July 28, 2020 / 5:35 AM / 16 days ago

Dutch bank ING writes off $350 million as lockdown cripples business

FILE PHOTO: The logo of ING bank is pictured at the entrance of the group's main office in Brussels, Belgium September 5, 2017. REUTERS/Francois Lenoir/File Photo

AMSTERDAM (Reuters) - ING Groep (INGA.AS) said on Tuesday it expects to write off about 300 million euros ($351.9 million) from the value of its past acquisitions, as the Dutch bank was badly affected from the economic fallout of the coronavirus crisis.

ING said it will book the goodwill impairment, which does not affect its capital ratios, in its second-quarter results due on Aug. 6.

A company spokesman declined to name the business units involved, but said the impairment is related to “multiple acquisitions, some from a long time ago”.

The Netherlands’ largest bank had already said net profit in the second quarter would be affected by the COVID-19 crisis, as the economic lockdown throughout Europe crippled business and led to an increase in bad loans.

ING took 661 million euros in loan loss provisions in the first three months of 2020, up from 207 million last year, and cautioned at the time that problems had escalated through March.

Reporting by Bart Meijer; Editing by Clarence Fernandez and Sherry Jacob-Phillips

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