ING the Dutch financial services, founded in 1743, has reported a whopping net operating loss of €3.1 billion euros (US $4.68 billion) which consisted of €1.07 Bn loss at ING's banking arm - principally on more bad loans, and a €2.04 Bn.loss as insurance deals have gone bad. (They escaped buying ABN - Amro in September leaving it to the Tartan Titans RBOS)
ING has cut two deals with the Dutch government. Last year it received a €10 Bn. investment lifeline. In January 2009, the state assumed most of the risk for €27.7 Bn in troubled US mortgage-backed securities ING owns.
Major attack on costs and deep jobs cuts
In January 2009, the company had warned markets it expected a loss for the quarter of €3.3 Bn and CEO Michel Tilmant had resigned.The company claims they will cut operating costs by 1 billion euros in 2009, reduce loans by 10 percent from September levels and announced 7,000 job cuts in January, representing 5 percent of their total work force. wi600 joll go at ING Direct, the online business that posted a Q4 pre tax loss of €1.41 Bn.
1,400 jobs will go at its wholesale banking unit, which lost €f 366 Mn, retail banking which made aprofit of €75 Mn. will see 800 job cuts.
The company’s insurance business, which had a loss of €1.39 Bn, will slash 4,200 jobs - 2,400 in the Americas, 1,100 in Europe and 700 in the Asia- Pacific region.ING confirmed today they will not renew the 3 year sponsorship contract with Renault F1 and to end its presence in F1 beyond the 2009 season.
ING shares fell to €4.97 in Amsterdam - ING shares have dropped 32% this year reducing market capitalisation to € 10.2 Bn.
How can a company facing these problems have even looked at taking over ABN / AMRO - why on Earth did RBOS persist ? Hubris.
You don't need bankers to sort this mess out, clear objectives, clear policy, prompt effective action between informed Government and honest decent managment.
Not much in evidence in the UK.