ING Groep NV, which has extensive operations in Des Moines, reported that net income for the second quarter fell 25 percent, mainly as a result of smaller gains on investments, the Associated Press reported.

Net income was 1.92 billion euros ($2.86 billion), compared with 2.56 billion euros in the year-ago period. Investments had the biggest impact on earnings, with lower real estate and private equity valuations.

Underlying insurance earnings – a nonstandard measure – fell 45 percent to 1.15 billion euros, and underlying banking earnings were down 17 percent to 1.10 billion euros. The insurance division also faced a decrease in clients interested in investment-linked products, with gross income from premiums falling 2.3 percent.

ING’s banking division’s losses related to the U.S. mortgage market totaled 39 million euros. It also increased loan loss provisions to 234 million euros from 25 million euros a year ago. Meanwhile, profits at ING’s online retail banking division, ING Direct, jumped 4.7 percent to 179 million euros.