ING's 2Q Net Profit Fell, But Beat Market Views Significantly -- Update

By Sabela Ojea

ING Groep NV reported on Thursday a decline in net profit for the second quarter of 2022, which still came in ahead of market views, and noted that total income increased on the back of higher interest income, a robust fee and commission income and strong trading results.

The Dutch lender posted a net profit of 1.18 billion euros ($1.20 billion) compared with EUR1.46 billion for the same period a year earlier. Net profit was expected to decline to EUR958.1 million, according to FactSet and based on two analyst forecasts.

Total income rose to EUR4.68 billion from EUR4.52 billion, with net interest income increasing to EUR3.47 billion from EUR3.34 billion a year earlier, it said, adding that fee income rose 4% on year to EUR888 million.

Net interest income was expected to rise to EUR3.43 billion, taken from FactSet and based on two analyst estimates.

The lender booked operating expenses of EUR2.74 billion, up from EUR2.54 billion a year earlier, and an addition to loan loss provisions of EUR202 million.

ING closed the period with a common equity Tier 1 ratio--the comparison of the bank's capital against its assets--of 14.7%, down from 14.9% as at March 31, and a return on tangible equity of 7.5%, down from 8.0% in the previous period.

The board has declared an interim dividend of EUR0.17, it added.

Write to Sabela Ojea at [e-mail]; @sabelaojeaguix

(END) Dow Jones Newswires

August 04, 2022 02:00 ET (06:00 GMT)

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