Dutch financial institute ING Group reported today in its quarterly results an impairment charge of  194 million euros (approximately  $285.6 million). However, as a result of an ABN AMRO stake sale , the net profit went up by 18 percent to 2.48 billion euros . The impairment charge is a result of risky investments, including RBMS (mortgage) investments backed by subprime loans and " Alt-A " loans, which are made to borrowers with a slightly better credit profile than those in the subprime category, as well as from collateral debt obligations (CDOs). CEO Michel Tilmant said that "solid risk management" shields ING from the worst effects of the financial crisis. "ING's exposure to the riskiest assets is limited, and the RMBS investments we selected have a high level of structural credit protection to absorb significant losses as the U.S. housing crisis deepens," says Tilmant.
Dutch financial institution ING Group reported today in its quarterly results an impairment charge of € 194 million euros (approximately US $285.6 million). However, as a result of selling an equity stake in rival ABN AMRO , the net profit of € 2.48 billion , was 18\% higher than last year . The impairment charge is a result of risky investments, including RBMS (mortgage) investments backed by subprime loans and Alt-A loans, which are made to borrowers with a slightly better credit profile than those in the subprime category, as well as from collateral debt obligations (CDOs). CEO Michel Tilmant said that "solid risk management" shields ING from the worst effects of the financial crisis. "ING's exposure to the riskiest assets is limited, and the RMBS investments we selected have a high level of structural credit protection to absorb significant losses as the U.S. housing crisis deepens," added Tilmant.
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an ABN AMRO stake sale
selling an equity stake in rival ABN AMRO
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, was 18\% higher than last year
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