Financial services group ING booked net profit of €1bn in the first three months of year, a rise of 50% on 2020.

‘The sharp rebound in net profit compared to the year-earlier period was driven by a good increase in fee income and lower risk costs,’ ING chief executive Steven van Rijswijk said in a statement.

This is partly down to government support for companies affected by the pandemic, which means ING had fewer bad debts to write off. Bankruptcies have also been limited.

Government support is set to be phased out as society reopens and ‘on risk costs, we remain cautious and are taking into account expected delays in credit losses,’ Van Rijswijk said.

ING said in March it is slashing its high street presence, closing half its branches and cutting 440 jobs. The banks says its branch network needs an overhaul because the pandemic has hastened the move towards fully digital banking.