ING Posts Decline in Profits
Dutch insurer and bank ING Groep NV announced second-quarter 2008 earnings declined by 25%, primarily due to smaller gains on investments.
ING posted a net profit of 1.92 billion euros ($2.86 billion), down from 2.56 billion euros a year ago in the same period. The results are in line with analysts’ estimates.
ING CEO Michel Tilmant said, Tilman said, "Combined with lower real estate and private equity valuations, lower investment results accounted for the vast majority of the profit decline."
"We are, of course, not immune to the challenging environment around us, and the sustained weakness across financial markets put pressure on earnings.” Tilmant added, "Worrying, however is the strong increase in loan losses," which were 234 million euros ($349 million), up sharply from 25 million euros last year.
ING’s losses due to its links to the U.S. mortgage market were at 39 million euros ($58 million) and ING's online retail banking arm, ING Direct, actually saw a 4.7% profit increase to 179 million euros ($267 million).
Published on August 13, 2008
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