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			General (incl.
	Banking	Insurance	eliminations)	Total
31 December 2007
Government and official institutions	5,343	436	1	5,780
Residential mortgage	95,445	3,931		99,376
Consumer loans	9,774	13		9,787
Commercial loans	138,696	1,870	(2,565)	138,001
Reverse repurchase agreements	28,186		(423)	27,763
Securities borrowing transactions	24,279		(2,819)	21,460
Policyholder loans		142		142
Financial lease receivables	11,969	68		12,037
Factoring	1,914			1,914
Other loans	1,600	404	(11)	1,993
Loans available for sale	212			212
Held at fair value through profit or loss	1,300			1,300
Fair value adjustment from hedge accounting	(1,415)			(1,415)
Total	317,303	6,864	(5,817)	318,350
Less impairments:
- specific credit risk	(1,778)	(37)		(1,815)
- incurred but not reported (IBNR)	(224)	(3)		(227)
Due from customers	315,301	6,824	(5,817)	316,308
31 December 2006
Government and official institutions	5,313	463		5,776
Residential mortgage	89,322	4,228		93,550
Consumer loans	10,226	172		10,398
Commercial loans	110,650	1,760	(931)	111,479
Reverse repurchase agreements	37,649		(1,852)	35,797
Securities borrowing transactions	22,091		(3,736)	18,355
Policyholder loans		116		116
Financial lease receivables	10,000	70		10,070
Factoring	1,532			1,532
Other loans	548	421	(60)	909
Loans available for sale	28			28
Held at fair value through profit or loss	1,358			1,358
Fair value adjustment from hedge accounting	(639)			(639)
Total	288,078	7,230	(6,579)	288,729
Less impairments:
- specific credit risk	(1,876)	(69)		(1,945)
- incurred but not reported (IBNR)	(325)			(325)
Due from customers	285,877	7,161	(6,579)	286,459
31 December 2005
Government and official institutions	7,781	573	1	8,355
Residential mortgage	80,098	4,463		84,561
Consumer loans	9,431	387		9,818
Commercial loans	93,646	1,662	(1,042)	94,266
Reverse repurchase agreements	61,074		(1,417)	59,657
Securities borrowing transactions	17,307	1	(2,200)	15,108
Policyholder loans		119		119
Financial lease receivables	7,825	71		7,896
Factoring	1,181			1,181
Other loans	530	441	(77)	894
Loans available for sale	56			56
Held at fair value through profit or loss	1,139			1,139
Fair value adjustment from hedge accounting	165			165
Total	280,233	7,717	(4,735)	283,215
Less impairments:
- specific credit risk	(2,064)	(85)		(2,149)
- incurred but not reported (IBNR)	(307)			(307)
Due from customers	277,862	7,632	(4,735)	280,759

In 2007 the average amount of Due from customers was EUR 312,381 million (2006: EUR 292,009 million; 2005: EUR 245,392 million). The average yield in 2007 was 5.5 % (2006: 5.4%; 2005: 5.5%).

Loans designated as available for sale are loans purchased in the secondary markets that will subsequently be securitised and sold.

In the Merchant & Private Banking segment, Fortis has designated some financial assets which are part of Due from customers at fair value through profit or loss. Selected inflation rate-linked credit contracts with governmental counterparties are designated at fair value through profit or loss, reducing a potential accounting mismatch between the measurement of the interest rate swaps and other derivatives involved and the credits previously measured at amortised cost.

Some other structured loans and contracts, including derivatives, are also designated as Held at fair value through profit or loss, reducing a potential accounting mismatch. The amortised cost of Assets held at fair value through profit or loss at 31 December 2007 was EUR 1,309 million (2006: EUR 1,328 million; 2005: EUR 1,057 million).

Fortis hedges interest rate exposure of fixed-rate mortgages on a portfolio basis (macro hedging) by using interest rate swaps.

As a result of the hedge, the volatility of changes in the hedged item’s net present value (NPV) of future cash flows, due to changes in the appropriate benchmark interest rate curve, will be reduced by offsetting changes in the fair value of the hedging derivative financial instrument.

Hedged mortgages are prepayable fixed-rate mortgages with the following features:

Mortgages with these features form a portfolio from which the hedged item is designated (fair value hedge accounting for a portfolio hedge of interest rate risk or ‘macro hedge’). More than one group (or portfolio) of mortgages can be identified as the hedged item within the fixed rate mortgage portfolio. Mortgages included in a portfolio hedge of interest rate risk need to share the risk characteristics being hedged.

When notional swap cash flows exceed 95% of expected mortgage cash flows in any given month, the expected monthly mortgage cash flows on either side of the swap cash flow are designated as hedged items until all notional swap cash flows are matched. Mortgage cash flows are allocated to monthly time buckets based on expected repricing dates. Fortis estimates repricing dates using a prepayment rate applied to the contractual cash flows and repricing dates of the mortgage portfolio.

The hedging instruments are ‘plain vanilla’ interest rate swaps entered into with external counterparties at market rates prevailing at the time of the transaction.

Changes in the fair value of mortgages which are attributable to the hedged interest rate risk are recorded under Fair value adjustment from hedge accounting in order to adjust the carrying amount of the loan. The difference between the fair value and the carrying value of the hedged mortgages at designation of the hedging is amortised over the remaining life of the hedged item and is also reported in Fair value adjustment from hedge accounting.

Financial lease receivables

Receivables related to financial lease agreements as at 31 December are comprised of:

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				Present value
	Minimum lease			of the minimum
			payments	lease payments receivable
	2007	2006	2005	2007	2006	2005
Gross investment in financial leases:
Not later than 3 months	1,407	1,954	1,380	1,275	1,836	1,297
Later than 3 months and not later than 1 year	2,645	2,728	1,769	2,314	2,462	1,559
Later than 1 year and not later than 5 years	7,267	5,528	4,253	6,155	4,791	3,642
Later than 5 years	2,866	1,531	1,723	2,293	981	1,398
Total	14,185	11,741	9,125	12,037	10,070	7,896
Unearned finance income	2,148	1,671	1,229

Proceeds from financial lease agreements recorded in the income statement in 2007 amounted to EUR 656 million (2006: EUR 515 million; 2005: EUR 403 million).

Impairments on Due from customers

The following table shows the changes in impairments on Due from customers.

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		2007		2006
	Specific		Specific
	credit risk	IBNR	credit risk	IBNR
Balance as at 1 January	1,945	325	2,149	307
Acquisitions/divestments of subsidiaries	34	4	23	6
Increase in impairments	818	26	712	90
Release of impairments	(550)	(133)	(551)	(73)
Write-offs of uncollectible loans	(321)		(333)
Foreign exchange differences and other adjustments	(111)	5	(55)	(5)
Balance as at 31 December	1,815	227	1,945	325