By Elena Vardon
ING Groep exceeded expectations with the launch of a larger-than-anticipated share buyback program and a notable increase in net profit for the third quarter of the year. The Dutch bank announced that its net profit for the three months ended September 30 reached 1.98 billion euros ($2.09 billion), more than double the previous year’s figure of EUR979 million. This result surpassed the company’s own consensus forecast of EUR1.83 billion.
The bank’s total income for the quarter also demonstrated strong growth, coming in at EUR5.84 billion, marking a 32% increase compared to the same period last year. These results exceeded consensus estimates of EUR5.69 billion. Notably, ING Groep achieved EUR4.03 billion in net interest income during the third quarter, slightly lower than the consensus estimate of EUR4.12 billion.
However, the bank did allocate an additional EUR183 million for loan loss provisions, a lower figure than the consensus estimate of EUR322 million.
Chief Executive Steven van Rijswijk acknowledged the discussions surrounding savings rates and stated that depending on the competitive landscape, liability margins may potentially decrease from current levels. Nevertheless, the bank remains confident that its diversified business will support overall income, especially when there is a recovery in loan demand.
ING Groep’s common equity Tier 1 ratio, a crucial measure of balance sheet strength, stood at 15.2% at the end of the period, surpassing the consensus estimate of 15.0%.
Moreover, ING Groep announced a share buyback program worth EUR2.5 billion, significantly higher than the expected EUR1.95 billion program projected by analysts.