ING Groep NV, the biggest Dutch financial-services company, will cut 2,350 jobs in its banking and insurance units after reporting a 64% drop in third- quarter profit.
Bloomberg reports that workforce reductions at ING’s insurer will lead to a charge of about $193m in the fourth quarter. Job cuts in commercial banking over the next three years will also lead to a similar provision, ING said.
In the meantime, Reuters reports that, according to German weekly Die Zeit, Commerzbank may announce that it will cut between 5,000 and 6,000 jobs when it announces details of its newest strategy revamp at an investor day on Thursday.
And GMP Capital Inc. (GMP) Canada’s second-largest non-bank brokerage, is poised to announce more cost cuts as a 25% drop in trading on the country’s two main stock exchanges leads to a third-straight quarter of per- share losses.
Bloomberg reports that GMP and larger competitor Canaccord Financial, both based in Toronto, have been cutting costs as trading volume and fees from stock sales have shrunk. GMP Chief Executive Officer Harris Fricker said in August he’d update investors on how he’ll improve 'efficiencies' when the firm reports third-quarter results on November 9th.
'They’re not making any money today', CIBC analyst Paul Holden said in an interview. 'This is an environment where the revenues from the industry are not robust enough for them to earn a profit, so they’ve really got to focus on containing expenses and managing capital'.
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