Europe - Fortis reports €28bn loss for 2008

Tue, Mar 31, 2009

Fortis's 2008 net result was a loss of EUR 28.0 billion compared with a profit of EUR 4.0 billion in 2007.

The loss in 2008 was due to the EUR 27.4 billion negative result of discontinued operations, caused by the loss on sale of the banking activities, partly offset by a profit on the sale of the Dutch insurance activities.

On 29 September 2008, three states (Belgium, the Netherlands and Luxembourg) jointly agreed to invest EUR 11.2 billion in return for a 49.9% stake in the banking activities in their respective countries.

Fortis said its rump insurance operations made a total net profit of €6 million, including a €639 million negative impact from their investment portfolios.

Fortis's general division made a 2008 net loss of €629 million due to net interest charges and a €295 million hit from currency transactions.

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