Compelo Banking is using cookies

We use them to give you the best experience. If you continue using our website, we'll assume that you are happy to receive all cookies on this website.

ContinueLearn More

Dexia posts net loss of EUR4.03bn in Q2

Franco-Belgian bank Dexia has reported a net loss of EUR4.03bn for the second quarter of 2011, compared to a net income of EUR248m in the year ago quarter.

Dexia’s second quarter results were largely impacted by the Group’s decision to accelerate its deleveraging, as announced in May as well as by its participation to the IIF Greece assistance programme, resulting in a exchange of Greek government bonds maturing before 31 December 2020.

According to the bank, this exchange will result in a loss for the private holders of these bonds estimated to be 21% of the nominal.

As at end of June 2011, Dexia holds EUR 1.8bn of Greek government bonds that mature before 31 December 2020 and therefore booked an impairment of EUR 377m pre-tax.

Franco-Belgian bank chief executive Pierre Mariani said, however, that the bank will return to profit in the next quarter.

"Against an uncertain economic and financial background, Dexia posted substantially improved results for all of its commercial business lines," Mariani said in a statement. The quarter was also marked by the group’s decision to participate in the Greece assistance programme, he said.

The bank’s retail and commercial banking operations have reported a 23% increase in first half pre-tax income to EUR433m.

The group’s public and wholesale banking activities in Belgium and France, reported a 41% jump in pre-tax income to EUR220m first-half.