BELGIUM - Belgian-French financial services group Dexia reported assets under management reached €111.1bn to June 30, up by 2.5% in the second quarter of 2007.

Since the end of June last year, the group has been a €13.8bn increase in assets under management as a result of net inflows of €5.8bn and “positive market effects” of €8bn.

“The commercial development of Asset Management resulted in great success for institutional sales, with net new money amounting to €1.8bn over the second quarter alone,” announced Axel Miller, chairman of Dexia’s management board.

The group added: “Institutional mutual funds experienced a good progression, with assets under management reaching €28.1bn, up 29.7% since June 30, 2006. Between March and June 2007, the increase was 5.8%, with net new cash of €1.2bn.”

The group says it had a similar evolution within institutional mandates, which reached €31.3bn - a €5.6bn or growth of 21.6% in one year.

“As of June 30, total assets under management distributed by the Dexia Asset Management’s institutional sales team amounted to €52.3bn, a €3.8bn increase compared to the previous quarter,” said Dexia.

Dexia’s investor services recorded net income of €29m - up 19.9% - while the number of funds under administration went up by 20.7%.

Dexia reported a 18.6% rise in second-quarter profit yesterday, above market expectations, because of growth in public and project finance and in its Turkish bank.

The bank, also active in the US, stressed its exposure to US subprime mortgage loans was well-protected.