Annual report 2006 - Dexia.com

FINANCIAL RESULTS
ANALYSIS OF THE CONSOLIDATED
BALANCE SHEET
Total consolidated balance-sheet footings as of December 31,
2006 amounted to EUR 566.7 billion, an 11.4% increase
compared to December 31, 2005, due to dynamic commercial
activity. Loans and advance to customers explain 58.8%
of the raise.
DenizBank Group. Reverse repurchase agreements grew by
EUR 14 billion, loans by EUR 20 billion of which mortgage
loans rose by EUR 2 billion.
Loans and securities reached EUR 223.2 billion as of December
31, 2006 of which EUR 212 billion in securities (+13%).
Interbank assets slightly increased by 4.2%.
Total equity
MANAGEMENT REPORT
COMPTES CONSOLIDÉS
Liabilities
The amount of customer deposits and debt securities (savings
bonds, certificates and bonds) reached EUR 294.2 billion at
the end of 2006 (+7.6%). Their relative share in the total of
the balance sheet amounted to 51.9%.
Customer deposits stood at EUR 109.5 billion at the end of
2006, an increase of +12.0%, due to several factors, mainly
the evolution of the deposits and the consolidation of Deniz-
Bank Group. Debt securities increased to EUR 184.7 billion,
up 5.1% mainly due to issuance of non-subordinated securities
while certificates of deposits and savings certificates
decreased respectively by EUR 1.7 and 1.3 billion.
Subordinated and convertible debt declined -12.4%, to
EUR 4.4 billion, partly due to the redeeming in July 2006 of the
hybrid Tier 1 capital instrument for an amount of EUR 275 million
issued by Dexia BIL in 2001, and partly to the reimbursement
of other subordinated loans for EUR 245 million.
The interbank liabilities increased by 29.7%, mainly under the
growth of sight accounts and deposits.
Assets
Total shareholders’ equity of the Dexia Group amounted to
EUR 16.3 billion as of December 31, 2006 against EUR 14.1 billion
as of December 31, 2005, i.e. a growth of +15.7%.
Total shareholders’ equity is composed of core equity (capital,
additional paid-in capital, reserves, profit for the year
before allocation) and gains and losses not recognized in
the statement of income. The gains and losses represent
the fair value on available-for-sale portfolio, the fair value of
cash-flow hedge derivatives and the translation reserve for a
total amount of EUR 1.9 billion, down EUR 730 million. This
decrease comes from the AFS reserve on bonds mainly due to
the increase of interest rates.
Core shareholders’ equity amounted to EUR 14.4 billion,
i.e. a growth of 25.6% mainly due to capital increases
(EUR 1.4 billion), the net income of the period (EUR 2.75 billion),
the payment of dividend done in May 2006 (EUR -0.8 billion)
and the deduction of the goodwill related to the purchase
of minority interests of DenizBank (EUR 0.4 billion).
Minority interests, at EUR 1.7 billion progressed by EUR 527 million.
This was mainly due to the issuance by Dexia Funding
Luxembourg of perpetual subordinated notes qualifying as
Tier 1 capital, for an amount of EUR 500 million.
COMPTES SOCIAUX
Loans and advances to customers increased by +17.7% and
stood at EUR 226.5 billion as of December 31, 2006 due to
good commercial activity and to the first consolidation of
CONSOLIDATED BALANCE SHEET
(in millions of EUR) 2005 2006 Variation
Total liabilities and equity 508,761 566,743 +11.4%
Total liabilities 493,061 548,308 +11.2%
Due to banks 134,793 174,754 +29.7%
Customer borrowings and deposits 97,738 109,484 +12.0%
Negative value of derivatives 37,652 30,489 -19.0%
Debt securities 175,685 184,726 +5.1%
Subordinated and convertible debt 4,985 4,365 -12.4%
Total equity 15,700 18,435 +17.4%
Core shareholders’ equity 11,488 14,433 +25.6%
Total shareholders’ equity 14,084 16,299 +15.7%
Minority interests 1,183 1,710 +44.5%
Assets 508,761 566,743 +11.4%
Due from banks 75,053 78,215 +4.2%
Loans and advance to customers 192,402 226,502 +17.7%
Loans and securities 198,941 223,207 +12.2%
Positive value of derivatives 28,632 24,032 -16.1%
74 |
Dexia / Annual Report 2006