According to FD, SNS REAAL would be preparing a reduction in staff atSNS Bank which could be several hundreds of FTEs. The job cut hasn't been confirmed but would be part of a reorganisation program that would also see a reduction in the cost base. Canceling the "thirteenth month" (December, employees receive double pay for that month), reduce external hiring and less lease cars are other examples of the cost cutting program. Our View: SNS REAAL won't be able to fully repay the State aid received by the end of 2013, which means that it will have to renegotiate the restructuring plan with EC. This could lead to divestment of part of the insurance activities although other solutions are not to be excluded. Pulling up the profitability of the banking activities could help in that respect since SNS Bank will still incur losses from SNS Property Finance and commercial real estate at SME. Conclusion: We maintain our Accumulate rating with target of € 2.