In the past quarter, ING almost quadrupled its profit compared to a year earlier. During that period, the bank saw the number of customers worldwide grow by 281,000 to 14 million. ING made 1.5 billion in profit — a year ago it was 299 million euros. Due to the financial results, the company wants to pay out 3.6 billion euros in dividend to shareholders in September. ING . has that announced Friday morning.
Also read: ING closes half of branches and cuts 440 jobs
The increased profit is due to the two-year corona crisis. A year ago, the bank had to pay out 1.3 billion euros in loans, while it was uncertain whether they would be repaid. The Dutch economy is now recovering and the bank is benefiting from this. According to CEO Steven van Rijswijk, there is also an “increasing demand from private customers for digital investment products”.
ING also implemented cost savings during the corona period. For example, 69 of the 128 branch offices were closed because there was little traffic. This resulted in the loss of 440 jobs. The bank has digitized heavily. Van Rijswijk states that 80 percent of employees still work from home. ING also wanted to cut costs by closing physical workplaces, because the traditional revenue model — the profit from taking savings and interest on loans and mortgages — of banks has been under pressure for years due to low interest rates.