Belgium-based banking and insurance company Fortis has virtually doubled its profits in the third quarter thanks to the addition of Turkish bank Disbank, strong insurance business and a favorable tax rate.
Fortis has reported a 94% jump in Q3 net profits to E913 million. The impressive results were delivered on the back of stronger than anticipated capital gains and far exceeded analysts’ forecasts. Net profits were E472 million in the third quarter of 2004.
Banking operations contributed net profits of E610 million, roughly two thirds of overall net profit, while insurance net profit in the third quarter was E359 million, although the division’s combined ratio increased by two percentage points to 95%.
The impact on financial results provided by the addition of Disbank puts Fortis on track to achieve its goal to derive 30% of its business from outside its traditional Benelux region by 2009, the company said.
However, the financial services provider also warned that fourth quarter results would not match the current financial declarations because of costs relating to a management overhaul which will see a significant number leave the company.