Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Fewer bad loans, ECB windfall boost Dutch bank ING

05/06/2021 | 02:40am EDT
FILE PHOTO: The logo of ING bank is pictured at the entrance of the group's main office in Brussels

AMSTERDAM (Reuters) -ING Groep NV, the largest Dutch bank, reported better-than-expected first quarter net profit of 1.01 billion euros ($1.2 billion) on Thursday on strong fee income and fewer bad loan provisions than a year earlier.

However, Chief Executive Steven van Rijswijk said that with much of Europe only now emerging from lockdowns, the COVID-19 pandemic was still the main threat to customers' prospects.

"We remain cautious and are taking into account expected delays in credit losses," Van Rijswijk said.

But with savers facing near-zero interest rates, "many customers have turned to investing as an alternative for saving, which for us resulted in growth in investment products," he said on a call with reporters.

Analysts had forecast net profit for the three months ended March 31 at 813 million euros, according to Refinitiv data. In the year-earlier period, ING made a profit of 670 million euros.

Income included a one-time benefit of 233 million euros from the European Central Bank after ING made business loans to European businesses that met conditions set by the central bank under its targeted lending programme TLTRO.

Provisions for bad loans fell to 223 million euros from 661 million euros in the same period a year ago.

ING said net core lending increased by 17.8 billion euros in the quarter, with its wholesale banking arm accounting for 15.1 billion in loans, and the rest mostly retail mortgage loans.

Van Rijswijk said loan appetite had improved in Asia and the Americas, and to a lesser extent in Europe, for now focused among exporters.

Among key metrics, the bank's net interest margin shrank to 1.41% from 1.51% a year ago, reflecting a relatively higher cost of customer deposits and worse lending terms.

Its cost-to-income ratio worsened to 64.1% from 62.8% as it incurred extra costs to close some retail branch offices in the Netherlands and announced plans to exit retail banking in the Czech Republic and Austria.

($1 = 0.8330 euros)

(Reporting by Toby Sterling. Editing by Clarence Fernandez and Mark Potter)

By Toby Sterling

© Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
AUSTRALIAN DOLLAR / EURO (AUD/EUR) -0.54% 0.6308 Delayed Quote.0.70%
BRITISH POUND / EURO (GBP/EUR) -0.53% 1.1636 Delayed Quote.4.55%
CANADIAN DOLLAR / EURO (CAD/EUR) 0.00% 0.676311 Delayed Quote.5.67%
INDIAN RUPEE / EURO (INR/EUR) 0.00% 0.011415 Delayed Quote.1.03%
US DOLLAR / EURO (USD/EUR) 0.45% 0.843227 Delayed Quote.2.53%
Latest news "Economy & Forex"
06:34aCongo ends oil production-sharing agreements with Israeli investor Gertler
06:34aDr congo ends production-sharing agreements for two oil blocks with companies controlled by israeli investor dan gertler - letter from hydrocarbons ministry
06:32aChina's Saudi oil imports plunge 21%
06:05aHong Kong seeking closer integration with mainland China, Lam says
05:59aAirlines, holiday companies ramp up pressure on Britain to ease travel rules
04:47aLibyan unity PM says coast road to reopen on Sunday
04:47aLibyan unity prime minister says on twitter that main coast road across front line will reopen on sunday
04:43aEAST AFRICAN COMMUNITY  : Zanzibar President calls for increased intra-EAC and intra-African trade
04:07aSouth Korea to loosen social distancing rules on July 1
03:45aWORLD BANK  : Overcoming language barriers to include refugees in host country education systems
Latest news "Economy & Forex"