ING: Pressure Moves from Credit Risk to Revenues in Q3
ING Groep N.V. (ING or the Group) reported a recovery in net profit by 163% quarter-on-quarter (QoQ) to EUR 788 million for Q3 2020 from a weak Q2 2020, that was marked by high provisioning levels. However, the impact from COVID-19 is still noticeable and net profit was down 41% year-on-year (YoY), as revenue pressure started to materialise. Total income decreased by 8% QoQ and 7% YoY, including the impact of an equity stake impairment. Loan loss provisions declined from the very high levels in the second quarter, closer to the through-the-cycle average. Results also reflected impairments of capitalised software. Furthermore, the Bank revised its ambition for the Common Equity Tier 1 (CET1) ratio to 12.5% from 13.5% which would imply a buffer of at least 200 bps over SREP requirements.
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