ING Bank Romania’s profit drops on higher risk costs

ING Bank Romania recorded a net profit of RON 143 million (EUR 29.5 mln) in the first quarter of 2020, down 27% compared to the same period last year.

The lender's revenues increased by 9%, but the risk costs also went up due to deteriorating economic prospects amid the COVID-19 pandemic.

The bank highlighted the 13% increase in the number of customers receiving recurring revenues in their ING Bank accounts during the past 12 months, to over one million.

The operating income went up by 9% to RON 533 mln (EUR 110 mln), while operating expenses increased by 12.7% to RON 249 mln (EUR 51 mln), amid rising wage costs.

Risk costs increased to RON 118 mln (EUR 24.3 mln), in the context of the bank setting aside additional provisions resulting from the deteriorating macroeconomic outlook.

The increase in the number of customers supported a 25% increase in the balance of customer deposits, in the last 12 months, to RON 39 billion (EUR 8 bln).

Thus, the bank's market share by deposits increases by 0.99pp to 9.9%.

Compared to last year, the loan portfolio increased by 11%, to RON 28.9 bln (EUR 6 bln). ING's market share by loans thus increases to 10.5%, from 10.1% in March 2019.

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