JOIN US“Market conditions remained challenging in the first quarter as equity markets declined further, credit spreads remained elevated, real estate prices continued to fall and loan losses increased,” said Chief Executive Jan Hommen.
In the insurance business ING was forced to recognise 325 million euros of fair value changes and impairments on real estate and private equity investments, 365 million euros of impairments on securities and 550 million euros in charges related to customer acquisition costs.
Drop in sales
Overall insurance sales fell 27.5 per cent year-on-year. The value of new business was down 57.4 per cent . Loan loss provisions in banking came in at 772 million euros, above the average of analysts’ forecasts of 604 million euros, Bank also took an investment loss of 150 million euros, mostly on impairments related to mortgage securities. But ING also said the deleveraging of its balance sheet on the banking side was ahead of schedule, having completed 79 billion euros of the planned 110 billion euros reduction by the end of the quarter.