BRUSSELS, BELGIUM -- 05/13/08 --
Despite challenging markets continued growth in income supported by
strict cost management
* Sustained organic operational growth, especially in
banking, and strict cost management result in a first quarter net
profit of EUR 808 million, including EUR 380 million net of tax
impact of the credit market turmoil.
* Banking
- First quarter net profit of EUR 721 million, including EUR
231 million of after-tax impairments on structured credit portfolio
- Income growth of 17% year-on-year driven by higher income
from treasury and financial markets as well as strong underlying
growth in net interest income in all banking businesses
- Strict cost containment resulted in a 2% increase in
expenses and an improvement of the efficiency ratio
- Credit loss ratio of 12 basis points, excluding impairments
on the structured credit portfolio, reflecting continued strong
credit quality of loan portfolio
- Asset Management and Private Banking saw a net inflow of EUR
2.6 billion in the first quarter
- Good underlying pro forma net profit of acquired ABN AMRO
activities of EUR 319 million
- Well on track with the integration of ABN AMRO, Asset
Management transferred as per 1 April 2008
* Insurance
- First quarter net profit of EUR 219 million, including EUR
149 million of after tax impact of the credit market turmoil
- Life gross inflow up 5%, compared with a very strong first
quarter 2007, to EUR 4.0 billion
- Non-Life gross written premiums advanced 3% to EUR 1.9
billion driven by strong growth in Belgium and the Netherlands
- Tight cost control in all countries resulted in a 2%
increase in operating costs, fully related to the inclusion of Fortis
Insurance Company Asia in Hong Kong
- Combined ratio of 96.6% in Non-Life due to improved
efficiency and focus on profitable underwriting
* Net profit doubled compared to the fourth quarter which
was heavily impacted by the write-downs on the structured credit
portfolio, only partly offset by the gain on the sale of CaiFor
- Further growth in revenues quarter-on-quarter while costs
were significantly lower as a result of a strict management,
especially visible in non-staff related expenses
pdf version of the press release:
http://hugin.info/134212/R/1218513/255338.pdf
Copyright © Hugin AS 2008. All rights reserved.
Press Contacts:
Brussels: +32 (0) 2 565 35 84
Utrecht: +31 (0)30 226 32 19
Investor Relations:
Brussels: +32 (0) 2 565 53 78
Utrecht: +31 (0)30 226 65 66
