Dexia posts smaller net loss in 2014 on improved funding costs

BRUSSELS: State-owned Franco-Belgian financial group Dexia on Thursday said its net loss shrank in 2014 as it managed to reduce its funding costs.

The group, which was once the largest lender to municipalities worldwide but had to be bailed out in 2011, said its net loss, adjusted for one off items and accounting volatility, was 248 million euros ($283.2 million) in 2014.

This was an improvement from the 669 million euros loss in 2013 and better than the company's guidance of about 440 million euros.

While Dexia's results do not matter to investors, the state finances of France and Belgium are heavily exposed to the group, as they guarantee its borrowings of about 75 billion euros.