FEDERATION OF EURO-ASIAN STOCK EXCHANGES
SEMI ANNUAL REPORT OCTOBER 2006
FORTIS
Fortis, being one of the 20 financial giants
of Europe in commercial, retail and private
banking with its 56,000 experts in 55 countries
all over the world, is now in Turkey.
Tayfun Bayazit
CEO
BANKING AND INSURANCE
BEYOND FRONTIERS: FORTIS
Fortis, being one of the 20 financial giants of
Europe in commercial, retail and private
banking with its 56,000 experts in 55 countries
all over the world, is now in Turkey. With its
two core competencies - banking and
insurance - Fortis aims to serve customers
better. Making customers' lives easier and
providing added value to businesses, Fortis
offers wide range of products and services.
Aiming to rank among the top European
financial institutions, Fortis intends to achieve
it through organic growth, supplemented with
selective acquisitions and strategic
partnerships.
Here is a brief look to the history of one of the
European's financial giant.
Fortis back to the days...
12 December 1990 was a memorable day:
AMEV/VSB in the Netherlands and AG Group
in Belgium signed an agreement to become
one of the largest financial institutions in
Europe, with a total of 20,000 employees. The
new financial services provider was named
Fortis; a Latin word meaning strong, steadfast
and determined. AG Group had held a strong
position in the Belgian insurance market;
AMEV in both the Dutch and international
insurance market and VSB, a savings bank,
was quite successful in the Dutch retail
market.
Banking activities have been strengthened
over the years as several banks have been
acquired. It began in 1993, with a controlling
interest in Belgium's ASLK-CGER Bank.
In 1997, Fortis acquired the Netherlands-
based merchant bank MeesPierson. This
acquisition significantly strengthened Fortis'
private, corporate and investment banking
activities and provided it with many more
asset management customers.
In 1998, Fortis took over the prestigious
Belgian Generale Bank.
Since 2000, ASLK-CGER, Generale Bank,
VSB Bank and MeesPierson (with the
exception of MeesPierson Private Banking)
have been integrated and are operating under
the same banner - as Fortis. In 2000, Fortis
also increased its 53% stake in Banque
Générale du Luxembourg to 97.73% of the
PAGE 12
share capital. This strengthened Fortis' overall
presence in the Benelux region. Two years
later, Fortis acquired 100% of Intertrust Group.
Intertrust is active in trust and company
management and has since been merged
with MeesPierson.
In 2001, ASR Verzekeringsgroep N.V. and
Fortis announced the merger of ASR and
AMEV Nederland N.V. As a result Fortis
became the biggest insurer in the Benelux
region and the Netherlands' second-largest
insurer operating through intermediaries.
AMEV, Stad Rotterdam and Woudsend are
currently being fully integrated into one new
business, to operate under the name Fortis
ASR.
Outside the Benelux, many joint ventures and
alliances have been formed in Fortis' 15-year
history. In Europe, Fortis has entered into joint
ventures with one of Spain's largest banks, "La
Caxia" and with Banco Comercial Português
(BCP), Portugal's biggest privately-owned
bank. Fortis has also ventured into Asia in
recent years; a joint venture with Malaysia's
biggest financial services group Maybank, a
life insurance partnership with the China
Insurance Group, and a strategic alliance with
Haitong Securities in Shanghai. Last year it
also entered into a partnership with Muang
Thai in Thailand.
As announced on July 4, 2005, Fortis
acquired full ownership of 89.34% of the
shares of D›flbank from majority shareholders.
Further to the approval of the transaction by
all the relevant Turkish regulatory and
governmental authorities, Fortis has also
completed the public bid and acquired full
ownership of 93.3% of the shares of D›flbank.
Where we are now...
The European financial landscape is
undergoing fundamental changes. Major
cross-border obstacles are gradually being
removed from the retail market, which could
influence local markets. Changing customer
behavior and new distribution channels could
create growth opportunities in Western
Europe, as could new markets in an enlarged
European Union. Both business and
institutional customers are continuing to grow.
This trend should result in an integrated
European or global market with several cross-
border opportunities in areas such as
corporate banking, leasing, factoring and
employee benefits.
Today, Fortis is the market leader of Benelux
countries and as being one of the 20th
biggest financial institutions of Europe, Fortis
targets to be the biggest financial power of
Europe by 2009.
It has opted for a new, customer group-driven
organizational structure with business specific
and geographic authorities. Activities are now
organized into six businesses: Retail Banking,
Commercial & Private Banking, Merchant
Banking, Insurance Belgium, Insurance
Netherlands and Insurance International.
In Retail Banking, the target group is the retail
customers, the independent professions and
to small and medium-sized enterprises. Fortis
offers advice on all forms of daily banking,
saving, investment, credit and insurance
through a variety of distribution channels.
Medium-sized enterprises can also choose
from a uniform product and service offering
with the same range of cross-border
products, services and specialisms.
Commercial and Private Banking activities
offer a wide range of business opportunities
including commercial enterprises, multiple
banking services i.e. leasing, factoring,
international assets and liability management,
international credit facilities. More than 100
business centers and team of 1,500 experts,
Fortis Business Centers provide the cross-
border and customized services for the
company's financial needs. In Private Banking,
Fortis business partners are high net worth
individuals, institutions, large companies,
financial institutions, institutional customers.
FORTIS TURKEY IN 2005
Retail Banking
The goals in 2005 were to boost customer
acquisition, increase penetration within the
existing client base and to enhance
performance measurement.
CRM campaigns had been organized,
targeting over 200,000 customers, focused on
asset-based (deposits, bonds and mutual
funds) and unit-based products (standing
orders, insurance and overdraft facilities) and
resulted in a 21% sales ratio. Mortgages and
car loans were major sources of customer
acquisition and very convenient for cross-sale
proposals.
An innovative and customer-focused
bancassurance partnership was introduced