ING hit by €92m XVA loss
Credit trading business tagged for trading losses
The trading unit of Dutch lender ING lost €78 million ($85 million) in the first quarter, as a surge in derivatives valuation adjustment (XVA) costs more than offset higher profits from client market-making.
The Financial Markets (FM) division disclosed €92 million of XVA costs, €18 million more than in Q4 2019 and 59% higher than the year-ago quarter. ING said these reflected funding valuation adjustments (FVA), mark-to-market changes to derivatives prices and other fair value adjustments.
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