Dutch lender ING has said that it expects to book nearly €300m ($350m) as impairment on goodwill in its second quarter due to the negative impact Covid-19 pandemic had on its business.

The goodwill impairment relates to a number of past acquisitions by the bank. The bank has not identified the acquisitions that may be affected.

The impairment estimates will be recorded under operating expenses in ING’s balance sheet.

In a statement, ING said: “In accordance with accounting standard IAS 36, the impairment announced today follows the negative developments in the macro-economic outlook for the relevant business units in the context of the Covid-19 pandemic.

“In addition, the applicable discount rate is also affected by the deteriorated economic and risk environment.”

The Amsterdam-based bank said that the write-off will not affect its capital ratios.

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The bank added: “The accounting adjustment does not involve any cash outflow and will not impact ING’s capital ratios, as goodwill is already deducted from regulatory capital.

“As indicated earlier, the economic impact of the Covid-19 pandemic and the impact of IFRS-9 methodology will result in risk costs significantly above the through-the-cycle average, which will impact ING’s net profit for the quarter.”

ING is expected to report its full results for the second quarter of 2020 next month.

For the first quarter ended 31 March, ING recorded €661m in bad loans as against €207m in the same quarter last year.