AMSTERDAM (AP)—ING Groep NV, the Dutch bank and insurance company, revealed plans Wednesday to cut 2,350 jobs after a sharp drop in third-quarter profits.
ING, one of Europe’s larger financial conglomerates by assets, said its net profit fell to €609 million ($783 million) from €1.69 billion a year ago. It attributed the decline primarily to “de-risking”—that is, selling assets at a book loss to eliminate the potential for bigger losses later.
The job cuts, many of which will fall at its commercial banking division, represent more than 2 percent of ING’s workforce.
CEO Jan Hommen said he was “confident that these efforts, combined with further streamlining, will strengthen our company for the long-term benefit of all stakeholders.”
A more detailed look at the results shows that underlying profits—a nonstandard measure intended to indicate operating performance — at the banking division rose 16 percent to €1.02 billion, as ING attracted retail depositors and its margins improved from the second quarter.
However, the underlying profits included a one-time gain of €323 million from the sale of ING’s 9 percent stake in Capital One. And notably, the bank sharply increased provisions for bad loans.
Net banking profit was €670 million, including €258 million in losses on European “debt securities,” which usually means bonds.