By Elena Vardon
ING Groep, the Dutch bank, reported its second-quarter earnings on Thursday, delivering a net profit that significantly surpassed both expectations and the previous year’s results. Here are the key highlights:
Net Profit
The bank recorded a net profit of 2.155 billion euros ($2.36 billion) for the second quarter, outperforming the company-compiled consensus of 1.64 billion euros from 18 analysts’ estimates. This impressive result represents a substantial increase from the net profit of 1.18 billion euros achieved in the same period last year.
Net Interest Income
ING Groep’s net interest income for the three months ending June 30 stood at 4.06 billion euros, slightly lower than the consensus estimate of 4.13 billion euros. However, the bank’s total income of 5.76 billion euros exceeded expectations by 4.7%. This was primarily due to higher other income of 785 million euros, which offset the lower net interest income.
Key Observations
CET1 Ratio
The lender’s common equity Tier 1 ratio, a crucial measure of balance-sheet strength, reached 14.9%, surpassing the consensus expectation of 14.6%.
Shareholder Returns
ING Groep declared an interim dividend of 0.35 euros per share, exceeding the estimated payout of 0.31 euros as per consensus. While the bank did not announce a share buyback program as anticipated, it alluded to providing an update during its third-quarter results.
Guidance
Although ING Groep did not revise its guidance for 2023, it confirmed that it is on track to achieve its targets for 2025.