ING NV, the Dutch bank and insurer with operations in Windsor, reported a return to profit in the first quarter as its banking arm enjoyed good retail margins and fewer losses on bad loans, The Associated Press reports.
Net profit was euro1.33 billion ($1.69 billion), up from a loss of euro793 million in the same period a year earlier. This year’s figure included net one-time gains of euro403 million, mostly from the sale of ING’s private banking businesses in Asia and Switzerland.
ING’s insurance arm, which is being separated from the company for a sale, reported an operating result of euro415 million, up from euro255 million, mostly due to better performance by its investments. The arm had an “underlying result” — a nonstandard measure that excludes the impact of divestments and impairments — of euro269 million, up from a loss of euro954 million.
At banking, underlying profit was euro1.28 billion from euro769 million. Interest income rose by more than euro200 million as the bank was able to pay less interest to retail customers and lend at higher rates.
Provisions for bad loans fell by 27 percent to euro497 million. The company noted that a stabilizing housing market in the U.S. was helping, but small businesses loans in Europe continue to struggle as the economy in Belgium and the Netherlands remains weak.
