Fortis Bank Netherlands, part of European financial services group Fortis, has reported a 2008 net operating profit for its private banking arm of €45 million (around $60 million), a decline of 63 per cent on its 2007 profit of €121 million.

In its annual results statement, Fortis Bank Netherlands said that half of this drop in profits was attributable to non-recurring income of €39 million in 2007.

The bank said “deteriorated market conditions and turbulence surrounding the Fortis Group” caused assets under management to fall by €4.3 billion, resulting in lower commissions and fees. However, a recovery set in at the end of the year and a net inflow of funds was recorded, it said.

Overall, Bank Fortis Netherlands recorded a net loss for 2008 of €18.5 billion having made a net operating profit of €604 million. The bank said its net 2008 result was depressed by a one-off book loss of €17.7 billion related to Fortis Bank Netherlands’ 33.8 per cent stake in Dutch Bank ABN AMRO. In addition, a provision of €922 million was created in relation to the fraud of Bernard Madoff, it said.

In the statement, Jan van Rutte, chairman of the Board of Fortis Bank Netherlands, called 2008 a “tumultuous and unusual year”.

The bank also said its management board had forgone “any and all bonuses for 2008” and that senior management would not receive their bonuses under the professional remuneration scheme for 2008.