ING: Q1 profit disappoints, as does redistribution
(CercleFinance.com) - On Friday ING announced lower-than-expected Q1 net profit, which was sanctioned by investors on the Amsterdam stock exchange.
This morning the Dutch financial services group reported Q1 net profit of 429 million euros, compared with profit of just over one billion euros a year ago, below the consensus of 484 million euros.
In a statement, ING explains that the results of its commercial banking activity were weighed on by a provision of 834 million euros relating to risk provisions associated with the Russian-Ukrainian conflict.
The group nevertheless stresses that good control of its costs has enabled it to offset the effects of inflation and mentions a "solid" capital position which will enable it to return 1.25 billion euros to its shareholders.
The banking group has planned to start a share buyback program of 380 million euros, to which will be added a dividend payment of 870 million euros.
RBC analysts note, however, that this total of 1.25 billion euros falls short of the 1.67 billion euros expected by the consensus.
At 9.30am, ING shares were down 2%, underperforming the AEX index, which itself is down 1.2%.
Copyright (c) 2022 CercleFinance.com. All rights reserved.
This morning the Dutch financial services group reported Q1 net profit of 429 million euros, compared with profit of just over one billion euros a year ago, below the consensus of 484 million euros.
In a statement, ING explains that the results of its commercial banking activity were weighed on by a provision of 834 million euros relating to risk provisions associated with the Russian-Ukrainian conflict.
The group nevertheless stresses that good control of its costs has enabled it to offset the effects of inflation and mentions a "solid" capital position which will enable it to return 1.25 billion euros to its shareholders.
The banking group has planned to start a share buyback program of 380 million euros, to which will be added a dividend payment of 870 million euros.
RBC analysts note, however, that this total of 1.25 billion euros falls short of the 1.67 billion euros expected by the consensus.
At 9.30am, ING shares were down 2%, underperforming the AEX index, which itself is down 1.2%.
Copyright (c) 2022 CercleFinance.com. All rights reserved.