ING returns to profitability in Q2
by Richard Kilner
Story link: ING returns to profitability in Q2
Dutch Bank ING has reported that in Q2 it saw an underlying net profit of €229m, a vast improvement on the net loss of €305m suffered in the first quarter of the year.
The profit was lower than it might have been due to a hit of €584m from market effects including a loss on real estate revaluations.
The firm also made savings by reducing operating expenses by 2.4% from Q1 and 5.5% from Q2 2008.
When discounting divestments and special items ING recorded a net profit of €71m.
The bank is slightly ahead of its schedule for reductions in cost savings, having reached 53% of the €1bn full year target, with a new forecast of total annual savings of €1.3bn.
CEO Jan Hommen has described the results as a solid performance, but added that the continuing economic weakness and market impacts were still restraining the firm’s results.
The firm will, however, be pleased to see a return to profitability after the net loss of €305m in the previous quarter, and a much larger loss (€3,073m) in Q4 2008.