ING's Q1 Sees Extra Distribution of EUR 1.25 Billion, EUR 0.8 Billion of Russia-Related Provisions

Narrow-moat ING reported a lower net attributable profit of EUR 472 million for its first quarter, a 57% decrease from the EUR 1 billion it reported a year ago. The lower profit was largely the result of loan-loss provisions that tripled and higher contributions to the European Single Resolution Fund. Excluding regulatory costs, operating expenses decreased 6% year on year, driven by lower IT costs, which more than offset the rise in wages due to inflation. Net interest income was down 3% due to lower benefits from the European Central Bank targeted longer-term refinancing operations program. We maintain our EUR 14.30 fair value estimate.