AMSTERDAM, Feb 2 Reuters ING Groep NV on Thursday reported a betterthanexpected fourthquarter net profit of 1.09 billion euros 1.20 billion on lower loan loss provisions but shares in the Netherlands39; largest bank fell on its 2023 guidance.

Net profit topped the 1.03 billion euros expected by analysts, Refinitiv Eikon data showed, and was up from 945 million a year earlier.

Loan loss provisions were down 22 to 269 million euros from 346 million a year earlier.

Analysts said the earnings were ahead of expectations, but a forecast for 10 income growth in 2023 and improvement of the bank39;s costincome ratio to 55 from 60 in 2022 were below expectations.

We expect low single digit downgrades to 2023 consensus, JPMorgan analysts wrote in note.

ING shares were down 5.0 to 12.72 euros at 0711 GMT. They gained 17 rise in January.

CEO Steven van Rijswijk said the bank39;s margins should benefit from rising interest rates in 2023, though customers39; appetite for borrowing and the bank39;s appetite to lend are not strong given inflation and economic uncertainty.

With the current circumstances we want to focus on existing clients, so don39;t take on too much risk, he said.

Once the economic cycle improves again, we expect a bit of flatlining in terms of GDP growth in the eurozone for the next 12 months, they will continue to expand.

Its fourthquarter core lending grew by a modest 3.1 billion euros versus 13.4 billion a year earlier.

ING expects housing prices to…