Annual report 2009 - Dexia.com

Financial resultsPreliminary notes to the consolidatedfinancial statementsChanges in scope of consolidationIn 2008Dexia exited Kommunalkredit Austria AG (previously 49%-owned by Dexia) and takes full ownership of Dexia KommunalkreditBank AG (previously 51% owned by Dexia).In November 2008, Dexia signed a binding agreement to sellFSA Holdings Ltd to Assured Guaranty Ltd, a bond insurerlisted on the NY Stock Exchange. Financial Products activityis excluded from the scope of the transaction. Dexia hasrecorded all the accounting and prudential impacts of thesale of FSA Insurance in the fourth quarter 2008.In 2009As from 1 April 2009, Dexia no longer consolidated theactivities of Financial Security Assurance Holdings Ltd, soldto Assured Guaranty Ltd. FSA Insurance’s result for the firstquarter 2009 is consolidated on a line-by-line basis and thenet result is offset in “Net Income on Investments”. The salewas completed on 1 July 2009.As from the fourth quarter 2009, Crédit du Nord is no longerincluded in Dexia’s consolidated financial statements pursuantto the agreement under which Société Générale buys Dexia’s20% stake in Crédit du Nord. The first nine-month result forCrédit du Nord is considered in Dexia’s annual result 2009.Simultaneously to this transaction Dexia purchased Crédit duNord’s 20%-stake in Dexia Crédit Local de France Banque.Pursuant to this acquisition, Dexia controls 100% of DexiaCrédit Local de France Banque.On 9 December 2009, Dexia signed an agreement relatingto the sale of Dexia Épargne Pension to BNP ParibasAssurance. The transaction is subject to approval from thecompetent supervisory authorities and is expected to befinalised in the first half of 2010. The final result made byDexia will be recorded in the accounts at the closing of thetransaction.Analytical treatmentAs at 1 January 2009, Dexia changed its business reporting inline with its new organisation and applied IFRS 8 for the firsttime. Figures for 2008 were restated accordingly in order toenable comparisons.The business segmentation was adapted to Dexia’s newprofile and strategic directions. The Group is now dividedinto three business lines representing operational activitiesfocused on homogeneous client franchises (Retail and CommercialBanking, Public and Wholesale Banking, Asset Managementand Services). A fourth business line, named GroupCenter, includes treasury operations, bond portfolios in runoff(including the Financial Products portfolio) as well as theformer Central Assets segment.Consolidated statement of incomeNet income Group shareThe profitability of the Group recovered throughout theyear. In 2009, net income Group share amounted toEUR 1,010 million compared to a net loss of EUR 3,326 millionin 2008, which was affected by the impact of thefinancial crisis to the extent of EUR -5,868 million. Duringthe year 2009, there was a much more limited influenceof the financial crisis (EUR -687 million) on the accounts,mainly booked in the first half of the year. In 2008, Dexiaalready booked all the accounting consequences of thesale of FSA Insurance. Following the closing of this transactionon 1 July 2009, FSA Insurance has been deconsolidatedsince the second quarter of 2009.All the commercial business lines posted positive resultsin 2009: EUR 608 million in Retail and Commercial Banking;EUR 502 million in Public and Wholesale Banking;EUR 74 million in Asset Management and Services. TheGroup Center business line reported a net loss of EUR173 million in 2009 against a loss of EUR 3,570 million in2008 which had been strongly impacted by the crisis.Management reportConsolidatedfinancial statementsAnnual financial statementsAdditional informationAnnual report 2009 Dexia 69