Annual report 2005 - Dexia.com

DexiaMessage from the ChairmenMessagefrom the ChairmenPIERRE RICHARD,Chairman of the Board of DirectorsIn 2005, numerous events influenced theworld economy and the confidence of itsactors. The rise of oil prices in a mannerunequalled for several years, aroused fearsthat a new shock comparable to that felt inthe seventies and nineties would have seriousconsequences on the economies of theprincipal oil-importing countries. For theirpart, the terrorist attacks in London, afterMadrid, showed that the threat is still there,and that the front line in the battle against thisscourge is actually located at the heart of themajor Western capitals. Mother Nature alsoreminded us of her devastating power in thesouthern part of the United States, provokinghuman drama, the displacement of entirepopulations, and the paralysis of activity therefor many months.In this, to say the least, agitated environmentgrowth nonetheless continued: at a good pacein the United States; Asia is not sitting backeither, and economic activity accentuatedthe vigorous awakening of China and India;and in the countries of Western Europe,which saw differing evolutions in terms ofgrowth and of deficits, but which overall sawcompany results progress, their stock marketscontinuing to perform well.In 2005, Dexia continued to make goodprogress on all fronts. Business turnover,both in credit commitments and in customerassets, rose in a noteworthy fashion. Thisyear, earnings per share achieved once again asharp rise (+14.5%) at EUR 1.87.The share’s performance continued to makeprogress in 2005, with a rise of more than15% over the year, on top of the 24% increaseachieved in 2004. So, in two years, the Dexiashare has increased in value by almost 40%,or twelve points better than the Eurostoxx 50index (which rose +28%), nine more than theCAC 40 index (+31%), and three more thanthe Eurostoxx Banks index (+37%). We wouldrecall, moreover, that the dividend per sharegiven by Dexia in 2005 for the financial year2004 was an increase of 17% over the previousyear. The Board of Directors will propose tothe shareholders’ meeting on May 10, 2006 todistribute a dividend which is up 14.5% over2005, at EUR 0.71 per share. Thus the essentialobjective of value creation undertaken bythe Management Board and the Board ofDirectors of Dexia has been broadly achieved.After an existence of less than a decade, sinceNovember 1996, the Total Shareholder Return6