* Net loss 2.9 bln euros vs 11.6 bln euro loss in 2011
* Sees loss in 2013 of 950 mln euros
* Dexia results important for Belgium and France
* Balance sheet 357 bln euros vs 413 bln euros at end 2011
(Adds CEO target for 2013)
By Philip Blenkinsop
BRUSSELS, Feb 21 Nationalised Franco-Belgian
lender Dexia posted a second year of heavy losses in
2012 after fire sales, higher funding costs and asset
writedowns, and forecast another loss this year.
The company, once the world's largest municipal lender, is
almost an irrelevance as an investment, with shares that are
hardly traded valued at just 0.04 euros, compared with a May
2007 peak of 22.56 euros.
However, its results are important because France, Belgium
and, to a lesser extent, Luxembourg are guaranteeing its
borrowings and are threatened with losses that could derail
their efforts to rein in their budget deficits.
Dexia, about 95 percent owned by France and Belgium and
little more than a holding of bonds and loans, said its net loss
last year was 2.9 billion euros ($3.88 billion), compared with a
loss of 11.6 billion euros in 2011.
Chief Executive Karel De Boeck told a news conference that
Dexia was aiming to cut the loss this year to 950 million euros.
Fees for state guarantees would be lower and, with the business
stripped down, financing costs should fall.
In 2012, Dexia took losses on its divestment of Turkey's
DenizBank to Russia's Sberbank, private banking arm
Banque Internationale a Luxembourg and its French public lending
unit because the sales were at below book value.
It did book a modest positive after finalising the sale of
its share in investor services joint venture RBC Dexia to RBC
, albeit outweighed by the negative amount posted in
In 2012, Dexia also had to pay 743 million euros in fees to
Belgium, France and Luxembourg to cover state guarantees on
borrowing, which last totalled 66 billion euros according to
central bank data.
The guarantees are capped at 85 billion euros, under a deal
Dexia agreed in November with France and Belgium, which together
pumped 5.5 billion euros into the group in a third bailout in
Dexia has been steadily seeking to bring down its balance
sheet, which totalled 651 billion euros at the end of 2008,
almost twice the size of Belgium's annual economic output,
This figure had fallen to around 357 billion euros by the
end of last year, 56 billion euros less than at the end of 2011.
Dexia's fourth-quarter loss was 475 million euros, compared
with 1.225 billion euros in the third quarter.
($1 = 0.7479 euros)
(Reporting By Philip Blenkinsop; Editing by Erica Billingham)