Dutch bank ING to pay first dividend in seven years

ING Group on Wednesday posted results that missed analysts' expectations for fourth quarter pretax profit due to one-off charges but said it will resume paying a dividend in 2015, the first time in seven years.

The company reported pre-tax profit of €783 million, down from €904 million in the same period a year earlier. But ING said this year’s figure included 375 million euros in restructuring charges, as well as 273 million in negative impacts from revaluing debt and credit instruments.

"Internationally in retail banking we see growth in mortgages as well as non-mortgage lending, and in commercial banking we see growth across the globe," said CEO Ralph Hamers on a call with journalists.

In November ING repaid the last of the 10 billion euro bailout it received from the Dutch state during the 2008 financial crisis.

The bank said on Wednesday it intends to return at least €470 million to shareholders this year, or 12 cents per share. The company also said it could decide to increase that number at year-end, as it will pay a minimum of 40 per cent of annual net profit.

Hamers said the bank was well capitalized with a Tier 1 capital ratio of 11.4 per cent, and it will be looking to either employ excess capital by lending or by returning money to shareholders.

ING also made fewer new provisions for bad loans in the quarter, 400 million in total, down from 560 million in the same period a year earlier.

The bank said it did not expect significant provisions for bad loans to the oil sector, despite a €27 billion portfolio.

Reuters