8/1/2019, 7:57 AM (Source: TeleTrader)
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ING lifts profit by just 0.6% in Q2 to €1.44B

ING Groep NV pointed to the addition of more than 300,000 primary customers in the three months through June to reach 12.9 million as underlying income jumped 4% year over year to €4.67 billion. The bank based in the Netherlands also saw a jump in expenses – 4.4% on an annual basis to €2.45 billion, and profit landed at €1.44 billion or 0.6% higher than in the same period of last year. It translates to a flat €0.37 per share.

As the lender highlighted growth in net interest income of 0.8% to €3.47 billion, pretax profit beat analyst consensus for underlying net income before tax of €1.83 billion, reporting €2 billion. Underlying interest margin climbed by only one basis point from the equivalent period of 2018 to 1.52%. Common equity tier ratio CET1, a benchmark for capital strength, was lifted by 40 points on the year in the first half to 14.5%.

Chief executive Ralph Hamers said there is good progress in the ongoing transformation while claiming "solid profitability and healthy growth" were achieved. "Higher volumes and resilient lending margins supported earnings despite the ongoing low interest rate environment. Looking ahead, we expect that persistently low interest rates will put pressure on net interest income," he warned.

Baha Breaking the News (BBN) / IT