Fortis assures investors it is 'solid'

Friday 26 September 2008

Dutch-Belgian financial services group Fortis issued a statement on Friday saying its position is 'solid'.

Over the past nine months, just 3% of retail and private banking customers have switched to a new bank, the bank said. The bank has a base of more than €300bn allowing it to 'fully fund' operations, the statement said.

Fortis shares fell for the fifth day in a row in Amsterdam on Friday because of fears about the bank's position. On Thursday, they hit a 14-year low.

The company also announced on Friday that it is expanding the number of activities it wants to sell in both its banking and insurance divisions. So far, 10 operations have been earmarked with a total value of between €5bn and €10bn, the bank said.

Fortis, part of a consortium which took over the ABN Amro bank last year, has been hit by the cost of consolidation and the turmoil on the financial markets.

In June, after assuring investors its finances were healthy, the bank announced an €8bn capital boost programme, including a €1.5b share issue. Shareholder anger led to the resignation of CEO Jean-Paul Votron.

© DutchNews.nl

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