Annual report 2009 - Dexia.com

More documents

Recommendations

Info

Notes to the annual fi nancial statementsManagement reportConsolidatedfinancial statementsAnnual financial statementsAdditional information4.4.7.4. Investigations about allegedshortcomings in financial communicationA shareholder, Mr Robert Casanovas, lodged a complaintwith the Public Prosecutors in Brussels and Paris on 11 March2009. These complaints gave rise to the opening of two preliminaryinvestigations.Mr Casanovas also served direct summonses on the companyDexia SA and several former and current executives of theGroup to appear on 29 October 2009 before the CriminalCourt in Paris. A summary of these complaints as well asDexia’s position is included in the Financial Report in respectof the third quarter of 2009.At the hearing on 29 October 2009, Mr Robert Casanovasand his wife Mrs Marie Christine Guil, who did not attend,withdrew their action against the company Dexia SA whichacknowledged it. This withdrawal occurred after the PublicProsecutor in Paris, by decision dated 14 October 2009, dismissedthe complaint filed by Mr Robert Casanovas and hiswife Mrs Marie Christine Guil.As to the complaint lodged in Brussels, by decision dated15 December 2009, the Public Prosecutor dismissed thecharges against Dexia.4.4.7.5. Dexia banka SlovenskoDexia banka Slovensko made a provision of EUR 100 millionin 2008 within the context of currency transactions carriedout by clients who proved to be unable to meet the margincalls caused by those transactions. In June 2009, one ofthese clients commenced a court action against the bankclaiming EUR 162 million for non-compliance with the legislationand with contracts. For its part, Dexia filed pleadingsapplying for compensation for the loss caused to itby that counterparty. The competent jurisdiction appointedan expert to assess the loss and the procedures of Dexiabanka Slovensko, and the parties to the case instructedtheir own experts. According to the client’s expert, thelatter’s loss would amount to EUR 110 million, which thebank contests, considering the action unsubstantiated, andfor which it has made no complementary provision. At thisstage in the proceedings, Dexia is not in a position to predictthe outcome.4.4.7.6. Dexia CrediopInvestigations are under way in Italy on the use by localauthorities of derivative products, and Dexia Crediop, likeother banking establishments, has been heard on its activitiesand practices by a parliamentary commission. The bankresponded to requests for documentation within the contextof the ongoing enquiries. An action has been commenced bytwo clients against the bank.Under Italian law, a debt restructuring transaction is onlypossible if it leads to a reduction of the cost weighing on thelocal authority. In these disputes, the legal question posedconsists of knowing whether the cost to be taken into considerationincludes hedge transactions or not. The two cases,the financial stakes of which are modest, are in their initialphase, and their outcome cannot be reasonably foreseen atthis stage.4.4.7.7. Dexia IsraëlIn May 2002, a complaint was filed in relation to the purchaseby Dexia of shares held by the state of Israel claimingnon-compliance with company law. In April 2009, the CentralDistrict Court rejected the application for a class actionformulated by the complainants. In June 2009, the latterappealed to the Supreme Court, and the parties have to submittheir arguments by mid-2010 for judgement in November2010.4.5. Statement of income4.5.1. OPERATING INCOMEOther operating income relates to the recovery of costs fromGroup companies (EUR 7.8 million) as well as structuralreductions regarding professional withholding tax (EUR 0.1million).Miscellaneous services and other goods amounting to EUR150.9 million as at 31 December 2008 fell 11% to EUR133.7 million, which reflects the cost reduction target set bythe Dexia Group.This item includes fees paid to consultants, experts, auditorsand Group subsidiaries for their services, which amounted toEUR 58.4 million against EUR 82.1 million in 2008, correspondingto a reduction of 29%.The Dexia Corporate University, which is intended to developtop-level training programs for members of staff of the entireDexia Group, generated a cost of EUR 1 million, down fromEUR 1.7 million in 2008.Other operating costs (leasing of premises, telecommunications,travel, trainings, memberships, supplies, etc.) werereduced to EUR 29.7 million compared with EUR 33.9 millionin 2008.Printing and advertising costs linked to corporate publicationswere EUR 1.3 million compared to EUR 2.9 million in 2008,whilst costs associated with the Group transformation planare EUR 41.5 million.Compensation paid to members of the Board of Directorsamount to EUR 1.8 million.The cost of remunerations and social charges were down17%, from EUR 48.7 million to EUR 40.6 million, whilst theaverage number of people directly employed by Dexia is constant(260 FTE in 2009 compared to 261 FTE in 2008). Thiscost reduction comes from the reduction or loss of variablecompensation for all members of staff of Dexia SA.Amortization of formation expenses represented EUR 3.4 million,amortization of intangible fixed assets EUR 1.9 millionand depreciation of tangible fixed assets EUR 0.6 million.230Dexia Annual report 2009
Notes to the annual fi nancial statements4.5.2. FINANCIAL RESULTSFinancial income from financial assets includes the dividendspaid by a Group entity (EUR 0.3 million) as wellas interest received and earned for subordinated loans(EUR 62.3 million).Income from current assets include the interest generatedby the currency swap contracted with Dexia Crédit Local(EUR 2.3 million), proceeds from tax deferred advances(EUR 0.3 million) and dividends from shares in Assured GuarantyLtd held in the investment portfolio (EUR 1.4 million).The other financial income results from the establishmentof a specific hedge for the risk associated with the currencyand interest-rate swap concluded with Dexia Crédit Local (cf.notes 4.2.6. and 4.4.2.), generating a forex gain of EUR 43.4million due to the depreciation of the dollar against the euroduring the term of the contract.This is combined with positive exchange differences on thedollar up to EUR 0.7 million and a reimbursement of commissionspaid as provision for the payment of dividends in 2007and 2008 (EUR 0.4 million).Interest paid and due in relation to the loans and advancesgranted by Group entities totalled EUR 65.4 million. Financialcharges relating to the currency and interest rate swap withDexia Crédit Local were EUR 6.9 million and other interestcharges were EUR 0.2 million.Other financial charges were mainly composed of commissionslinked to the payment of dividends of previous years bypayment organizations, which are Dexia Bank, Dexia BIL andCaceis (EUR 0.1 million), and the cost of fiduciary services(EUR 0.5 million).To this is added the write-off of a claim agreed by the permanentestablishment in Paris to a subsidiary involved in thetax consolidation in accordance with the undertaking initiallymade by Dexia Crédit Local as head of the tax consolidationgroup in France (EUR 13.4 million). That write-off, withinthe context of a fiscal leverage transaction approved by theFrench tax authorities, gave rise furthermore to a reversal ofthe provision for liabilities and charges of the same size (cf.note 4.3.6. “Provisions for other liabilities and charges”).The exceptional charges include the increase of provision forother liabilities and charges of EUR 49.3 million in connectionwith Dexia Holdings Inc., direct subsidiary of Dexia SA for10% (cf. note 4.3.6.).This is combined with a loss of EUR 0.7 million EUR on therealisation of fixed assets due to the liquidation of DexiaEmployee Benefits SA, 100% subsidiary of Dexia SA (cf. note4.2.4.).4.5.4. CORPORATE INCOME TAXIn 2008, a provision for tax charges (EUR 1.8 million) was allocatedtaking account of the Belgian fiscal regulations regardingdefinitively taxed surplus revenue, under which this couldnot be carried forward to a later period. As this point was inthe meantime the object of an Order by the European Courtof Justice (ECJ 12 February 2009), which specifies that theBelgian legislation contradicts the Parents-Subsidiary Directive,the said provision was subject to a reversal in 2009.Proceeds from other income taxes are explained by the factthat the permanent establishments in Paris and in Luxembourgare each head of the tax consolidation group in theirrespective country. The tax savings realised by each tax consolidationgroup are recorded in these permanent establishmentsand considered as an immediate gain (EUR 2.4 millionin Luxembourg and EUR 62.7 million in France).4.5.5. NET LOSS FOR THE YEARThe net loss for 2009 was EUR 93.8 million.Management reportConsolidatedfinancial statementsAnnual financial statements4.5.3. EXCEPTIONAL RESULTSFollowing a communication from the European Commissiondated 8 October 2009 (“State Aid: Commission recalls rulesconcerning Tier 1 and Tier 2 capital transactions for bankssubject to a restructuring aid investigation”), Dexia FundingLux made no interest payment in relation to its subordinated“hybrid Tier 1” issue for which Dexia SA issued a subordinatedguarantee (cf. note 4.4.1.).The issue conditions of the subordinated loan provide thatinterest paid to Dexia Funding Lux by entities of the DexiaGroup, which were loaned funds received by DFL, must bepaid to the issue guarantor, in this case Dexia SA. It resultsthat exceptional income of EUR 24.6 million was accountedat Dexia SA in its capacity as guarantor within the context ofthat issue as provided in the issue prospectus for that subordinatedloan.Annual report 2009 Dexia 231Additional information
Page 1 and 2:
9Annual report 2009
Page 3 and 4:
9Annual report 2009Management repor
Page 5 and 6:
9Management report
Page 7 and 8:
Group profi leSIMPLIFIED GROUP STRU
Page 9 and 10:
Group profi leQUALITY OF RISKS Dexi
Page 11 and 12:
In accordance with the agreement wi
Page 13 and 14:
2009 and early 2010 highlightsExit
Page 15 and 16:
2009 and early 2010 highlightsCreat
Page 17 and 18:
Corporate governanceIntroduction: t
Page 19 and 20:
Corporate governanceThe European Ad
Page 21 and 22:
Corporate governanceNAMEPIERREMARIA
Page 23 and 24:
Corporate governanceNAMEROBERTDE ME
Page 25 and 26:
Corporate governanceNAMESPECIALISTC
Page 27 and 28:
Corporate governanceNAMEKOEN VAN LO
Page 29 and 30:
Corporate governanceNew directors a
Page 31 and 32:
Corporate governanceConsidering tho
Page 33 and 34:
Corporate governancemade and the fi
Page 35 and 36:
Corporate governanceDIRECTORS’ AN
Page 37 and 38:
Corporate governanceOperation and a
Page 39 and 40:
Corporate governanceThe Appointment
Page 41 and 42:
Corporate governanceResponsibilitie
Page 43 and 44:
Corporate governanceVariable compen
Page 45 and 46:
Corporate governancetional entities
Page 47 and 48:
Corporate governance• It identifi
Page 49 and 50:
Shareholder informationStock market
Page 51 and 52:
Shareholder informationPRINCIPAL DE
Page 53 and 54:
Human resourcesAGE PYRAMID> 5955-59
Page 55 and 56:
Sustainable developmentThe 2009 Dex
Page 57 and 58:
Risk managementIntroductionIn 2009,
Page 59 and 60:
Risk managementThe Rating Committee
Page 61 and 62:
Risk managementAsset qualityBy the
Page 63 and 64:
Risk managementBond portfolioDexia
Page 65 and 66:
Risk managementThis good performanc
Page 67 and 68:
Risk managementRisk and control sel
Page 69 and 70:
Risk managementECONOMIC CAPITALBY T
Page 71 and 72:
Financial resultsPreliminary notes
Page 73 and 74:
Financial resultsSolvency31/12/08 3
Page 75 and 76:
Financial resultsAssetsLoans and ad
Page 77 and 78:
Activity and results of the busines
Page 79 and 80:
Page 81 and 82:
Page 83 and 84:
Page 85 and 86:
Page 87 and 88:
Page 89 and 90:
General information3. Overview of t
Page 91 and 92:
General informationAll the above-me
Page 93 and 94:
General information4.5. Dexia banka
Page 95 and 96:
General information6.3. Notificatio
Page 98 and 99:
Consolidated balance sheet ........
Page 100 and 101:
Consolidated balance sheetManagemen
Page 102 and 103:
Consolidated statementof incomeMana
Page 104 and 105:
Management reportConsolidatedfinanc
Page 106 and 107:
Consolidated statementof comprehens
Page 108 and 109:
Notes to the consolidated financial
Page 110 and 111:
Notes to the consolidated fi nancia
Page 112 and 113:
Page 114 and 115:
Page 116 and 117:
Page 118 and 119:
Page 120 and 121:
Page 122 and 123:
Page 124 and 125:
Page 126 and 127:
Page 128 and 129:
Page 130 and 131:
Page 132 and 133:
Page 134 and 135:
Page 136 and 137:
Page 138 and 139:
Page 140 and 141:
Page 142 and 143:
Page 144 and 145:
Page 146 and 147:
Page 148 and 149:
Page 150 and 151:
Page 152 and 153:
Page 154 and 155:
Page 156 and 157:
Page 158 and 159:
Page 160 and 161:
Page 162 and 163:
Page 164 and 165:
Page 166 and 167:
Page 168 and 169:
Page 170 and 171:
Page 172 and 173:
Page 174 and 175:
Page 176 and 177:
Page 178 and 179:
Page 180 and 181:
Page 182 and 183: Notes to the consolidated fi nancia
Page 214: Statutory Auditor’s reportManagem
Page 217 and 218: 9Annual financial statementsFINANCI
Page 219 and 220: SHAREHOLDERS’ EQUITY AND LIABILIT
Page 221 and 222: Notes to the annualfinancial statem
Page 223 and 224: Notes to the annual fi nancial stat
Page 231: Notes to the annual fi nancial stat
Page 245 and 246: Statutory Auditor’s report• Wit
Page 247 and 248: Additional informationGeneral dataN
Page 249 and 250: Additional informationDexia FP Hold
Page 251 and 252: Dexia’s annual report 2009 has be
show all

Annual report 2009 - Dexia.com

Create successful ePaper yourself

Delete template?

Save as template?