SOURCE: FORTIS

February 28, 2008 02:15 ET

Fortis-acquired ABN AMRO activities deliver strong performance in 2007

BRUSSELS, BELGIUM--(Marketwire - February 28, 2008) -


* Pro forma 2007 results

* Underlying net profit of acquired businesses up 17% to EUR 1,355 million

* Strong commercial performance delivers resilient net interest income and growth in net commissions and fees

ABN AMRO today reports its results for full-year 2007. Fortis has decided to inform the market of the pro forma non- consolidated financial results of the ABN AMRO activities it has acquired.

On 7 March 2008, when Fortis discloses its full-year 2007 results, it will publish the net contribution of the acquired ABN AMRO activities after the impact of purchase accounting. Fortis will also publish the total impact of the acquisition on its results, including financing costs and integration costs.

Excluding the impact of the sale of Bouwfonds in 2006 and 2007, the EUR 83 million in realised capital gains on the sale of the Asset Management activities in 2006, and the integration costs taken at Asset Management activities (EUR 39 million after tax), total underlying net profit of the acquired businesses (Retail and Commercial/Corporate activities Netherlands, Private Client activities, Asset Management activities) increased 17% from EUR 1,158 million to EUR 1,355 million.

The 2007 net profit of the acquired ABN AMRO activities amounted to EUR 1,400 million. This is 29% lower than the comparable figure for 2006, which included the results from and the realised gains on the sale of Bouwfonds and the realised gains on the sale of Asset Management activities.

"Despite the volatile market conditions at the end of 2007 and uncertainty during the period of the bidding process itself, our ABN AMRO colleagues delivered an extremely robust financial performance in 2007," commented Jean-Paul Votron, CEO of Fortis. "ABN AMRO maintained strong customer momentum during this period, with minimal client attrition and higher customer satisfaction levels reported. This performance validates our strong conviction that the combination of Fortis and ABN AMRO represents a compelling proposition for both our employees and our clients, and it is clear from these results that we have a strong base from which to grow in the future. We are fully on track with the integration of ABN AMRO's activities and expect the asset management integration process to be completed over the coming weeks, followed by private banking by the end of the year and retail banking and commercial/corporate activities by the end of 2009."

The strong underlying commercial performance led to resilient net interest income and net commissions and fees. Net interest income was flat year-on-year at EUR 3,328 million, but showed robust growth in the fourth quarter. The increase was fuelled in part by the growth of market share in deposits achieved at Retail and Commercial/Corporate activities Netherlands in the fourth quarter, as corporate uncertainty around ABN AMRO subsided. Net commissions and fees advanced 9% to EUR 2,339 million in 2007. All acquired businesses contributed to this growth.

Total expenses increased 3% to EUR 4,188 million from EUR 4,077 million. Staff expenses grew 11% year-on-year driven mainly by one-off share-based payments related to the acquisition. The number of FTEs increased 0.5% from 25,118 to 25,234.

pdf version of the press release: http://hugin.info/134212/R/1196071/242894.pdf

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