ING shoots up 133% profit until June due to rate hikes and lower provisions

MADRID, 3 Ago.

ING shoots up 133% profit until June due to rate hikes and lower provisions


ING Group obtained a net profit of 3,746 million euros in the first half of 2023, which represents an increase of 133.3% compared to the result of the 'orange entity' in the same period of 2022, according to the bank. .

In the first half of the year, ING Group's provisions were limited to 250 million euros, compared to 1,189 million booked a year earlier, including 202 million in the second quarter.

Likewise, the regulatory costs assumed in the first six months of the year decreased by 28.6%, to 616 million, with a drop of 57.5% in the second quarter, to 91 million.

The turnover of the Dutch bank until June stood at 11,325 million euros, 22% above the income registered a year earlier, with an increase of 20.1% in net interest income, up to 8,073 million, while that those linked to commissions fell by 0.8%, up to 1,807 million.

In the second quarter, ING Group obtained a net profit of 2,155 million euros, 82.9% more than between April and June 2022. As of June 30, the CET1 Tier 1 capital ratio was 14.9%, a tenth more than at the end of the first quarter and two above the level of a year earlier.

The Dutch bank's income in the period grew 23% year-on-year, up to 5,759 million, after increasing net interest income by 19.8%, up to 4,061 million, and increasing commission income by 2.7%, up to 912 millions.

On the other hand, the Dutch bank announced that on August 14, 2023 it will pay an interim dividend of 0.35 euros per share in cash for the first half of the year, compared to the 0.17 euros paid on account of the first half of 2022.

"The second quarter of 2023 was characterized by continued challenges, as economic sentiment weakened, geopolitical uncertainties persisted and inflation remained elevated, albeit less pronounced than in previous quarters," said Steven van Rijswijk, CEO of ING.

"In these circumstances, we continue to deliver strong results. The current interest rate environment fueled revenue growth in both retail and wholesale banking, with continued deposit inflows into our retail markets," he added.

Likewise, the executive expressed his satisfaction with the growth of clients registered in the quarter, when the main client base grew by 227,000 to a total of 14.9 million.