78 F
New York
Sunday, July 3, 2022

ING Misses Q1 Profit Estimates as Russia Provisions Hit Earnings

Must Read
OneNews provides trusted World and US news as well as local and regional perspectives.

AMSTERDAM—ING Groep NV, the largest Dutch bank, reported on Friday a worse-than-expected quarterly net income of 429 million euros ($452 million), including a surge in provisions for bad loans due to its exposure in Russia and Ukraine.

Analysts had forecast first-quarter net income at 679 million euros, according to Refinitiv data, while ING reported a net income of 1.01 billion euros in the year-ago period.

“Net additions to loan loss provisions were 987 million euros,” the company said. “The geopolitical situation, with the Russian invasion of Ukraine, had a significant impact on the risk costs in this quarter, with 834 million euros of risk costs associated with our Russia-related exposure.”

In March, ING had disclosed that it had around 700 million euros in loans affected by sanctions on Russian entities and individuals.

In addition, the company had said it had 5.3 billion euros in loans to Russian borrowers, representing about 0.9 percent of its total group loan book.

In an update on Friday, the company said it had earmarked 2.5 billion euros in capital in all “to cover for expected and unexpected losses on our Russia-related exposure.”

“This consists of the aforementioned 0.8 billion euros of loan loss provisions and €1.7 billion of (capital put aside) on 13.3 billion euros of total credit risk weighted assets on Russia-related exposure.”

Outside the Russian impact, the company’s results were lackluster, with income down 2.2 percent at 4.6 billion euros, mostly due to less money from the European Central Bank’s long-term lending program, where ING borrows at a negative rate.

The company’s loan book grew slightly, as retail lending grew 5.6 billion euros, mostly for mortgages in Germany, Australia, and Spain, while wholesale lending declined 5.2 billion euros.

Fees and commissions increased 9.3 percent to 933 million euros.

($1 = 0.9498 euros)

By Toby Sterling



Read More

- Advertisement -spot_img


Please enter your comment!
Please enter your name here

- Advertisement -spot_img
Latest News

Hurricanes, Rangers each bring confidence, promising history into Game 7

RALEIGH, N.C. -- Recent history would say one thing: The Carolina Hurricanes are going to win Game 7 of...
- Advertisement -spot_img

More Articles Like This

- Advertisement -spot_img