SNS Reaal gets €750m capital injection

Thursday 13 November 2008

Financial services group SNS Reaal has applied for a capital injection of €750m from the state’s €20bn emergency fund for financial institutions facing difficulties as a result of the credit crisis.

In return the government will appoint two members to the SNS Reaal’s supervisory board. SNS Reaal announced the move on Thursday morning together with its third quarter results.

The financial services group booked a €88m loss in the third quarter. Its net profit in the first nine months of the year is €138m.

‘In the current environment of extremely volatile financial markets, SNS Reaal is focusing first and foremost on reinforcing its solvency and liquidity position. In recognition of the fact... we have proactively requested €750m of core capital from the Dutch state,’ said Sjoerd van Keulen, chairman of the company’s executive board, in a statement.

MidKap-listed SNS Reaal is the third Dutch bank-insurance group to ask for government aid. ING and Aegon have already received €10bn and €3bn respectively, while ABN Amro and Fortis Nederland have been nationalised.

To read SNS Reaal’s full statement, click here

© DutchNews.nl

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