Annual report 2006 - Dexia.com

MESSAGE FROM THE CHAIRMEN
MESSAGE
FROM PIERRE RICHARD
CHAIRMAN OF
THE BOARD OF DIRECTORS
COMPTES CONSOLIDÉS
MANAGEMENT REPORT
COMPTES SOCIAUX
2006 was a year of contrasts. On the one hand, political crises
and wars have escalated dangerously in the Middle East,
on fronts wider today than ever before. Energy prices and
supply, as well as global warming have become even more
acute issues, not only for policy makers but for everyone in
their day-to-day life. Economic imbalances have worsened
rather than improved, and now require global solutions never
previously conceived. On the other hand, the world economy
continued to generate robust overall growth in 2006 in excess
of 5% however and, along with the increasing supply of
liquidities worldwide, this has fuelled intensive activity in the
financial industry. The European Union has kept growing at a
honorable pace of 2.9%, and on the strength today of
500 million inhabitants in 27 countries, has a greater influence
on the international scene. One satisfying feature is that the
“economic engine” seems to have restarted in Germany,
giving positive signals for the future.
Dexia was able to share in this buoyancy, even though the
market’s risk appetite kept growing, thus further increasing
competitive pressure.
Beyond the vibrant business origination activity, a great deal
more has happened during Dexia’s tenth year in existence,
which the Board of Directors has dealt with actively, either
directly or through its specialized committees. Among the
most important decisions, the first related to the double
transition at the two highest levels of governance of Dexia:
the Board of Directors and the Management Board.
Having been appointed Chairman of the Board of Directors,
I passed the baton to Axel Miller, who was appointed
Chairman of the Management Board. The Board of
Directors first of all proceeded with the appointment of new
management team members and approval of the proposed
organizational structures. Secondly, following the in-depth
strategic review which was carried out during the first
months of the year, the Board expressed its full support for
proceeding with the proposed strategic plan, which was
presented to the market in autumn. On this basis, Dexia will
be able to stand ever more firmly on its two pillars, universal
banking and public/project finance, and keep developing
a solid business portfolio. The Board has also examined
a number of projects, among which the acquisition of
DenizBank in Turkey, and several divestiture proposals aimed
at refocusing on the essential. The Board has given its full
support to those initiatives announced during the course of
the year.
The Board has also followed the situation of Dexia Bank
Nederland with close attention. It is particularly rewarding
to see that Dexia’s management efforts to achieve a just and
appropriate solution to this difficult problem eventually came
to fruition, with the Duisenberg agreement being granted
binding force by the Amsterdam Court of Appeal in January
2007.
Dexia has continued to regard corporate governance as an
absolute essential, where the Group aims at being seen to
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Dexia / Annual Report 2006