Dexia : Dexia : Impacts of applying the IFRS 13 accounting standard on the consolidated results of the Dexia Group as at 30 June

  Dexia : Dexia : Impacts of applying the IFRS 13 accounting standard on the
          consolidated results of the Dexia Group as at 30 June 2013

Regulated information - Brussels, Paris, 1 July 2013 - 7:30 am

Impacts of  applying  the IFRS  13  accounting standard  on  the  consolidated 
results of the Dexia Group as at 30 June 2013

As announced in  the interim statement  for the first  quarter of 2013,  Dexia 
will include  the impact  of implementation  of IFRS  13 in  the  consolidated 
financial statements of the Dexia Group as at 30 June 2013.

Applying this accounting standard, and in order to comply with the  principles 
of derivative valuation most commonly used on the market, as from its H1  2013 
closing Dexia Group will use a discount curve based on a daily rate (OIS)^[1],
allowing calculation of the net asset value of collateralized derivatives.

At the same time, Dexia will  adapt its methodology in measuring Credit  Value 
Adjustment (CVA)^[2] and will recognize a Debit Value Adjustment (DVA)^[3].

These changes of  the parameters used  for the valuation  of derivatives  will 
lead, in  the first  half-year 2013,  to a  negative impact  on Dexia  Group's 
consolidated income in  the order of  EUR 450 million.  This figure,  emerging 
from the latest simulations, is still liable to rise or fall in particular  in 
relation to market conditions observed on 30 June 2013. It will be reviewed by
the auditors as part of the interim accounts as at 30 June 2013.

This impact  does not  correspond to  any cash  outlay. It  will be  gradually 
written back as and when derivatives, mainly used in the context of a  hedging 
relationship, are amortised. It  does not alter  projections of Dexia  Group's 
income  over  the  time  scale  of  its  orderly  resolution.  It  nonetheless 
constitutes a potentially significant element  of volatility in Dexia  Group's 
quarter-by-quarter income, depending on market conditions.

However, Dexia's high solvency  level, with a Core  Tier 1 ratio amounting  to 
20.8% at the  end of March  2013, will  enable Dexia Group  to face  potential 
volatility.

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[1] Dexia used up until now a curve with a "BOR" indexed reference rate

[2] CVA is the market value of counterparty credit risk

[3] DVA mirrors CVA and represents the impact of credit risk carried out by
the counterparty on the price or derivatives

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Source: Dexia via Thomson Reuters ONE
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