By Ian Walker

ING Groep reported a fall in fourth-quarter net profit, missing market forecasts, after booking higher loan loss provisions.

The Dutch bank said Thursday that net profit for the quarter was 1.15 billion euros ($1.20 billion) compared with 1.56 billion euros for the comparable period a year earlier, and a FactSet forecast of 1.26 billion euros.

It booked a loan loss provision of 299 million euros compared with 86 million euros.

Total income for the quarter was 5.407 billion euros compared with 5.408 billion euros taking the year to date figure to 22.615 billion euros, compared with 22.575 billion euros and a company forecast of over 22.5 billion euros provided on Oct. 31.

ING's CET1 ratio--a measure of financial stability--stood at 13.6% compared with 14.7%.

For the year ahead the bank said it expects total income to be about the same this year and for its CET1 ratio to be toward its 12.5% target by the end of 2025. Return on equity is expected to exceed 12% compared with 13% in 2024.

Guidance excludes the impact from the sale of its Russian business. ING said on Jan. 28 that it was selling its business in Russia with completion expected in the third quarter of this year, and expected to book a 700 million euro charge in its accounts from the deal. It said at the time that the sale would also reduce its CET1 ratio--a measure of financial stability--by five basis points.

"We're pleased with our strong results and are on track to make the targets as communicated on our capital markets day in June," Chief Executive Steven van Rijswijk said adding that the board expects continuing geopolitical volatility and a fragmented economic outlook this year.

In June the company guided for a return on equity of 14% for the period through to 2027 and to grow total income at a compound annual growth rate of between 4% and 5% between 2024 and 2027. It also reiterated its common equity Tier 1 ratio target of around 12.5% by the end of 2025.

The board declared a final dividend of 71 European cents a share, in line with its policy.

Write to Ian Walker at ian.walker@wsj.com

(END) Dow Jones Newswires

February 06, 2025 01:31 ET (06:31 GMT)

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