ING Group (ING) reported a 84.7% fall in third-quarter 2013 net profit to 101 million euros, from last year's 659 million euros, with profit per share dropping 82.4% year-over-year to 0.03 euros, from 0.17 euros. Losses on divestments in the third quarter were 950 million euros, reflecting the estimated loss on the sale of ING Life Korea, which was announced in August 2013, the company said. Special items after tax totaled -63 million euros and mainly related to costs for the prior announced restructuring programmes in Bank and Insurance.
However, on an underlying basis, pre-tax profit improved 8.3% to 1.22 billion euros, from 1.13 billion euros a year ago, as restated. For the quarter, Group underlying net profit amounted to 891 million euros, driven by solid performance at both ING Bank and Insurance EurAsia.
As of the third quarter of 2013, Insurance ING U.S. is classified as held for sale and as discontinued operations.
ING said in a statement, "Under a new agreement with the European Commission, the total restructuring of ING Group will now be completed two years earlier, by the end of 2016. The divestment of the Asian insurance and investment management activities is almost complete. The sale of ING Life Korea is expected to close by year-end. We have carefully explored and evaluated several divestment options for ING Life Japan, and have now included this business within the scope of the base case IPO of ING Insurance. Preparations for the base case IPO are progressing well and we will be ready to go to the market in 2014."
In additon, the company said it is advancing further into the end phase of its restructuring programme, which would now be completed by 2016.
by RTT Staff Writer
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