SNS Reaal receives capital injection

Financial services group SNS Reaal has applied for a capital injection of 750 million euros from the Dutch state’s 20 billion euro emergency fund for financial institutions facing difficulties as a result of the credit crisis.

In return the government will appoint two members to the SNS Reaal’s supervisory board. SNS Reaal announced the move on Thursday morning together with its third quarter results.

The financial services group booked a 88 million euro loss in the third quarter. Its net profit in the first nine months of the year is 138 million euros.

"In the current environment of extremely volatile financial markets, SNS Reaal is focusing first and foremost on reinforcing its solvency and liquidity position. In recognition of the fact... we have proactively requested 750 million euros of core capital from the Dutch state," said Sjoerd van Keulen, chairman of the company’s executive board, in a statement.

MidKap-listed SNS Reaal is the third Dutch bank-insurance group to ask for government aid. ING and Aegon have already received 10 billion euros and 3 billion euros respectively, while ABN Amro and Fortis Nederland have been nationalised.