Belgian-French lender
has posted a first quarter net profit of €69m ($97.3m), down 69%
from the same period a year ago (Q110: €216m).
But the three month
period to 31 March witnessed a strong performance from Dexia’s
retail banking unit – in particular at its Turkey-based subsidiary
DenizBank.
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Pre-tax income soared by
50.9% year-on-year to €251m at Dexia’s Retail & Commercial
Banking unit; first quarter revenue at the unit increased by 4.6%
to €728m.
First quarter retail
banking highlights included:
- DenizBank consolidated its 2.7% deposits
market share in Turkey and increased its loans market share from
4.2% as at December 2010 to 4.4% at the end of February
2011; - DenizBank increased its branch network by
a net 12 outlets and ended the first quarter with 512
units; - DenizBank increased customer numbers by a
net 194,000 in the first quarter compared to an average of 106,000
per quarter in 2010; - Loan demand was also sustained in Belgium
and Luxembourg as well as Turkey with more total customer
loans increasing by 9% year-on-year; - Dexia’s Open Branch project
has now been implemented at 327 of its branches in Belgium,
and - Cash deposits made via Dexia’s
Diebold-supplied self-service recycler ATM’s have increased
sharply, from 66% of all deposits a year ago to 84% in the first
quarter of this fiscal.
Total assets at Dexia
fell by 10.4% year-on-year to €526.6bn.
Dexia is committed to
reduce its balance sheet by 35% by 2014 from 2008 levels in terms
of a deal agreed with the European Commission.
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By GlobalDataAn interview with DenizBank’s senior vice
president, self service channels management, forms part of RBI’s
ongoing series of Turkish bank interviews and will be
published in June.
