Annual Report 2010 Dexia Bank Belgium 3 Annual Report 2010 Dexia Bank Belgium 3 Co Nte Nt S
Total Page:16
File Type:pdf, Size:1020Kb
A nnua l re p o r t 2 010 Dexia Bank Belgium Annual Report 2010 Dexia Bank Belgium 3 Annual Report 2010 Dexia Bank Belgium 3 Co nte nt s 4 Group profile 6 Key figures 9 Management report 59 Consolidated financial statements 185 Non-consolidated financial statements 236 Additional information Annual Report 2010 Dexia Bank Belgium 3 Group profile Dexia is a European banking group with a staff of 35,200 emplo- The Group aims to continue to expand its commercial fran- yees and a core shareholders’ equity of EUR 19.2 billion as chises in Belgium and Luxembourg and to tap into the enormous at 31 December 2010. The Group operates mainly in Belgium, growth potential offered by Turkey, the purpose being to Luxembourg, France and Turkey. increase the share of its high-street banking activities in its overall income (around 60% of total income with around 29% Dexia’s shares are listed on Euronext Brussels and Paris and on being generated in Turkey) and to achieve a customer base of the Luxembourg Stock Exchange as well as on the BEL20, the 10 million (4 million in Belgium and Luxembourg and 6 million benchmark index of the Brussels Stock Exchange and the Dow in Turkey) by 2014. Jones EuroStoxx Banks. 2. Public and Wholesale Banking Dexia Bank is a public limited company under Belgian law collecting the savings of the general public. It is a subsidiary of Dexia is a major provider mainly in Belgium and France of Dexia SA and one of the principal retail banks in Belgium. It is funding for local authorities and infrastructure, the health and also the financial partner of choice for local authorities, social social housing sectors and the social economy. profit organisations and businesses. Other areas of activity include: ●● the funding of selected projects in sectors like infrastructure Managementreport Dexia 2014 : a high-street bank and renewable energy in Europe and North America; serving 10 million customers ●● corporate banking in Belgium where Dexia focuses on medium-sized businesses, while keeping an eye open for The Dexia Group has set the year 2014 as its strategic target opportunities to serve big businesses. date by which to: Apart from that the Group has offices in Germany where it has ●● complete its financial restructuring with most of its income access to long-term refinancing sources (through thePfandbriefe being derived from its commercial franchises; market). ●● consolidate and build up strong commercial franchises by focusing its business lines on its retail and commercial Close to its clients and fully in tune with their requirements, operations and by taking advantage of the opportunities Dexia is constantly developing and broadening its range of statements for growth afforded by the Turkish market; products and services. The aim is to reach beyond the role of ●● adopt a highly effective business model based on the search specialist lender and to offer its Public and Wholesale Banking for synergies and gains in efficiency. customers integrated solutions (cash management, efficient Consolidated financial budgeting, IT solutions ...) that are tailored to their needs. This return to basics brought about by the recasting of the Group’s strategy can be seen in Dexia’s values of respect, 3. Asset Management and Services excellence and agility which inform the focus of its staff on its shared objectives. This business line consists of three activities (asset management, investor services and insurance) with attractive growth prospects based on a diversified customer base and close collaboration Dexia’s business lines with the other commercial franchises of the Group. With EUR 86.4 billion in assets under management as at 1. Retail and Commercial Banking 31 December 2010, Dexia Asset Management is the Group’s statements asset management centre. Its four management centres (based Dexia offers a wide range of retail, commercial and private in Belgium, France, Luxembourg and Australia) serve a broad banking services to over 8 million customers. customer base. Non-consolidated financial Dexia ranks among the three largest banks in Belgium and The investor services business is conducted by RBC Dexia Luxembourg. In Belgium, it serves its four million customers Investor Services, a joint venture with Royal Bank of Canada, through a network of around 850 branches. In Luxembourg, which offers its expertise in global custody, fund and pension the Group has built up its international centre for asset manage- administration and shareholder services to institutions all around ment, and a network of branches covers the country. In addition the world. Total assets under administration amounted to EUR to that Dexia has a strong position in Turkey through DenizBank, 2,101 billion as at 31 December 2010. which is the sixth largest private sector bank in the country and has a network of around 500 branches. As well as its retail and Dexia’s insurance activities are concentrated mainly on the commercial operations, DenizBank also serves big businesses Belgian and Luxembourg markets. The Group offers a complete and offers its clients asset management and insurance services. range of contracts to retail, commercial and private banking 4 Dexia Bank Belgium Annual Report 2010 Annual Report 2010 Dexia Bank Belgium 5 Groupprofile customers (for both life and non-life insurance) as well as to Dexia’s public and semi-public sector clients. This is done both through a bancassurance approach and through a network of tied agents. Ratings The principal business units of the Group that operate on the long-term capital markets – Dexia Bank Belgium, Dexia Crédit Local and Dexia Banque Internationale à Luxembourg – are rated A+ by Fitch, A1 by Moody’s and A by Standard & Poor’s. Three European subsidiaries of Dexia (Dexia Municipal Agency, Dexia Kommunalbank Deutschland and Dexia LDG Banque) issue AAA-rated covered bonds. Managementreport statements Consolidated financial statements Non-consolidated financial 4 Dexia Bank Belgium Annual Report 2010 Annual Report 2010 Dexia Bank Belgium 5 Key figures for Dexia Bank Belgium Consolidated statement of income – key figures Evolution (in millions of EUR) 31/12/09 31/12/10 Change in % REsult of thE period Income 2,252.4 2,447.4 195.0 8.7% Expenses (1,685.0) (1,657.0) 28.0 -1.7% GROSS OPERATING pROFIT 567.4 790.4 223.0 39.3% Cost of risk (184.0) (26.4) 157.6 NEt iNCoME – GROUP SHARE 421.5 678.3 256.8 60.9% KEY RATIOS Cost-income ratio(1) 74.8% 67.7% -7.1% Return on equity (ROE)(2) 6.0% 9.3% 3.3% (1) The ratio between the expenses and the income. (2) The ratio between the annualised net income – group share and the weighted average of core shareholders’ equity (estimated dividend for the period Managementreport deducted). statements Consolidated financial statements Non-consolidated financial 6 Dexia Bank Belgium Annual Report 2010 Annual Report 2010 Dexia Bank Belgium 7 KeyfiguresforDexiaBankBelgium Consolidated balance sheet – key figures Evolution (in millions of EUR) 31/12/09 31/12/10 Change in % TOTAl ASSETS 253,771 247,902 (5,869) -2.3% of which Loans and advances to customers 103,007 99,472 (3,535) -3.4% Loans and securities 47,920 42,795 (5,125) -10.7% TOTAl LIABILITIEs 248,096 242,450 (5,646) -2.3% of which Customers borrowings and deposits 77,799 82,877 5,078 6.5% Debt securities 29,437 28,958 (479) -1.6% TOTAl EQUITY 5,675 5,452 (223) -3.9% of which 7,270 7,950 680 9.3% Core shareholders’ equity 5,643 5,432 (211) -3.7% Total shareholders’ equity Managementreport solvency ratios – key figures (in millions of EUR) 31/12/09 31/12/10 Change SOLVENCY RATIOS Tier 1 ratio 13.8% 14.6% 0.8% Capital adequacy ratio 15.5% 15.7% 0.2% Total regulatory capital 7,748 7,780 32 Risk weighted assets 49,929 49,551 (378) Ratings dexia Bank Belgium (situation as at 31/12/10) statements long term outlook short term Consolidated financial Fitch A+ Stable F1+ Moody’s A1 Stable P-1 Standard & Poor’s A Negative A-1 statements Non-consolidated financial 6 Dexia Bank Belgium Annual Report 2010 Annual Report 2010 Dexia Bank Belgium 7 8 Dexia Bank Belgium Annual Report 2010 Annual Report 2010 Dexia Bank Belgium 9 Management report 10 Transformation plan 12 Strategy 13 Corporate governance 21 Activity report 30 Evolution of the consolidated balance sheet and statement of income 33 Evolution of the non-consolidated balance sheet and statement of income 35 Risk management 50 Capital management 54 General information 57 Transparency declaration 8 Dexia Bank Belgium Annual Report 2010 Annual Report 2010 Dexia Bank Belgium 9 Transformation plan Throughout 2010 Dexia continued to put its transformation Reduction in the balance sheet plan into effect. At the beginning of the year the European Commission acknowledged the considerable progress made with the plan since it was launched in November 2008. On In 2010 the Dexia Group continued the balance-sheet delever- 5 February 2010 the Belgian, French and Luxembourg authori- aging policy it had begun in 2008. ties reached an agreement in principle with the European Commission regarding the Plan to restructure the Dexia Group As at 31 December 2010 the Legacy Portfolio amounted to which was approved by the new Commission on 26 February EUR 29 billion and included, among other things, the run-off 2010. bond portfolio of EUR 26 billion. Dexia Bank consolidated cut that portfolio by EUR 7 billion mainly through the sale of The impact for the bank of the undertakings made to the EUR 5.5 billion in bonds. European Commission, as well as the progress achieved through- out 2010 and at the beginning of 2011 are set out in detail Through natural depreciation in bonds combined with the ab- below.