ING’s beats Q1 profit forecasts, launches share buyback

ING Groep, the largest Dutch bank, reported better than expected first-quarter profit on Thursday (May 11), as rising interest rates, combined modest risk costs, had a positive impact on liability margins.

It also announced the launch of a new share buyback programme of up to 1.5 billion euros (S$2.18 billion).

Lenders’ margins are benefiting from rising interest rates after major central banks ramped up rates at the fastest pace in at least two decades in 2022 to contain surging inflation.

“During this quarter, marked by turbulent market conditions, clients continued to put their trust in us. This was evidenced by our stable and diversified deposit base, which grew by 1.3 billion euros in the quarter,” CEO Steven van Rijswijk said in a statement.

The group, which serves around 37 million customers, corporate clients and financial institutions in more than 40 countries, said its net profit jumped to 1.59 billion euros in the first quarter, beating the 1.11 billion euros expected by analysts polled by the company.

ING had recorded a profit of 429 million euros in the same period last year, impacted by 834 million euros in risk costs linked to Russia-related exposure. REUTERS