2007 Operational highlights

Most of Global Markets’ activities performed very well in 2007, despite the exceptionally challenging market conditions. Nevertheless, Global Markets’ results were impacted by the subprime crisis, which led to a widening of credit spreads and extremely tight money markets.

By focusing on optimising the trading capabilities in structured products, we were able to offer our clients alternative solutions in different asset classes (foreign exchange, fixed income, credits, equities, commodities, energy and carbon banking).

Equity Sales and Structuring showed spectacular growth of its client base, an increase in flows and broader geographical coverage (US, UK).

Trading in Foreign Exchange and Rates reported record results amid adverse market circumstances and in highly correlated markets. This was supported by widening of the product range, while safeguarding the overall liquidity position of the Bank.

In Securitisation, Fortis ranked number one in Benelux for the second year in a row and was named European commercial and residential mortgage-backed securities (CMBS/RMBS) issuer of the year. We further expanded our strong franchises in asset-backed securities and RMBS through our involvement in high-profile transactions for clients like Volkswagen Financial Services, the Kingdom of Belgium and Friesland Bank.

The Global Securities & Financing Group expanded its bond repo business globally by strengthening its teams in Asia and the Americas, capturing a greater share of the securities financing business there and laying the foundation for future growth.

In Clearing, we expanded our market access capabilities in Europe, the US and in the Asian/Pacific region, giving traders worldwide exchange connectivity in a straight-through-processing environment. We have become a general clearing participant of the pioneering new European Multilateral Trading Facility, Chi-X, and provide central counterparty services through the European Multilateral Clearing Facility. This market adds to the list of over 60 exchanges worldwide on which we offer clearing services to our customers. This initiative plus our efforts to reduce post-trade costs for clients earned us the ‘Best at Investor Services in Western Europe’ award from Euromoney. Building on our success in the Netherlands and Belgium, we are expanding in France and Germany with our broker-custody services. Since July 2007, Brokerage, Clearing & Custody has been the proud owner of the SAS 70 Type II Statement, an internationally recognised auditing standard.

Prime Fund Solutions enjoyed healthy growth in the Western Hemisphere. We extended our services to an additional 16 investment management firms including several top name players. Despite market turmoil, assets under administration/custody grew by 34% to more than USD 400 billion. We provide a highly regarded value chain of services – true 24/7 service provision in 17 locations – that have a direct impact on the performance of our clients’ funds. During the year we expanded our alternative fund platform in order to service our clients in Luxembourg. Prime Fund Solutions received SAS 70 Type I certification in 2007. We were also granted the ‘Hedge Fund Administrator of the Year’ award for our strategy, leadership and attention to detail.

Clearing, Funds & Custody played a key role as exchange agent for the consortium’s tender for the acquisition of ABN AMRO. Our involvement underlines our operational excellence in supporting one of the biggest takeovers ever in the financial industry.

2008 Focus

• Increase trading capabilities by widening product range
• Provide prime brokerage services
• Expand into the onshore funds market in the US
• Capitalise on the acquisition of ABN AMRO