ING profit up 14 pct. on stronger economy

Dutch bank ING has benefited from the recovery of the Dutch economy, showing a 14 percent increase in its profits over the past year. On Wednesday ING reported pofits of 1.06 billion euros for the third quarter, this being up from 928 million euros last year. Profits were aided by the 25.8 percent interest still held in former insurance subsidiary NN. The bank has benefited from recovery through reduced costs for potential defaults, and the increased demand for credit, reported news site NU. ING reduced its total cost on risk down to 261 million euros, the banks lowest level in the Netherlands since 2011. Total costs of the bank increased this quarter from the last. This is mainly due to higher costs on supervisors , due to the introduction of European supervision by the European Central Bank (ECB). ING is expected to leave subsidiary NN completely by the end of next year. CEO Ralph Hamers was reported explaining the figures, saying that Dutch economy has reached its tipping point, consumer confidence is rising, the housing market continues to grow and disposable incomes are increasing, adding that the world economy remains unstable.