Benelux bank Fortis today revealed a net loss of €14.1 billion for the first nine months of 2008, due mainly to its acquisition of parts of ABN Amro.The bank's revelation comes just days after the Royal Bank of Scotland announced expected writedowns and losses of £28 billion for 2008, primarily as a result of its part in the ABN Amro deal.
Fortis lost €12.5 billion on its purchase of ABN Amro, due to a €9 billion impairment on the banks' Dutch business, Fortis Bank Nederland Holding, which included the acquired parts of ABN Amro.
Additionally, Fortis incurred a €1.8 billion goodwill impairment on its asset management business following the collapse of a €2.15 billion deal brokered on March 19, 2008 with Chinese insurance company Ping An to acquire a 50% equity stake in the Dutch firm's asset management operations.
The bank also blamed deteriorating market conditions for its poor performance in the first three quarters of the year. Losses of between €4 billion and €5 billion are predicted for Q4.
Sign up for Risk.net email alerts
Sponsored video: Tradeweb
Multifonds talks to Custody Risk on being nominated for the Post-Trade Technology Vendor of the Year at the Custody Risk Awards 2014
Sponsored webinar: IBM Risk Analytics
Nominated for two technology awards
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.