Belgian-Dutch financial services group Fortis has reported a 17% decline in net profits in its merchant banking division for the first quarter of the year as impairments on its structured credit portfolio offset an otherwise robust divisional performance by the bank.

Fortis, which for the first time included Dutch bank ABN Amro's operations in its results, said net profits in its merchant banking unit tumbled to €453m ($701m) in the first three months compared to a year earlier due to €404m of impairments, of which €363m came from its structured credit portfolio.