Annual report 2009 - Dexia.com

Activity and results of the business lines // Retail and Commercial BankingManagement reportConsolidatedfinancial statementsAnnual financial statementsResultsIn 2009, the net income Group share was EUR 608 million,3.3 times higher than in 2008, which was severely impactedby the financial crisis.At EUR 3,035 million in 2009, including EUR 153 millioncapital gain on the sale of the 20%-stake in Crédit du Nord,revenues increased by 12% on 2008. Excluding this gain,revenues went up by 6% on year-end 2008.As a consequence of the cost reduction programme launchedat the end of 2008, costs were down 5% over the year,at EUR 1,875 million in 2009 against EUR 1,978 millionin 2008.The business line’s cost-income ratio improved to 61.8% in2009, compared to 72.7% in 2008.The cost of risk and impairments amounted toEUR 363 million in 2009, against EUR 508 million in 2008,down 29% on 2008, which suffered the effects of majorprovision taking.As a consequence, pretax income more than tripled incomparison to 2008, to EUR 797 million in 2009, againstEUR 235 million the previous year.STATEMENT OF INCOME(in millions of EUR, except where indicated) 2008 (1) 2009 VariationIncome 2,722 3,035 +11.5%Expenses (1,978) (1,875) -5.2%Gross operating income 744 1,160 +56.1%Cost of risk and impairments (508) (363) -28.5%Pretax income 235 797 x3.4Tax expense (64) (190) x3.0Net income 171 607 x3.5Minority interests (14) (1) -93.5%Net income Group share 184 608 x3.3Cost-income ratio 72.7% 61.8%Total allocated equity (average) 2,341 2,716Weighted risks 26,072 26,887(1) Pro forma as a new segment reporting has been applied since 1 January 2009. More details on the new segmentation are given in note 3 to the consolidatedfinancial statements on pages 128-130 of this annual report.Additional information76Dexia Annual report 2009