Fortis Bank reveals large loss

Fortis bank had to bailed out

Fortis Bank has seen a 20.6bn-euro ($27.5bn; £18.5bn) loss for 2008 following write-downs on debt and the division of the business.

The results were in line with forecasts but contrasted with the previous year which saw a 1.8bn-euro profit.

The bank, which now only exists in Belgium, was bailed out by the Belgian and Dutch governments in October.

The bank said the carve-up of the business by parent firm Fortis Holdings explained most of the loss for 2008.

The firm was formerly the biggest bank in Belgium but was split up as it faced mounting debts in the credit crisis.

The bank is 99.93% owned by the Belgian state, while Luxembourg owns 49.9% of BGL, the subsidiary in Luxembourg.

The results comes as shareholders are soon to vote on selling Fortis Bank to France's BNP Paribas.

Initially, Belgium's government wanted to sell the bank to the French firm, but shareholders managed to block a swift sale.

Fortis Holdings is now a much smaller firm, largely consisting of insurance providers.

It was Fortis bank's losses that accounted for the bulk of Fortis Holding's 28bn-euro loss, recently announced.

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