Nationalised SNS Reaal takes €1.8bn provision for Property Finance

Banking and insurance group SNS Reaal, which was nationalised in February, booked net profit of €204m over the first six months of this year, excluding problem subsidiary Property Finance.

Including a €1.8bn provision on the Property Finance operations, the financial services group posted a first half loss of €1.6bn. SNS Real reported net profit of €258m in the 2012 first half.

SNS Reaal is planning to hive off Property Finance as a separate asset management company and progress is being made on this, chief executive Gerard van Olphen said in a statement.

A draft restructuring plan for SNS Reaal will be submitted to the European Commission before August 22.

‘Once the European Commission has published its final ruling on the state aid including the isolation of Property Finance, we will press ahead with the execution of the restructuring plan and we can focus fully on our core activities,’ Van Olphen said.

Savers have deposited some €1.3bn in the bank since it was nationalised.

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