SNS Property Finance (SNS PF) will be split into two separate units from January 1, 2011.
SNS PF will retain its international loan portfolio and part of its Dutch loan portfolio. This unit will be phased out in a responsible manner over the next two to four years. The remaining part of SNSPF's Dutch portfolio will be combined with the existing small and medium-sized enterprise (SME) activities of SNS Retail Bank in the new unit SNS SME.
"Since SNS REAAL announced its intention to phase out the international property finance activities of SNS PF, the volume of those activities has decreased by 32 %. In view of our intention to free up more capital and to achieve a lower risk profile, more transparency, a better funding profile, this next step is essential," says Ronald Latenstein, Chairman of the Executive Board.
About the new unit SNS SME
The activities of SNS PF not retained in the SNS PF organization will be combined with the existing SME mortgage portfolio of SNS Retail Bank under the name SNS SME. The pro forma gross loan portfolio of SNS SME as at the end of September 2010 amounted to approximately 7.4 billion, predominantly consisting of profitable Dutch investment finance loans of SNS PF and SME mortgage loans of SNS Retail Bank. Approximately 3 billion in SME savings with SNS Retail Bank will also be transferred to SNS SME. SNS SME will focus on optimizing the loan portfolio and improving its funding profile, partly by increasing SME savings.
The pro forma gross loan portfolio of SNS PF as at the end of September 2010 amounted to approximately 6.9 billion, predominantly consisting of international and Dutch project finance loans. SNS PF will focus on phasing
out its entire loan portfolio over a period of two to four years.
Interim CEO Coen van der Bijl, who has led SNS PF for the past 18 months, will retire on 1 January 2011.
From that date, SNS SME and SNS PF will be led by Jaap van Dijk (CEO), Ernst-Jan Boers (CFO) and Buck Groenhof (Chief Restructuring Officer). Van Dijk will primarily focus on SNS SME and Groenhof will primarily focus on SNS PF. Van Dijk will also join SNS Retail Bank's Management Team. Boers is already a member of this team. The appointments are subject to approval by De Nederlandsche Bank.
SNS SME and SNS PF will be presented as separate units in the financial reports of SNS REAAL as per January 1, 2011, alongside SNS Retail Bank.