SNS REAAL NV (Ba2wn/BBB-wn/BBB+wn; SNS Bank: Baa3wn/BBBwd/BBB+wd) has reported a EUR 968mn net attributable loss for FY12 vs. a profit of EUR 115mn in FY11 due to a loss of EUR 813mn at Property Finance (driven by EUR 941mn in loan impairments as a result of worsening real estate markets and one-off item). Core (SNS Retail Bank and the Insurance business) reported a net loss of EUR 159mn vs. EUR +357mn, largely driven by one-off impairments of intangible assets. Adjusted net profit was EUR 443mn in FY12 vs. 485mn in FY11. Net profit excluding one-off items for SNS Retail Bank stood at EUR 124mn vs. EUR 277mn, driven by higher loan impairments. The one-off items for Core of EUR -602mn were mainly impairments of goodwill and Value of Business Acquired at Insurance. Regarding 1Q13, SNS REAAL reported a net loss of EUR 1.6bn, driven by a EUR 2bn provision for Property Finance's real estate finance portfolio, leading to a Property Finance net loss of EUR 1.8bn and bringing the net exposure to EUR 5bn (transfer value set by the Dutch state). SNS REAAL's Core 1Q13 net profit was EUR 170mn, and excluding one-off items (such as EUR +71mn from nationalization measures), it stood at EUR 99mn vs. EUR 103mn in 1Q12. Outlook: while SNS Retail Bank had a "good start" to the year and is anticipated to report "satisfactory results in the coming quarters", earnings of the Insurance activities "remained behind". Driven by the 1Q13 loss at Property Finance, SNS REAAL expects a loss for FY13. Results for the Insurance activities are anticipated to remain subdued. The 1Q13 core Tier-1 ratio of SNS Bank rose to 11.5%, driven by the nationalization measures. Following the EC's temporary approval for the Dutch state aid in February, the Dutch Ministry of Finance needs to submit a restructuring plan until 22 August, including any Property Finance aid measures, on which SNS REAAL intends to update in due course as well as on the isolation of the Property Finance portfolio. It also wants to focus on untying the holding, bank and insurer. Bloomberg cited SNS REAAL's CEO as saying that he expects severe EC impositions, given the large size and the fact that it is the second round of state aid; Bloomberg further reported that SNS expects to submit a compensation offer to participation certificates holders after regulatory approval.