ING reports profit growth
13 August 2010 Amsterdam
Image: Shutterstock
ING's net profit for the second quarter of the year has risen to EUR1.2 billion. It's a huge increase on the same period last year, where profits were EUR212 million, and a significant rise on the first quarter, which was EUR212 million.
"ING continued to build earnings momentum in the second quarter, particularly at the banking business, as commercial growth gained pace and market conditions further improved," said Jan Hommen, CEO of ING Group. "The underlying net profit for the Group increased to EUR 1,202 million in the second quarter, up from EUR 212 million a year earlier when markets were more volatile. Underlying earnings also continued their upward trend compared with the strong first quarter, increasing 18 per cent from EUR 1,018 million, despite concerns about economic recovery in the Eurozone that dominated markets during the quarter.
"Sovereign risk concerns, combined with fear of a 'double dip' scenario, had a significant impact on interbank markets in the euro area as well as on equity markets worldwide. The sharp decline in equity markets in the quarter severely impacted the results of our US insurance operations. However, the bank continued to benefit from its strong liquidity and funding profile, with lending growth funded entirely by customer deposits, and refinancing of long-term funding already completed for the year.
"The Bank led the earnings improvement as commercial growth remained robust and negative market impacts continued to decline. Interest income was stable as margins on savings and lending remained healthy and volume growth picked up, offsetting a small decline from Financial Markets. Provisions for loan losses continued to trend lower as the US housing market stabilised and lower provisions were taken in Commercial Banking. However risk costs in the Benelux mid-corporate and SME segments remain elevated, reflecting a still weak economic environment. Efficiency at the bank improved further, reflecting the significant cuts made last year, and the cost/income ratio declined to 52.6 per cent, approaching the target of 50 per cent for 2013."
"ING continued to build earnings momentum in the second quarter, particularly at the banking business, as commercial growth gained pace and market conditions further improved," said Jan Hommen, CEO of ING Group. "The underlying net profit for the Group increased to EUR 1,202 million in the second quarter, up from EUR 212 million a year earlier when markets were more volatile. Underlying earnings also continued their upward trend compared with the strong first quarter, increasing 18 per cent from EUR 1,018 million, despite concerns about economic recovery in the Eurozone that dominated markets during the quarter.
"Sovereign risk concerns, combined with fear of a 'double dip' scenario, had a significant impact on interbank markets in the euro area as well as on equity markets worldwide. The sharp decline in equity markets in the quarter severely impacted the results of our US insurance operations. However, the bank continued to benefit from its strong liquidity and funding profile, with lending growth funded entirely by customer deposits, and refinancing of long-term funding already completed for the year.
"The Bank led the earnings improvement as commercial growth remained robust and negative market impacts continued to decline. Interest income was stable as margins on savings and lending remained healthy and volume growth picked up, offsetting a small decline from Financial Markets. Provisions for loan losses continued to trend lower as the US housing market stabilised and lower provisions were taken in Commercial Banking. However risk costs in the Benelux mid-corporate and SME segments remain elevated, reflecting a still weak economic environment. Efficiency at the bank improved further, reflecting the significant cuts made last year, and the cost/income ratio declined to 52.6 per cent, approaching the target of 50 per cent for 2013."
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