Dutch bank and insurance group SNS Reaal posted a bigger-than expected loss in the second half of 2008 after new writedowns and said it would not meet profit targets due the credit crisis.
SNS Reaal, which mainly operates in the Netherlands, posted a loss of €730 million ($919 million) compared to an expected loss between €301 million and €704 million from four analysts, and it blamed new writedowns on assets and an insurance provision.
The group, which got a €1.25 billion injection from the Dutch state and a majority-shareholder foundation in November to cope with investment losses, booked a profit of €230 million in the July-December period in 2007.
“In view of the 2008 results and taking into consideration current market circumstances, it is unlikely that the return targets will be met. SNS Reaal intends to publish revised targets in due course,” the group said in a statement.
It said in November it made a Q3 loss of €88 million - its first loss since listing in 2006 - due to writedowns. The credit crisis hit net profit by €726 million in the H2 of 2008, it said in a statement. (Reuters)