Annual report 2006 - Dexia.com

GROUP PRESENTATION
STRATEGY
A development strategy aligned to the Group’s two pillars:
Universal Banking in Europe and Public/Project Finance
worldwide.
BUILDING ON TWO PILLARS
That growth will be well sustained by demographic evolutions
which will deeply influence the volumes and the nature of
banking services to be provided to individual clients, both as a
Retail Bank and as a Private Bank. Benefiting from its position
as leader on these rich markets, in Belgium and in Luxembourg,
and from a key position in Turkey, Dexia is uniquely
positioned to continue its development by exploiting its
know-how and its skills in this growing market.
Since 1996, Dexia has developed a Universal Banking activity
deeply anchored in Belgium, Luxembourg, Slovakia and Turkey,
combined with a world leadership in Public/Project Finance.
A pioneer in European cross-border consolidation and working
to the maxim “no achievement without commitment”,
during the first half year 2006 Dexia carried out a strategic
review which allowed to elaborate a development plan for
the next ten years. That plan was approved by the Board of
Directors on September 5, 2006, and the main themes of this
strategy were published on September 26, 2006.
Dexia’s future will be built on the two pillars of its current
activity:
• the development of its Universal Banking activity beyond
its traditional markets, so that it becomes a leading European
operator. This strategic direction will not only enable the most
to be made of the significant growth potential specific to this
activity, but also greater advantage to be taken of the opportunities
which exist in the field of Public/Project Finance;
• the anchoring and constant strengthening of its world
leadership in public/project finance, through continuing geographic
expansion, based on an innovative and varied range
of products.
The Group’s ambition is therefore to give even greater power
to its two principal growth drivers. The simultaneous strengthening
of these two pillars gives the Group a balanced portfolio
of activities, enlarges its sources of finance, enables optimum
use to be made of capital, increases the client base and opens
up even better development prospects.
Dexia will continue to develop its business lines in an energetic
but balanced manner, maintaining its founding values
with regard to risk and financial soundness, and acting with
the long term in view.
Dexia’s strength will continue to rest in its ability to combine
long-term commitment to its clients, financial stature, knowhow,
reputation and historical local presence.
A WIDE AND PROMISING HORIZON
Dexia’s business lines give extremely good visibility of market
growth and client needs. The strategic review carried out
by Dexia demonstrates that its environment abounds with
opportunities.
Extending Universal Banking activities in Europe
Continuing to develop services in Public/Project
Finance
The world market for local public debt is estimated at
USD 5,000 billion at present, and this should grow by
USD 1,500 billion (in constant currency) over the next ten
years, a new business volume equal to or more than three
times the current Dexia Group commitments in this field.
In the developed regions of the world, demographic evolutions
will result in the need for major infrastructure projects
(hospitals, education, energy etc.). In the developing regions
there will be requirements to construct or to update essential
infrastructures (water, waste treatment, transport, energy
etc.).
The volumes involved will be considerable, and the sophistication
of financial solutions will increase constantly. A world
leader in this market, Dexia is already strongly positioned and,
by virtue of its size and its innovation skills, it will be able to
grasp the many opportunities which are sure to arise.
Furthermore, Dexia has a particularly good knowledge of its
clients, especially of their solvency and their future needs.
As a consequence it has an unmatched ability on this market
to design and to distribute savings and long-term investment
products, relying on underlying assets of extremely high
quality, in relation to the local public sector and essential
infrastructures.
Expertise in the service of growth
As for Treasury and Financial Markets, a huge opportunity for
Dexia in coming years will be grasped by combining its financial
market expertise with its know-how in providing financial
services to the public sector. This new field of opportunities,
as well as the development of the sales force and institutional
client base, will enable the Group even further to improve on
its current strengths and to sustain its growth.
New growth opportunities in Asset Management will be
aligned principally to new institutional client segments, new
pension products for the private and institutional markets and
widening distribution via third parties outside Dexia’s own distribution
networks.
For Investor Services, the acceleration of growth on existing
and recently-penetrated markets, and the enlargement of its
range of products are all part of the strategy Dexia will follow
in order to strengthen this flourishing sector of activity.
MANAGEMENT REPORT
COMPTES CONSOLIDÉS
COMPTES SOCIAUX
In the field of Universal Banking, the growth of European markets
will be robust, as a result of the convergence of equipment
rates, banking penetration rates, the effects of scale and
synergies in the consolidation of the banking sector, hailed
both by the European Commission and by consumers.
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