Friesland Bank posts first year loss, to cut jobs
* Swings to 75 mln euro full-year loss
* Says solvency robust
* Expects higher credit losses in 2009
* Gives no full-year forecast
AMSTERDAM, April 9 (Reuters) - Dutch unlisted financial group Friesland Bank [FRIBK.UL] reported its first full-year loss on Thursday and said it expected credit losses to be higher than in recent years, despite the good quality of its portfolio.
The bank, which describes itself as the seventh-largest general bank in the Netherlands, said it would cut jobs this year and was unable to give a forecast for 2009 results because of the uncertain market.
Friesland Bank posted a 75 million euro ($99.6 million) loss for 2008 compared with a record 121 million euro profit in 2007. The bank said it booked impairments of about 100 million euros on its stock portfolio last year, particularly due to the decline in shares of Dutch online broker BinckBank (BINCK.AS).
Derivatives and a lower profit contribution from its interest in Dutch banking group Van Lanschot (VLAN.AS) also hit results, it said.
The bank said it expects continued growth of its banking activities. Competition in the savings market remains fierce, however, it said.
"Friesland Bank was impacted by the extreme market developments despite its traditionally conservative policy," Chief Executive Robbert Klaasman said in a statement.
But the bank said it maintained its robust solvency.
It said at the year-end it had a BIS capital ratio of 12.6 percent and a BIS ratio of core capital of 10.1 percent, higher than regulations imposed by the Dutch central bank.
In February, Friesland Bank said in response to a ratings downgrade from Fitch that its solvency and liquidity were strong despite the difficult market circumstances. [ID:nL6415430]
The bank said it will revamp its back-office operations for payments and savings, while a centralisation of mid-office activities will lead to office closures and job cuts. ($1=.7530 Euro) (Editing by Erica Billingham)
