“Again considerably lower quarterly profit for ING”

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Published on 4 augustus 2020 14:03 |
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ING
04 aug

6,09
+0,03
(+0,50%)

AMSTERDAM (AFN) – ING was again hit hard in the second quarter by the corona crisis. Analysts surveyed by Bloomberg news agency generally assume that the profit has plummeted, just like in the first quarter. The bank presents its quarterly figures on a stock exchange Thursday. This will be the first time that Steven van Rijswijk as CEO explains the results. He is the successor to Ralph Hamers, who earlier this year became known as the boss of the Swiss bank UBS.

The analysts estimate the average analysts to be almost 4.5 billion euros, compared to almost 4.7 billion euros in the second quarter of 2019. ING is expected to report an underlying profit before tax of 772 million euros. That was more than 2 billion euros a year ago. Underlying net profit has plummeted, according to analyst estimates, to approximately EUR 610 million from EUR 1.4 billion in the same period last year.

Last week, ING itself announced that it would have to write off at least approximately 300 million euros. The accounting intervention is necessary because certain assets on the balance sheet have become less valuable due to the corona crisis. This so-called amortization of goodwill also affects the quarterly profit.

Put money aside

Like other major banks, ING was already forced to set aside a lot of money in the first quarter for loans that may never be repaid. Due to the economic downturn and uncertainty associated with all corona measures, many customers, such as companies in the oil and gas sector, ran into problems. In the first phase of the crisis, the bank had already given more than 100,000 customers a payment extension.

The quarterly results that ING presented in May were better than analysts had previously expected. A total of 661 million euros went to the sling pot. According to market researchers, this was still relatively little given the scale of the current crisis. They are therefore very curious how much money should be set aside this time.

In recent years, ING has also had to incur additional costs in connection with its anti-money laundering efforts. A major step was recently taken in this area. ING, ABN AMRO, Rabobank, Volksbank and Triodos Bank announced their joining forces in the fight against money laundering and terrorist financing. A joint organization that collects individual transaction data and searches for indications from criminal networks is expected to start processing the first data at the end of this year and will be fully operational in a year and a half.

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  1. ING is in a much better position than, for example, ABN, namely black numbers.

  2. Jemoetwat wrote down 4 augustus 2020 14:20:

    ING is in a much better position than, for example, ABN, namely black numbers.

    Still … black numbers you mean?
    There is probably still a lot under the cap

  3. Think that if there is still 30% left of ING and ABN at the end of the year, it will be quite a bit. There is still so much to come under 550 this afternoon!

  4. tolick wrote down 4 augustus 2020 14:43:

    Think that if there is still 30% left of ING and ABN at the end of the year, it will be quite a bit. There is still so much to come under 550 this afternoon!

    Is it really necessary to post that ‘under 550 this afternoon’ story among all the news? Do you also have substantiation?

  5. fortunately I don’t have any bank shares. Don’t trust it

  6. tolick wrote down 4 augustus 2020 14:43:

    Think that if there is still 30% left of ING and ABN at the end of the year, it will be quite a bit. There is still so much to come under 550 this afternoon!

    Don’t understand this; what do you want to say? It is better to say nothing if you do not understand it.

  7. Incidentally ………. apparently still expecting profit at ING. Not all banks can say that ….. so on to the future when everything is normalized and the “impatient” have to buy back their shares at a higher price. After 40 years active on the stock market I can in most cases agree that ……… Impatience = loss; patience = profit

  8. Arie S wrote down 4 augustus 2020 14:50:

    fortunately I don’t have any bank shares. Don’t trust it

    You buy them again if they are at 10 or 15 euros?

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