ING Groep Q2 Profit Rises

(RTTNews) - Dutch financial services company ING Groep NV (ING) reported Wednesday a profit for the second quarter, that increased 27 percent from last year, driven primarily by ING Bank amid strong loan and deposit growth, and lower risk costs.

The company reported net result of 1.359 billion euros ($1.48 billion) for the second quarter, higher than 1.067 billion euros in the prior-year quarter. Net result per share also grew to 0.35 euros from last year's 0.28 euros. Total underlying net result for the quarter was 1.118 billion euros, up 21.1 percent from 923 million euros in the year-ago quarter.

Underlying result before tax for the group jumped 25.3 percent to 1.601 billion euros from last year, driven by good loan and deposit growth and lower risk costs.

Total underlying income grew 10.3 percent to 4.171 billion euros from 3.781 billion euros in the same quarter last year.

Interest result for the quarter grew 4.0 percent to 3.103 billion euros, while commission income was 584 million euros, down 1.8 percent from 595 million euros last year. Total investment and other income soared to to 485 million euros from 201 million euros last year.

Net result from banking soared 82.5 percent to 1.471 billion euros from last year, including a 367 million euro net gain resulting from the merger between ING Vysya Bank and Kotak Mahindra Bank in April 2015.

Excluding CVA/DVA impacts and the non-recurring charges in income, the underlying result before tax was 1.519 billion euros in the second quarter, up 13.7 percent from a year ago.

The banking results reflected the continued positive momentum in both Retail and Commercial Banking.

ING Bank's underlying interest margin was 1.43 percent, down three basis points from the second quarter of 2014.

The company noted that the current cost-savings programmes that have been underway at ING Bank since 2011 are expected to reduce total annual expenses by 1.2 billion euros by 2017 and 1.3 billion euros by 2018.

Total customer deposits increased by 9.3 billion euros in the quarter, primarily through retail Banking, where growth was recorded in all segments. Consumer lending grew by 1 billion euros in less than two years to 5 billion euros.

The company declared a 2015 interim cash dividend of 0.24 euros per ordinary share, adding that it intends to pay a full-year dividend of at least 40 percent of ING Group's total annual net profits.

The stock is currently trading in Amsterdam on Wednesday at 15.35 euros, down 0.26 euros or 1.67% on a volume of 4.97 million shares.