Dutch-Belgian Financial group Fortis takes 1.5-billion-euro subprime hit
Dutch-Belgian financial group Fortis said Friday 2007 net profit fell 8.2 percent after it took a 1.5 billion euros (2.3 billion dollar) hit because of the US subprime home loan crisis. "This result is based on a prudent approach to impairments, using stringent assumptions on super senior collaterized debt obligations (CDOs) with subprime exposure," Fortis said in a statement. Fortis said it had a 2007 net profit of 3.9 billion euros but this included 900 million euros from the sale of its CaiFor unit to Spanish bank Caixa. Excluding this exceptional gain left a net profit 3.06 billion euros, a 30 percent drop compared to the 2006 figure. Together with its partners Royal Bank of Scotland (RBS) and Spain's Santander, Fortis recently took over Dutch bank ABN Amro, for a record sum of around 71 billion euros.
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