Thursday, 28 August 2014 - 15:37
SNS Reaal shows signs of recovery
The national bank and insurer SNS Reaal suffered a net loss of €125 million in the past six months. However, this loss is much smaller than the half billion loss they suffered in the first half of 2013. The group says that the loss was caused by once-off costs, NOS.nl reports. Without these costs SNS Reaal would have made a profit of €195 million. The bank branch, SNS Bank, has achieved good results. The bank has acquired 35 thousand new clients. The market share in new mortgages rose from 1.8 percent to 3.7 percent. And the market share in savings rose from 10.1 percent to 10.6 percent, NOS.nl reports. The insurance branch, which recently underwent a name change from Reaal to VIVAT Verzekeringen (VIVAT Insurance), did not perform as well. The insurance branch suffered from a decline in investment income and a low interest rate. The group has been busy with the splitting off of VIVAT Verzekeringen and is searching for a buyer. SNS Reaal was badly affected by the losses of their real estate branch, Property Finance, in the firs half of 2013. The group was nationalized in early 2013 as it was failing due to the real estate branch's difficulties. Property Finance was split off of the group late last year and transferred to the state.