Annual report 2005 - Dexia.com

Annual Report 2005For the social profit segment (whichprincipally addresses care and educationalinstitutions, unions and mutual associations,but also the entire associative world of nonprofit-makinginstitutions), Dexia registereda slight fall in its long-term originations ofaround 8%. It is also important to mentionthe performance recorded in leasing, whereoriginations reached EUR 119 million, morethan double the figure for 2004.Thus echoing these good commercial results,Dexia’s market share of local authorities (onthe basis of offers submitted for competition 1 )increased by 2.8% settling at year-end 2005 at80.6%.At year-end 2005, short-term outstandingcommitments with the local sector wereEUR 2.9 billion, down EUR 3.2 billion incomparison to 2004. That fall applied asmuch to balance-sheet products, and moreparticularly sight accounts, as to off-balancesheetproducts like Treasury certificates. Thecontinuing process of merger within regionaltreasuries is at the origin of this decline.Amounts outstanding at year-end 2005in deposits and asset management forthe local sector were EUR 10.2 billion, upEUR 307 million (+3%) on year-end 2004.This rise is explained in particular by theflow of liquidities due to the Suez bid forElectrabel.As regards structuring and debt managementoperations, their volume reached EUR 5 billionin 2005, a rise of 42% in comparison to 2004.As regards credit activity with the corporatesector, total originations were up 49%,or almost half a billion euros, reachingEUR 1.5 billion.The increase of long-term outstandingcommitments reaches at year-end 2005EUR 2.4 billion, up 5%.Short-terms outstanding commitmentsto companies, on the other hand, increasedby 26% in 2005 to settle at practicallyEUR 6 billion.Investment assets from the corporate sectorincreased 21% in 2005 to reach almostEUR 10 billion.FranceIn 2005, the commercial activity of Dexia inFrance was extremely dynamic. Global longtermoutstanding commitments at year-end2005 were EUR 60.6 billion, up 5.1% on yearend2004. For the second consecutive year, thevolume of long-term originations reached arecord level, passing the EUR 10 billion markto EUR 10.8 billion, up 5%. This exceptionalresult backs up the leading position of Dexiain France on the very dynamic local authoritymarket and confirms the success of theexpansion policy towards new diversificationmarkets.The global volume of activity carried onby Dexia in the local public sector wasEUR 10.8 billion, up 7% on 2004.More precisely, activity with local authoritiesrose 11% in comparison to 2004 and reachedEUR 6.9 billion. These results enabled Dexiato strengthen its leading position in Francewith a market share of more than 40%.FranceNeworiginations(in millions of EUR)l llllllllllllllllllllllllllllll ll l200410,161l llllllllllllllllllllllllllllll ll l200510,832Long-termcommitments(in millions of EUR)l llllllllllllllllllllllllllllll ll l200457,663l llllllllllllllllllllllllllllll ll l200560,599(1) This is the percentage of the deals submitted forcompetition which were attributed to Dexia duringthe period under review (including offers not subjectto competition, the Dexia accumulated market shareshould be 81.8%).57