Belgian financial services group Fortis reported a smaller-than-expected drop in first-quarter net profit today as both banking and insurance earnings beat market forecasts.
Net profit fell 12 per cent to €1.167 billion from €1.328 billion a year earlier - but was above the average analyst forecast of €1.151 billion.
For banking alone, Fortis reported net earnings of €903 million, down 13 per cent from a bumper profit a year earlier but still ahead of expectations for a profit of €877 million.
Net interest income, earned on interest-bearing products, was up 4 per cent at €1.31 billion while net commission and fee income rose 6 per cent to €726 million and trading results were boosted by equity derivatives. Provisions for loan impairments remained low at €26 million.
In insurance, profit was up 4 per cent at €352 million, compared with the average forecast for a year-on-year drop to €329 million. Life earnings and non-life volume growth helped offset an €86 million hit from the Kyrill storm, which swept across western Europe in January and led to hefty insurance claims.
Costs in the banking division were higher, rising 11 per cent year-on-year, due to hiring costs as the bank forges on with its expansion drive.