Dutch bank SNS REAAL posts loss of €1.6bn in Q1

The Dutch bank SNS REAAL suffered a total net loss of 1.6 billion euros (2.1 billion U.S. dollars) in the first quarter of this year, burdened by its real estate financing arm, the Dutch state owned bank announced on Thursday. The bank's core activities, banking and insurance, remained profitable with the net profit, excluding one-off items, of 99 million euros in the first quarter. The company expects that the total loss in the first quarter does not bode well for the rest of the year, so 2013 might end up with a loss. In addition, the bank also suffered a total loss of 972 million euros (1.2 billion U.S. dollars) in 2012, the bank announced on Thursday. The real estate department Property Finance had a substantial loss of 813 million euros in 2012, as real estate market weakens and loans fell to 941 million euros. SNS, Netherlands fourth-largest bank, was nationalized last February to prevent a disorderly bankruptcy. It was brougt down by its real estate fiancing arm. The operation cost the state a total of 3.7 billion euros. "The nationalization of SNS REAAL on February 1, 2013 marked the end of a turbulent period," said Gerard van Olphen, Chairman of the Executive Board, in a press release. "By taking a number of measures, the Dutch State has reinforced the capital base of SNS REAAL," he added. "Moreover, the real estate finance portfolio of Property Finance will be transferred to a separate asset management organization," he said. "The European Commission has temporarily approved the State aid, with the exception of the Property Finance measures, and will take a final decision on the basis of a restructuring plan, to be presented before 22 August 2013," he said. "Looking ahead, we can again focus on our core activities. We are very thankful to our customers for their continued loyalty, despite all the uncertainty and media attention in recent months," he added.