ING Group posts 1H2012 underlying net profit of EUR 1.6 billion

13 August 2012 — Vlad BOLDIJAR
ing3ING Group announced an underlying net profit for the second quarter of 2012 of EUR 1.04 billion, 17.8% less compared to the same quarter in 2011. For the first half of 2012, underlying net profit was down 36.4% to EUR 1.59 billion compared to 2011.

Commenting on the second quarter results, ING Group CEO Jan HOMMEN said: "ING posted solid second quarter results. In these uncertain times the financial strength of the company is our highest priority: capital, liquidity and funding have all improved. As the Eurozone crisis deteriorated, we accelerated our efforts to de-risk the investment portfolio at the Bank, and brought down our Spanish exposure to reduce the funding mismatch in that country. At Insurance, we continued to hedge to protect regulatory capital, leading to volatility in IFRS earnings."

The Bank's underlying result before tax was EUR 995 million in 2Q2012, down 13.1% year-on-year and 11.6% lower than in the first quarter of 2012. "However, the gross result, (income less expenses before risk costs) rose 5.9% from the second quarter last year and was down only 2% on the first quarter", showed the press release.

Despite the ongoing financial market volatility, in 2Q2012 the operating result of ING Insurance was 17.8% higher at EUR 304 million than the first quarter and underlying profit before tax was EUR 229 million after a loss in the first quarter due to hedge losses. According to the press release "the increase in operating profit in the second quarter was due to seasonally higher dividend income and general account asset growth, which lifted the investment margin".

See the detailed press release on the 1H2012 results here.

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