ING - ING Group Q1 earnings take $880M hit from Russia exposure

ING Group (NYSE:ING) U.S.-listed shares are falling 3.3% in Friday premarket trading after Q1 earnings were reduced by a €834M ($881M) provision for the Dutch bank's exposure to Russia. That amount included €466M from negative rating migration after Russia's sovereign rating was cut and €297M reflected deteriorated circumstances for Russian clients. Overall, ING (ING) recorded risk costs of €987M, or 62 basis points of average customer lending, above the through-the-cycle average of ~25 bps. Its update of macroeconomic indicators was responsible for €178M of the risk costs. The total risk cost number also included €124 total releases of several COVID-19-related sector overlays in previous quarter. Since the end of February, ING (ING) reduced its Russia-related exposure by €0.9B to €5.8B as of April 30, which included €0.4B deposits at the central bank and €1.4B covered by ECA, CPRI, and European parent guarantees. The company plans to further reduce its exposure to

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ING Group Q1 earnings take $880M hit from Russia exposure