Dutch-Belgian bancassurance group Fortis has posted a net profit of E2.79 billion for the first half of 2007, up 2% over H1 2006, driven by robust revenue growth in its banking and insurance businesses.
The group revealed that its banking unit generated a net income of E2.06 billion for the six-month period, breaking the E2.05 billion record set from the same period a year ago. The positive banking results have been attributed to steady growth in commercially-driven revenue lines, net interest income and net commissions and fees, supported by solid volume increases in loan portfolios, the deposit base and funds under management.
Meanwhile, the company’s insurance business saw a net profit of E765 million in H1 2007, jumping 6% from the same corresponding period in 2006. The results came despite suffering from increased claims from Windstorm Kyrill in Q1 2007 and the recent floods in Q2 2007.
Our confidence in our ability to deliver on our long-term targets is strengthened by these excellent results. Revenue momentum remains solid and underlying cost growth over the next quarters should remain in line with the 2% increase experienced in the second quarter in our banking operations, said Fortis CEO Jean-Paul Votron.