First quarter brings ING Romania profit slight increase to RON 84 mln

ING Romania posted a net profit of RON 84 million during the first quarter of the year, a 3 percent advance over the same period of 2015, according to its financial results.

The bank’s turnover rose 13 percent year on year to RON 271 million in Q1 2016, supported by interest and income from foreign exchange transactions and an increase in the number of clients.

In the first three months operational costs also posted a 15 percent increase to RON 154 million, due to the employee cost increases (in correlation with a rise in staff of 13 percent), regulatory costs (deposit guarantee system) and investments in IT and marketing.

The cost/income ratio therefore also went up, going to 57 percent from 56 percent registered in Q1 2015.

The bank’s risk costs amounted to RON 19 million, doubling year on year (RON 9 million in Q1 2015), due to very low provisions in the first quarter of 2015.

Read more about

A new way to do banking: ING Together, digital solution for joint spending account destined for up to four people

read more

ING has reached an NPL ratio of 4.6 percent at the end of the first quarter, an improvement over the 5.9 percent registered over the same period of the previous year.

The bank saw positive results across all crediting lines, with an increase in its loan portfolio by 26 percent to RON 14.4 billion, from RON 11.4 billion at the end of March 2015.

Funds raised reached RON 19.1 billion, 32 percent more than in March 2015. Therefore, at the end of March 2016, ING’s market share in lending came to 6.3 percent from the 4.9 percent registered in 2015 and the market share in the segment of funds attracted from clients increased to 7.3 percent compared to 6 percent in the same period last year.

Over the last twelve months, crediting in RON increased by 57 percent to RON 8.9 billion. Lending to SMEs increased by 59 percent year on year.

ING’s client portfolio increased by some 30,500 active clients, three times more than during Q1 2015, on the back of easier crediting options.

At group level, ING reported net results amounting to EUR 1.5 billion, including the profit from the sale of NN Group in January, while ING Bank posted a net result of EUR 842 million.

Natalia Martian