Fortis clarifies commercial and financial situation

Published: 11:55 26.09.2008 GMT+2 /HUGIN /Source: FORTIS /BXS: FORB /ISIN: BE0003801181
Fortis clarifies commercial and financial situation

In response to continued market rumours and questions, Fortis provides an update on its financial situation.

Fortis customer deposit flows: Above all we underline the solid position of the bank. In a challenging environment of  market turmoil, of negative coverage on Fortis triggering many questions from our customers, of very sharp competitive environment, customer moves have remained limited. Compared to January 1st 2008, these moves represent less than 3% of its total Benelux retail and private banking customers assets excluding market impact. This is thanks to longstanding customer loyalty, an increased effort of the Fortis staff to provide the appropriate information and answers to the questions of customers and the positive result of continuous targeted commercial efforts, such as the e-savings account in Belgium launched in July.

Fortis liquidity: Fortis currently disposes of a diversified funding base of more than EUR 300 billion (from institutional investors, retail and private deposits, Central banks and corporates) allowing to fully fund operations. In addition Fortis has a collateral buffer.

Fortis solvency is solid and well above the regulatory minimum. Fortis' capital plan which will support the consolidation at the end 2009 of all acquired ABNAMRO businesses, is being further developed.

As at 30-6-2008, Fortis core capital stands at EUR 4 billion above its target.The future need for additional capital will actually only be in 12- 18 months as we start to fold in the largest part of the ABN AMRO business. In support of this and taking into account the current difficult market circumstances for issuing non-dilutive financial instruments, It has been decided to implement a wider range of activities of assets to be divested/sold.So far more than 10 files have been earmarked both in Bank and Insurance. These activities to be divested are located as well in- and outside Benelux. The total estimates are  between EUR 5 and 10 billion. So far on every file concrete interest of potential buyers is indicated and confidentiality agreements have been signed. No capital increase is being envisaged.

ABN AMRO integration is moving on track, awaiting approval of the DNB on the integration plan and the closing of the EC-remedies. Preparations are made to fully integrate the ABN AMRO Private Banking activities outside of the Netherlands in Q4 2008 and beginning 2009 subject to approval.

§        Expected key dates are as follows:

EU remedies 3 Oct 2008

PB outside NL fold-in 6 Oct 2008

Retail fold-in 1 Oct 2009

Merchant & Private Banking 1 May 2010

Fortis is an international provider of banking and insurance services to personal, business and institutional customers. We deliver a total package of financial products and services through our own high-performance channels and via intermediaries and other partners. We have a presence in over 50 countries and a dedicated, professional workforce of more than 65,000. All this makes us a leader in financial services in Europe, a top 3 private banker and a top tier asset manager. More information is available at www.fortis.com.

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