ING posts profit plunge ahead of Europe insurance IPO

(AFP) Dutch bank ING on Wednesday posted second-quarter profits down almost 40 percent on last year to 788 million euros, as it prepares to float its European insurance business to comply with EU rules.

The figure was slightly lower than the 833 million euros predicted by analysts questioned by Dow Jones Newswires.

"ING has made good progress so far this year as we work to improve our operational performance, execute our restructuring and prepare our banking and insurance companies for independent futures," CEO Jan Hommen said in a statement.

The company announced late last year that it would cut 2,350 jobs in the coming years as part of its restructuring.

The bank said the floating of its US retirement, investment and insurance business in May, although at a lower value than initially predicted, had contributed to reducing the group's holding company's leverage to 4.4 billion dollars.

"The European business has been accelerating its transformation programme to be ready for a base case IPO in 2014," Hommen said.

Profits from the group's banking activities were up 7.2 percent, reflecting higher interest results and the positive effects of ING's restructuring.

The European Commission has told ING to restructure its business, as the Dutch firm seeks to repay 10 billion euros in state aid it received in October 2008 during the financial crisis.