Dutch bank ING posts steep plunge in Q1 net profit

THE HAGUE (AFP) – The Dutch banking giant ING yesterday posted a 40 per cent drop in first-quarter (Q1) net profit as a result of market volatility over the coronavirus pandemic.

Its results were nonetheless better than anticipated and Chief Executive Ralph Hamers emphasised that the bank had a strong foundation, though it would follow an ECB recommendation to suspend dividend payments until at least October 1.

ING’s net profit fell by 40.1 per cent in the first three months of the year to EUR670 million (USD724 million), from 1.1 billion in the same period a year earlier, a statement said.

That was “a result of market volatility and the expected future economic impact of the COVID-19 pandemic,” it added, as it booked EUR661 million in provisions to cover potential loan defaults in the coming months.

A general view of ING banking and insurance Group headquarters in Brussels. PHOTO: AFP