Dexia’s Q2 profit fell 32%
The Belgian-French banking group said the dip in profit is due to losses at US monoline insurer FSA.7 August 2008
BRUSSELS - Belgian-French banking group Dexia on Wednesday reported a 32-percent drop in net profit in the second quarter owing to a poorly performing US bond insurance unit.
The group said net profit fell 32 percent year-on-year to EUR 539 million due to losses at the troubled US monoline insurer FSA, which insures bonds and is Dexia's main exposure to the US subprime crisis,.
FSA posted a net loss of 331 million dollars and the group said the troubled affiliate would be downsized and refocused.
Excluding FSA, Dexia's net profit would have risen three percent to EUR 755 million, the group said.
"During the second quarter of 2008, Dexia proved resilient in a particularly challenging market. Excluding FSA, underlying net income increased by an estimated 24 percent," said Dexia chief executive Axel Miller.
[AFP / Expatica]