SNS Property Finance's underlying net result for 2008 declined by 67% to EUR 28 mln, its parent company SNS Reaal reported last week. The group said the net result at SNS Property Finance before impairment charges increased 17.5% to EUR 114 mln, due to higher net interest income. But the negative impact of EUR 75 mln from higher impairment charges led to a fall in the net results to EUR 28 mln, down by EUR 58 mln compared to the 2007 result.
SNS Property Finance's underlying net result for 2008 declined by 67% to EUR 28 mln, its parent company SNS Reaal reported last week. The group said the net result at SNS Property Finance before impairment charges increased 17.5% to EUR 114 mln, due to higher net interest income. But the negative impact of EUR 75 mln from higher impairment charges led to a fall in the net results to EUR 28 mln, down by EUR 58 mln compared to the 2007 result.
In 2008, SNS Property Finance's loan portfolio grew by 18.4% to EUR 13.7 bn, with growth concentrated in the first six months. The growth was deliberately reduced in the second half of the year, SNS group said.
The total outstanding loan portfolio of SNS Property Finance as at 31 December 2008 consisted of EUR 7.6 bn of investment finance (+ 8.6%) and EUR 6.1 bn of project finance (+ 29.8%). The portfolio remained primarily focused on the Netherlands (72%).
The total portfolio share of the residential sector declined slightly to 34% from 37% at the end of 2007. Compared to year-end 2007, the portfolio in North America increased by 1%-point to 8% of the total portfolio, while Spain remained stable at 3%.
SNS Property Finance, the group said, aims to de-risk the balance sheet risk by reducing the exposure to international project finance, especially in Spain and the US. In the second half of 2008, very limited new loans were granted in this area and in the first half of 2009 a decline in commitments is expected.
