Dutch state must write down more on SNS PF: C&W

The Dutch government faces extra writedowns of €2.4 bn to €3.2 bn on SNS Property Finance, according to estimates from Cushman & Wakefield.

This is far more than the writedowns of €1.4 bn to €2.1 bn previously estimated by SNS, which come on top of an earlier provision of €0.7 bn.

C&W’s estimates are based on the real economic value of SNS PF’s loan portfolio, which it says is around €5.6 bn at best and €4.9 bn in a worst-case scenario.

Based on the gross value of the portfolio of €9 bn, the state therefore needs to write down between 38% and 45.5%, according to the broker.

SNS, meanwhile, puts the value of the loan portfolio at between €6.9 bn (best case scenario) and €6.2 bn (worst case). Based on a gross value of €9 bn, this means a writedown of between 23% and 31%.

The Dutch finance ministry announced on Friday morning that Dutch bank and insurance group SNS is to be nationalised due to the heavy losses on its property finance arm.

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