Annual report 2010 - Dexia.com

Group profileManagement reportConsolidatedfinancial statementsAdditional information Annual financial statementsDexia is a European banking group, with about35,200 members of staff and core shareholders’ equity ofEUR 19.2 billion as at 31 December 2010. The Group carriesout its activities principally in Belgium, Luxembourg, Franceand Turkey.The Dexia share is listed on Euronext Brussels and Paris andthe Luxembourg Stock Exchange, and is included in theBEL20, reference index of the Brussels Stock Exchange, andthe Dow Jones Euro Stoxx Banks.Dexia 2014: a retail bank serving10 million customersThe Dexia Group has posted clear strategic ambitions for2014 and fixed as objectives:• to complete its financial restructuring, giving precedence toincome from its commercial franchises;• to consolidate and to develop its strong commercialfranchises, rebalancing its business line portfolio around retailbanking, and tapping growth opportunities offered by themarket in Turkey;• to adopt an optimised operational model, supported by thesearch for synergies and efficiency gains.This return to the essence resulting from the Group’s strategicrepositioning is reflected in Dexia’s values, whereby membersof staff share three aims: respect, excellence and agility.Business linesRetail and Commercial BankingDexia offers a wide range of retail, commercial and privatebanking services to over 8 million customers.Dexia ranks among the three largest banks in Belgium andLuxembourg. In Belgium, Dexia serves its 4 million customersthrough a network of approximately 850 branches. TheLuxembourg operation is the international wealth managementcentre within the Group; it also covers the country with anationwide network of branches. Dexia also holds a strongposition in Turkey, through DenizBank, which currently standsin sixth position among privately-held banks and servesits customers through a nationwide network of some 500branches. Besides the retail and commercial banking activities,DenizBank is a fully-fledged bank, with a significant corporateactivity and offering its clients asset management services andinsurance products.The Group aims to continue developing its commercialfranchises in Belgium and Luxembourg and to capturethe significant growth potential of Turkey. The objectiveis to increase the proportion of income from its retail andcommercial banking activities (approximately 60% of theGroup’s total income, including approximately 27% fromTurkey) and to achieve a client base of 10 million (4 million inBelgium and Luxembourg, 6 million in Turkey) by 2014.Public and Wholesale BankingDexia plays a major role in the financing of local facilities andinfrastructures, the health and social housing sectors and thesocial economy, principally in Belgium and France.Dexia is also active:• in the field of project finance, adopting a selective approachand in sectors such as infrastructures and renewable energies,both in Europe and North America;• in the field of corporate banking in Belgium, where Dexiafocuses on medium-sized corporates, whilst maintaining anopportunist presence with large corporates.In addition, the Group is established in Germany, with anaccess to the Pfandbriefe market.Close to its clients and fully in tune with their requirements,Dexia is constantly developing and widening its range ofproducts and services. The aim is to go well beyond the role ofspecialist lender, offering clients of the business line integratedsolutions (treasury management, budget optimisation, ITsolutions and so on) most suited to their needs.Asset Management and ServicesThis business line consists of three activities (assetmanagement, investor services and insurance), characterisedby attractive growth outlook based on a diversified clienteleand strong collaboration with the Group’s other commercialfranchises.With EUR 86.4 billion of assets under management as at31 December 2010, Dexia Asset Management is the Group’sasset management centre. Its four management centres (inBelgium, France, Luxembourg and Australia) serve a broadclient base.The investor services business is conducted by RBC DexiaInvestor Services, a joint venture with Royal Bank of Canada,which offers its expertise in global custody, fund and pensionadministration and shareholder services to institutions allaround the world. Total assets under administration amountedto EUR 2,101 billion as at 31 December 2010.Dexia’s insurance activities are mainly concentrated onthe Belgian and Luxembourg markets. The Group offers acomplete range of life and non-life insurance products toretail, commercial and private banking clients as well as toDexia’s public and semi-public clients, through a bankinginsuranceapproach and through a network of tied agents.4 Dexia Annual report 2010