BRUSSELS (Reuters) - Stricken financial group Fortis plunged to a mammoth 28.0 billion euro ($37 billion) loss in 2008 due to huge negatives from banking activities stripped out by the Belgian and Dutch states.
The group, pulled apart in a state-led bailout last year, said discontinued activities lost the company 27.4 billion euros, including 20.8 billion euros for Belgium-owned FORTIS <:FORB.BR:>(FORA.AM)Bank and 8.6 billion euros for Fortis Bank Nederland.
Fortis's rump insurance operations made a total net profit of 6 million euros, including a 639 million negative impact from their investment portfolios.
Fortis's general division made a 2008 net loss of 629 million euros due to net interest charges and a 295 million euro hit from currency transactions.
The group had already announced this month that it would be unable to pay a dividend.
Fortis was carved up by the Dutch, Belgian and Luxembourg governments in October after an 11.2 billion euro cash injection failed to calm investors.
The precise make-up of the company is still in doubt.
French bank BNP Paribas
Fortis shareholders, who blocked the previous terms of the break-up deal last month, will vote on revised conditions at meetings on April 8-9.
Assuming they vote in favor, Fortis would essentially be an insurance company, with a main Belgian unit and international activities in Britain, Portugal, Hong Kong and elsewhere.
Fortis shares, previously regarded as a "safe" investment and held by many Belgians, are now little more than a penny stock.
They closed on Monday at 1.3440 euros, compared with almost 30 euros in April 2007, just before it launched its ill-fated joint bid for Dutch rival ABN AMRO.
(Reporting by Philip Blenkinsop, editing by Dale Hudson)
($1=.7560 euro)