Presentation (correction slide 18) - Dexia.com

New capital regulations: Basel III impacts
Basel III impacts
Limited impact of leverage ratio
• Dexia expected to be fully compliant before start
of disclosure date (2015)
Progressive impact of AFS reserve on Dexia
solvency given timing of implementation
Estimated AFS reserve evolution 3 and Basel III impact (EUR bn)
1H10 2012E 2014E 2016E 2018E
Capital treatment
• DTA on net loss carry-forwards fully deducted as
from 2013: ~EUR 0.7 bn as of June 2010
• Phased deduction of surplus over threshold for
DTA on temporary differences and equity
invested in insurance business: ~EUR 2.7 bn as
of June 2010, mainly due to AFS reserve 1
• Grandfathering of Hybrid Tier 1: EUR 1.4 bn as
of June 2010
-10.4
-8
-1
-6
-3
-5
-4
-4
AFS reserve not
deducted
AFS reserve deducted
from Common Equity
RWA
• Potential increase of ~EUR 50 bn RWA as of
June 2010, mainly stemming from CVA volatility
and “PD downturn” 2
Limited impact on Dexia insurance activity
Progressive deduction of AFS reserve from
Common Equity
• Full deduction as from 2018
Under new IFRS9, disappearance of AFS
reserve
28
Note: (1) The DTA on temporary differences linked to AFS reserve would also disappear under new IFRS9 and not impact solvency anymore
(2) Still under discussion/calibration within Basel committee
(3) Key assumptions: under constant credit spread, taking into account impact from bonds sold under deleveraging efforts