ING Groep on 4 November reported a higher net profit for the third quarter from the prior year, and said that it aims to reduce its funding for the oil-and-gas sector by 2025 as part of its target of reaching net-zero emissions by 2050.

The Dutch bank posted a net profit for the period of €1.37bn ($1.59bn) compared with €788m for the same period a year earlier.

Net interest income was €3.39bn, up from €3.33bn for the year-earlier period. Total income climbed 8.4% to €4.65bn, helped by higher fee income.

ING’s common equity Tier 1 ratio — a key measure of balance-sheet strength — was 15.8% at the end of the period, up from 15.3% as at the third quarter of 2020 and 15.7% in the second quarter of 2021.

READ Credit Suisse shutters prime broking after $5.5bn Archegos hit in pivot towards wealth management

The lender also said it has reserved €684m of quarterly net profit for distribution in the third quarter, which is part of the €1.74bn share buyback program it launched on 5 October.

When the bank posted its second-quarter results, it said it would distribute €3.62bn to shareholders after 30 September.

Regarding its net-zero emissions target, ING said it has sharpened its target for upstream oil and gas and now aims to reduce its funding for the sector by 12% by 2025 when compared with 2019 levels. It will also set targets for the other eight sectors of its “Terra approach”, it added.

READ Societe Generale CFO departs as Q3 profits top forecasts

ING is measuring its lending in the sectors of its loan book that are responsible for most greenhouse gas emissions: power generation, fossil fuels, automotive, shipping, aviation, steel, cement, residential mortgages and commercial real estate, it said.

Write to Sabela Ojea at sabela.ojea@wsj.com

This article was published by Dow Jones Newswires

>>>ad: Don't Miss TODAY'S BEST Amazon Deals!

Originally Appeared Here