AMSTERDAM (AP) — ING Groep NV, the Dutch banking and insurance group, says net profit was lower in the second quarter due to hedging losses on a U.S. retirement product. However the company said the operational picture at both arms is improving, five years after its bailout by the Dutch state which has not been fully repaid.
Second quarter net profit was 788 million euros ($1.05 billion), down from 1.29 billion euros in the same period a year earlier. ING said Wednesday its underlying banking earnings had improved to 1.15 billion euros from 1.01 billion euros. The company said insurance operations were thriving, but its U.S. arm was hit by large losses on its variable annuities products, which are hedged to lose money when stock markets rise — as they have recently.