Dutch financial services giant ING Group reported its net profit was down 1.4% to $5.5 billion through the first nine months of 2002.

Compared with year-end 2001, assets under management were 11% lower at $707.7 billion. Provided economic conditions and financial markets will not deteriorate further until year end, ING expects to match last year’s operational net profit.

“The continued weak economic climate and the further fall of stock market indices in the third quarter have affected our nine-months results, but we are pleased with a 0.7% increase in operational net profit,” said Ewald Kist, chairman of ING’s executive board. “In view of the uncertain future course of the economy and especially of the equity markets, however, we must step up our efforts to use capital more efficiently, to make additional cost cuts, and to further rationalize the organization.”

ING announced additional workforce reductions of 1,000 positions in international wholesale banking, particularly in underperforming branches and businesses, aimed at restoring banking profitability. It also announced a more conservative, accelerated unlocked approach to amortizing deferred acquisition costs in the U.S. variable annuity business.

Starting in 2003, the level of realized capital gains on equity investments will depend on market developments, ending ING’s automatic 15% annual increase in realized capital gains on equities. At its annual meeting in April, ING will propose optional cash/stock dividends beginning with the year-end 2002 final dividend.