The real estate arm of Netherlands-based financial group ING saw its losses narrow to EUR 4 mln in the second quarter of 2010 from a loss of EUR 580 mln in the same period last year following an improvement in valuations.
The real estate arm of Netherlands-based financial group ING saw its losses narrow to EUR 4 mln in the second quarter of 2010 from a loss of EUR 580 mln in the same period last year following an improvement in valuations.
Negative revaluations on real estate investments declined to EUR 58 mln from EUR 584 mln year-on-year and were roughly in line with EUR 52 million in the first quarter of this year as property markets showed signs of stabilising.
Impairments on real estate development projects declined to EUR 84 mln from EUR 151 mln in Q1, but increased from EUR 54 mln in the year-earlier period.
The figures were published on Wednesday as ING Group, the banking and insurance firm, reported an increase in underlying net profit to EUR 1.2 bn in the second quarter from EUR 1 bn in the first three months of 2010. This compares with a profit of EUR 212 mln in the same quarter last year.
ING Group CEO Jan Hommen said the higher impairment generated by ING Real Estate Development reflected the ongoing decision-making process regarding which projects will be continue and discontinued.
Hommen said that ING is working with an external adviser to evaluate possible scenarios for the EUR 67 bn real estate investment management (REIM) business including a sell-off.
Commenting on the ongoing evaluation, he added: 'We hope to have a resolution before the end of the year.'
