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Dexia's H1 net loss widens YOY to €546M

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Dexia's H1 net loss widens YOY to €546M

Dexia SA reported first-half group share net loss of €546 million, compared to a pro forma loss of €419 million a year ago.

The Belgian banking group noted that the figure was significantly impacted by nonrecurring elements associated with the finalization of the sale of German unit Dexia Kommunalbank Deutschland, which now operates as KOFIBA-Kommunalfinanzierungsbank GmbH, asset disposals and accounting volatility elements.

Dexia booked a negative impact of €283 million related to nonrecurring elements and a negative impact of €112 million associated with account volatility elements.

The group recorded a recurring net loss of €151 million, which included the impact of regulatory taxes and contributions to resolution funds.

Net banking loss amounted to €279 million, compared to a loss of €232 million a year earlier. Operating expenses and depreciation, amortization and impairment of tangible fixed assets and intangible assets came in at €208 million, down from €231 million in the first half of 2018.

As of June 30, the group's common equity Tier 1 ratio stood at 24.7%, compared to 26.7% at the end of 2018 and 25.0% a year ago.

The group said it shuttered the Madrid branch of French unit Dexia Crédit Local SA in March, following the restructuring and transfer of all assets to the unit's Paris head office. Dexia Credit Local also began implementing the transformation of its branch in New York at the beginning of 2019, as part of plans to simplify the group's operations.

Separately, Dexia said its board of directors has decided to hold an extraordinary shareholders' meeting on Oct. 16 to rule on the withdrawal of the group's shares from trading on Euronext Brussels, where 1,948,984 Dexia shares are currently admitted for trading. The shares represent less than 0.5% of the group's capital.

If the withdrawal of the shares is ratified, the board will also recommend removing the dematerialized form of the shares in a bid to rationalize and simplify the group's administrative management, it noted.