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Dexia swings to FY'17 loss from year-ago profit

Dexia SA reported full-year 2017 group share net loss of €462 million, compared to a net income of €353 million earned in 2016.

The result included a €64 million charge related to accounting and a €96 million loss from nonrecurring items. The Belgian lender also booked a recurring loss of €302 million, which included an impact of €114 million from the adjustment of accounting hedge relations. Taxes and regulatory contributions, meanwhile, amounted to €89 million in 2017.

The bank posted a net banking loss of €64 million, compared to a net banking income of €506 million a year earlier.

Operating expenses and depreciation, amortization and impairment of tangible fixed assets and intangible assets, rose on a yearly basis to €421 million from €407 million.

The bank, which was bailed out by Belgium, France and Luxembourg in 2011, said it continues to make progress on its resolution plan, noting that it had reduced its balance sheet by 15% to €181 billion as of 2017-end.

Dexia's common equity Tier 1 ratio was 19.5% at 2017-end, compared to 16.2% at the end of 2016. The total capital ratio was 20.4%, compared to 16.8% at 2016-end, which the bank said is higher than the threshold of 9.875%, including the capital conservation buffer of 1.250%, imposed for 2017 by the ECB.