ING’s profits hit by Turkish hyperinflation

0

The logo of ING bank is seen outside an office in central Brussels November 7, 2012. — Reuters pic

Thursday 04 August 2022 19:22 MYT

THE HAGUE, Aug 4 – Dutch banking giant ING today reported a 20% drop in second-quarter net profit, hit by soaring inflation in Turkey and worries about the global economy.

ING posted a profit of €1.18 billion (RM5.3 billion) in the three months to June.

“The backdrop to ING’s performance in the second quarter of 2022 was continued geopolitical uncertainty and pressure on the global economy,” ING chief executive Steven van Rijswijk said in a statement.

“Despite these difficult operating conditions, I am pleased with our results,” he said, noting growth in ING’s core customer base and an increase in loans and deposits.

Turnover increased by 3.7% to 4.7 billion euros.

ING’s net profit was hit by 277 million euros by Turkish hyperinflation, which is close to 80%.

The bank’s profits were more than halved in the first quarter when results were hit by the Russian war in Ukraine, but ING said its “costs of risk were significantly lower” in the second quarter.

ING said it had reduced its exposure to Russia and the amount of money set aside for potential losses had been reduced by 117 million euros. —AFP

Share.

Comments are closed.