PARIS, March 8 (Reuters) - French bank BNP Paribas reiterated on Sunday that its acquisition of some of the main assets of struggling rival Fortis would boost its earnings by 2010 and added its Tier 1 ratio would stay stable.
'BNP Paribas group's Tier 1 ratio should remain stable on the day the transaction closes,' it said in a statement.
'In addition, this transaction should be accretive as early as 2010, excluding restructuring costs,' it added.
On Saturday, the Belgian government and BNP Paribas agreed on revised terms for the break-up of Fortis.
The transaction now has to be approved by Fortis shareholders. Shareholders had rejected earlier terms on a Fortis break-up, and the debacle led to the collapse of the previous Belgian government.
Belgium will give BNP Paribas 75 percent of Fortis Bank in a deal valuing the whole of Fortis Bank at 11 billion euros ($13.9 billion), while in exchange Belgium will get BNP Paribas shares issued at 68 euros.
Fortis Bank will buy 25 percent of Fortis Insurance Belgium from Fortis Holding.
Buying the Fortis assets would make BNP Paribas the eurozone's leading bank in terms of deposits, with roughly the same ranking as rival ING.
BNP said that with the Fortis assets, it would have a deposit base of more than 540 billion euros and a loan to deposit ratio of 120 percent.
Last month, BNP Paribas said its Tier 1 ratio would go up to 8.4 percent from 7.8 percent with a second round of French state aid for the country's banks. BNP reported a fourth quarter net loss of 1.37 billion euros in February.
Fortis shares closed up 13.3 percent at 0.96 euros on Friday. BNP Paribas shares fell 5.4 percent to 21.74 euros.
($1=.7909 Euro)
(Reporting by Sudip Kar-Gupta; Editing by Bernard Orr) Keywords: BNPPARIBAS/ (sudip.kargupta@reuters.com; +33 1 49 49 52 26; Reuters Messaging:sudip.kargupta.reuters.com@reuters.net ) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
'BNP Paribas group's Tier 1 ratio should remain stable on the day the transaction closes,' it said in a statement.
'In addition, this transaction should be accretive as early as 2010, excluding restructuring costs,' it added.
On Saturday, the Belgian government and BNP Paribas agreed on revised terms for the break-up of Fortis.
The transaction now has to be approved by Fortis shareholders. Shareholders had rejected earlier terms on a Fortis break-up, and the debacle led to the collapse of the previous Belgian government.
Belgium will give BNP Paribas 75 percent of Fortis Bank in a deal valuing the whole of Fortis Bank at 11 billion euros ($13.9 billion), while in exchange Belgium will get BNP Paribas shares issued at 68 euros.
Fortis Bank will buy 25 percent of Fortis Insurance Belgium from Fortis Holding.
Buying the Fortis assets would make BNP Paribas the eurozone's leading bank in terms of deposits, with roughly the same ranking as rival ING.
BNP said that with the Fortis assets, it would have a deposit base of more than 540 billion euros and a loan to deposit ratio of 120 percent.
Last month, BNP Paribas said its Tier 1 ratio would go up to 8.4 percent from 7.8 percent with a second round of French state aid for the country's banks. BNP reported a fourth quarter net loss of 1.37 billion euros in February.
Fortis shares closed up 13.3 percent at 0.96 euros on Friday. BNP Paribas shares fell 5.4 percent to 21.74 euros.
($1=.7909 Euro)
(Reporting by Sudip Kar-Gupta; Editing by Bernard Orr) Keywords: BNPPARIBAS/ (sudip.kargupta@reuters.com; +33 1 49 49 52 26; Reuters Messaging:sudip.kargupta.reuters.com@reuters.net ) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.