ING Bank Romania sees 17% drop in net profit due to higher risk costs
ING Bank Romania, Dutch group ING’s local subsidiary, recorded a net profit of RON 320 million (EUR 66.5 mln) in the first half of this year, down by 17% compared to the same period of 2019.
Romania Insider · Journalist
· Updated · 1 min read
ING Bank Romania, Dutch group ING’s local subsidiary, recorded a net profit of RON 320 million (EUR 66.5 mln) in the first half of this year, down by 17% compared to the same period of 2019.
The bank’s total revenues went up by 4% year-on-year, to RON 1.05 billion (EUR 216.5 mln).
Meanwhile, the operating costs increased by 6%, to RON 479 million (EUR 100 mln), due to higher payroll expenses. The risk costs increased by 94%, to RON 200 million (EUR 41.7 mln), as the bank expects the negative impact of the COVID-19 crisis to also affect the quality of its loan portfolio.
At the end of June, the non-performing loans (NPL) ratio was still low, at 4%, while the total loan portfolio reached RON 27.9 bln (EUR 5.81 bln), up 2% compared to one year ago. Meanwhile, the deposits from clients went up by 24% to RON 41 bln (EUR 8.54 bln).
Over 32,000 of the bank’s individual and corporate customers requested the postponement of the payment of loan installments, and the approval rate for both segments was 95%.
(Photo source: Andreea Constantinescu/Dreamstime.com)
