SOURCE: FORTIS

August 04, 2008 01:40 ET

Results first half-year 2008

BRUSSEL, BELGIUM--(Marketwire - August 4, 2008) -


Fortis's first half year net profit of EUR 1,638 million Net profit up 3% in second quarter 2008 to EUR 830 million, but environment is becoming more difficult

*          Fortis first half year 2008 net profit of EUR 1,638
  million, down 41% compared to a very strong first half of 2007.
  Excluding EUR 591 million net of tax impact of credit market
  turmoil, net profit decreased by 21%

*          First half year 2008 Fortis Banking
-        Net  profit of  EUR 1,185  million. This  is after  EUR  409
million net of tax impact of credit market turmoil
-        Net profit, excluding impact  of credit market turmoil,  was
24% lower  year-on-year mainly  due  to lower  capital gains  and  an
increase in impairments on loans
-         Reported  total  income  6%  up.  Excluding  treasury   and
financial markets results and  capital gains, total income  increased
by 4%
-        Total expenses  4% higher. Excluding  integration costs  and
consolidation of  ABN  AMRO  Asset Management,  total  expenses  were
slightly down

*          First half year 2008 Fortis Insurance
-        First half year net profit of EUR 642 million. This is after
EUR 182 million net of tax impact of credit market turmoil
-        Net  profit,  excluding  net of  tax  impact  credit  market
turmoil, 8% higher year-on-year. Windstorm Kyrill and floods impacted
results in 2007
-        Stable  inflow  at  Life, Non-Life  gross  written  premiums
increased by 5%
-        Operating costs up 3%,  mainly driven by growth  initiatives
and inclusion of acquired Fortis Insurance Company Asia

*          First half year 2008 Acquired ABN AMRO businesses
-        Pro-forma net  profit of  the acquired  ABN AMRO  businesses
amounted to EUR 614 million
-        ABN AMRO  Asset Management transferred  and consolidated  by
Fortis

*          Second quarter net profit of EUR 830 million, up 3% on
  first quarter. This is after EUR 362 million net of tax impact of
  credit market turmoil. Excluding the net of tax impact of credit
  market turmoil:
-        Net profit Fortis up 15% compared to first quarter
-        Net profit of the Bank largely unchanged
-        Net  profit  of Insurance  higher  due to  better  technical
results

Fortis core equity stood at EUR 24.6 billion, well above Fortis target capital level of EUR 20.6 billion. Fortis Bank Core tier 1 ratio of 7.4% after consolidation of ABN AMRO Asset Management compared to a target of 6.0%. Fortis Insurance's core solvency ratio of 196.1% clearly exceeded the target of 175% of minimum regulatory requirement.


http://hugin.info/134212/R/1240141/265929.pdf


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