ING’s second quarter profit shrinks to EUR 71 million

12th August 2009, Comments 0 comments

The second-quarter profit fell 96 percent on the same period last year.

The Hague – Dutch banking and insurance group ING on Wednesday reported a EUR 71 million net profit for the second quarter against a net profit of EUR 1.95 billion during the same period of last year.

The results were down a staggering 96.3 percent on the same period last year.

"ING posted solid commercial performance in the quarter, as a more favourable interest rate environment and improved margins on savings and lending led to a 19.4 percent increase in interest income at the banking operations," CEO Jan Hommen said.

"In insurance, the recovery of equity markets in the second quarter helped boost fees on assets under management.

"Benefits of back to basics and improvements in equity and credit markets helped the group return to profit with an underlying net result of EUR 229 million."

He warned however that "market impacts and the weaker economic environment continue to strain ING's results".

The bank received EUR 10 billion in state aid October 2008 and is in the midst of a worldwide cost-cutting programme that includes EUR 6 billion to 8 billion in asset sales.

AFP / Expatica

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