BRUSSELS, Jan. 26 (Xinhua) -- Dutch financial services group ING will book a loss of 1 billion euros (1.29 billion U.S. dollars) for 2008 and its Chief Executive Officer Michel Tilmant will step down after the group posted first ever losses in two consecutive quarters.

The biggest Dutch financial group will also accept a Dutch state guarantee for its troubled loan portfolio, and shed 7,000 full-time jobs this year as part of a cost control operation which is expected to save 1 billion euros in 2009, it said in a statement.

Based on preliminary and unaudited figures, ING expects to report a net result of around 1 billion euros for last year, which reflects the effects of selling the insurance business in Taiwan and ending the pension operations in Argentina, the group said.

The fourth-quarter loss before tax, excluding asset sales and special items, will amount to 3.3 billion euros (4.27 billion dollars), the Amsterdam-based group said, adding that the market conditions of the fourth quarter made it "the worst quarter for equity and credit markets in over half a century."

The company said it is taking several steps to reduce risk and expenses and increase focus on its core savings and investment business "to adapt the organization to the new business environment."

The company and the Dutch government have reached an agreement on an Illiquid Assets Back-up Facility covering 80 percent of ING's Alt-A mortgage securities, market prices for which have become depressed as liquidity dried up.

Under the deal, a full risk transfer to the Dutch state will be realized on 80 percent of ING's 27.7 billion-euro portfolio of Alt-A residential mortgage-backed securities (RMBS) at ING Direct USA and ING Insurance Americas. The transfer will take place at a discount of 10 percent of par value.

The Dutch government therefore will participate in 80 percent of any results of the portfolio, which will significantly reduce the uncertaintyregarding the impact on ING of any future losses in the portfolio.

The group aims to cut operating expenses by 1 billion in 2009 and reduce structural expenses of 1.1 billion euros annually from 2010 onwards.

Besides cutting workforce by about 7,000, the group will also reduce expenses on head office, marketing, the Formula 1 program and consultancy.

Tilmant, who has been ING's CEO since 2004, stepped down on Monday "in light of the extraordinary developments over the past few months and given his personal condition."

Jan Hommen, chairman of ING's supervisory board, will succeed Tilmant, subject to approval of the shareholders at their general meeting on April 27, the company said.

Hommen joined ING from electronics concern Philips in 2005 and became chairman of the supervisory board a year ago.

Paying tribute to Tilmant, Hommen said: "Under his leadership ING has made major steps in its development as a successful player in the financial services industry. Michel has built a very good team around him and continuity of management is therefore secured."

ING, which received a 10-billion-euro capital injection from the Dutch government last October, booked its first ever loss in the third quarter of 2008.

ING offers banking, investments, life insurance and retirement services to over 85 million clients in more than 50 countries. It has a workforce of about 130,000 people worldwide.
关键字:英语国际新闻
生词表: