Annual report 2010 - Dexia.com

Capital managementManagement reportConsolidatedfinancial statementsAdditional information Annual financial statementsRegulatory capital 31/12/09 31/12/10Regulatory capital (after profit appropriation) 20,251 20,636Tier 1 capital 17,573 18,425Core shareholders’ equity 18,498 19,214Cumulative translation adjustments (Group share) (531) (361)Prudential filters (111) (104)Non-controlling interests eligible in Tier 1 613 660Dividend payout (non-controlling interests) (9) (6)Items to be deducted (2,308) (2,401)Intangible assets and goodwill (2,163) (2,262)Holdings > 10% in other credit and financial institutions (50%) (57) (54)Subordinated claims and other items in other credit and financial institutions inwhich holdings > 10% (50%) (88) (85)Innovative hybrid Tier 1 instruments 1,421 1,423Tier 2 capital 2,678 2,211Perpetuals 755 839Subordinated debts 2,630 2,541Available for sale reserve on equities (+) 435 308IRB provision excess (+); IRB provision shortfall 50% (-) 157 0Items to be deducted (1,298) (1,478)Holdings > 10% in other credit and financial institutions (50%) (187) (186)Subordinated claims and other items in other credit and financial institutions inwhich holdings > 10% (50%) (88) (85)Participations in insurance undertakings (1,023) (1,206)At year-end 2010, Tier 1 capital amounted toEUR 18,425 million, up 5%. Excluding hybrid Tier 1instruments in an amount of EUR 1,423 million, core Tier 1capital amounted to EUR 17,002 million at year-end 2010.These hybrid Tier 1 instruments consist of three issuances:• a perpetual hybrid capital instrument of EUR 225 millionissued by Dexia Banque Internationale à Luxembourg;• undated subordinated non-cumulative Notes for EUR 700 million,issued by Dexia Crédit Local;IssuerBooked amount(in millions of EUR)Rate Call date Rate applicableafter the callDexia Banque Internationale àLuxembourg SA 225 6.821% 06.07.11Dexia Crédit Local SADexia Funding Luxembourg SA• undated subordinated non-cumulative Notes for EUR 498 million,issued by Dexia Funding Luxembourg.The characteristics of the three issuances are as follows:The agreement with the European Commission providescertain restrictions in relation to the payment of coupons andcalls on Dexia hybrid capital instruments. These restrictions aredetailed in the chapter “Update on the transformation plan”in this annual report (page 15-16).700 4.30% 18.11.15498 4.892% 02.11.16Euribor 3 m+ 230 bpEuribor 3 m+ 173 bpEuribor 3 m+ 178 bp96 Dexia Annual report 2010