Dutch bank SNS Reaal considers capitalisation options

Rumours around which assets Dutch bank SNS Reaal may offload to improve its capitalisation continue, but so far seem to be leaving out its specialist asset manager.

SNS Asset Management, part of the group and a member of Dufas, the Dutch Fund and Asset Management Association, manages more than €42bn, according to information on its website. The asset manager has not been mentioned as a target sale, possibly because it meets the specific needs of the wider SNS Reaal group, which has led the manager to focus on responsible investments and application of ESG filters.

The broader SNS Reaal group of businesses has reported an overall third quarter net profit of €34m, amid rumours it is considering a way to convert state aid into a shareholding for the Dutch state.

Amid the financial crisis in December 2008 the bank had to issue €750m in core capital to the state as part of a move to improve its capitalisation. It also issued €500m in core capital to a foundation, Stichting Beheer. The state aid is to be repaid, and by the end of 2011 the level of support remained at €565m, and the foundation’s support still stood at €435m, although this is not convertible into ordinary shares.

According to latest reports in Dutch media, the bank may be looking to convert the state’s aid into a 25% shareholding in the group, although it is also reported that the bank has also been looking into selling off some of its insurance business, in order to ensure it meets European Banking Authority minimum capitalisation requirements, or Core Tier 1 of 9%

Other brands in the group include SNS Bank, Reeal, ZwitserLeven, RegioBank, ASN Bank, BLG Wonen, SNS Property Finance. SNS Securities, Proteq.nl, and Route Mobiel.


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