March 07, 2008 01:55 ET

Fortis's full-year net profit at EUR 4.0 billion on continued strong commercial activity in banking and insurance

BRUSSELS, BELGIUM--(Marketwire - March 7, 2008) -

Proposed final cash dividend of EUR 0.59 brings total dividend to EUR 1.176 (EUR 1.171 in 2006)

* Fortis delivers a full-year 2007 net profit before the divestment of CaiFor of EUR 3.0 billion. This is based on a prudent approach to impairments, using stringent assumptions on super senior CDO's with subprime exposure. The impact on net profit of these impairments amounts to EUR 1.5 billion.

* Underlying net profit of acquired ABN AMRO activities up 17% to EUR 1,355 millon. The net contribution of these activities to Fortis's results amounted to EUR 179 million for the 76 days we consolidated. The transition and integration process is fully on track, assumptions regarding synergies and profit contribution have been confirmed.

* Banking

- Full-year net profit contribution at EUR 1.8 billion, down 44% due to subprime impairments

- Higher net interest income and commissions and fees resilient drivers of 10% total revenue growth

- Funds under management up 9% to EUR 208 billion, net inflows of EUR 13.9 billion in 2007

- Solid underlying loan growth of 16% in 2007, reflecting strong commercial performance

- Credit loss ratio at 5 basis points, excluding subprime impairments

- Half of the 12% increase in expenses was related to investments in growth

* Insurance

- Full-year net profit before divestments reaches EUR 1.6 billion, up 12% despite impact of Windstorm Kyrill, UK floods and capital markets turmoil, driven by solid business performance and high capital gains

- Life gross inflow up 9% to EUR 13.2 billion, Non-Life gross written premiums up 9% to EUR 5.5 billion

- Value Added by New Business 6% higher, 8% increase in Embedded Value

* Fourth-quarter net profit of EUR 0.4 billion, compared with net profit of EUR 0.8 billion for third-quarter 2007 and EUR 0.8 billion for fourth-quarter 2006

- Banking net loss of EUR 0.9 billion in fourth quarter, due to subprime impairments. Net interest income advances, RWCs down slightly on third quarter

- Insurance net profit before divestments in fourth quarter reaches EUR 0.5 billion, supported by capital gains offsetting impact of credit market turmoil and additional liabilities related to unit-linked policies in the Netherlands. The divestment of CaiFor contributed EUR 0.9 billion to fourth-quarter net profit

pdf version of the press release:

pdf Consolidated Quarterly Financial Report:

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