ING Q1 Net Profit Down, Underlying Result Rise; Stock Up

(RTTNews) - Shares of ING Group NV (ING) were gaining around 3 percent in the morning trading in Amsterdam after the Dutch banking firm reported Wednesday significant growth in first-quarter profit from continuing operations and underlying earnings. Net result, meanwhile, declined on the absence of prior year's sales gain. Total underlying income increased in the quarter.

Ralph Hamers, CEO of ING, said, "ING had a strong first quarter supported by continued commercial growth. ...Wholesale Banking's contribution was particularly strong, led by higher income from Financial Markets and commissions."

Net result for the first quarter slid 9.1 percent to 1.143 billion euros from 1.257 billion euros a year ago. Net result per share declined to 0.29 euro from 0.32 euro last year.

The prior year's results were benefited by a 506 million euros profit from the sale of shares in NN Group. Excluding this, net result on a continuing operations basis climbed 52.2 percent from last year.

ING Group's underlying net result for the quarter rose more than 39 percent to 1.175 billion euros from 842 million euros a year ago. Underlying result before tax grew 39.3 percent to 1.65 billion euros, reflecting continued loan growth, good cost control and relatively low risk costs.

Total underlying income was 4.40 billion euros, up 7.6 percent from 4.09 billion euros last year. The increase was supported by a 3.2 percent rise in net interest income, largely reflecting volume growth in customer lending and in customer deposits.

Net interest income for the first quarter increased to 3.352 billion euros from 3.25 billion euros last year. Net interest income excluding Financial Markets increased by 4.4 percent in the same period.

Net commission income grew 12.4 percent to 682 million euros, attributable to both Retail and Wholesale Banking.

ING Group's fully loaded CET1 ratio increased by 0.3 percentage point to 14.5 percent at the end of March 2017.

In Amsterdam, ING shares were trading at 15.59 euros, up 2.87 percent.