ING Groep 1Q Hurt by Provisions; Plans to Return EUR1.25 Billion to Holders

By Ian Walker

ING Groep NV on Friday reported a more-than-halved net profit for the first quarter after booking a number of provisions, mostly related to its exposure in Russia.

The Dutch bank has also announced plans to return 1.25 billion euros ($1.32 billion) to shareholders, of which EUR380 million will consist of share buybacks with the rest in dividends. The board plans to pay a dividend of 23.20 European cents on May 18.

ING posted a net profit of EUR429 million, compared with EUR1.01 billion a year earlier.

The bank has booked a charge in its accounts of EUR987 million, of which EUR834 million is related to its Russian-related exposure. ING booked EUR223 million of provisions in the first quarter of 2021.

Total income fell to EUR4.60 billion from EUR4.70 billion, compared with a consensus of EUR4.56 billion taken from FactSet and based on three analysts forecasts

ING's common equity Tier 1 ratio--a key measure of balance sheet strength--was 14.9% at the end of the period, down from 15.5% a year earlier, it said.

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(END) Dow Jones Newswires

May 06, 2022 01:46 ET (05:46 GMT)

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