Hyperinflation in Turkey led to higher banking profits

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Due to hyperinflation in Turkey, ING has to depreciate heavily on assets in that country. This saves 277 million euros in Net Profit. The bank is still posting a result of almost 1.2 billion euros, according to the presentation of figures for the second quarter on Thursday.

There are limits to how high inflation can be: at a certain level, a bank must take accounting action. “If inflation is too high, you have to value your assets differently,” explains an ING spokesman. The Dutch company also has a bank in Turkey.

The higher interest rate helped ING to achieve a better result.

“We have set aside extra money, because it is expected that it will all be less economically.”

On the other hand, ING was again able to credit money that had previously been set aside due to the corona crisis and the war in Ukraine. For this, less money was needed in the so-called stroppenpot.

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