ING said to shut equity derivatives business in Singapore, New York and Brussels

A general view of ING Bank logo on the bank's headquarters in Brussels.
A general view of ING Bank logo on the bank's headquarters in Brussels. PHOTO: EPA

AMSTERDAM (BLOOMBERG) - ING Groep plans to shut its equity derivatives business for financial institutions in Singapore, New York and Brussels, a person with knowledge of the plans said.

The Dutch bank will also move as many as 60 trading jobs from Amsterdam and Brussels to London as it seeks to consolidate operations and cut costs, said the person, who declined to be identified as the plans were confidential.

ING announced last week it plans to shed 7,000 jobs and invest in its digital platforms to make annual savings of 900 million euros (S$1.37 billion) by 2021.

The layoffs represent slightly less than 12 per cent of ING's 52,000 workforce because nearly 1,000 are expected to come at the supplier's end rather than the bank itself.

But they are the heaviest since 2009, when ING was forced to restructure and spin off its insurance activities after receiving a state bailout during the financial crisis.

Shares of ING have lost about 9 per cent of their value this year, giving the company a market capitalisation of about 44 billion euros.

ING is the first large European lender shifting staff to London after the UK decided to leave the European Union in a June referendum. Other banks have signalled they may have to move jobs and operations abroad, with UBS Group chief executive officer Sergio Ermotti saying last month the Swiss lender may have to shift as many as 1,500 positions elsewhere.

While the future of London as a financial capital is in question after Brexit, the city remains home to a large pool of potential talent. ING may have to review the location in the future if the impact of Brexit is so severe as to affect its ability to draw employees or otherwise impacts the business and its clients, the person said.