ING Groep Backs Guidance But Net Profit Slips

By Ian Walker

ING Groep reported a fall in first quarter net profit after net interest income dropped, and backed its full-year guidance.

The Dutch lender on Thursday said net profit for the quarter was 1.58 billion euros ($1.69 billion) compared with EUR1.59 billion for the comparable period a year earlier.

Net interest income was EUR3.825 billion compared with EUR4.01 billion, while its net interest margin--the difference between what lenders earn on loans and what they pay out on customer deposits--fell to 1.51% from 1.59%.

ING's common equity Tier 1 ratio--a key measure of balance-sheet strength--was 14.8% at the end of the period. It expects the ratio to converge toward its target of around 12.5% by 2025.

The bank reiterated that it expects fee income to rise by 5% to 10% this year, with cost growth of around 3% and a return on equity of 12%.

Fee income rose 11% compared with the same period last year and 14% from the last quarter, with growth in retail driven by higher fee income for both daily banking and investment products, the bank said.

Write to Ian Walker at ian.walker@wsj.com

(END) Dow Jones Newswires

May 02, 2024 01:37 ET (05:37 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.