Annual report 2006 - Dexia.com

GEOGRAPHIC Eurozone (1) Rest of USA Rest of Intra geographical Dexia
REPORTING Europe the world zone transactions
(in millions of EUR)
AS OF DECEMBER 31, 2005
Net income before tax 2,074 63 520 38 0 2,695
Total assets 478,016 24,338 58,350 9,469 (61,412) 508,761
Capital expenditures (510) 0 (28) 0 0 (538)
RAPPORT DE GESTION
CONSOLIDATED
FINANCIAL STATEMENTS
COMPTES SOCIAUX
AS OF DECEMBER 31, 2006
Net income before tax 2,565 102 595 145 0 3,407
Total assets 531,165 12,701 58,186 19,288 (54,597) 566,743
Capital expenditures (248) (2) (3) (19) 0 (272)
(1) Countries using the euro currency.
(2) Including Turkey as from 2006.
Geographic reporting is done based on booking centers, being the country of the company having recorded the transaction,
and not the country of the customers.
4. SIGNIFICANT ITEMS INCLUDED
IN THE NET INCOME
Reported amounts are significant unusual transactions and
not only large transactions. They therefore do not include
results on sales of securities nor provisions thereon or on
customers.
The main items regarding the year 2006 are:
• In Q1 2006 Dexia recorded a profit as a result of the constitution
of the joint venture RBC Dexia Investor Services, equally
owned by Dexia and by Royal Bank of Canada.
In accordance with IFRS, the contribution to the joint venture
has been done at fair value, leading to a profit of
EUR 236 million, the recording of a goodwill on the net
contribution done by Royal Bank of Canada of EUR 121 million
and a decrease of 50 % of the net goodwill on Dexia
Fund Services activities, amounting to EUR 21 million.
• A capital gain of EUR 280 million is recorded in Q4 2006
pursuant to the sale of Banque Artesia Nederland NV.
• As explained in note 6. “Litigations”, a provision related to
the Lernout & Hauspie case is recognized in the 2006 Financial
Statements in order to cover the residual risks linked to
the settlements as well as the costs and legal fees related to
the whole US procedures.
All non-operating items are reported on page 73.
As of December 31, 2006 Dexia Banque Privée France is recorded
in “Noncurrent assets held for sale” for EUR 0.9 billion
and in “Liabilities included in disposal groups held for sale”
for EUR 0.8 billion.
6. LITIGATIONS
6.1. DEXIA BANK NEDERLAND
6.1.1. Background
The difficulties linked to the share-leasing activities of the former
Bank Labouchere (now Dexia Bank Nederland NV; hereinafter
to be referred to as “DBnl”) appeared at the time of the fast
and severe fall of the Amsterdam stock market in late 2001. The
value of the securities used as collateral against the loans granted
by DBnl proved insufficient in a large number of contracts,
thus potentially ending with a residual debt instead of the gain
initially hoped for.
Reference is made to the detailed disclosures, as contained in
the Dexia Accounts and Reports 2005 (especially pages 86 to 88)
and in the Activity Reports published during the year 2006.
6.1.2. “Binding force” to the Duisenberg arrangement
5. POST-BALANCE-SHEET EVENTS
A gross dividend of EUR 0.81 per share will be proposed at
the Annual Shareholders’ Meeting on May 9, 2007. The payment
date of the dividend is May 24, 2007.
BNP Paribas and Dexia signed an agreement regarding the
sale of Dexia Banque Privée France (DBPF), a wholly-owned
subsidiary of Dexia BIL, which offers private banking services
to private clients and not-for-profit organizations.
The transaction is subject to approval from the relevant supervisory
authorities. A net profit in a range of EUR 42 million will
be recorded in 2007.
On April 29, 2005, the announcement was made that the
mediation undertaken by Mr Wim Duisenberg had been
successful. DBnl entered into a general settlement with the
Foundations Leaseverlies and Eegalease, the Consumentenbond
(Dutch Consumer’s Association) and the Vereniging
van Effectenbezitters (Dutch association of security holders),
hereinafter to be referred to as “the Interest Groups”.
After a positive response by an overwhelming majority of the
share-leasing contract holders who joined the foundations
Leaseverlies (82% of those replying) and Eegalease (78% of
those replying), the settlement agreement between DBnl and
the Interest Groups was signed on June 23, 2005. As a result
of this Duisenberg Arrangement, the collective proceedings
140 |
Dexia / Annual Report 2006