by Christopher Freeburn | August 8, 2012 9:53 am
ING Groep (NYSE:ING) posted second-quarter net earnings of 1.17 billion euros, down 22% from 1.51 billion euros in the same period last year. That missed analyst forecasts of 1.26 billion euros in profits, Bloomberg noted.
Pretax earnings from banking services fell 13% to 995 million euros. ING also boosted its reserves against bad loans from 304 million euros in the same quarter of 2011, to 541 million euros this year.
ING shares slipped more than 1% in early Wednesday trading in New York.
The Dutch bank has reduced its exposure in economically fragile Spain, shedding assets there worth 6.2 billion euros. ING recorded a loss of 156 million euros on Spanish assets during the second quarter. Company officials said the bank would continue to dispose of risky assets, but cautioned that it was not conducting a fire sale and would seek competitive prices for the assets it sold.
ING has repaid 7 billion euros of its 10 billion euro bailout package, which save the company from insolvency in 2008. It has also paid at least 2 billion euros in interest and premiums on those loans.
The bank had initially planned to completely repay the bailout loans by the end of this year. However, the faltering eurozone economies and sovereign debt crisis have rendered that unlikely.
Last week, German banking giant Deutsche Bank (NYSE:DB) announced that its second-quarter earnings dropped 46% compared to last year, with earnings at its retail banking operations down 13%.
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