ING Bank profit rises in first quarter

The ING Bank had an underlying net result of 1.187 billion euros (1.338 billion U.S. dollars) in the first quarter of 2015, up 43 percent from the same period of last year and more than double that of the fourth quarter of 2014, the Dutch bank announced on Thursday.

In the first quarter of 2014 the underlying net result of ING Bank was 830 million euros, while in Q4 last year it was 548 million euros. Including net gains/losses on divestments and special items after tax the net result in Q1 2015 from only the Banking division was 1.173 billion euros (Q1 2014: 264 million).

The total net result of ING Group, including the Insurance results, was 1.769 billion euros, compared to a net loss of 1.917 billion in Q1 of 2014.

"This strong performance was achieved despite the challenging operating environment, characterized by unprecedented low interest rates and the uneven economic recovery," said Ralph Hamers, CEO of ING Group, in a press release.

"Income was robust, reflecting our commercial growth and a seasonally strong quarter at Financial Markets," he added. "Income was also supported by capital gains, positive results from hedge ineffectiveness, and currency effects."

Last year ING's results were affected by the final repayment of state aid in November. During the financial crisis in 2008 the Dutch government decided to allow certain banks to get a capital injection. ING used this possibility to receive a capital injection of 10 billion euros.

After repaying 12.506 billion euros (9.317 billion of the principal amount and 3.189 billion in interest and premiums), ING had to pay the final amount of 1.025 billion (683 million principal amount and 342 million in interest and premiums no later than May 2015).

After passing the European Central Bank's stress test late October 2014 ING decided to do the repayment in November already. Endit