ING to Take $210 Million Hit to Compensate Dutch Clients
ING to Take $210 Million Hit to Compensate Clients
(Bloomberg) --
ING Groep NV will take a 180 million-euro ($210 million) charge in the third quarter to compensate Dutch clients who paid too much interest on revolving consumer loans.
The lender said about 10% of the contracts for its floating-rate credit products in the Netherlands will be affected by rulings from a local watchdog regarding similar business at other banks.
ING joins ABN Amro Bank NV in flagging financial hits after they were found to not sufficiently follow market rates when setting interest. The charges have put a dent in an earnings rebound from the depths of the pandemic and are weighing on the banking industry’s reputation in the country.
ING said the Dutch Consumers’ Association “has reacted positively” to its plans and is prepared to discuss how the compensation should be carried out. The bank expects to conclude the process before the end of 2022.
Shares of the lender rose 0.6% at 9:19 a.m. in Amsterdam, bringing gains this year to 71%. That’s the best performance in the 34-member Bloomberg Europe Banks and Financial Services Index.
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