ING Hit By Restructuring Costs

By Maarten van Tartwijk 

AMSTERDAM-- ING Groep NV on Wednesday posted a EUR1.92 billion ($2.67 billion) first-quarter net loss compared with EUR1.9 billion net profit a year earlier, as the Dutch bank was hit by a string of charges related to its restructuring.

Analysts polled by FactSet forecast a net loss of EUR2.07 billion.

ING said the bottom line was squeezed by a EUR2.01 billion accounting loss on its stake in Voya Financial Inc, the U.S. insurer that was floated by its Dutch parent last year. Costs related to the restructuring of its pension scheme in the Netherlands also weighed on the results.

Excluding the one-off charges, profit was EUR988 million, down 16% from the same period last year.

ING was ordered by the European Union to shed assets in return for approval of a government bailout received in 2008. The Dutch bank is in the final phase of its restructuring and is currently readying its European insurance business, NN Group, for an initial public offering. It is expected to be one of the largest stock listings in Europe this year.

ING said it will inject another EUR850 million into NN to improve the unit's capital base, and that it plans to sell the shares through a secondary offering.

ING last week said it clinched a deal with three Asia-based investors to participate in the IPO, which is expected to take place this summer.

Write to Maarten van Tartwijk at [e-mail]

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