Fortis disappointed investors today with a €1.2 billion loss on its equity investment portfolio that brought a €453 million net loss in the first quarter.
Fortis - which offers insurance, banking and asset management in Belgium, The Netherlands and the United States - also reported an 8 per cent fall in its operating profit due to the weak economy and crippled stock markets.
Although the operating net profit figure of €763 million ($901.4 million) was better than what analysts had expected, this was due to the inclusion of capital gains on Fortis's bond portfolio.
While the net loss figure compared with a net profit of €850 million in the first quarter a year ago, the group also refrained from giving guidance for the full year.
The group's shares fell 2.7 per cent to €14.19, giving it a market value of about €18.5 billion. The stock was underperforming the local Amsterdam and Brussels bluechip indices, as well as the DJ Stoxx Insurance and FinancialServices benchmarks.
Like rivals worldwide, Fortis has seen its profits and balance sheet eroded by tumbling stock markets and the failure of borrowers to pay back loans or interest on bonds.
Fortis added provisions of €187 million for its banking division, which reported a 39 per cent slide in operating profit.