about dexia crédit local

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A Group in orderly resolution

Headquartered in France, where it maintains a banking license, Dexia Crédit Local(1) is the Group’s main operating entity, carrying the majority of its assets. Dexia Crédit Local also still has an international presence through its branches in Ireland, the United States, Spain, Portugal and subsidiaries in Germany, Italy and Israel. These entities also hold local banking licences.

The Dexia Crédit Local Group has 1,065 members of staff as at 31 December 2016.
 
The Group’s parent company, Dexia, is a public limited company (société anonyme) and financial company governed by Belgian law whose shares are listed on Euronext Brussels. The Belgian and French States own 94.4% of the Group since the end of 2012 when they made a EUR 5.5 billion capital injection reserved for them. As a significant bank(2), Dexia has been under the direct prudential supervision of the European Central Bank within the framework of the Single Supervisory Mechanism (SSM) since 4 November 2014, as is Dexia Crédit Local Group and the French outer scope.
 
Dexia and Dexia Crédit Local managed under an orderly resolution plan since the end of 2011. Approved by the European Commission in December 2012, Dexia’s orderly resolution plan aims to avoid the Group’s bankruptcy and liquidation which, given its residual size, could be destabilising to the entire European banking sector. In order to enable the orderly resolution, the Belgian, French and Luxembourg States granted a liquidity guarantee for a maximum principal amount of EUR 85 billion to Dexia Crédit Local, which is consequently the issuer of Dexia Group under the State guarantee format.
 
Dexia Crédit Local no longer has any commercial activities and is now solely focused on managing its assets in run-off, mainly public sector and sovereign assets, while protecting the interests of the Group’s State shareholders and guarantors. To meet this objective, Dexia and Dexia Crédit Local have established three strategic goals:
 
° Maintain the ability to refinance its balance sheet through-out its resolution plan ;
° Preserve its capital base in order to comply with regulatory ratios ;
° Ensure operational continuity by retaining the necessary expertise and resources and developing appropriate information systems.

 

Key figures

 

Members of staff as at 31 December 2016

 

 


​Results  (in EUR million )                                 ​2014 ​2015 ​2016
Net banking income​ ​-34 ​982 ​711
Costs ​-369 ​-451 ​-410
Gross operating income ​-403 ​531 ​301
Cost of risk ​-63 ​-175 ​138
Net income Group share ​-478 ​327 ​442

 

 

​Balance sheet (in EUR billion)              31/12/​2014 31/12/​2015 ​31/12/2016
Balance sheet total​ ​246 ​229 ​212

 

 

​Solvency (in EUR million except where indicated) ​31/12/2014 ​31/12/2015 ​31/12/2016
Common Equity Tier 1 ​7 372 ​6 425 ​5 676
Total Capital​ ​7 624 ​6 436 ​5 802
​Risk-weighted assets ​51 379 ​51 111 ​43 206
Common​ Equity Tier 1 ratio 14,3%​ ​12,6%​ 13,1%​
Total Capital ratio ​14,8% ​12,6% ​13,4%

 

​Ratings as at 15 March 2017 ​Long term Outlook​ ​Short term
Dexia Crédit Local​
​Fitch ​BBB+ ​Stable ​F2
​Moody's ​Baa3 ​Stable ​P-3
Moody's - Counterparty Risk (CR) Assessment​ Baa3(CR) P-3(CR)
Standard & Poor's​ ​BBB ​Stable ​A-2
GBB Rating​ ​BBB ​Stable ​-
Dexia Crédit Local​ (guaranted debt)
Fitch​ ​AA- ​- ​F1+
Moody's​ ​Aa3 ​Stable ​P-1
Standard & Poor's ​AA ​- ​A-1+
Dexia Kommunalbank Deutschland (Pfandbriefe)​
Standard & Poor's ​A ​Stable ​-
 
 


[1] Throughout this reference document Dexia Crédit Local refers to Dexia Crédit Local S.A. and Dexia refers to Dexia SA/NV.
[2] Regulation (EU) No. 468/2014 of the European Central Bank of 16 April 2014.