ING Groep launches $1.5 billion buyback after Q3 pre-tax profit slumps

AMSTERDAM (Reuters) -ING Groep NV, the largest Dutch bank, reported on Thursday a quarterly pre-tax profit of 1.38 billion euros ($1.36 billion), below expectations due to one-off charges, and also rolled out a fresh share buyback worth 1.5 billion euros.

ING said both costs and its customers were affected by high inflation and energy costs.

Analysts had forecast a pre-tax profit at 1.50 billion euros, according to Refinitiv data, compared with 1.92 billion euros posted last year.

The figure included exceptional charges of 631 million euros due to a hedge accounting adjustment and a one-off charge amid a government-imposed pause on mortgage payments in Poland.

But like other large European banks that have reported stable third-quarter results, ING also benefited from higher interest rates.

Chief Executive Officer Steven van Rijswijk said the company had seen a “solid performance, especially in light of the challenging economic and geopolitical environment”.

Additions to loan loss provisions increased to 403 million euros in the reported period from 39 million euros a year ago, but in line with the “through the cycle average”, ING said.

Among other key banking metrics, net interest margin declined to 1.28% from 1.38%. Without the one-off charges, margins would have improved to 1.42%, Van Rijswijk said.

The company’s CET1 ratio, the key measure of solvency for European banks, was at 14.7%, which ING said made the extra buyback possible.

($1 = 1.0193 euros)

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