Record profit is a fair return says ING 19 August 2009 4:42PM Jason Bryce ING Direct posted a record net profit after tax of $141.6 million for the six months to 30 June 2009, up $61 million on the corresponding period in 2008.ING Direct's Executive Director of Savings, Brett Morgan, played down the result yesterday."We have a fair sized balance sheet, so if you look at it in terms of our balance sheet, it is a fair return. The result comes despite only marginal growth in the loan book and deposits. Morgan said the result was largely shaped by retaining some of the RBA's rate cuts."It has been a little bit of everything, but mostly the interest rate cycle has certainly helped us, the costs of funding has increased, and like everyone we have passed a little bit to our mortgage customers "But if you look at our mortgage products they are still extremely competitive and the same goes for our savings products."We are probably paying a bit more if anything [on deposits]," said Morgan"The fight for deposits will continue we think, so consumers will continue to get a great deal."Interest income from loans and advances was down $290 million compared to the same six month period in 2008. Interest paid out on deposits was also down $270 million. ING Direct made almost $17 million from discharge fees, up from $2.1 million in the first half of 2008.ING Direct increased its collective provisioning for loan losses from $5.5 million to $9.6 million. Specific provisions were up to $41 million from $1 million.ING says the methodology for determining the modelled provision for residential mortgages was revised during the half year. The general reserve for credit losses is based on converting the 12 month probability of default to a lifetime probability of default.