Dutch group ING repays a further $1.7 bln to state

AMSTERDAM, March 31 Mon Mar 31, 2014 5:44am EDT

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AMSTERDAM, March 31 (Reuters) - Dutch financial services group ING Groep NV has repaid a further 1.23 billion euros ($1.68 billion) to the Dutch state, it said on Monday.

The payment takes the total amount returned to the state to 12.5 billion euros, ING said, including 9.3 billion euros in principal and 3.2 billion euros in interest.

ING dismantled its once-fashionable banking and insurance model and announced thousands of job cuts and other savings after its 10 billion euro state rescue in 2008, at the height of the global financial crisis.

ING shares were upgraded on Monday morning by Goldman Sachs to "buy" from "neutral". The stock was up 2.7 percent in late morning trading in Amsterdam to 10.27 euros.

The payment was funded by a dividend from ING bank to ING group and reduced the bank's core tier 1 capital ratio by approximately 40 basis points.

($1 = 0.7271 Euros) (Reporting by Anthony Deutsch; Editing by Mark Potter)

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