UTRECHT Thomson Financial - Fortis said its 2007 net profit before divestments could be lowered to 3 bln eur from 4 bln due to its subprime exposure, depending on which market scenarios apply.
However, its capital and solvency position remains sound and it plans to maintain its dividend at last year's level of 0.59 eur a share, it said in a statement on its website.
'If these scenarios were to be applied to the closing of the accounts of 2007 - which would be subject to approval by the Board of 6 March 2008 - the net profit of Fortis is to be around 3 billion euros,' it said.
The statement followed a report in Belgian daily De Standaard that Fortis would write off up to 2 bln eur from its subprime portfolio.
Fortis said its capital and solvency requirements will be met even in 'very stringent scenarios on the impact of the sub prime CDO portfolio.'
Fortis also said it is not considering issuing new shares.
It said it is reviewing the value of its sub prime CDO portfolio on an ongoing basis.
The CDO subprime gross exposure remains unchanged compared with the disclosure at the time of its third quarter results in early November 2007, it said.
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