ING Groep NV reported third-quarter profit that fell short of estimates after costs rose and the Dutch lender set aside more money for souring loans. The company also said it will cut about 400 staff to refocus its wholesale banking business.
Net income at the Netherlands' largest bank rose 3.5% to €1.85 billion ($2.06 billion) in the three months through September, the company said in a statement on Thursday. That compares with an average estimate of €2.01 billion in a Bloomberg survey of analysts.
The European Central Bank's interest rate hikes since June have provided a revenue tailwind to Dutch banks, which depend more on interest income than competitors. ING has also sought to boost fee income through daily banking and investment products. Its operating expense rose 3.6%, and it set aside €403 million for soured loans, higher than analysts had expected. ING shares have gained about 23% so far this year.
ING announced a dividend of €250 million and a plan to repurchase stock worth as much as €1.65 billion, larger than the buyback it completed this week. The bank still expects revenue to be more than €24.5 billion this year before exceeding €26 billion in 2027. During the quarter, it also agreed to buy a minority stake in Madrid-based Singular Bank from Warburg Pincus LLC, expanding its wealth management footprint.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing