Annual report 2006 - Dexia.com

PUBLIC/PROJECT FINANCE
WORLD LEADER
As for geographic development, 2006 was a very active year,
with inter alia, Dexia obtaining a banking license in Poland
last May, the opening of a representative or commercial
office in Budapest, in China, in India and of a subsidiary in
Switzerland.
In Japan Dexia is delighted to have been granted a banking
license in November, as, in terms of volumes, this country is
the deepest market for public finance in the world. The Japanese
local public debt amounts to EUR 1,500 billion.
A significant portion of the total new production of Dexia in
2006 (10% or EUR 5.7 billion) was made in countries where
a banking license was obtained in 2005 or 2006: Dexia Kommunalkredit
Bank in Central and Eastern Europe, Canada,
Mexico, Switzerland and Japan.
MANAGEMENT REPORT
COMPTES CONSOLIDÉS
COMPTES SOCIAUX
ACTIVITY (1) Long-term originations Long-term commitments (2)
2005 2006 Variation Dec. 31, Dec. 31, Variation
(in millions of EUR) 2005 2006
Fully-consolidated subsidiaries
Belgium (3) 5,290 5,210 -1.5% 30,981 30,845 -0.4%
France 10,832 12,810 +18.3% 60,599 65,026 +7.3%
Luxembourg 598 98 -83.6% 1,933 2,085 +7.9%
United Kingdom 2,224 2,261 +1.7% 6,756 9,480 +40.3%
Sweden 916 1,062 +15.9% 3,597 3,932 +9.3%
Italy 8,714 5,787 -33.6% 34,140 37,253 +9.1%
Iberia (Spain & Portugal) 1,749 2,146 +22.7% 6,452 8,854 +37.2%
Central and Eastern Europe 2,680 2,687 +0.3% 3,060 5,119 +67.3%
America 10,871 10,350 -4.8% 42,487 46,136 +8.6%
Other (4) 11,927 13,002 +9.0% 18,365 28,504 +55.2%
Fully-consolidated subsidiaries
without Germany 55,801 55,413 -0.7% 208,370 237,234 +13.9%
Germany (5) 6,176 6,354 +2.9% 25,974 30,975 +19.3%
Fully-consolidated subsidiaries
with Germany 61,978 61,768 -0.3% 234,344 268,209 +14.5%
of which public sector 49,753 48,593 -2.3% 209,853 235,546 +12.2%
of which corporate & project finance 12,225 13,175 +7.8% 24,491 32,663 +33.4%
Equity-accounted companies
Austria (Kommunalkredit Austria) (6) 6,045 9,933 +64.3% 17,694 24,222 +36.9%
TOTAL MANAGED
BY THE DEXIA GROUP 68,023 71,701 +5.4% 252,038 292,431 +16.0%
(1) All statistics of this table relate to the final take of underwritings, acceptance or purchase of public/project finance sector debt obligations, in the form
of long-term loans, notes and bonds, liquidity guarantees, all forms of credit procurement as applicable in those countries where Dexia operates. In view of
the specific features of business in Germany, production statistics are reported excluding that country. Short-term facilities are not included.
(2) These amounts are stated at current exchange rate. The above amounts exclude DenizBank. As of December 31, 2006 the long-term commitments of
DenizBank amounted to EUR 1.2 billion.
(3) The 2005 commitments of Belgium are restated (about EUR +2.6 billion) mainly as the roll-over credits of the corporates are now considered as longterm
commitments (previously treated as short term).
(4) “Other” includes the activities of the Pacific area, Mexico, Israel, Japan, Switzerland, as well as the transactions carried out by head office in countries
where the Group has no direct presence.
(5) The segment reporting of Dexia Kommunalbank Deutschland has been finetuned. The 2005 figures are therefore restated.
(6) Corresponding to 100% of originations/commitments of Kommunalkredit Austria, which is 49%-owned by Dexia.
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Dexia / Annual Report 2006