ING Groep reports a narrower than expected decline in Q4 net profit
- ING Groep reports a narrower than expected decline in Q4 net profit.
- The Dutch bank proposes 10.51 pence of interim cash dividend per share.
- The financial services firm lost over 30% in the stock market last year.
ING Groep NV (AMS: INGA) said that its net profit saw a significant decline in the fourth quarter. The decline, however, was less than what analysts had anticipated. The Dutch bank scored 83 on S&P Global Ratings ESG Evaluation in January.
ING Groep shares, that you can learn to buy online here, opened at £7.10 per share on Friday and are currently trading at £7.28 per share. The stock had plummeted to as low as £3.77 per share in March 2020.
ING Groep reports £920 million of underlying pre-tax profit
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ING Groep reported £636.80 million of net profit in the quarter that concluded on 31st December. In the same period last year, its net profit had come in at a higher £770.82 million. FactSet Consensus for the Dutch bank’s net profit in the recent quarter stood at an even lower £399.60 million.
At £920 million, ING Groep’s underlying pre-tax profit in the final quarter of 2020 registered lower than £1.17 billion last year. Analysts, on the other hand, had called for £784.31 million of underlying pre-tax profit for the Dutch multinational in the recent quarter.
The Amsterdam-based company posted £2.93 billion of net interest income on Thursday versus the year-ago figure of a higher £3.15 billion. CET 1 ratio (Common Equity Tier 1), ING Groep added, stood at 15.5% in the fourth quarter. CEO Stephen van Rijswijk of the Dutch firm said on Friday:
“As an example, in Germany, we had 326,000 clients that started to trade with our app, of which 20% were new-to-the-bank clients, so, in this time when you might think people would stick to their existing bank, they make the jump to ING.”
ING Groep proposes 10.51 pence of interim cash dividend per share
The financial services corporation proposed 10.51 pence of interim cash dividend per share on Friday. Other prominent figures included in ING’s financial update included £182.19 million of provisions for loan losses or 51% lower than last year.
The bank’s fees and commission income registered at £675.35 million, representing a 4.9% year over year increase. ING Groep posted a decline in net core lending to £788.34 million and reported £6.83 billion of deposits in Q4 of 2020.
ING Groep performed fairly downbeat in the stock market last year with an annual decline of more than 30%. At the time of writing, it is valued at £28.36 billion and has a price to earnings ratio of 12.26.