ING announced 2,400 new job cuts in the Netherlands and Belgium

ING announced 2,400 new job cuts in the Netherlands and Belgium

Amsterdam : Netherlands | Feb 13, 2013 at 3:19 AM PST
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ING plans to repay some five billion euros in state aid

Dutch bancassurer ING announced Wednesday 2400 further job cuts in its bank branches in the Netherlands and Belgium in the context of cost reduction programs and published a net profit down 32.5% the year 2012.

"The Dutch retail bank will extend the transformation program started in 2011, which will lead to about 1,400 additional redundancies by the end of 2015 and reduce spending 120 million more per year from 2016" , said the group's executive director, Jan Hommen said in a statement.

In addition, about 1,000 jobs will be lost "by attrition" of 2015 in the Belgian retail bank ING, which will lead to savings of 150 million euro per year.

Calling these measures "essential to our future performance," said Jan Hommen as provisions to cover restructuring costs had been taken for 2012, partly drape the group's results.

The Dutch had already stated in November 2011 that it would eliminate 2,000 jobs in its banking activities in the Netherlands in 2012 and 2013 as part of a cost reduction program which should enable it to save 300 million euros per year from 2014.

ING was then announced in November 2012 the removal of 1,350 jobs in the insurance industry in Europe by 2014 and 1,000 jobs in the banking industry around the world from 2015 to annual savings of 460 million euros .

The Dutch group, which employs a total of about 90,000 people worldwide, has published Wednesday a net profit of 3.89 billion euros for 2012, down 32.5%, weighed down by restructuring costs losses from the sale of assets at risk and expenses related to annuity products guarantee a minimum return to the United States.

The fourth quarter of his side yet was marked by an increase of 20.9% yoy net profit to 1.43 billion euros, driven by profit gains from the sale of subsidiaries, the bank ING Direct Canada and online insurance business in Malaysia.

These sales were imposed on ING by the European Commission under state aid of 10 billion euros, the group had received during the financial crisis in 2008. Guardian of competition in Europe, the Commission had required, in addition to repayment to the Dutch State, restructuring and sales.

The European Commission had agreed in November to soften the restructuring plan imposed in 2009 Dutch bancassurance, mainly by giving more time to sell some subsidiaries.

ING said Wednesday that its capital ration-called "hard" (Core Tier One), was 11.9% at 31 December 2012 and reiterated not pay dividends to its shareholders before paying state Dutch, which should be done by May 2015.

The Dutch group has also also recalled that the Dutch banks participate in the rescue of the fourth largest bank in the Netherlands SNS Reaal, whose nationalization was announced on February 1, up to a billion as a single sample from the state in 2014.

From ING, the first bank in the country, will be between 300 and 350 million euros.

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ING said that it will move towards a separation of its banking and insurance operations
ING said that it will move towards a separation of its banking and insurance operations
rsa76 is based in Karāchi, Sind, Pakistan, and is a Reporter on Allvoices.
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