ING posted almost a quarter lower annual profit last year. The bank was particularly affected by the war in Ukraine. The higher interest rates of recent times are favorable for the bank, which makes it easier to make more profit on the provision of credit.
Below the line, a profit of just under 3.7 billion euros remained in 2022, compared to almost 4.8 billion euros a year earlier. In 2021, ING still managed to almost double its annual profit. At the time, the bank benefited greatly from the economic recovery after the dip of the corona crisis.
But after the outbreak of the war in Ukraine, ING saw its quarterly results more than halve. The conflict forced the bank to set aside hundreds of millions of euros for loans to companies that may never be repaid.
The bank decided not to do any new business with Russian companies and to reduce its presence in that country. Later in the year, ING was also hit by hyperinflation in Turkey, which required adjustments in the accounting of its Turkish subsidiary.
Profit despite inflation and energy price
Profits rose again in the last quarter. This is also because, despite the sharp rise in energy prices and high inflation in general, ING did not have to make relatively many provisions for customers who threaten to run into problems. 269 million euros went to the so-called strop pot, but that was less than in the last three months of 2021.
Malfunction
On Wednesday, ING customers struggled for hours with a major malfunction. Customers were unable to log into the app and make online payments. During the night the malfunction was resolved.
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