Fortis reports €19bn loss for 2008

by David Masters

Story link: Fortis reports €19bn loss for 2008

Fortis Banque, the Belgian-government controlled banking arm of Fortis, last week reported its results for the first nine months of 2008 with a net loss of €14.1 billion.

Fourth quarter net losses are anticipated at €4-€5 billion, bringing total losses for 2008 to €19 billion.

The bank blamed the losses on the financial crisis, the sale of ABN Amro, and the break up of the banking and insurance group that owned it.

Despite the losses, Fortis said its liquidity and solvency have improved since the Fortis Group was split up in October.

“We’re disappointed by these results,” Fortis Bank chief executive Filip Dierckx said in a statement.

“We are turning a very dark page in the history of the bank,” Dierckx said.

Nevertheless, Dierckx remains positive: “Fortis Bank’s strengthened financial position — together with the continued dedication of our staff — allows us to manage our commercial activities in an unusually difficult environment.”

The Fortis Group was dismantled in October, with the Dutch state taking control of its Dutch banking and insurance assets, whilst the Belgian government took over its Belgian banking business.

French Bank BNP Paribas then agreed to buy 75% of the Belgian banking business, but the deal was blocked after a legal challenge from Fortis shareholders.

Because Fortis is not publicly listed it is not obliged to publicly report its results, but said it did so because of ’rumours’ that were circulating about its position.