ING has attributed the increase in profits to continued strong fee income and the inclusion of a TLTRO III funding rate benefit in net interest income
ING's headquarters in Amsterdam, Netherlands. (Credit: Ceescamel/Wikipedia.)
ING has reported a net profit of €1.4bn for the second quarter ended 30 June 2021, a 388% rise compared to €299m for the same quarter last year.
The company has reported a profit before tax (PBT) of €2bn for the second quarter (Q2) 2021, a 281% increase compared to €542m for the corresponding period in 2020.
The bank has reported a net fee and commission income of €855m for Q2 2021, an increase of 18.3% compared to €723m for the same quarter in 2020.
ING has attributed the increase in profits to continued strong fee income and the inclusion of a TLTRO III funding rate benefit in net interest income.
Also, its other income benefited from a legacy receivable related to the insolvency of a financial institution in the Netherlands.
ING Group CEO Steven van Rijswijk said: “I’m pleased with another set of resilient results in the second quarter. Fee income of €855 million was in line with the strong result in the first quarter, while net interest income and in particular our liability margin remained under pressure.
“The improving economic environment meant that risk costs were significantly reduced, and expenses are developing in the right direction, which I will continue to monitor closely.
“I’m encouraged by the growth in primary customers, and we continue to see high demand from retail customers for digital investment products, which complement our savings product offering.
“In addition to diversifying income, we continued to take steps to future-proof our business and optimise capital allocation by making decisions on where and how we serve customers.”
ING’s common equity tier 1 ratio (CET1 ratio) for Q2 2021 was 15.7%, which increased from 15% for the same period last year.
The company reported customer deposits of €620.6m for the reported period, a 2.4% increase compared to €605.8m for the corresponding quarter in 2020.
Last month, ING has agreed to transfer its retail banking operations in Austria to bank99, the digital banking arm of the national postal service Österreichische Post.
The company is transferring its retail customers in the Czech Republic to Raiffeisenbank, with nearly half customers and 60% of client balances migrated smoothly.