Dutch financial services group ING Group reported a bigger-than-expected 19 per cent drop in quarterly net profit, hit by weaker returns from real estate, private equity and market investments.
First-quarter profit was €1.54 billion (Dh8.8bn), compared with €1.89bn a year earlier, ING said yesterday. The average expectation of 12 analysts was €1.66bn.
ING blamed the bulk of the decline on weaker valuations in ING's real estate and private equity investments, as well as lower stock investment gains, all of which pushed profit down €436 million from a year earlier.
ING also took a charge of €55m on its sub-prime-related investments, while weaker global currencies relative to the euro also accounted for a €55m fall in profit. There was also a €94m charge on the restructuring of Dutch business.
Follow Emirates 24|7 on Google News.
