Annual report 2006 - Dexia.com

PERSONAL FINANCIAL SERVICES
MANAGEMENT REPORT
• the debit cards with personalized pictures were very successful:
200,000 applications since their launch in June 2006.
Dexia’s personalized cards were the first issued on the Belgian
market.
• “Dexia Direct Net”: more than 500,000 customers are now
handling their banking transactions via the internet. The
number of contracts has risen by 50% in 2006.
Since 2006 Dexia has been making intensive preparations for
the forthcoming introduction of the unified payment system
known as the Single Euro Payments Area (SEPA) in 2008.
Private Banking
2006 was again a good year for Private Banking. Total customer
assets reached EUR 45.4 billion, up 12.5%, double digit
growth being experienced in many products. For instance, the
cash management activity was up 24.3% and the structured
products were up 12.5%. Mutual funds were a little weaker
as a consequence of the negative market effect in the second
quarter of 2006, but nevertheless recorded a very satisfying
5.7% increase.
Customers particularly appreciated bond issues tailored to
meet their needs in terms of duration and return rates.
A dedicated call center – “Dexia Direct Private” – for customers
willing to manage their funds by themselves was put in
place. This service provides access to accurate and up to date
market information.
Customer liabilities
With the overall positive climate of 2006 reinforcing household
confidence, loans to retail and private customers saw a
significant 11.8% increase, to EUR 30.9 billion. The rise in
private banking was even greater (+21.5% to EUR 3.3 billion).
Mortgage loan activity, which benefited from a stronger
client appetite as a result of increasing confidence, rose by
13.6% to EUR 18.6 billion. The fourth quarter witnessed a
return to a more normal competitive environment. Consumer
loans amounted to EUR 2.5 billion at the end of 2006, a 9.8%
growth.
COMPTES CONSOLIDÉS
COMPTES SOCIAUX
CUSTOMER ASSETS & LIABILITIES (1)
(in billions of EUR) Dec. 31, 2005 Dec. 31, 2006 Variation
TOTAL CUSTOMER ASSETS & LIABILITIES 149.5 159.2 +6.5%
Total customer assets 121.9 128.3 +5.3%
of which
Balance-sheet products 51.8 53.3 +2.9%
Off-balance-sheet products 60.5 64.5 +6.7%
Life Insurance technical reserves 9.6 10.5 +9.4%
of which in retail banking 81.5 83.0 +1.7%
Deposits 31.2 30.4 -2.5%
Savings bonds & term deposits 9.6 10.1 +4.8%
Bonds issued by the Group 6.5 7.5 +14.7%
Mutual funds 20.7 20.8 +0.4%
Life insurance technical reserves 7.2 7.8 +7.6%
of which in private banking 40.3 45.4 +12.5%
Total customer liabilities 27.6 30.9 +11.8%
of which in retail banking 25.0 27.6 +10.8%
Mortgage loans 16.3 18.6 +13.6%
Consumer loans 2.3 2.5 +9.8%
of which in private banking 2.7 3.3 + 21.5%
(1) Pro forma as Banque Artesia Nederland left the Group in the fourth quarter of 2006.
The above amounts exclude DenizBank. As of December 31, 2006 the total assets of DenizBank amounted to EUR 3.1 billion and the total customer loans
amounted to EUR 2.0 billion (including the retail, private and SME activities of DenizBank).
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Dexia / Annual Report 2006