ING: expectations exceeded, but costs rise
(CercleFinance.com) - On Thursday, ING announced a quarterly net profit that was down, although ahead of expectations, but it is the increase in operating expenses that seems to worry investors most.
This morning, the Dutch banking group reported net profit of E1.75bn, down 17% from E2.15bn it a year earlier.
By way of comparison, the consensus was looking for a profit of around E1.64bn.
However, some analysts are highlighting the company's rising costs, which climbed 8.5% over the quarter to E2.85bn, mainly due to wage pressures and marketing investments.
Its CET 1 solvency ratio came in at 14%, again a disappointment given that consensus was targeting 14.2%.
With regard to its outlook, the financial services group said it was targeting net banking income of at least E22bn this year, with annual costs of around E12bn.
On the Amsterdam stock exchange, ING shares lost almost 2% in the wake of this publication.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
This morning, the Dutch banking group reported net profit of E1.75bn, down 17% from E2.15bn it a year earlier.
By way of comparison, the consensus was looking for a profit of around E1.64bn.
However, some analysts are highlighting the company's rising costs, which climbed 8.5% over the quarter to E2.85bn, mainly due to wage pressures and marketing investments.
Its CET 1 solvency ratio came in at 14%, again a disappointment given that consensus was targeting 14.2%.
With regard to its outlook, the financial services group said it was targeting net banking income of at least E22bn this year, with annual costs of around E12bn.
On the Amsterdam stock exchange, ING shares lost almost 2% in the wake of this publication.
Copyright (c) 2024 CercleFinance.com. All rights reserved.