ING Q1 2023: Strong Results Driven by Interest Income and Lower Cost of Risk
ING Groep N.V. (ING or the Group) reported a net profit of EUR 1,591 million in Q1 2023, significantly up from EUR 429 million in Q1 2022 and EUR 1,089 million in Q4 2022. The Group’s ROE (annualised) increased to13.0% in Q1 2023 from 3.3% in Q1 2022, mainly driven by a combination of higher interest revenues and significantly lower loan loss provisions. While core revenues (interest income and fees) increased by 21% Year on Year (YOY), loan loss provisions declined to EUR 152 million, or 9 basis points (bps) in terms of cost of risk (CoR), in Q1 2023, down from EUR 987 million in Q1 2022, when provisioning was affected by ING’s exposure to Russia. Q1 2023 operating expenses (excluding regulatory costs) increased by 11% YOY driven by higher staff cost as a result of inflationary pressures and higher marketing spending. For full-year 2023 we expect the benefits from higher interest margins to outweigh the effect of more subdued loan growth and higher costs.
DBRS Morningstar is a global credit ratings business with 700 employees in eight offices globally. DBRS and Morningstar Credit Ratings are committed to empowering investor success, serving the market through leading-edge technology and raising the bar for the industry.
Together, we are the world’s fourth largest credit ratings agency and a market leader in Canada, the U.S. and Europe in multiple asset classes. We rate more than 2,600 issuers and 54,000 securities worldwide and are driven to bring more clarity, diversity and responsiveness to the ratings process. Our approach and size provide the agility to respond to customers’ needs, while being large enough to provide the necessary expertise and resources. For more details visit us at dbrs.com.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.