ING reports first-ever quarterly loss
The ING group posted its first-ever loss of EUR 478 million in the third quarter.12 November 2008
AMSTERDAM - Dutch bank and insurance giant ING Group suffered a loss of EUR 478 million in the third quarter of 2008, the firm's first-ever quarterly loss, ING reported on Wednesday.
The quarterly report said the loss was partly due to writedowns of more than EUR 1.5 billion on ING's various assets, including those related to the US real-estate market.
In the third quarter of 2007, ING posted a net profit of EUR 2.3 billion.
Wednesday's quarterly report did not come as a surprise. After suffering heavy losses on the Amsterdam stock exchange in September and early October, ING announced on 17 October that it was expecting a net loss of around EUR 500 million.
On 19 October, ING Group received EUR 10 billion in support from the Dutch government.
In exchange, the Dutch government was given securities that are expected to generate some 8.5 percent interest per year, plus the right to appoint two members in ING's management board.
"The third quarter was very challenging for all financial companies," ING chairman Michel Tilmant said on Wednesday.
Tilmant noted the unrest at the financial market was not over yet, saying he expected the fourth quarter of 2008 to be difficult as well.
"Weak economic circumstances will affect our results also in 2009," he said.
[dpa / Expatica]