Dutch financial services firm ING has witnessed a 16% decline in net profit in its third quarter on one-off charges and as interest rates damaged returns.
Net profit dropped to E1.57 billion from E1.88 billion, falling just under analyst estimates of E1.6 billion quoted by Reuters.
The fall in profit has been accounted for by the revaluation of derivatives, lower dividend income and lower capital gains on equities trading.
The financial services firm saw its underlying banking profit decline by 8.6% as well as its insurance profit by 7%.
Looking forward, low long-term interest rates and flat yield curves will continue to pose challenges, however we benefit from strong equity and real estate markets as well as favorable claims experience in non-life insurance, commented ING managing board chairman Michel Tilmant.
Despite the loss in net profits, Mr Tilmant continued to say that the group is still on track in regards to its yearly growth, up by 20% in the first nine months of the fiscal year.
ING Direct, the company’s online and direct banking business, reported a 4% increase in the third quarter.