Improved operating performance and significant recovery of net profit

Brussels, BELGIUM


 
Main developments in the third quarter of 2003, compared to the third quarter of 2002:
 
  •        Net profit amounted to EUR 677 million, an increase of EUR 2.3 billion. In the third quarter of 2002 negative value adjustments on the equity portfolio resulted in a net loss of EUR 1.6 billion.
  •  
  •        Net operating profit excluding value adjustments on the equity portfolio increased by 16% to EUR 539 million as a result of increased interest margins, improved Non-life results and reduced costs.
  •  
     
    Main developments in the first nine months of 2003, compared to the same period in 2002:
     
  •        Net profit amounted to EUR 1.3 billion compared with a loss of EUR 87 million in 2002.
  •  
  •        Net operating profit excluding value adjustments on the equity portfolio increased by 6% to EUR 1,961 million.
  •  
  •        Premium income in insurance increased by 4% to EUR 13,448 million. In the Benelux premiums improved 15% to EUR 7,911 million.
  •  
  •        Total banking revenues net of interest expense fell 4% to EUR 6,008 million as a result of the deteriorating economic conditions since the third quarter of last year. However there are signs of improvement with an 8% increase in net interest income in the third quarter compared to the second quarter of this year.
  •  
  •        Operating costs (excluding insurance commissions and lease costs) continue to be well controlled
  • and fell by 4% in the first nine months of this year. These savings are on top of the 3% cost reduction
    already realized in 2002. Total FTEs decreased by 3% to 63,931. In 2003, we remain on target to hold total
    operating costs at the same level as 2002.
     
  •        The negative net value adjustment on the equity portfolio was EUR 585 million at the end of the third quarter (at 21 November approximately EUR 400 million), compared with EUR 2.1 billion for the same period last year.
  •  
  •        Fortis's already strong solvency improved. At 21 November the net core capital, excluding fourth quarter results, amounted to EUR 17.8 billion, EUR 8.0 billion (82%) above the legally required minimum and EUR 2.2 billion (14%) above Fortis's own floor.
  •  
     
    Fortis
     
    Key figures
     
     
     
    In EUR million
     
    Quarterly
     
     
    Nine months
     
    Q3
    2003
    Q3
    2002
    change in %
    Q2
    2003
    change in %
    2003
    2002
    change in %
     
    Net operating profit before realized capital gains
     
     
    505
     
     
    439
     
     
    +15
     
     
    540
     
     
    (6)
     
     
    1,428
     
     
    1,610
     
     
    (11)
    Realized capital gains 1)
    33
    28
    +20
    87
    (62)
    533
    247
    *
     
     
     
     
     
     
     
     
     
    Net operating profit (excluding value adjustments on the equity portfolio)
    538
    467
    +16
    627
    (14)
    1,961
    1,857
    +6
    Value adjustments on the equity portfolio
    155
    (2,162)
    *
    509
    *
    (585)
    (2,073)
    *
    Realized
    (109)
    (37)
    *
    (614)
    *
    (756)
    52
    *
    Unrealized
    264
    (2,125)
     
    1,123
    (77)
    171
    (2,125)
    *
     
     
     
     
     
     
     
     
     
    Net operating profit
    693
    (1,695)
    *
    1,136
    (39)
    1,376
    (216)
    *
     
     
     
     
     
     
     
     
     
    Non operating items
    (16)
    89
    *
    (12)
    *
    (28)
    129
    *
     
     
     
     
     
     
     
     
     
    Net profit
    677
    (1,606)
    *
    1,124
    (40)
    1,348
    (87)
    *
    1) After tax, excluding equity portfolio.
     
     
     
     
    Fortis CEO Anton van Rossum comments:
     
    "In the third quarter our operating and net profit increased significantly. Our result benefited from an improvement in the quality of earnings in our banking activities, as a result of improved margins and reduced costs, and from continued good performance in insurance, on the back of the Non-Life activities. We are conscious though that we still have more to do in increasing our returns.
     
    For the first nine months of 2003, Fortis delivered a solid performance compared to last year when our results were affected by a strong decline in stock market levels. We have been able to manage our costs and have further improved our solvency position.
     
    We are seeing signs of a slow recovery in the economic environment. The year to date operating performance and the improving markets give me confidence that we can look forward to a satisfactory full year profit performance in 2003".
     
     
     
    Press Contacts:
     
     
     
     
    Brussels:
     
    +32 2 565 35 84
    Utrecht:
    +31 30 257 65 49
    Investor Relations:
     
     
     
     
    Brussels:
    +32 2 510 53 37
    Utrecht:
    +31 30 257 65 46
     
    ***Please open the following link to view the whole release including all tables:***

    Attachments

    3rd Quarter Results 2003