Amsterdam  - Dutch bank and insurance giant ING Group suffered a net loss of 793 million euros (1.085 billion dollars) in the first three months of 2009, the bank said in its first quarter report released on Wednesday.

The net loss was substantially higher than the 451 million euros predicted by analysts. For all of 2008, the total loss amounted to 729 million euros.

In a statement, CEO Jan Hommen said "market conditions remained challenging in the first quarter." He emphasized that reducing costs, risk and leverage remain ING's top priorities.

Hommen added income from the banking business "recovered almost to the level of the first quarter last year" in the first three months of 2009.

He said ING made "good progress in our efforts to reduce risks and costs."

Hommen said the coming months will remain "challenging" as markets continue to be "volatile and the economic environment uncertain."

ING Group was one of three major Dutch banks to receive substantial government support since the financial crisis first hit the Netherlands in September 2008.

On January 26, the Dutch government agreed to guarantee 80 per cent of the group's problematic Alt-A mortgages, then estimated at 35.1 billion dollars.

On October 19, ING received a capital injection of 10 billion euros from the Dutch government

The International Netherlands Group (ING) is the result of a 1992 merger of several Dutch banks and insurance companies. Its original parent company was established in 1743. (dpa)