ING Groep NV reported second quarter profit that beat analyst estimates as it set aside less money for soured loans.
Net income of €2.16 billion ($2.36 billion) in the second quarter compared with expectations for profit of €1.72 billion, the bank said on Thursday. ING added €98 million to its loan loss provisions in the quarter, much below the €383 million estimated in a Bloomberg survey of analysts.
Geopolitical challenges were “less pronounced than in previous quarters,” Chief Executive Officer Steven van Rijswijk said in a statement. “Risk costs were limited in the second quarter, underlining the quality of our loan book.”
The Dutch lender is one of many European banks that continue to enjoy a boost from higher borrowing costs as monetary authorities try to rein in inflation. ING’s net interest income, or essentially the difference between the interest it earns on loans and pays on deposits, rose nearly 20% to €4.06 billion, though that was below the €4.14 billion analysts had expected on average.
Operating expenses fell 4.1% to €2.63 billion while regulatory costs more than halved to €91 million.
Rising shareholder payouts at competitors UBS Group AG and UniCredit SpA had raised pressure on ING to boost dividends and stock repurchases. ING announced a buyback of as much as €1.5 billion in May.
