ING Group, the Dutch bank and insurance company, revealed plans to cut 2,350 jobs after a drop in third quarter profits.

ING, one of Europe's larger financial conglomerates by assets, said its net profit fell to €609m from €1.69 billion a year ago.

It attributed the decline primarily to "de-risking" - selling assets at a book loss to eliminate the potential for bigger losses later.

The job cuts, many of which will fall at its commercial banking division, represent over 2% of ING's workforce.

Chief executive Jan Hommen said he was "confident that these efforts, combined with further streamlining, will strengthen our company for the long-term benefit of all stakeholders."

A more detailed look at the results shows that underlying profits - a nonstandard measure intended to indicate operating performance - at the banking division rose 16% to €1.02 billion, as ING attracted retail depositors and its margins improved from the second quarter.

However, the underlying profits included a one-time gain of €323m from the sale of ING's 9% stake in Capital One.

And notably, the bank sharply increased provisions for bad loans.

Net banking profit was €670m, including €258m in losses on European "debt securities," which usually means bonds. At insurance, ING blamed a 39% fall in operating profit to €238m on lower interest rates, losses on hedges, and "de-risking."

The arm booked a net loss of €61m, which ING attributed to a writedown in the value of its US variable annuities business, a writedown in the value of its Korean life insurance business, more "de-risking," and restructuring costs.

ING is still negotiating with European regulators over compensation measures for its 2008 bailout by the Dutch state. It is supposed to split its banking and insurance arms into separate companies by the end of next year.