SOURCE: FORTIS

November 08, 2007 01:40 ET

Fortis nine-month net profit at EUR 3.6 billion, as banking and insurance continued strong commercial performance in summer months

BRUSSELS, BELGIUM--(Marketwire - November 8, 2007) -


Strong third quarter despite turbulent market conditions: net profit at EUR 797 million

* Fortis's nine-month 2007 net profit of EUR 3,580 million is fully in line with the trading update of 21 September and with the exceptional profit level of the first nine months of 2006. Robust commercial performance more than compensated for the impacts of the global capital markets turmoil and extreme weather- related claims.

* Banking

- Solid third-quarter result brings nine-month net profit to EUR 2.6 billion

- Robust commercial momentum demonstrated by steady increase in net interest income and commissions and fees; treasury and financial markets results above the exceptionally high level of last year

- Funds under management up 8% to EUR 206 billion, EUR 8.6 billion in net inflows in 2007

- Underlying loan growth of 17% compared with third quarter of 2006

- Credit, liquidity and market risks well contained thanks to stringent risk management; credit loss ratio 11 basis points, in line with earlier guidance

* Insurance

- Nine-month net profit comes in at EUR 1,058 million, despite impact of Windstorm Kyrill, UK floods and global capital markets turmoil, thanks to higher volumes and capital gains

- Life gross inflow soars to EUR 9.9 billion, up 26%, benefiting from successful campaigns

- Non-Life gross written premiums advance 9% to EUR 4.3 billion supported by various product innovations

* Third-quarter net profit comes to EUR 797 million, down 51% from the EUR 1,616 million record net profit for the second quarter of 2007, which typically benefits from seasonally high revenues in banking and insurance

- Banking net profit of EUR 587 million in third quarter benefits from commercial strength, capital gains and excellent treasury and financial markets results, yet higher impairments

- Insurance net profit in third quarter comes in at EUR 294 million, affected by EUR 59 million after-tax impact of the claims related to severe flooding in the UK

PDF version press release: http://hugin.info/134212/R/1166907/228673.pdf

Interim Financial Statements: http://hugin.info/134212/R/1166907/228674.pdf

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