The fall in profit was mainly attributable to higher bad-loan provisions and charges related to variable annuities at its insurance business.
ING chief executive Jan Hommen said that despite the challenging economic environment, the financial performance of all business units was robust, as the banking business and the insurance unit posted better results.
"ING has made good progress so far this year as we work to improve our operational performance, execute our restructuring and prepare our banking and insurance companies for independent futures," Hommen added.
The bank underlying result before tax increased by 13.5% to €1.14bn, while Insurance EurAsia operating result grew by 26.1% to €256m, compared to the same period last year.
Insurance ING US operating result rose to €140m, from €102m, compared to the second quarter of 2012, backed by growth in fees and premium-based revenues and a higher technical margin.
Following €1.8bn of capital upstream to ING Group in the second quarter, the bank’s core Tier 1 ratio remained at 11.8% during the second quarter of current fiscal.
