Bailed-out Dexia reveals €6.3bn loss on Belgian and Greek arms

STRICKEN Franco-Belgian bank Dexia reported a one-off €6.3bn (£5.36bn) loss in the third quarter as its break up continued.

It faced costs of €4bn on the nationalisation of Dexia Bank Belgium and a loss of €2.3bn on its holdings of Greek government debt.

The group, which last month received a €90bn bailout, yesterday also listed an exposure of €10bn to Italy and €1.84bn to Portugal.

It said, however, that it had made a €135m profit on the sale of DenizEmeklilik, its Turkish insurance arm, to major US insurer MetLife.

The board also said it had cleared the way for a capital increase of up to €4.2bn for its Dexia Credit Local unit, because of extra write-downs on its Greek bonds and to meet French regulatory requirements on capital.