Annual report 2005 - Dexia.com

Annual Report 2005Business linesPublic/Project Finance andCredit EnhancementDexia’s global leadership in public finance isdeservedly renowned. The Group operatesseveral subsidiaries and branches in twentysixcountries worldwide. The main ones areDexia Crédit Local in France and its mainsubsidiaries abroad, Dexia Bank in Belgium,Dexia Crediop in Italy, and Financial SecurityAssurance (FSA) in the United States. Thevery large size of the market, the qualityand solvency of borrowers, and the largeand growing needs for essential publicinfrastructures, offer wide opportunitiesfor the Dexia Group to underwrite valuablebusiness and expand its international coverage.Size, innovation, expertise and a long-termview are the key ingredients of Dexia’s successin this business line, which represents overone half of its earnings. Execution is providedin different forms: straightforward lending,sophisticated project financing schemes andcredit enhancement. In addition, insurance,payments, asset management and otherservices are offered to clientele.Personal Financial ServicesIn Belgium, Dexia Bank is one of thecountry’s top players in retail banking. Itoffers a complete range of banking andinsurance services to a clientele of householdsand small and medium-sized enterprises. InLuxembourg, Dexia BIL has a similar positionamong the retail banks of the Grand Duchy.In that country, a private banking businesshas been developed over the years and nowextends beyond Belgium and Luxembourg.Several units and joint ventures have beenacquired/developed in a number of Europeancountries, among which France, Spain,Switzerland and Slovakia.Treasury and Financial MarketsDexia’s principal businesses give the Groupan intensive presence in the capital markets,whether for the funding and managementof the Group’s balance sheet, or for theengineering of sophisticated products andsolutions delivered to clients of the variousbusiness lines. This business segment is notonly a key support entity for the whole Group,but it is also an important profit center whichgenerates substantial earnings.Specialized unitsThe fast developments of Dexia in its twomain markets, and its strong franchise inLuxembourg, have given rise to specialistactivities in Asset Management, Insuranceand Fund Services. Dexia Asset Managementhas acquired a strong renown in Europe andtoday distributes over one third of its productsamong institutions and through third partychannels. Dexia Insurance Services suppliesall the life and non life insurance productssold in the retail networks of the Group inBelgium and Luxembourg and in France. Infund services, RBC Dexia Investor Serviceshas recently been formed as a joint venturewith Royal Bank of Canada and ranks amongthe ten largest custodian banks worldwide.3