ING
ING Group NV reported higher earnings at its leasing and factoring
business as strong volume growth offset the decline in margins.
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Underlying net profit for the third quarter ended September 30
rose 12.5 per cent to €36m compared with the same quarter last
year. Total underlying income increased 11.1 per cent to €130m from
improvements in net interest income, investment income and other
sources.
For the nine months to September, leasing and factoring reported
€400m in total income, up 7 per cent from the same period last
year. Profit before tax showed a similar growth rate of 7.6 per
cent to €170m, but a 20 per cent growth in taxation resulted in
slower net profit growth of 1.9 per cent to €110m.
ING said resilience in its wholesale banking businesses helped
offset losses suffered in the proprietary trading portfolio of the
financial markets division. Leasing and factoring contributed €55m
to total group profit before tax of €404m in the quarter.
Compared to the second quarter, income and net profit declined
9.1 per cent and 18.2 per cent respectively. ING said the decline
was a result of exceptional income included in the second quarter
results.
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By GlobalDataCosts at the division were lower during the quarter compared to
a year ago, with its cost-to-income ratio falling to 53.8 per cent
from 56.4 per cent. Cost-to-income ratio for the nine month period
was unchanged from last year, as was the risk-adjusted return on
capital after tax.
ING’s general leasing portfolio increased 3.9 per cent to
€14.6bn driven by growth in the Netherlands, Italy, the UK and
Central Europe. In Hungary, ING Lease is expected to complete its
purchase of Citileasing by year-end. The acquisition will add €150m
to ING Lease’s portfolio, putting it among the top-10 players in
Hungary.
ING said factoring volume increased 31 per cent to €3.1bn
against the third quarter last year, driven mainly by growth in the
Netherlands and Belgium.
