Parties related to Fortis include associates, pension funds, joint ventures, Board Members (i.e. non-executive and executive members of the Fortis Board of Directors), Executive Managers (i.e. the CEO and the members of the Executive Committee), close family members of any individual referred to above, entities controlled or significantly influenced by any individual referred to above and other related entities.
Fortis frequently enters into transactions with related parties in the course of its business operations. Such transactions mainly concern loans, deposits and reinsurance contracts and are entered into under the same commercial and market terms that apply to non-related parties.
Fortis companies may grant credits, loans or bank guarantees in the normal course of business to Board Members and Executive Managers or to close family members of the Board members and close family members of Executive Managers.
At 31 December 2007, the outstanding loans, credits or bank guarantees granted to Board members and Executive Managers or to close family members of the Board members and close family members of Executive Managers, totalled EUR 6 million. The terms and conditions of these transactions are entered into under the same commercial and market terms that apply to non-related parties, including employees of the company.
Transactions entered into with the following related parties in the year ending 31 December 2007 are summarised below:
- associates and joint ventures
- other related parties such as pension funds and significant minority shareholders in associates.
|
|
|
|
2007 |
|
|
2006 |
|
|
|
|
Associates |
|
| |
|
|
and |
|
|
and |
|
|
|
|
Joint ventures |
Other |
Total |
Joint ventures |
Other |
Total |
|
Income and expenses - Related parties |
|
|
|
|
|
|
|
Interest income |
438 |
5 |
443 |
34 |
4 |
38 |
|
Interest expense |
(499) |
(9) |
(508) |
(26) |
(10) |
(36) |
|
Fee and commission income |
5 |
|
5 |
12 |
|
12 |
|
Realised gains |
174 |
|
174 |
3 |
|
3 |
|
Other income |
29 |
8 |
37 |
30 |
5 |
35 |
|
Fee and commission expense |
(31) |
(4) |
(35) |
(24) |
(4) |
(28) |
|
Operating, administrative and other expenses |
(11) |
(56) |
(67) |
(3) |
(81) |
(84) |
 Download XLS |
|
|
|
|
2007 |
|
|
2006 |
|
|
Associates |
|
|
Associates |
|
|
|
|
and |
|
|
and |
|
|
|
|
Joint ventures |
Other |
Total |
Joint ventures |
Other |
Total |
|
Balance sheet - Related parties |
|
|
|
|
|
|
|
Investments in associates |
426 |
846 |
1,272 |
162 |
965 |
1,127 |
|
Due from customers |
620 |
|
620 |
477 |
|
477 |
|
Due from banks |
235 |
124 |
359 |
15 |
104 |
119 |
|
Other assets |
422 |
34 |
456 |
16 |
31 |
47 |
|
|
|
|
|
|
|
|
|
Due to customers |
177 |
3 |
180 |
75 |
4 |
79 |
|
Due to banks |
1,327 |
2 |
1,329 |
388 |
6 |
394 |
|
Debt certificates, subordinated liabilities and other borrowings |
392 |
|
392 |
139 |
|
139 |
|
Other liabilities |
292 |
183 |
475 |
13 |
267 |
280 |
The following figures concern guarantees and irrevocable and conditional commitments that Fortis has made with respect to related parties:
- EUR 2,049 million with respect to guarantees given to related parties
- EUR 2,109 million with respect to guarantees obtained from related parties
- EUR 212 million with respect to unconditional and conditional commitments to related parties.
The changes in related party loans, receivables and advances during the year ended 31 December are as follows:
| Download XLS |
|
|
|
Due from banks |
|
Due from customers |
|
|
2007 |
2006 |
2007 |
2006 |
|
|
|
|
|
|
|
Related party loans, receivables or advances as at 1 January |
120 |
126 |
494 |
447 |
|
Acquisitions/divestments of subsidiaries |
208 |
|
10 |
(18) |
|
Additions or advances |
52 |
18 |
421 |
113 |
|
Repayments |
(21) |
(24) |
(292) |
(48) |
|
Related party loans, receivables or advances as at 31 December |
359 |
120 |
633 |
494 |
|
|
|
|
|
|
|
Impairments as at 1 January |
1 |
1 |
17 |
18 |
|
Change in impairments |
|
|
|
(1) |
|
Reversal of impairments |
(1) |
|
1 |
|
|
Recoveries |
|
|
(5) |
|
|
Impairments at 31 December |
|
1 |
13 |
17 |
|
|
|
|
|
|
|
Related party loans, receivables or advances as at 31 December |
359 |
119 |
620 |
477 |
| Download XLS |
|
|
|
Due to banks |
|
Due to customers |
|
|
2007 |
2006 |
2007 |
2006 |
|
|
|
|
|
|
|
Related party loans, receivables or advances as at 1 January |
394 |
593 |
79 |
102 |
|
Acquisitions/divestments of subsidiaries |
468 |
|
73 |
(2) |
|
Additions or advances |
564 |
54 |
741 |
466 |
|
Repayments |
(93) |
(253) |
(713) |
(487) |
|
Other |
(4) |
|
|
|
|
Related party loans, receivables or advances as at 31 December |
1,329 |
394 |
180 |
79 |
