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Ing, Russia blacks out the Orange Account

2 years ago babelfish

Ing, Russia blacks out the Orange Account

Due to exposure to Russia, Ing bank reported lower-than-expected net income and down 57.3% from the same period last year. All the details

The accounts of Ing, the largest Dutch bank, suffer exposure in Russia and fall short of analysts' expectations due to loan loss provisions in Russia and Ukraine.

QUARTERLY RESULTS

As reported by Ansa , Ing recorded in the first quarter a net profit of 429 million (-57.3% on the same period last year, when the net profit was 1,005 billion), a pre-imposed profit of 668 million ( -54.3%) and revenues of 4,600 million (-2.2%).

However, the retail bank's result was 20% higher than in the first quarter of 2021 thanks to lower costs and provisions.

The results of the wholesale bank, the news agency clarifies, were influenced by provisions of 834 million linked to exposure to Russia.

Ing, adds Ansa , at the end of the quarter it had a Cet1 which remained at 14.9%.

Source: Ing

THE WORDS OF THE CEO

As the CEO of the Dutch bank, Steven van Rijswijk noted , "the geopolitical situation has also had an impact on our financial results, as the increased risk on our exposure linked to Russia led us to record further provisions in Wholesale Banking" .

“The income – continued the CEO – was strong this quarter, supported by a resilient net interest income and a continuous growth in commissions. We have also maintained good cost control despite the pressure of inflation. As our capital position remains solid, we announce a distribution of additional capital to our shareholders of € 1.25 billion ”.

The operation,Milano Finanza reports , will take place “with a 380 million buyback starting from May 12th and with 870 million in special dividends on the 18th of the same month”.

THE CONSEQUENCES OF THE WAR IN UKRAINE ON ING

Due to the situation in Ukraine and Russia, the Ing website reads, the following measures are currently in place:

  • all Ing cards (credit card, debit card and prepaid card) cannot be used in Russia and cannot be used to make payments on Russian websites;
  • the transfers arranged from the Orange Current Account to Ukrainian banks are not subject by Ing to commissions or to exchange rate increases in the case of payments in foreign currency;
  • it is not possible to arrange outgoing bank transfers from an Orange Current Account in Ruble currency (RUB);
  • it is not possible to receive and arrange transfers, in any currency, to and from the following Russian and Belarusian banks:
Source: Ing

Furthermore, explains MF , “the write-downs from additional receivables deriving from the conflict amounted to 987 million. In March, the institute announced that it had 700 million in loans impacted by the sanctions against Moscow and approximately 3.5 billion in loans to Russian customers, approximately 0.9% of the total ".

THE OPINION OF CITIGROUP

Following the results released, reports the financial newspaper, "Citigroup defines the results as 'solid': the main questions to management for the future concern not only the impact of the conflict, but also the drivers of interests and commissions for the rest of the year as well as the cost restructuring plans ".

This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/ing-la-russia-fa-nero-il-conto-arancio/ on Fri, 06 May 2022 13:22:59 +0000.