Loan-Loss Provisions for Russia Exposure and One-Offs Drive Lower Q2 Results for ING

Narrow-moat ING reported a net attributable profit of EUR 1.2 billion for the second quarter, a 19% drop from the EUR 1.5 billion profit it reported in the year-ago period. The lower profit mainly resulted from the addition to loan-loss provisions and higher regulatory costs due to a one-off in Poland. Total operating expenses excluding regulatory costs and incidental items increased 1% annually, primarily a result of the rise in wages due to inflation. The net interest margin at 1.36% saw a small decrease compared with the prior quarter at 1.37%. We maintain our fair value estimate of EUR 14.30 per share.