Annual report 2006 - Dexia.com

FINANCIAL RESULTS
Income
Costs
Total income amounted to EUR 7,012 million in 2006,
EUR 1,036 million higher than in 2005 (+17.3%). At constant
scope of consolidation and excluding non-operating
items, the increase was EUR 479 million (+8.2%) in one
year, stemming from the growth of underlying revenues
in all the business lines: respectively EUR +222 million in
Public/Project Finance (+9.9%); EUR +48 million in Personal
Financial Services (+2.1%); EUR +55 million in Asset Management
(+28.2%); EUR +59 million in Investor Services (+18.9%);
EUR +13 million in Insurance Services (+6.1%); and EUR +58 million
in Treasury and Financial Markets (+11.5%). For the rest,
the combined revenues of Central Assets and non-operating
items went up EUR 498 million, a sizeable amount largely
explained by the capital gains achieved during the year.
Costs stood at EUR 3,481 million in 2006, up 7.8% (or
EUR +252 million) compared to 2005. At constant scope, and
excluding non-operating items (EUR 4 million in 2006 compared
to EUR 7 million pro forma in 2005) the progression
was +6.1%, i.e. 2.1 percentage points lower than that of
revenues. The analysis hereunder of individual business line
performances underscores that in those businesses where the
development momentum is strong, costs have progressed at
a relatively high rate, but at a much slower pace than revenues,
in line with such stated objective. It is to be noted that,
in Personal Financial Services, the underlying cost base was
up only 1.2%, i.e. almost half the growth pace of the business
line’s revenues year on year, and an effective decrease in
real terms. Also, as in the previous years, those costs related
CONSOLIDATED STATEMENT OF INCOME
(in millions of EUR) 2005 2006 Variation
Income 5,976 7,012 +17.3%
of which net commissions 1,172 1,307 +11,5%
Costs (3,229) (3,481) +7.8%
Gross operating income 2,747 3,531 +28.5 %
Cost of risk (52) (124) x2.4
Impairment on (in)tangible assets 0 0 n.s.
Tax expense (602) (569) -5.5%
Net income 2,093 2,838 +35.6 %
Minority interests 55 88 +60.0%
Net income – Group share 2,038 2,750 +34.9%
CONSOLIDATED STATEMENT OF INCOME (FROM REPORTED TO UNDERLYING (1) PRO FORMA (2) )
(in millions of EUR) 2005 2006 Variation
Income 5,976 7,012 +17.3%
Changes in scope of consolidation 82 - n.s.
Income pro forma 6,058 7,012 +15.8%
Non-operating items 224 698 x3.1
Underlying income 5,835 6,314 +8.2%
Costs (3,229) (3,481) +7.8%
Changes in scope of consolidation (56) - n.s.
Costs pro forma (3,285) (3,481) +6.0%
Non-operating items (7) (4) n.s.
Underlying costs (3,278) (3,478) +6.1%
Gross operating income pro forma 2,773 3,531 +27.3%
Non-operating items 217 695 x3.2
Underlying gross operating income 2,557 2,836 +10,9%
Cost of risk pro forma (50) (124) x2.5
Non-operating items 7 (35) n.s.
Underlying cost of risk (57) (89) +55.4%
Net income – Group share 2,038 2,750 +34.9%
Changes in scope of consolidation 16 - n.s.
Net income – Group share pro forma 2,053 2,750 +33.9%
Non-operating items 263 703 x2.7
Underlying net income – Group share 1,790 2,047 +14.3%
MANAGEMENT REPORT
COMPTES CONSOLIDÉS
COMPTES SOCIAUX
(1) i.e. excluding the non-operating items (described on page 73 of this report).
(2) Pro forma as defined on page 70.
Dexia / Annual Report 2006 | 71