Annual report 2005 - Dexia.com

Annual Report 2005quarter 2005. During the year 2005, DexiaKommunalkredit Bank developed its presencein Central Europe by creating three new salesprospecting offices in the Czech Republic,Romania and Bulgaria, and also by launchinga procedure to open the same sort of officein Hungary.At year-end 2005, the total of the bank’samounts outstanding was EUR 2.8 billion.Since its creation in 2005 the activityof Dexia Kommunalkredit Bank, in thepublic sector, has been well sustained, withoriginations of EUR 2.7 billion. In 2005, theoriginations of Dexia Kommunalkredit Bankwere particularly significant among Polish,Romanian and Hungarian “sovereigns”, andparticularly in the form of participations inmajor bond issues or their assembly.As regards Dexia banka Slovensko, theoriginations for the year amounted toEUR 141 million, up 85% on 2004 in partby virtue of the development of structuredproducts for Slovakian public clientele.In the field of asset management, publicsector deposits were EUR 492 million at theend of December 2005, up 20% on the end ofDecember 2004.In the field of structured financing, long-termoriginations recorded over the course of 2005were EUR 105 million against EUR 88 millionat year-end 2004.GermanyIn 2005, Dexia Hypothekenbank Berlinchanged its name to Dexia KommunalbankDeutschland. In fact, a new law in Germanywithdrew the status of mortgage bank andthus enabled Dexia clearly to confirm in theeyes of the market its orientation towards thelocal sector, and to develop it.The bank’s activity is diversified over thesatellites of local authorities active in fieldsrelating to public services such as water,transportation, housing, health and energy.These are private risks but their profilesremain extremely close to those of the publicsector. The strategy of Dexia in Germany istherefore to present itself clearly as a referencebank for the entire local sector and itssatellites.At year-end 2005, the long-term outstandingcommitments of the subsidiary wereEUR 34.2 billion, up 8.4% on 2004.Dexia Kommunalbank Deutschland operatesfrom two locations: its head office in Berlinand its commercial office in Frankfurt. Fromthe latter, the bank operates in the fieldof local public financing, offering classicproducts and financial engineering. In 2005,it is important to note that the activity ofthe Frankfurt office developed on a broadbase and recorded very good performances,particularly in the field of structuredproducts. Its originations were EUR 3.1 billionagainst EUR 1.8 billion in 2004. Dexia putfinancing in place for major local authoritiesin Germany such as those for Frankfurt amMain and the city-province (Land) of Berlin,and also for operators in the fields of waterand energy. In 2005, Dexia in particularfinanced the repurchase of claims by theGermanyNeworiginations(in millions of EUR)l llllllllllllllllllllllllllllll ll l2004l llllllllllllllllllllllllllllll ll l20049,35131,518l llllllllllllllllllllllllllllll ll l2005l llllllllllllllllllllllllllllll ll l20058,126Long-termcommitments(in millions of EUR)34,17769