AIRLINK 74.85 Increased By ▲ 0.56 (0.75%)
BOP 4.98 Increased By ▲ 0.03 (0.61%)
CNERGY 4.49 Increased By ▲ 0.12 (2.75%)
DFML 40.00 Increased By ▲ 1.20 (3.09%)
DGKC 86.35 Increased By ▲ 1.53 (1.8%)
FCCL 21.36 Increased By ▲ 0.15 (0.71%)
FFBL 33.85 Decreased By ▼ -0.27 (-0.79%)
FFL 9.72 Increased By ▲ 0.02 (0.21%)
GGL 10.45 Increased By ▲ 0.03 (0.29%)
HBL 112.74 Decreased By ▼ -0.26 (-0.23%)
HUBC 137.44 Increased By ▲ 1.24 (0.91%)
HUMNL 11.42 Decreased By ▼ -0.48 (-4.03%)
KEL 5.28 Increased By ▲ 0.57 (12.1%)
KOSM 4.63 Increased By ▲ 0.19 (4.28%)
MLCF 37.80 Increased By ▲ 0.15 (0.4%)
OGDC 139.50 Increased By ▲ 3.30 (2.42%)
PAEL 25.61 Increased By ▲ 0.51 (2.03%)
PIAA 20.68 Increased By ▲ 1.44 (7.48%)
PIBTL 6.80 Increased By ▲ 0.09 (1.34%)
PPL 122.20 Increased By ▲ 0.10 (0.08%)
PRL 26.58 Decreased By ▼ -0.07 (-0.26%)
PTC 14.05 Increased By ▲ 0.12 (0.86%)
SEARL 58.98 Increased By ▲ 1.76 (3.08%)
SNGP 68.95 Increased By ▲ 1.35 (2%)
SSGC 10.30 Increased By ▲ 0.05 (0.49%)
TELE 8.38 Decreased By ▼ -0.02 (-0.24%)
TPLP 11.06 Decreased By ▼ -0.07 (-0.63%)
TRG 64.19 Increased By ▲ 1.38 (2.2%)
UNITY 26.55 Increased By ▲ 0.05 (0.19%)
WTL 1.45 Increased By ▲ 0.10 (7.41%)
BR100 7,841 Increased By 30.9 (0.4%)
BR30 25,465 Increased By 315.4 (1.25%)
KSE100 75,114 Increased By 157.8 (0.21%)
KSE30 24,114 Increased By 30.8 (0.13%)

AMSTERDAM: ING Groep NV on Thursday reported better-than-expected third-quarter pretax profit of 1.92 billion euros ($2.22 billion), due to fee growth and better commercial lending margins, as well as lower costs for bad loans.

Analysts had seen pretax profit at 1.80 billion euros, according to Refinitiv data. In the third quarter of 2020, pretax profit was 1.20 billion euros.

"We saw continued lending growth in mortgages, whereas loan demand from businesses was influenced by the economic effects of the Covid pandemic," ING CEO Steven van Rijswijk said in a statement.

"Even so, our commercial lending margins were slightly higher and we saw strong fee growth in account package fees, investment products and lending."

Fees and commissions grew 20% to 882 million euros, ING said.

Helping profitability, the bank's net interest margin improved to 1.38% from 1.36% in the same period a year ago, while its cost-to-income ratio improved to 57.8% from 61%.

ING said provisions for bad loans were just 39 million euros, below normal levels, given it was able to reverse some provisions for bad loans taken amid the pandemic, as economies continued to rebound beginning in its key markets.

ING added 95,000 "primary" customers in the quarter, or those who bought more than one financial product from the bank, with strength in Germany and Poland. It has 14.1 million such customers in all.

Core lending growth was 3.1 billion euros, with 4.7 billion euros growth in consumer lending, mostly mortgages, and a negative 1.6 billion euros in wholesale banking loans, as commercial lenders repaid loans taken on during the pandemic.

"In Germany, a high number of customers took out consumer loans this quarter, led by improvements in the pre-approved lending process for existing customers, ING said.

Comments

Comments are closed.