Rabobank head says Euro banks face worse to come

DAVOS, Switzerland (Reuters) - Bert Heemskerk, chief executive of Dutch bank Rabobank RABN.UL, said European banks faced yet worse losses from the credit crisis but he had no reason to revise his own bank's earnings guidance for 2007.

"Quite a few banks are heavily involved, and in particularly if you look at European banks, we have not seen the worst. The news has not been spreading out about the losses that the European banking system has to take," Heemskerk said on the sidelines of a World Economic Forum meeting in Davos.

Rabobank, the biggest bank in the Netherlands, said in August that it had hardly any trading position in subprime mortgages or loans to U.S. mortgage banks.

Heemskerk said he had no reason to modify the group's earnings guidance for 2007 for a 12 percent rise in net profit in 2007 versus 2006.

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(Reporting by Thomas Atkins; editing by David Stamp)