Annual report 2006 - Dexia.com

4.5. STATEMENT OF INCOME
4.5.1. Operating income
Other operating income relates to the recovery of general
costs (EUR 0.2 million).
Miscellaneous services and other goods increased by
EUR 28.9 million to EUR 82.9 million.
This item includes fees paid to consultants, experts, auditors
and Group subsidiaries for their services, which amounted
to EUR 52.1 million against EUR 31.4 million in 2005. The
increase of fees is principally associated with the services provided
by Group subsidiaries. The fees are also due for guidance
and control tasks carried out by corporate teams from
the Dexia Group in particular within the context of Basel II.
The Dexia Corporate University, which is intended to develop
top-level training programs for members of staff of the entire
Dexia Group generated a cost of EUR 1.6 million. Logistics
costs (leasing of premises, telecommunications, travel, supplies)
totaled EUR 21.9 million compared with EUR 14.4 million
in 2005, that growth being linked to the evolution of
the Dexia SA workforce. Printing and advertising costs linked
to corporate publications were EUR 4.4 million compared to
EUR 4.6 million in 2005. The subscription paid to the Banking,
Finance and Insurance Commission stood at EUR 1 million in
2006 whilst compensation paid to members of the Board of
Directors was stable at EUR 1.9 million.
The average number of persons directly employed by Dexia
rose from 118 to 177, a trend which explained the increase
in payroll and social contributions from EUR 24.8 million to
EUR 36.1 million.
Members of staff benefit from a supplementary retirement
and survival pension scheme for which both employers and
staff premiums have been paid to a group insurance. Some
members of the Management Board also benefit from a supplementary
scheme as defined by article 39 of the French CGI,
the contributions for which are paid to an external insurance
company.
Amortization of formation expenses represented EUR 3.2 million,
amortization of intangible fixed assets EUR 1.2 million
and depreciation of tangible fixed assets EUR 0.6 million.
Interest paid and due in relation to the loans granted by
Group entities totaled EUR 152.4 million. Financial charges
relating to the currency interest rate swap with Dexia Crédit
Local were EUR 7.8 million and other interest charges were
EUR 0.8 million.
Other financial charges were mainly composed of commissions
linked to the payment of dividends by payment organizations,
which are Dexia Bank, ING, Dexia BIL and Caceis
(EUR 4.3 million), the cost of fiduciary services (EUR 0.2 million).
The depreciation of the dollar against the euro gave rise
to a negative conversion difference associated with the revaluation
of loans granted in dollars (EUR 56 million).
4.5.3. Exceptional income
Regarding the site in Paris, exceptional depreciations were
made in 2004 with a view to planned moves. In fact, it
occurred that some of the assets depreciated could be used
again in the new premises in the Dexia Tower – CBX, a depreciation
recovery was therefore made in the amount of EUR
0.2 million.
The transfer of the registered office to the Dexia Tower in Brussels
gave rise to an exceptional depreciation of EUR 0.1 million
on audiovisual installations and equipment which could not
be transferred to the new premises.
4.5.4. Corporate income tax
The corporate tax charge relates to a provision for fiscal
charges (EUR 1 million) (see section 4.3.5. provision for fiscal
charges).
Proceeds from foreign income taxes are explained by the fact
that the permanent establishment in Paris is the head of the
tax consolidation group in France. The tax savings realized by
the tax consolidation group are recorded in the financial statements
of the permanent establishment and considered as an
immediate gain (EUR 25 million). In addition, the registered
office made a tax regularization relating to income in 2004 for
an amount of EUR 0.1 million.
4.5.5. Net income for the year
RAPPORT DE GESTION
COMPTES CONSOLIDÉS
ANNUAL
FINANCIAL STATEMENTS
4.5.2. Financial results
Financial income from financial assets included the dividends
paid by Group entities (EUR 1,395.3 million) as well as interest
received and earned for subordinated loans (EUR 171.1
million).
Income from current assets included the interest generated
by the currency swap contracted with Dexia Crédit Local
(EUR 4.2 million), proceeds from tax deferred advances
(EUR 0.8 million) and income from money-market investments
(EUR 8.9 million). The subordinated loan granted to Kempen
& Co produced EUR 1.5 million in interest.
Other financial results come from a hedge transaction in an
amount of EUR 3.9 million and positive exchange differences
realized on the repayment of loans expressed in dollars as
a consequence of the depreciation of the dollar against the
euro (EUR 56 million).
Net income for 2006 totaled EUR 1,317.7 million.
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