ING Group Q3 Profit Climbs On Lower Loan Loss Provisions

(RTTNews) - Dutch banking firm ING Group (ING) Wednesday reported increased profit for the third quarter, particularly on decreased loan loss provisions. The results were also benefited by a strong performance in Retail Banking, lower risk costs, growth in core lending and improved margins.

Net result for the quarter increased 14.7 percent to 1.064 billion euros from last year's 928 million euros. These figures include the net results of the legacy insurance businesses.

Net result from Banking improved to 1.078 billion euros from 1.006 billion euros, amid strong performance in Retail Banking, lower risk costs, growth in core lending and improved margins.

For ING bank, underlying result before tax was 1.495 billion euros, up 0.6 percent from last year. Net interest income improved on the back of continued growth in core lending businesses and a slightly improved interest margin.

Addition to loan loss provision declined 18.9 percent to 261 million euros from 322 million euros.

Ralph Hamers, CEO of ING Group, said, "ING Bank delivered another solid financial performance this quarter...While this is encouraging, we remain vigilant for any potential impact that imbalances in emerging economies and financial markets could have on our clients and business units."

Total underlying income improved to 4.002 billion euros from 3.942 billion euros, supported by positive CVA/DVA impacts. Interest result slid 0.5 percent to 3.14 billion euros, while Commission income fell 9.5 percent to 524 million euros.

Further, ING said it is well placed to absorb regulatory impacts and achieve attractive capital return.

The stock fell 1.7 percent on Tuesday in Amsterdam to close at 13.15 euros.