ING income plunge nearly 80% on virus-induced mortgage defaults

108
268

ING, the Netherlands’ largest financial institution, has turn out to be the newest main European lender to report a rising influence from coronavirus-induced mortgage defaults, driving its second-quarter income down 79 per cent.

The Amsterdam-based lender, which runs retail banks in additional than a dozen international locations, put aside a further €1.3bn to cope with anticipated future defaults, following on from a €661m provision within the first quarter.

The determine was greater than consensus analyst forecasts of €1.1bn, although some had been braced for a good bigger cost after a cautious replace final week forward of the outcomes.

ING warned final week that it will take a greater than €300m writedown on goodwill linked to earlier acquisitions, echoing the same transfer by fellow multinational financial institution Santander.

The vast majority of ING’s provisions and writedowns have been centred on its company banking division, which fell to a web lack of €302m.

Most banks have to date averted massive will increase in precise buyer defaults resulting from authorities and bank-led help schemes because the begin of the disaster, however ING mentioned it was additionally affected by a small variety of massive particular person losses in a number of international locations.

ING was one of many largest lenders to Wirecard, the German funds firm that collapsed amid a fraud scandal in June.

The impairments and goodwill writedowns pushed ING’s quarterly web revenue to €299m, in contrast with €1.4bn in the identical interval final 12 months. Nevertheless, revenues held up higher than anticipated, remaining roughly flat at €4.7bn.

Steven van Rijswijk, who took cost of the financial institution within the midst of the pandemic in June, mentioned: “I’m assured about ING’s energy and resilience in these difficult instances, and I imagine that our strategic route is the best one to information us sooner or later.”

Mr van Rijswijk, a 25-year veteran of the group, was appointed after former chief Ralph Hamers was poached to run Swiss financial institution UBS.

108 COMMENTS

LEAVE A REPLY

Please enter your comment!
Please enter your name here