53% of targeted E1 billion cost savings achieved in the first half

ING has reported Q2 2009 underlying net profit of E229 million, which shows improvement from underlying net loss of E305 million in Q1 2009.

The group’s operating expenses has fallen by 5.5% from the second quarter of 2008, and 2.4% from the first quarter of 2009. The net addition to loan loss provisions of E852 million at ING Bank, equivalent to 118 bps of average credit-risk weighted assets. The divestments and special items totalled E159 million.

De-leveraging, de-risking and cost-containment measures progressing was on track or ahead of targets. Cumulative reduction in Bank balance sheet of E164 billion, or 15%, since Q3 2008 exceeds target for 10% reduction. 53% of targeted E1 billion cost savings achieved in first half of 2009.

The total FTE reduction of 8,219 realised by end of Q2 2009, ahead of 7,000 planned reductions for full-year 2009. All key capital and leverage ratios were robust during the quarter, shareholders’ equity increased by E2.9 billion.

Bank reported Tier 1 ratio of 9.4% and core Tier 1 ratio of 7.3%. The shareholders’ equity increased by E2.9 billion driven by tightening credit spreads and the uptick in equity markets.

Bank reported an asset leverage ratio of 28.9x at the end of Q2 2009, down from 30.1x at the end of Q1 2009.