The Netherlands' largest financial services group ING has reported a 6.6% decline in Q2 profits, hurt by lower interest rates in most of its key markets. Earnings in the group's insurance unit also trailed behind those in its consumer banking and online units.
ING reported second-quarter earnings of E1.55 billion, down 6.6% on the same period in the previous year. The results, however, beat analyst estimations, as consumer and online banking results offset a fall in insurance earnings.
Net profit in the second quarter declined mainly due to gains on divestments last year and other non-recurring items, commented Michel Tilmant, executive chairman. Excluding that impact, second-quarter profit rose 6.7%.
ING’s online savings division ING Direct continued to grow throughout the quarter, adding 1.8 million new customers by the end of the half. Profits for the first half of the financial year totaled E3.49 billion, up 25% from the same period a year ago.
We remain confident about the remainder of the year, although interest-rate developments pose challenges for some businesses as we saw in the second quarter, Mr Tilmant said.