BRUSSELS, Belgium, Aug. 26, 2004 (PRIMEZONE) -- Fortis:
First half-year results 2004 (versus first half-year of 2003)
-- Net operating profit almost tripled, from EUR 683 million to
EUR 1,829 million. Value adjustments on the equity portfolio
contributed EUR 271 million, compared with a loss of
EUR 740 million last year. Net operating profit before realised
capital gains increased by EUR 303 million, or 33%, to
EUR 1,226 million and by 51% excluding Assurant and Seguros Bilbao,
reflecting a major improvement in the operating performance of the
businesses. Net realised capital gains came down by
EUR 168 million, or 34%, to EUR 332 million.
-- Net profit tripled from EUR 671 million to EUR 2,078
million, benefiting from EUR 249 million of non-operating items,
mainly in respect of realised gains on the sale of 65% of Assurant
and of Seguros Bilbao. Earnings per share amounted to EUR 1.60
compared to EUR 0.52 last year. Based on the last twelve months,
return on equity came to 31.0%.
-- In the Banking business net operating profit increased by
36% to EUR 1,157 million. Net operating profit before realised capital
gains rose 58% to EUR 814 million as a result of a significant
decrease in value adjustments on loans and a reduction in operating
costs. Substantial increases in net interest income (+11%) and
commissions (+13%) were offset by lower net realised capital gains
and a lower trading result within Other income.
-- In the Insurance business net operating profit increased by
EUR 800 million to EUR 766 million. Net operating profit before
realised capital gains increased by 20%, excluding Assurant and
Seguros Bilbao, as a result of a continued good performance in Life
and an excellent performance in Non-life. Value adjustments on the
equity portfolio contributed EUR 230 million to net operating
profit, compared with a loss of EUR 724 million last year.
Key half-year figures
(in EUR million)
H1 2004 H1 2003 % change % change 1)
Net operating profit
before realised
capital gains 1,226 923 33 51
Banking 814 515 58
Insurance 499 516 (3) 20
General (87) (108) (20)
Net realised capital
gains 2) 332 500 (34) (33)
Net operating profit
excluding value
adjustments on the
equity portfolio 1,558 1,423 10 18
Value adjustments on
the equity portfolio 271 (740) *
Realised (92) (647) (86)
Unrealised 363 (93) *
Net operating profit 1,829 683 *
Banking 1,157 851 36
Insurance 766 (34) *
General (94) (134) (30)
Non-operating items 249 (12) *
Net profit 2,078 671 *
1) Excluding Assurant and Seguros Bilbao. 2) Excluding equity portfolio, after tax.
Second quarter of 2004 (versus first quarter of 2004)
-- Net operating profit decreased by EUR 219 million (-21%) to
EUR 805 million as a result of lower net realised capital gains
(down EUR 272 million). In addition, value adjustments on the
equity portfolio declined (down EUR 91 million). However, net
operating profit before realised capital gains increased by EUR 144
million (+27%) to EUR 685 million and by 31% excluding Assurant and
Seguros Bilbao, and by 27% and 43%, respectively, compared to the
same quarter last year, reflecting the quarter-on-quarter
improvement of the operating performance.
-- In the Banking business net operating profit came down by
EUR 149 million (-23%) to EUR 504 million as a result of lower net
realised capital gains (down EUR 265 million). However, net
operating profit before realised capital gains increased by EUR 130
million (+38%) to EUR 472 million, driven by exceptionally low
value adjustments on loans, ongoing cost reduction and better
trading results. Net operating profit before realised capital gains
advanced 39% compared to the same quarter last year.
-- In the Insurance business net operating profit decreased by
EUR 68 million (-17%) to EUR 349 million as a result of a lower
contribution from value adjustments on the equity portfolio (down
EUR 96 million). However, net operating profit before realised
capital gains, excluding Assurant and Seguros Bilbao, increased by
EUR 34 million (+17%) to EUR 231 million and by 25% compared to the
same quarter last year.
Key quarterly
figures (in
EUR million)
Q2 Q1 % % % %
2004 2004 change change1) Q2 2003 change change1)
Net operating
profit before
realised capital
gains 685 541 27 31 540 27 43
Banking 472 342 38 338 39
Insurance 260 239 9 17 264 (2) 25
General (47) (40) 18 (62) (25)
Net realised
capital gains
2) 30 302 (90) (90) 87 (65) (62)
Net operating
profit
excluding
value
adjustments
on the equity
portfolio 715 843 (15) (14) 627 14 27
Value
adjustments on
the equity
portfolio 90 181 (51) 509 (82)
Realised 1 (93) * (614) *
Unrealised 89 274 (68) 1,123 (92)
Net operating
profit 805 1,024 (21) 1,136 (29)
Banking 504 653 (23) 492 2
Insurance 349 417 (17) 672 (48)
General (48) (46) 5 (28) 73
Non-operating
items (2) 251 * (12) (83)
Net profit 803 1,275 (37) 1,124 (29)
1) Excluding Assurant and Seguros Bilbao. 2) Excluding equity portfolio, after tax.
Fortis CEO Anton van Rossum:
"I am pleased with the strong performance that we delivered in the first half of 2004. Our net operating profit almost tripled, on the back of the recovery of the equity markets. More importantly, the operating performance of our businesses improved considerably, which is reflected in the significant increase in our net operating profit before realised capital gains. We have steadily improved our performance over the last twelve months. Although these results are encouraging, we have not yet achieved our full potential and much has yet to be done. We will therefore continue to concentrate on revenue growth while remaining disciplined in our cost control.
Our aim is to deliver profitable growth in our core Benelux businesses and to expand certain businesses in which we have a competitive advantage on a European or global basis. We are doing this by investing in organic growth opportunities, selected value-adding acquisitions and joint ventures to improve our returns in the medium term. The recently announced acquisition of a controlling stake in Milleniumbcp Fortis Insurance Group in Portugal is an example of how we are implementing our strategy.
In view of the favourable developments in our operating performance and despite the decreased equity markets since the end of June, we are more optimistic than we were at the end of the first quarter. The ongoing operating improvements in the businesses should more than compensate for the reduction in net operating profit due to the sale of Assurant and Seguros Bilbao. Barring unforeseen circumstances and with the stock markets at today's levels, this should result in at least a 10% increase of net operating profit for Fortis as a whole in 2004."
Press Contacts: Brussels: 32 (0)2 565 35 84 Utrecht: 31 30 257 65 49
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Annexes Results First Half-Year 2004 http://hugin.info/134212/R/958170/137575.pdf