ING benefited from rising interest rates in the third quarter of this year, including on loans. Yet the bank saw its profits dwindle due to one-off spending. This is according to figures released by the bank on Thursday.
For many years, low interest rates put a heavy strain on banks ‘ earnings models. But in recent months, interest rates have been rising, including for mortgages and consumer credit. As a result, more money came into the pocket of the consumer branch of the bank and also in the business market.
At the same time, the bank also had to make some one-off expenses, including due to changed mortgage rules in Poland. Furthermore, developments in the foreign exchange market were not favourable. Thus, the euro lost a lot of value compared to other coins.
ING also had to dig deeper to compensate Dutch people who had paid too much interest on their current loans in the past.
Due to the additional expenses, sales fell from 4.47 billion euros in the third quarter of last year to 4.41 billion this year. The profit decreased by almost 30 percent to 979 million euros. The company also announced that it is buying back its own shares for 1.5 billion euros.
Abaigael Schlomski is an accomplished economist and financial journalist with over a decade of experience in the industry. He is a regular contributor to EconomicInform, where he provides in-depth analysis and expert commentary on the latest economic trends and events. With a keen understanding of the financial markets and a talent for breaking down complex economic concepts for a general audience, Maurice is a trusted and respected voice in the field.