes Income Extraordinary income Extraordinary II I D TIMING . provision has been established (included in liabilities item IV.A.2.) item liabilities in (included established been has provision which for or IV.) item liabilities in (included estimated taxes, income for charges Additional . INCOME

Y OTHER SOURCES OF SIS OF dd EXTRAOR OF D BY FUTURE STATEMENTS e ( IFFERENCES tax, turno d tax, of of STATEMENT TAXES D OF D SUCH TAXES on d on TAXATION D B IFFERENCES INAR AN IFFERENCES AN b IF Y RESULTS Y ehalf of thir of ehalf v THE D D TAXES D er taxes an taxes er item item INCOME THE (if it is important for the purpose of evaluating the reporting reporting the evaluating of purpose the for important is it (if INCOME ET ESTIMATE ) ON W EEN SUPPORTE THE TAXES parties for d parties special taxes charge taxes d special THE XX D AMOUNT . TAXA A B PROFITS OF . THE B LE D BYTHIR D OF CURRENT PROFITS INCOME EFORE , W TAXES PERIO TAXES D PARTIES D ITH d d uring the perio the uring AS D SPECIAL OF ARE STATE THE MATERIALL MENTION CURRENT D IN Annual Report 2008 – THE d Y PERIO D

31/12/07 31/12/07 Dexia Bank Belgium 208,905 570,266 139,566 (10,518) 44,394 15,048 74,454 47,858 97,156 7,250 (1) 0

31/12/08 31/12/08 146,074 213,573 158,612 86,497 54,501 (2,008) (2,158) 5,977 3,933 (505) 197 0 0

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements 198 annuels comptes les dans faux ( LHSP of statements financial the of falsification to the accessory alleged an as is prosecuted Bank Dexia of summons, writ O 3. around at estimated is which of value the LHIC, by owned USDsecurities of 1,200,000. portfolio a on pledge a has still Bank Dexia claim, its for security the of part As claim. remaining the for recorded 43,959,626.92 EUR for been has impairment An interests. 6,919,585.09 EUR reserved of which to 52,240,144.08 EUR amounted Company (LHIC) Investment & Hauspie on Lernout claim outstanding Bank’s 31, Dexia the of December As 2008, 2. liquidation of LHSP. Belgian the from dividend any receive to unlikely are creditors unsecured other the and Bank Dexia receivers, bankruptcy Belgian LHSP the to According States. United in the and in Belgium proceedings to separate is subject assets of LHSP’s liquidation The 50,000,000. to USD amounted share Bank’s Artesia 5, 2000. May on to LHSP 430,000,000 of USD loan syndicated in the Bank Artesia former the by taken share 24,092,917.71. the EUR in for originates recorded claim been This has impairment an which for – interests reserved 182,354.31 EUR Dexia Bank has a claim in USD to chargeable of the bankruptcy LHSP for a sum principal 1.3971) of rate EUR (exchange USD/EUR 28,963,083.03 – of which 1. occurred. have events relevant following the then, Since Reports. Annual 2007 and 2006 in the in detail described was This thereof. consequences the and (LHSP) Products Speech & Hauspie of Lernout bankruptcy the with ways in various is concerned Dexia B. respect. in that commitment further no has Bank Dexia of income. statement in the for accounted are contributions These employer. the of by contributions financed are insurances company. These insurance an with of a contract framework in the taken on members New since staff April 1, 2002 the joined scheme,new i.e.Dexia benefit BC theThis scheme. Artesia scheme Group is benefit organized 3. the of contributions by financed are insurances These 31, 1999. December employer. before fund pension Artesia the to affiliated were who employees for BAC the to affiliated were who members staff For BC Artesia the within members. 1, 2000 staff of its in favor company insurance an January with since concluded was It Group. existed has plan contingency a pensions survivor’s retirement and supplementary the of framework the In 2. This company. insurance employer. of the an and with members of staff insurance group by contributions for is paid a insurance subscribed Bank Dexia pensions, survivor’s retirement and supplementary the of framework the In 1. A OFF XX Dexia Bank underlines its innocence in this matter and contests the charges brought against it. against brought charges the contests and matter in this innocence its underlines Bank Dexia of 2009. course the during decision its deliver will and 2009 30, January on case the criminal 19, deliberated Court of The on of December Appeal were the closed case 2008. aspect the criminal regarding oral The pleadings charges. the contesting for grounds serious has it considers Bank Dexia 29,000,000. EUR funds for improper revenue recognition. Furthermore, the Public Prosecutor demands the seizure in ofan amount properties of approximately these utilize of would LHSP that the knew management allegedly ABC whilst and Willaert, Hauspie Lernout, by a granting USD 20to loan Messrs. million revenue, of in fictitious LHSP the creation and abetted aided ABC) (hereafter Corporation Banking that Artesia in substance alleges Prosecutor Public The d’émission rog/délit n May 4, 2007, Dexia Bank was summoned, together with 20 other parties, to appear before the Criminal Court of Appeal in Ghent. According to the to the According in Ghent. of Appeal Court Criminal the before to appear parties, 20 other with together summoned, 2007, 4, was n May Bank Dexia .

Lernout &

y supplementar the of Description Dexia-new Prosecution of Dexia Bank in Belgium in Bank Dexia of Prosecution Company Investment & Hauspie Lernout on Claim Products Speech & Hauspie Lernout on Claim Ex-Artesia Dexia-old V Dexia Bank Belgium – Annual Report 2008 -B III ALANCE .

OFF -B Hauspie ALANCE ) and market manipulation ( manipulation market ) and SHEET ) and other related offences among which forgery ( forgery which among offences related other ) and ITEMS - SHEET RIGHTS koersmanipulatie/manipulation de cours de koersmanipulatie/manipulation O B pension plan on December 31, 1999 this contingency fund foresees transitory measures, as well as as well as measures, transitory foresees fund 31, contingency December 1999 on this plan B pension retirement of sur of retirement AN D COMMITMENTS v i valsheid in geschriften/faux en écritures en geschriften/faux in valsheid v or’s pension plan pension or’s NOT ). REFERRE D TO ELSE W ), securities fraud ( fraud securities ), valsheid in de jaarrekening/ de in valsheid HERE IN THE emissiebed – - (see paragraph 1., paragraph above). (see May 5, dated 2000. facility credit syndicated a to USD owed 430 million it under by LHSP and to of an 28,963,083.03 EUR amount 437,000shares) LHSP for claiming damages a amount of provisional EUR 2. Bank’s Dexia claim is Bank is in (Dexia to still relation holding on suffered the its LHSP portfolio losses at EUR 1, for the participation in LHSP (of around 12,000,000 shares) which is now worthless. worthless. is now which shares) 12,000,000 around (of in LHSP 1, at EUR participation the for estimated from are the provisionally damages bank, also claiming Holding of that L&H it the receivers be For the should mentioned sake of completeness, applications. these for grounds the contests vigorously DBB repayment. its is claiming receiver bankruptcy Holding L&H the Holding, to L&H due was money this that Taking view the Willaert. and Hauspie Lernout, Messrs. by BAN with opened accounts personal to three credited was 25 million USD of price selling The of 10 USD in for an favor of amount BAN a guarantee million. bank issued (ABC) Corporation Banking Artesia former The holding. by L&H owned shares LHSP of Mr. Bastiaens by acquisition the of purposes the for 2000 July in BAN by Mr.to Bastiaens granted loan million 25 USD a with connected is This 25 of USD million. amount principal the to pay Bank, Dexia and O 6. interests. Dexia Bank has not in amounts public rendered the the settlement than (other cases the NASDAQ infull. terminated finally been have States United in the Bank Dexia against brought cases the all a result, As 2008. in September terminated Trustee, was Litigation by the brought States, United in the case civil outstanding only The 5. principle are of not of in likely the the to because claims the proceedings, until introduced criminal end after have of duplicative any the proceedings criminal development extent large a to claims, These assessed. been yet not have which losses, their for damages seek claimants The 4,941investors. of behalf on civil Certain claims have been filedby groups of in investors LHSPDexiaincludingBank. Theshares against parties, various main claim was filed byDeminor individuals by Claims 4.2. proceedings criminal the of end the after until development any principle have of the to because likely not is proceedings, criminal the in introduced claims the of duplicative extent large a to claim, This million. 439 EUR approximately to amount would claim the claim, the of assessment provisional receivers’ the to According in bankruptcy. LHSP twenty against action an filed LHSP of receivers Belgian the 2005 July In claim 4.1. receivers’ LHSP 4. Dexia Bank, in its turn, made a claim as a civil party against Messrs. Lernout, Hauspie, Willaert and Bastiaens and against the company LHSP in the deferred has Court the case; the of aspects indefinitely. civil the aspects civil of the from handling criminal the separate to decided has Ghent of Court Appeal the that noted be should It • • • • claimed: damages the of extent real the determine to difficult very remains it others, among reasons, following the For date. mean in bankrupt declared was LHSP which on date the or bought, were shares LHSP the which on date the 9, 2000, November (e.g. date as it be a to should in particular approach whether their differ is parties the civil date to the interest from which be calculated, to regard With the starting 7%. is currently which of interest rate statutory is the applied to rate be interest the case, worst the In are still under discussion. All the to are above amounts amounts principal which must interest be The added. amount of the and interest the date from which it should be calculated • • • • O trial. the of day last the until proceedings criminal the in claim a make can offences prosecuted the to relation in losses suffered have to alleging Parties

n April 27, 2004, the bankruptcy receiver of L&H Holding summoned Messrs. Lernout, Hauspie and Willaert, along with Banque Artesia Nederland (BAN) (BAN) Nederland Artesia Banque with along Willaert, and Hauspie Lernout, Messrs. summoned Holding L&H of receiver bankruptcy the 2004, 27, April n n December 31, 2008 Dexia Bank was aware of the following relevant claims for damages (only the most important are listed below): listed are important most the (only damages for claims relevant following of the aware was Bank 31, Dexia n 2008 December proving the link between the damage suffered by the investors and the alleged wrong committed by Artesia Bank is a very complicated matter. complicated is a very Bank by Artesia committed wrong alleged the and investors by the suffered damage the between link the proving unknown; still is parties ofcivil number final the discussion; under still are rate conversion USD/EUR the and applied to be of interest rate the amounts; provisional claiming are of parties a number 7,259,107.06. EUR claiming are who Kernel Learning of The receivers The 17,662,724. EUR is claiming which & Noordstar Mercator of LHSP. receivers by the claim in the reduction to a substantial to as lead such to be is unlikely duplication that bank, by the analysis of the state present the In 744,128,638.37. EUR parties. of are claiming other claims who the of LHSP duplicates of claim this receivers Part Belgian The 315,000,000. EUR around claim who Spaarverlies) and by Deminor represented shareholders the (including shareholders individual 15,000 Around L&H Holding L&H States United the in Bank Dexia against proceedings Civil Belgium in Bank Dexia against proceedings Civil le criminel tient le civil en état en civil le tient criminel le le criminel tient le civil en état en civil le tient criminel le . . - one parties, including Dexia Bank, for an indemnity against the net liabilities of of liabilities net the against indemnity an for Bank, Dexia including parties, one - class action) since class this action) could harm seriously Dexia Bank’s Annual Report 2008 – Dexia Bank Belgium O ctober 2001) or a 2001) or ctober O ctober 2007, 199

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements Most of the pending proceedings relate to the loan granted by BAN to Mr. Bastiaens (see paragraph 6., above). They include the claim introduced by the introduced claim the include They 6., above). paragraph (see to by Mr. BAN granted to loan Bastiaens the relate proceedings of pending the Most purchaser. by the paid price the to equal amount an at capped BAN, for matter LHSP the of consequences financial the bear will Bank Dexia that essence, in agreed, been 200 claims. these of all merits the and validity the challenges strongly Dexia of 2008. quarter third in the reversed were courts American in the actions the for constituted provisions unused The • • • • reasons: following the for in Belgium it against made claims the for any provisions constituted not has Belgium Bank Dexia provided. securities the of view in difference the torecover able be to expects Bank Dexia 68,052,544.63. EUR some to amounted file & Hauspie to some EUR 81,142,273.06 – of which EUR 7,104,106.89 – interests 1.,paragraphs (see reserved 2. and 7.). O 8. 17,538,614.58 of USD in a payment resulted on of BAN in favor in Finally, 2009. 30, April on decision ( Court Supreme the before Luxembourg in Appeal of Court the of decision the against appeal an lodged has BAN first the (see GE of favor in guarantee aforesaid the of section). of this paragraph execution in 2007 9, July on BAN to 30,039,336.54) and (USD amount Luxembourg this Paribas BNP to reimbursed shares Bank Parvest Dexia the of value the paid BAN obtained, was shares Parvest the on attachments various the of lifting no As condemnation. its from deriving any damage against harmless Luxembourg Paribas BNP and to hold prior 1,July to on to BAN 30, June 2007 CAIL indemnify were if shares not delivered the latter condemned 2007. of Court Appeals Parvest Luxembourg The these of countervalue the CAIL to pay to or 2007 30, June by CAIL to shares Parvest the deliver to ordered was Luxembourg Paribas BNP by which (CAIL) Luxembourg Indosuez Agricole of Crédit request 12, the at July on 2006 a decision issued of Appeal Court Luxembourg the addition, In of BAN. hands in the attachment provisional to their proceeded and shares to these in relation and Bank KBC have Holding all claims made in L&H case, of criminal the the magistrate of Belgian sale to the shares LHSP Mr.investigating The Bastiaens. the with proceeds and Willaert Hauspie Lernout, by acquired shares Messrs. to Parvest BAN is in In involved pertaining a addition, of number proceedings 6., above). paragraph (see court civil the of both receiver Holding in relating to L&H the LHSP criminal investigation (in the form of a In 7.

n December 31, 2008, the exposure of Dexia Bank to the outstanding claims relating to credit facilities granted in the Lernout & Hauspie file amounts amounts file Hauspie & Lernout the in granted facilities credit to relating claims outstanding the to Bank Dexia of exposure the 31, 2008, December n DBB has made extensive submissions and has argued that most of the actions brought by the civil parties are inadmissible and at least unfounded. unfounded. at least and inadmissible are parties civil by the brought actions of the most that argued has and submissions extensive made has DBB moment. the at estimated definitively be cannot claim they amounts the and parties of civil number The is claimed. amount a and …) that provisional often of amount make any no (Deminor, claims mention precise we note that various to actions, regard the civil With it. the against of brought charges the lawyers to contest The arguments strong has it that damages. pay opinion of to the are bank it ordering decision court a of likelihood the 50% than less at assesses Bank the moment, the at stand things As

O Banque Artesia Nederland Provisions and impairments and Provisions ctober 2006, Dexia Bank sold its affiliated company Banque Artesia Nederland (BAN) to General Electric (GE). In the context of this operation, it has ithas operation, this of context the In (GE). Electric General to (BAN) Nederland Artesia Banque company affiliated its sold Bank Dexia 2006, ctober Dexia Bank Belgium – Annual Report 2008 O ctober 2007, Dexia Bank honored the bank guarantee of USD 10,000,000 in principal issued in favor of BAN (see paragraph 6., above). This This above). 6., paragraph (see BAN of favor in issued principal in 10,000,000 USD of guarantee bank the honored Bank 2007, Dexia ctober O ctober 30, 2007. 30, ctober burgerlijke partijstelling/constitution de burgerlijke partie partijstelling/constitution civile O n the same for date the impairments Lernout cour de cassation de cour ), which will give a give will which ), ) and before before and )

A. the D. C

in B.

D. B. A XXIX

(in thousands of EUR) thousands (in other . .

3. 2. 1. B total 2. as long as this disclosure does not concern exclusively or mainly the situation of a single identifiable person identifiable a of single situation the mainly or exclusively concern not does disclosure this as long as income, of statement the in included pensions and remuneration indirect and Direct 1. D W UT IRECTORS

D Other significant commitments undertaken in their favor their in undertaken commitments significant Other Contingent liabilities for their account Amounts receivable from them from receivable Amounts - Other assignments out of audit assignments audit of out assignments Other - Tax- advices assignments audit Other - auditors to the bank the of behest the at out carried assignments special or services exceptional for paid Remuneration Remuneration paid to auditors paid Remuneration - For former directors and managers and directors former For - managers and directors For - . I V AU FINANCIAL I D HO ENTERPRISES D UALS ITOR ARE AN OR ( S NOT D ) MANAGERS AN LEGAL

AFFILIATE RELATIONSHIP D CONTROLLE PERSONS W PERSONS D ENTERPRISES LINKE D D HO IRECTL D W CONTROL TO ITH Y THE OR AU IN THE D D IRECTL ITOR CRE ( S D Y BY ) IT D INSTITUTION THE PERSONS IRECTL MENTIONE Y OR Annual Report 2008 – IN D UN D IRECTL D B. ER Y, Dexia Bank Belgium 0 0 0 0 31/12/08 1,445 5,368 2,045 9,731 980 465 201

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements Socialreport A. 1. I 202 b n a) B. EUR) of thousands (in towages addition in benefits the of Amount EUR) of thousands (in charges Personnel hours working actual of Number employees of number Average d c) . ) )

STATEMENT

D Employees recorded in the personnel register A Other Workers Employees Management personnel Female Male By sex substitution regarding Contract work a specific for Contract duration limited of Contract of unlimited duration Contract emplo the of By nature B y um uring Dexia Bank Belgium – Annual Report 2008 s University Highereducation non-university Secundary education Primary education University Highereducation non-university Secundary education Primary education professional categor at b er of emplo of er the the closing financial

OF

y THE ees recor ees date

PERSONS period y of ment contract ment y the d e and in the personnel register personnel the d in financial

EMPLO during

period Y the ED preceding Code 100 102 103 101 financial

8,575,975 F 31/12/08 444,476 ull-time 5,276 Code 1200 1202 1203 1201 1210 1212 1213 1211

period 105 134 130 120 132 133 121 110 112 113 111

1,096,565 P 31/12/08 art-time 190,899 F 2,266 ull-time 3,447 5,026 5,031 1,459 1,270 1,744 5,191

440 694 603 160 707 165

11 0 0 7 0 0 9,672,540 6,714.87 635,375 equivalents in full-time full-time in 5,139 31/12/08 P or total or art-time T (FTE) otal 2,280 2,280 2,227 1,710 (T) (T) (T) 246 220 235 570 751 715 84 32 24 21

0 0 0 0 5 9,628,956 6,708.10 597,991 19,292 equivalents equivalents in full-time full-time in in full-time full-time in 31/12/07 6,429.00 6,452.56 2,856.21 1,598.40 3,756.35 6,612.56 1,189.83 1,317.50 or total or 160.00 753.00 826.65 174.45 897.97 13.80 15.41 T T (FTE) 0.00 0.00 0.00 otal otal 9.11 (T) (T) (T)

b

b a. n 2. a. n 1. II EUR) of thousands (in enterprise to the Charges hours working actual of Number employed personnel of number Average 2. C

. . . .

LIST Contract regarding substitution regarding Contract work a specific regarding Contract duration limited of Contract of unlimited duration Contract emplo the of By nature register personnel register register personnel has contracts the of termination Leavers Entrants enterprise the of disposal the at placed persons and personnel Temporary of self-employed person capacity the in basis a on part-time at least enterprise the to substitution regarding Contract work a specific regarding Contract duration limited of Contract of unlimited duration Contract emplo the of By nature number of former employees who continued rendering services which Among reason Other Dismissal Prepension Pension contract of termination of By reason um um b b OF er of emplo of er emplo of er PERSONNEL d uring the financial perio financial the uring

y y e e persons of of d persons recor d persons d uring the financial perio financial the uring MO y y ment contract ment ment contract ment V EMENTS w hich the the hich b d d een recor een e in the personnel personnel the d in D URING d ate of d d e in the the d in THE

FINANCIAL

PERIOd Code Code 340 305 342 343 205 350 341 210 310 212 312 213 313 211 311

Annual Report 2008 – F F ull-time ull-time Code 333 190 253 341 150 152 214 151 151 119 48 37 0 0 0 0 0 3 P P art-time art-time Dexia Bank Belgium 1,572 T 0.86 ime 120 121 29 81 10 61 6 6 0 0 0 0 1 0 0 1 put at disposal disposal at put equivalents equivalents in full-time full-time in in full-time full-time in E enterprise mployees 262.60 218.80 393.67 337.80 119.00 151.50 242.17 of the the of 88.80 38.77 T T 0.00 0.00 0.00 0.00 0.00 3.50 otal otal 203 0 0 0

non-consolidated consolidated financial statements financial statements management report non-consolidated consolidated management report financial statements financial statements of the emplo the of initiati training 3. Charges to enterprise (in thousands of EUR) of thousands (in to enterprise Charges 3. hours training of Number 2. employees of 1. Number emplo the of expense T 3. 2. 1. T 3. 2. 1. for the emplo the for 204 T III otal of initial otalinitial of an formal otalless of otal of formal continue otalformal of . Charges to enterprise (in thousands of EUR) of thousands (in to enterprise Charges hours training of Number employees of Number training the to linked directly costs gross the which Of EUR) of thousands (in to enterprise Charges hours training of Number employees of Number

INFORMATION Dexia Bank Belgium – Annual Report 2008 y y er e v v persons at the expense of the emplo the of at expense the d persons ocational training initiati training ocational es for the emplo the for es

ON y er informal continue d informal V d OCATIONAL v ocational training initiati training ocational y e persons at the expense at expense the d persons

TRAINING v d es ates the v ocational ocational

FOR y er v

es es EMPLO

Y E D 58031 Code 5842 5843 5802 5803 5823 5822 5801 5841 5821 PERSONS D 64,267 31,602 URING 5,672 2,263 2,630 5,672 2,912 M ale 0 0 0

THE

FINANCIAL 58131 Code 5832 5852 5833 5853 5831 5851 5812 5813 5811

PERIO F 55,640 30,108 emale 2,466 2,506 1,628 4,911 4,911 0 0 0 D

non-consolidated consolidated management report financial statements financial statements 206 Dexia Bank Belgium – Annual Report 2008 As required by law and the company’s articles of association, we are pleased to report to you on the audit assignment which you to which you to on we the assignment audit report are pleased of by association, required law and As the company’s articles To the shareholders BankDexia Belgium SA 2008 31 ended December year for the Statutory Auditor’s report BankDexia Belgium SA liquidity position of Dexia. of position the liquidity on crisis financial the of impact the to relating accounts, of annual statutory report the to management attached is the which in SA, Belgium included Bank Dexia comments the to attention the draw we opinion, unqualified our amending Without Belgium. in applicable principles accounting the with accordance in results and position financial liabilities, assets, company’s the of view fair and true a give 2008 December 31 of as statements financial the opinion, our In opinion. for our basis a reasonable provides we have obtained evidence audit the that believe We information. and explanations for requests our all to replied have company the of and officers responsible directors of board the Finally, whole. a as taken statements, financial the of presentation the and company the by made company’s internal control. We have the basis assessed of the accounting of used, policies the accounting reasonableness estimates that procedures are in but appropriate the not of circumstances for the an of the on opinion purpose expressing the effectiveness audit design to order in statements financial the of presentation fair and preparation company’s the to relevant control internal considered have we assessments, risk those making In error. or fraud to due whether statements, financial the of misstatement material of risks the of assessment the including judgment, our on depend selected procedures The statements. financial the in and disclosures amounts the about evidence audit to obtain procedures we have performed standards, these with accordance In assurance reasonable obtain to are audit free from the materialstatements financialmisstatement. whether the perform and plan we that require standards Those Bedrijfsrevisoren”. der d’Entreprises/ Instituut Reviseurs des “Institut appropriate the by issued as Belgium, in applicable applying standards auditing and and requirements legal with selecting error, or fraud to due O whether misstatement, material from free circumstances. in the are reasonable are that estimates accounting making and policies, that accounting statements financial of among other things:designing, implementing and maintaining internal control relevant to the preparation and fair presentation includes responsibility This statements. financial the of preparation the for responsible is company the of directors of board The EUR. 147,073 of year the for (000) a and profit EUR of 232,677,028 assets total show which (000) in Belgium, applicable in principles accounting the with accordance prepared 2008, December 31 ended year the for SA BELGIUM BANK DEXIA of statements financial the audited have We paragraph explanatory with statements, financial the on opinion audit Unqualified and information. have toentrusted us. This includes our report opinion on the with together financialthestatements required comments additional Meeting Shareholders’ the to Statutory Auditor’s report for the year ended 31 December 2008 ur responsibility is ur to responsibility an express opinion on basedon these financialstatements our audit. Weour conducted audit in accordance

• • • statements: financial the on opinion audit our of O directors. of board the of responsibility the are association of articles its and Code Companies the of requirements the with The and preparation the of assessment the information that should be included in and the report the directors’ company’s compliance Additional comments and information

ur responsibility is to include in our report the following additional comments and information which do not change the scope scope the change not do which information and comments additional following the report our in include to is responsibility ur with the requirements of the law and the company’s articles. company’s the and law the of requirements the with accordance in is meeting general the to proposed results the of appropriation The you. to report to obliged be would we as such Code Companies the or articles company’s the of violation in taken decisions or undertaken been have transactions No Belgium. in applicable requirements regulatory and legal the with accordance in maintained are records accounting the importance, minor of aspects formal certain to prejudice Without appointment. our of context the in obtained information any with contradiction obvious in not is confirm given information the nevertheless, that can, We development. future its on factors certain of influence significant or evolution, future status, the confronting company,are of unable toan and on or the risks opinion uncertainties express the principal on description the However, by required we law the information and includes statements. is the with financial in report agreement directors’ The Frank Verhaegen

O DEL ITTE Bedrijfsrevisoren / Reviseurs d’Entreprises Reviseurs / Bedrijfsrevisoren ITTE BV o.v.v.e.BV s.f.d. SCRL SC / CVBA The statutory auditor Antwerp, 24 March 2009 24 March Antwerp, Represented by Annual Report 2008 – Bernard De Meulemeester Dexia Bank Belgium 207

non-consolidated consolidated financial statements financial statements management report Additional information

Addresses of the main Dexia Auto Lease Dexia Ingénierie Sociale Place Rogier 11 13, rue Croquechataigne subsidiaries of Dexia Bank B-1210 Bruxelles BP 30064 Tel.: +32 2 285 37 77 F-45380 La Chapelle St-Mesmin Fax: +32 2 282 66 01 Tel.: +33 2 36 56 00 00 Adehis www.dexia-auto-lease.be Fax: +33 2 36 56 00 01 Rue de Néverlée 12 [email protected] B-5020 Namur Dexia Commercial Finance Tel.: +32 81 55 45 11 Place Rogier 11 Dexia Insurance Belgium Fax: +32 81 55 46 77 B-1210 Bruxelles Avenue Livingstone 6 www.adehis.be Tel.: +32 2 282 66 33 B-1000 Bruxelles Fax: +32 2 282 66 99 Tel.: +32 2 286 76 11 Adinfo www.dexiacommercialfinance.be Fax: +32 2 286 76 99 Boulevard Pachéco 44 www.dvvlap.be B-1000 Bruxelles Dexia Crédits Logement Tel.: +32 2 222 81 74 Registered Office Dexia Investment Company Fax: +32 2 222 24 37 Boulevard Pachéco 44 Boulevard Pachéco 44 www.adinfo.be B-1000 Bruxelles B-1000 Bruxelles Tel.: +32 2 222 71 94 Cevi Branch Offices Fax: +32 2 285 35 48 Bisdomplein 3 Chaussée de Dinant 1033 B-9000 Gent B-5100 Wépion Dexia Investments Ireland Tel.: +32 9 264 07 01 Tel.: +32 81 46 82 11 6 George’s Dock Fax: +32 9 233 05 24 Fax: +32 81 46 05 55 IRL-IFSC Dublin 1 www.cevi.be Tel.: +353 1 645 50 00 H. Consciencestraat 6 Fax: +353 1 829 15 77 Corona B-8800 Roeselare www.dexia-investments.ie Avenue de la Métrologie 2 Tel.: +32 51 23 21 11 B-1130 Bruxelles Fax: +32 51 23 21 45 Dexia Lease Belgium Tel.: +32 78 15 14 15 Registered Office Fax: +32 2 216 23 98 Dexia Epargne Pension Boulevard Pachéco 44 www.corona.be 65, rue de la Victoire B-1000 Bruxelles F-75009 Paris Dexia Asset Management Luxembourg Tel.: +33 1 55 50 15 15 Branch Office 136, route d’Arlon Fax: +33 1 45 26 34 20 Place Rogier 11 L-1150 Luxembourg www.dexia.com B-1210 Bruxelles Tel.: +352 2797-1 Tel.: +32 2 222 37 08 Fax: +352 2797 49 40 Fax: +32 2 222 37 13 www.dexia-am.com www.dexialease.be

208 Dexia Bank Belgium – Annual Report 2008 Dexia Lease Services Eurco Ltd / Eurco Re Ltd Branches Place Rogier 11 6 George’s Dock B-1210 Bruxelles IRL-Dublin 1 Tel.: +32 2 222 38 36 Tel.: +353 1 85 15 200 Dexia Bank Belgium, Fax: +32 2 222 37 13 Fax: +353 1 829 0433 Dublin Branch 6 George’s Dock Dexia Life & Pensions Luxembourg Eurco Rück AG IRL-IFSC Dublin 1 2, rue Nicolas Bové Beethovenstraße 49 Tel.: +353 16 45 50 31 L-1253 Luxembourg CH-8002 Zürich Fax: +353 18 29 15 77 Tel.: +352 262 54 41 Tel.: +41 43 34 43 350 Fax: +352 262 54 45 480 Dexia Bank Belgium, www.dexia-life.com Eurco SA/Eurcolux SA London Branch 2, rue Nicolas Bové Shackleton House, Hay’s Galleria Dexia Re L-1253 Luxembourg 4 Battle Bridge Lane 2, rue Nicolas Bové Tel.: +352 227 343 1 UK-London SE1 2GZ L-1253 Luxembourg Fax: +352 227 347 Tel.: +44 20 75 56 30 60 Tel.: +352 227 343 1 Fax: +44 20 75 56 25 60 Fax: +352 227 347 Logins Generaal De Wittelaan 17 bus 32 Dexia Real Estate Capital Markets B-2800 Mechelen 1180 NW Maple Street Suite 202 Tel.: +32 15 45 48 50 Issaquah, WA 98027 Fax: +32 15 45 48 89 USA www.logins.be Tel.: +1 425 313 46 00 Fax: +1 425 313 10 05 ParfiparSA www.dexia-cmbs.com 69, route d’Esch L-2953 Luxembourg Elantis Tel.: +352 26 38 45 41 Registered office and Fax: +352 26 38 45 44 commercial branch Rue des Clarisses 38 Sepia B-4000 Liège Avenue Livingstone 6 Tel.: +32 4 232 45 45 B-1000 Bruxelles Fax: +32 4 232 45 01 Tel.: +32 2 286 63 27 Fax: +32 2 284 74 76 Branch office Boulevard Saint-Michel 50 B-1040 Bruxelles Tel.: +32 2 732 12 12 Fax: +32 2 737 29 27 www.elantis.be

Annual Report 2008 – Dexia Bank Belgium 209 Data for Dexia Bank Complaints

Name If you encounter a problem, you can turn initially to your branch, then Dexia Bank Belgium SA to your relations manager or to the Complaints department.

Contact numbers Dexia Bank Tel.: +32 2 222 11 11 Complaints – DT 23/02 Fax: +32 2 222 11 22 Boulevard Pachéco 44 1000 Bruxelles Main postal address E-mail: [email protected] Boulevard Pachéco 44 1000 Bruxelles If you are not satisfied with the response you receive, you can turn to the mediator of Dexia Bank, Mr. Gilles Jockin. Company number RPM Bruxelles VAT BE 403.201.185 Dexia Banque Mediation Service – DT 23/03 Banking, Finance and Insurance Commission number M. Gilles Jockin 19649 A Boulevard Pachéco 44 1000 Bruxelles Website E-mail: [email protected] http://www.dexia.be If you are a natural person acting in a private capacity and you are not Information about the Annual Report is available on the internet and satisfied with the responses you have received from the above, you can be obtained from can turn to the Mediation Service of the Financial Sector for complaints relating to banking products. Dexia Bank Communication Division – PA 3/11 Service de Médiation pour le Secteur Financier Boulevard Pachéco 44 Rue Belliard 15/17, boîte 8 1000 Bruxelles 1040 Bruxelles Tel. +32 2 222 45 50 E-mail: [email protected] E-mail: [email protected] For problems relating to insurance products, you can turn to the Insurance Mediation Service.

Service de Médiation Assurances Square de Meeûs 35 1000 Bruxelles E-mail: [email protected]

210 Dexia Bank Belgium – Annual Report 2008