money

AMSTERDAM: ING Groep NV, one of Europe's largest banking and insurance groups, reported a hefty loss for the fourth quarter on Wednesday, reflecting a mixed operating performance and a big charge related to an earlier bailout.

ING's net loss was euro712 million ($980 million), far less than the euro3.71 billion the company lost in the same period a year ago at the height of the financial crisis.

This quarter's figures included a one-time payment to the Dutch state of euro930 million.

That was demanded by the EU Commission's competition authority after it ruled a bailout package given to ING by the Netherlands was too generous.

At the company's operations, it made a euro132 million profit at its banking division, mostly due to a highly profitable retail division, but its corporate and real estate divisions continued to lose money.

In addition, provisions against bad loans rose by euro686 million.

A year ago the banking division lost euro1.84 billion.

"The bank showed a strong commercial performance, supported by improved interest margins, higher results from financial markets and cost reduction," said Chief Executive Jan Hommen in a statement.

The company has cut 7.9 percent of staff over the past year and now employs 107,173 people.

Under pressure from the EU, ING is planning to split its banking and insurance arms by 2012.

ING lost euro47 million from its insurance activities, compared with a euro2.5 billion loss a year ago.

And it made euro273 million on investments, compared with a loss of euro217 million a year ago. - AP