Dexia — BrandWiki

products	Public sector banking, commercial banking, private banking, insurance

homepage	http://www.dexia.com/

net income	€ -462 million

net income year	2017

assets	€180,938 million

assets year	end 2017

equity	€4,992 million

equity year	end 2017

num employees	22461

num employees year	2011

owner	Belgian Federal State (52.78%) French State (46.81%) others (0.41%)

subsid	Crediop (70%)

ratio	19.5% (CET1, end 2017)

footnotes	in consolidated financial statement‡R2R‡

Dexia N.V./S.A., or the Dexia Group, is a Franco-Belgian financial institution formed in 1996. At its peak in 2010, it had about 35,200 members of staff and a core shareholders' equity of €19.2 billion.[3]

In 2008, the bank entered severe financial difficulties and received taxpayer bailouts for €6 billion, and it became the first big casualty of the 2011 European sovereign debt crisis. Due to big losses, suffered among others from the debt haircut on Greek government bonds, and an orderly resolution process began in October 2011.[4][5]

As part of the resolution, Dexia Bank Belgium was bought out from the Dexia group by the Belgian state and has continued to operate, since March 2012 under the new name Belfius. The French bank focused on local government lending was restructured as SFIL. The remaining part of the Dexia group was left in a "bad bank", still called Dexia, to be gradually wound down.[6]

Profile

In the 2010 Fortune Global 500 (which lists companies by total income)[7] Dexia was ranked 49th, the top-ranked Belgian company.[8]

The company was founded in 1996 through the merger of Crédit Communal de Belgique (founded in 1860) and Crédit Local de France (founded in 1987). The Dexia Group was founded as a dual-listed company, but in 1999 the Belgian entity took over the French entity to form one company. The company is headquartered in Brussels, Belgium. France and Belgium just injected another combined €5.5 billion ($7 billion) into Dexia.

History

Belgium: Gemeentekrediet van België / Crédit Communal de Belgique

1860 – Foundation of the Gemeentekrediet van België / Crédit Communal de Belgique, specifically aimed at financing the investments of the local administrations. The communities were shareholders, for a value of at least 5% of the amounts drawn.
1947 – Development of a network of retail branches that allow drawing funds from the general public through savings accounts. From 1960 on the branches were run by independent agents, allowing a broader range of services and products to be offered and a lasting relationship with clients to be developed.
1990 – Start of the international expansion of the bank with the creation of the Cregem International Bank in the Grand Duchy of Luxembourg, specialising in the management of large sums of money.
1991 – The Gemeentekrediet builds on its international expansion by taking a stake of 25% in the Banque Internationale à Luxembourg (BIL), the biggest bank in Luxembourg. In early 1992 the firm increased its stake in BIL to 51%.

France: Crédit Local de France

Figures

Dexia shares

Dexia was a member of the BEL20 and CAC Next 20 indices. Dexia is also one of the components of the Euro STOXX[39] and Euro STOXX Banks[40] indices.

Results

Shareholder structure

BIC

Dexia's BIC codes are:

For Dexia Credit Local: CLFR FR CC

Controversies

Netherlands

Dexia had ambitious plans in the Netherlands, and took over Bank Labouchère from the Dutch insurer Aegon in August 2000 at the height of the market. On top of this, in 2001 the business bank Kempen & Co was bought and removed from the stock market for about €1 billion. The two acquired companies Labouchère and Kempen & Co were merged into Dexia Netherlands. This merger had to be undone however, because of an asset leasing affair that threatened to damage the reputation of Kempen & Co.

The asset leasing affair left Dexia in The Netherlands in the end with so much negative publicity that it decided to reduce its Dutch activities. In 2004 Kempen & Co was sold for about €85 million, a fraction of the buying price, to its management, the Friesland Bank, NPM Capital and.

Dexia Bank Netherlands still continues to unwind asset leasing contracts under the commercial name of Legio Lease, and the corresponding agreements and court cases.[44] Dexia suffered a substantial loss in March 2008, after a ruling from the Supreme Court on the legality of leasing contracts, in which contracts were considered invalid for married couples of which both partners had not signed the contract. Dexia as a consequence had to repay these debts plus accrued interests. Luckily for Dexia many customers had previously agreed to a less favourable Duisenberg-agreement and could not revoke this.

Buildings

Dexia Tower

The Dexia Tower, the firm's new head office in Brussels, is with its height of 137m an icon in the business district of Brussels-North. In December 2006 the tower was equipped with LED lighting. A total of 126,000 programmable LED strips have been fitted. From 22 December 2006 to 15 January 2007, the colours of the tower could be chosen by the public from a touchscreen.[54] It was spin-off and occupied by Belfius (ex-Dexia Bank Belgium).

Tour Dexia

The Tour Dexia at La Défense, previously known as the CBX tower, is the bank's Parisian headquarter since 2007.

External links

Dexia Crédit Local France

References

Dexia va déménager à l'automne, pour s'installer dans la tour... Bastion L'Echo, 2012/05/12^
2017 Annual Report Dexia, 2018, retrieved 30 April 2018^
"Annual report 2010

Crisis 2008/2009

On 29 September 2008, Dexia came under pressure due to the 2008 financial crisis. Other banks and financial institutions refused to provide further credit to Dexia because of potential losses at its U.S. subsidiary FSA and from a multi-billion loan to troubled German bank Depfa.[10] The price of the Dexia share, having peaked above €20 in the previous years, but gradually fallen to around €10, dropped in one day to €6.62.

The next day the rating agency Moody's downgraded Dexia's long term debt and deposits ratings from Aa1 to Aa3,[11] and downgraded the individual banks' strengths to C− ("adequate intrinsic financial strength") with a negative outlook.[12]

Dexia was quickly forced to apply for a taxpayer bailout. This support was assured within days, taking two forms:

The three states have the potential to make a profit from their intervention:

Since Dexia had a New York banking office they were eligible for various bailouts from the US Federal Reserve. At its peak Dexia had borrowed $58.5 billion.[15]

On 30 September 2008 the company's chairman Pierre Richard and CEO Axel Miller were dismissed, and were replaced on 7 October 2008 by former Belgian prime minister Jean-Luc Dehaene and Pierre Mariani respectively. On 24 October 2008, Francois Rebsamen, the socialist Mayor of Dijon and a French Senator, vacated his place on the board of Dexia Credit Local, while Antoine Rufenacht, UMP mayor of Le Havre, Philippe Duron, socialist mayor of Caen, and Christophe Bechu, president of Maine-et-Loire province stayed.[16]

At the end of 2008 Dexia sold the healthy parts of FSA, ceased its trading activities in Paris and trading on its own account in the financial markets.

Further losses are still possible on the remaining FSA portfolio. On 19 January 2009 Moody's lowered the credit rating for Dexia's long term obligations and saving accounts of the three banking parts of Dexia (Dexia Credit Local in France, Dexia Bank Belgium and Dexia Banque Internationale in Luxembourg) from Aa3 to A1. The rating agency also downgraded the Bank Financial Strength Rating for the three banks from C− to D+.

On 5 March 2009 Dexia's share price fell to an all-time low of €1.21, a loss of over 90% in a year. A further restructuring plan was announced, with the firm aiming to concentrate on its primary activities, and to avoid risks on the financial markets. A total of 1,500 job cuts were announced, of which more than half were in Belgium, 260 in France, and the rest worldwide. Dexia's share price subsequently increased over the rest of 2009, largely varying between €4 and €7.50.

On 31 March 2010 Bloomberg reported that Dexia was one of the largest borrowers from the discount window of the United States Federal Reserve, having outstanding loans of over $30 billion.[17]

a capital injection of €6.4 billion,[13] consisting of €3 billion from the Belgian State and regional governments, €3 billion from the French State and Caisse des Dépôts et Consignations and €376 million from the government of Luxembourg.

a state guarantee (effective from 31 October 2008)[14] covering Dexia's liabilities towards credit institutions and institutional counterparties, as well as bonds and other debt securities issued for the same counterparties, for a total maximum amount of €150 billion. Belgium provided 60.5% of the guarantee, with a 36.5% contribution from the French state and 3% from Luxembourg.

the new capital buys Dexia shares at a price of €9.90 per asset

for the state guarantee Dexia has to pay a monthly fee, from which the three states benefit proportionally to their share in the guarantee. The guaranteed amount varies continually as a function of Dexia's loans on the financial markets. It peaked mid-2009 at around €100 billion, but after Dexia managed to start selling non-guaranteed commercial paper and bonds again, fell to half this size by the end of 2009. In 2009 Dexia paid a fee of 0.5% on the guaranteed credits with a term of less than one year, and 0.865% on the credits longer than one year. The guarantee is currently planned to end in November 2010.

type	State-owned enterprise
traded as	Paris Bourse: DEX (until 2000)
foundation	1996
location	Ixelles, Brussels, Belgium La Défense, Greater Paris, France
key people	Robert de Metz (chairman, board of directors) Karel De Boeck (Managing Director, president of Executive Committee)
industry	Financial services
area served	Worldwide

Profile

History

Belgium: Gemeentekrediet van België / Crédit Communal de Belgique

France: Crédit Local de France

Figures

Dexia shares

Results

Shareholder structure

BIC

Controversies

Netherlands

Buildings

Dexia Tower

Tour Dexia

See also

External links

References

Dexia: the group

Crisis 2008/2009

Losses

2010: Downsizing and reorganizing

2011

2012

2013

2014

2015

2018

Sustainability

Israeli settlements controversy

Remunerations

Axel Miller

Salary of Pierre Mariani

Bonuses in 2008

"Golden hellos"

Bonus 2010

Axel Miller

Salary of Pierre Mariani

Bonuses in 2008

"Golden hellos"

Bonus 2010