By Ed Frankl

Shares in ING Groep NV rose on Thursday after it launched a 1.5 billion-euro (1.47 billion) share-buyback program and as higher rates helped it beat net-interest-income expectations in the third quarter.

At 0931 GMT, shares were up 5.8% to EUR10.47.

Despite a quarterly net profit of EUR979 million that fell 10% below expectations, higher rates helped net interest income--the difference between how much a bank earns on clients' loans and how much it pays for their deposits--to EUR3.33 billion, overcoming expectations of EUR3.21 billion, according to company-compiled consensus.

The Amsterdam-based company also upgraded its NII benefit from higher rates by EUR1.5 billion for each of the next two years.

The bank's share buyback is around double the level of consensus, according to Deutsche Bank analysts Benjamin Goy and Marlene Eibensteiner, adding that with the third-quarter NII performance, the results were good for investors.

ING said its buyback would end by Dec. 30, with any remaining amount of the program after that date being paid out in cash to shareholders.

Write to Ed Frankl at edward.frankl@dowjones.com

(END) Dow Jones Newswires

November 03, 2022 05:49 ET (09:49 GMT)

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