ING has announced a net profit of 1,692 billion euros in the third quarter. This is more than seven times higher than the 239 million euros booked in the same period last year.

Analysts had predicted slightly lower net profits. The profits have mainly come from the bank’s insurance activities. Here the underlying taxable profit was 561 million euros compared to a loss of 274 million a year ago.

The underlying profits for ING’s banking activities fell to 1.06 billion euro compared to 1.49 billion in 2010. This is due to high costs, low interest margins and the effect of writing off 267 million euros in Greek government bonds.

In spite of the profits, the bank has announced it is scrapping 2000 full-time jobs in the Netherlands within the company itself and another 700 external jobs.

The reorganisation is to lower costs and improve results. “The economic financial environment has clearly deteriorated. There is less demand for certain products such as mortgages,” an ING spokesperson said. In addition, stricter rules for the banking sector means banks have to pay more attention to costs.

The reorganisation will be complete in 2013. The CNV union has sharply criticised the decision to cut jobs. “The bank is healthy and even making billions of euros in profit. […] There seems to be no end to reorganisations and dismissals,” a union spokesperson told Dutch daily De Telegraaf. Around 19,000 people work for ING.

(nc/hs)

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