ING closes 2024 with €6.4 billion in profit; Down 12% due to lower interest rates
ING booked a profit of 6,392 billion euros in 2024, a decrease of 12.3 percent compared to a year earlier. The Dutch bank attributed the decrease largely to lower interest rates, with CEO Steven van Rijswijk speaking of “strong results.”
In 2023, ING closed the year with a profit of 7.287 billion euros - nearly double the year before. The bank profited from rising interest rates implemented by the European Central Bank (ECB) to combat high inflation. The higher rates allowed ING to make higher margins on savings and the like. Over the past year, the ECB has steadily been lowering the interest rates in the eurozone. That is clearly visible in ING’s results. The bank’s interest income fell by 6 percent to 15,023 billion euros.
The bank’s total income increased slightly, rising by 0.2 percent to 22,615 billion euros. Its operating expenses increased by 4.8 percent. The bank also added a remarkably high amount to its fund to cover potentially bad loans. In 2023, ING added 520 million euros to its loan loss provision. Last year, it pushed 1,194 billion euros into the fund, an increase of 129.6 percent.
According to CEO Van Rijswijk, ING made “excellent progress” in 2024. “We have accelerated growth, diversified our income, provided superior value to customers, and continued to play a leading role in supporting our clients’ sustainable transition,” he said.
The bank hopes to continue on this track in 2025, though there are uncertainties. “For the coming year, we remain vigilant as we foresee ongoing geopolitical volatility and a fragmented economic outlook,” Van Rijswijk said.
