Dexia is a European bank headquartered in Brussels that focuses on public finance and retail banking. In 2008, it was heavily impacted by the financial crisis, losing much of its value. It sold its insurance subsidiary FSA and reported a net loss of €3.3 billion for 2008 as revenues were almost halved. A government support package of €6 billion was provided and the bank announced a transformation plan to refocus on core markets, improve its risk profile, and reduce costs by €600 million.

1. DEXIA
Quarterly Earnings
By Delphine De Clercq

2. Introduction
• Dexia is a European bank
• Main activity
• Public finance
• Retail banking
• Headquarter in Brussels
• CEO: Pierre Mariani
• Chairman of the board: Jean-Luc Dehaene

3. Organization Chart of Dexia

4. Financial Crisis
• 2008: Financial crisis
• Dexia lose a large part of their value.
• A strong support from the government and shareholders
• Capital of Dexia is increased with 6 billion euro

5. 4Q 2008 Results

6. 4Q 2008 Results

7. 4Q 2008 Results

8. Financial Security Assurance
• Dexia sold the insurance activities
of FSA to Assured Guaranty (a Bermuda-based holding company)
• The impact of the crisis on Dexia’s net income was € 5,868
million, of which 3,139 million is to blame to FSA.

9. Full Year 2008 - Consolidated statement of income
•Net loss is € 3,326
million
• Revenues are
almost halved ( -48%)
• Proposal to
exceptionally cancel
dividends for the
financial year 2008

10. Full Year 2008 - Consolidated statement of income
•Net loss is € 3,326
million
• Revenues are
almost halved ( -48%)
• Proposal to
exceptionally cancel
dividends for the
financial year 2008

11. Evolution of the Share

12. Transformation plan to address key challenges
1. Refocus on its core markets

13. Transformation plan to address key challenges
2. Improving the group risk profil
3. Cost reduction plan of € 600 million