OREANDA-NEWS. Results for the year 2012 and update regarding progress made on the Group’s resolution.

Approval by the European Commission of the Dexia orderly resolution plan

Significant progress in implementing the process for the Group’s resolution, particularly with the grant of a definitive tripartite guarantee and a capital increase subscribed by the Belgian and French States

Net loss of EUR 2.9 billion in 2012, principally explained by losses on entity disposals and by high funding costs

The year 2012 marked a turning point for the Dexia Group, which continued to implement its orderly resolution plan. Indeed Dexia sold the majority of its main commercial franchises, in line with the undertakings made in October 2011 by the Group's board of directors. On 28 December the European Commission ratified the Dexia Group's revised orderly resolution plan. That decision was essential, a vital precursor to realisation of the capital increase subscribed by the Belgian and French States and the establishment of a definitive tripartite funding guarantee scheme, giving the Group the capacity to carry its residual assets over the long term.

The annual financial statements 2012, approved by the board of directors at its meeting on Wednesday 20 February 2013, are severely impacted by the disposals made as part of the orderly resolution plan and by the still high funding costs.

Karel De Boeck, Chief Executive Officer of Dexia SA, declared: “The results for the year 2012 reflect the progress made on the resolution plan. In particular, the disposal of a major proportion of the Group’s operating entities weighed on profitability, whilst the cost of funding remained very high over the year, awaiting the introduction of a perennial funding scheme.”

Robert de Metz, Chairman of the Board of Directors of Dexia SA, stated: “At the beginning of 2013, the Group presents a new face: the majority of its operational franchises have been sold and the approval of the European Commission enabled a definitive funding guarantee mechanism to be put in place and the capital increase to be made by Belgium and France. Relying on renewed support from the States and the commitment of its staff members, Dexia can now concentrate its efforts on the management of its EUR 250 billion residual assets.”