ING quarterly profit slides 26% to 371 mn euros

LONDON: ING Group's third-quarter profit slumped 26 per cent to 371 million euros, as the Dutch entity was hit by charges related to insurance business in the US.

The financial services major had a profit of 499 million euros in the year-ago period.

"Net result of 371 million euros (was) impacted predominantly by goodwill write down of 513 million euros related to Insurance US," the firm said in a statement today.

ING, which has embarked on massive restructuring efforts, is planning to establish separate banking and insurance companies.

Excluding the charges, profit before tax climbed over 90 per cent to 1.53 billion euros in 2010 September quarter. In the year-ago period, the same stood at just 801 million euros.

ING Group CEO Jan Hommen said the entity is making progress to create strong stand-alone companies for banking and insurance sectors.

Noting that there is an option for one initial public offer (IPO), he said the company is preparing itself for the possibility of two IPOs for insurance businesses.

"... one Europe-led IPO with solid cash flow combined with strong growth positions in developing markets and one separate US-focused IPO with a leading franchise in retirement services," Hommen added.