Enter multiple symbols separated by commas

ING Report Record Fourth-Quarter Profit

ING Groep, the Dutch bank and insurance company, posted a 14% rise in profit Thursday, mostly due to strength in its insurance arm and lower tax rates.

Net profit was a company record 2.10 billion euros ($2.73 billion), rising from 1.84 billion euros in the same period a year earlier. Income from all sources was up 1.1% to 18.1 billion euros ($23.5 billion), as rises in investment income and commissions outweighed falls in income from insurance premiums and interest income.

Shares rose 0.1% to 34.67 euros ($45.06) in early Amsterdam trading.

Pretax insurance profit was up 31% to 1.34 billion euros ($1.74 billion), boosted by a strong performance from stock markets -- leading to big gains in the portfolio of investments the company holds to pay potential claims.

Pretax banking profit rose 3.4% to 1.16 billion euros ($1.51 billion), as competition squeezed the difference between how much the bank could charge borrowers and how much interest it paid customers on deposits.

Taxes were down more than 40% to 287 million euros ($373 million) -- an effective rate of just 12% -- which ING said was due to lower national tax rates, and less taxes owed on income from stock.

Full-year net profit was up 6.7% to 7.69 billion euros ($10.0 billion).

Chief executive Michel Tilmant said for the full year, ING benefited from "rallying equity and real estate markets, a benign credit environment, a favorable underwriting cycle in non-life insurance and lower taxes." He said the company's Japanese and U.S. life insurance businesses were the weakest performers "and we are actively addressing those."

Contact U.S. News


    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

  • Piper Hoppe, 10, from Minnetonka, Minnesota, holds a sign at the doorway of River Bluff Dental in Bloomington, Minnesota, on July 29, 2015, during a protest against Cecil's killing.

    The U.S. Fish and Wildlife Service has been trying to find the man who shot a lion in Zimbabwe, but he is not responding.

  • Donald Trump

    From one real estate mogul about another: Don't underestimate Republican presidential candidate Donald Trump.

  • Rifle sight

    Hackers were able to exploit a sniper rifle's vulnerabilities and change the gun's target, according to Wired.

U.S. Video