ING net profit plunges on provisions for bad loans, goodwill write-offs

Photo: Dutch News

Dutch banking group ING posted net profit of €299m in the second quarter of 2020, a drop of almost 80% on the year earlier period, due in part to a €1.3bn provision for potential bad loans stemming from the coronavirus crisis.

The coronavirus crisis also forced the bank to write off some €300m on various activities, namely acquisitions which are not performing as well as forecast.

Turnover was virtually unchanged at €4.67bn and pre-tax profit was down 73% at €542m.

‘The impact of Covid-19 was reflected in the higher risk provisioning and goodwill impairments we booked in the second quarter,’ new chief executive Steven van Rijswijk said in a statement.

‘At the same time, we supported customers and employees in dealing with the disruption from the crisis, played a positive role in the communities where we’re active and further enhanced our digital and mobile-first banking proposition.’

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