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ING to Cut 1 Billion Euros in Costs, Slash 7,500 Jobs

Wednesday, 13 Feb 2013 | 1:26 AM ET
ING CFO: Cutting 7,500 Jobs in 2013
Patrick Flynn, CFO of ING Group, tells CNBC that the group saw a solid result in the background of a difficult European environment.

Dutch banking and insurance group, ING reported fourth-quarter net profit that missed expectations on Wednesday but the company's Chief Financial Officer told CNBC it would implement major cuts to save 1 billion euros ($1.34 billion) in operating costs per year.

Patrick Flynn, the CFO of ING Group said the company needed 7,500 less staff across banking and insurance. That includes 2,400 job cuts announced in Wednesday's earnings release.

(Read More: No Growth in UK Banking Until 2017 Says Think Tank)

"We are seeing customers particularly in retail changing their pattern of behavior, moving to more digital and online banking and we need to respond. Unfortunately, that means we need less people to process these things," Flynn said. "This is a big program, that will need implementing."

An employee arrives at the Dutch bank ING in Amsterdam
Toussaint Kluiters | AFP | Getty Images
An employee arrives at the Dutch bank ING in Amsterdam

ING reported fourth quarter net profit of 1.434 billion euros compared to analysts' forecast of 1.587 billion euros.

Flynn said the group had performed well despite a "a difficult European environment" and that underlying net profits were down just 5 percent on last year.

He said the results included a number of one-off effects such as a bank tax. He added that the bank had received 30 billion euros of additional deposits in 2012, while paying the state back one billion euros.

"We still kept our capital core tier-one ratio one of the best in Europe at 11.9 percent," he said.

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