Further impairments to its US loans portfolio meant higher-than-expected annual losses at Dexia, the Franco-Belgian bank that was among the first to be bailed out following the collapse of the financial system.

Dexia, which specialises in loans to local governments, is forgoing dividends for 2008 as it unveiled a net loss of €3.3bn ($4.2bn), compared with profits of €2.5bn the year before.