SNS Reaal moves back into profit

Tuesday 10 November 2009

Financial services group SNS Reaal posted net profit of €26m in the third quarter of 2009, the Utrecht-based company said in a trading update on Tuesday.

Both the banking and insurance arms were back in the black, SNS said. SNS posted a loss over 2008 as a whole following a poor second half and made a loss in the first half of 2009 as well.

SNS said its cost reduction and integration programmes are on schedule and shareholders’ equity is up 'significantly' compared with the end of June.

The company also said it expected to take a provision in the fourth quarter to pay for its share of the savings guarantee scheme for customers of bankrupt DSB bank. SNS said its portion would be 6%. Based on the central bank's estimate of a maximum requirement of €3.25bn, SNS could face a charge of up to €195m, news agency Reuters said.

SNS has had €750m in state support to ease it through the financial crisis and will pay back €185m raised through a September share issue later this month.

CEO Ronald Latenstein told a conference call there was no timetable on repaying the rest. 'It's a bit early to predict anything in that area. Our intention to go to full repayment is clearly there.'

© DutchNews.nl

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