Core Viewpoint - The European Central Bank (ECB) has notified ING Group regarding its decision on the 2024 Supervisory Review and Evaluation Process (SREP), which includes prudential requirements and capital requirements for 2025 [1]. Capital Requirements - ING Group's fully loaded Common Equity Tier 1 (CET1) requirement remains unchanged at 10.87%, which includes a countercyclical capital buffer of 94 basis points as of the third quarter of 2024 [2]. - The Pillar 2 additional own funds requirement (P2R) is set at 165 basis points and will be applicable starting January 1, 2025 [2]. Current Financial Position - As of September 30, 2024, ING's CET1 ratio stands at 14.3%, significantly above the regulatory requirements [3].

Group 1 - Goldman Sachs projects muted returns for Euro Area stock markets in 2025, indicating a cautious outlook for the region [1] - Valuations across 11 sectors in the Euro Area are significantly cheaper compared to P/E multiples in the US, suggesting potential undervaluation [1] - Earnings growth expectations in the Euro Area are described as tepid, indicating limited growth prospects for companies in the region [1]

Core Viewpoint - ING Groep (ING) has experienced a downtrend with a 6.2% decline in stock price over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround due to analysts' positive earnings outlook [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) for ING is at 26.75, indicating that the heavy selling pressure may be exhausting, which could lead to a price rebound [3]. - RSI is a momentum oscillator that helps identify oversold conditions when the reading falls below 30, allowing investors to spot potential entry opportunities [2]. Group 2: Fundamental Indicators - There is a strong consensus among sell-side analysts to raise earnings estimates for ING, resulting in a 0.7% increase in the consensus EPS estimate over the last 30 days, which typically correlates with price appreciation [4]. - ING holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a near-term turnaround [4].

Continued execution of our strategy to accelerate growth, increase impact and deliver value 3Q2024 ING Group 31 October 2024 do your thinq Continuation of our strong growth trajectory | --- | --- | --- | --- | |---------------------------------------------------|----------------------------------------------------------------------|----------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------- ...

Financial Data and Key Metrics - Total income reached a record level in Q3 2024, with fee income exceeding €1 billion for the first time [6][10] - Annualized customer balances growth (lending and deposits combined) was 5.3% in the first nine months, surpassing the 4% expectation set during Capital Markets Day [10] - CET1 ratio increased to 14.3% at the end of Q3 2024, with a four-quarter rolling return on equity of 13.8% [14][41] - Total risk costs were €336 million in Q3, or 20 basis points on average customer lending, in line with the through-the-cycle average [39] Business Line Performance - The lending book grew by €9 billion, with strong performance in mortgages, particularly in the Netherlands where market share increased due to digitalization and flexible operations [8] - Wholesale Banking saw growth in lending and financial markets, partially offset by capital optimization efforts [9] - Retail Banking experienced a net inflow of €5.5 billion in deposits in Belgium due to a successful marketing campaign [9][29] - Fee income in Wholesale Banking increased due to higher deal flow in global capital markets and corporate finance [36] Market Performance - ING Poland is one of the largest franchises with income of around €2 billion, showing strong growth in customer balances with a CAGR of 9% since 2019 [17][19] - The company has €28 billion of sustainable volume mobilized in Q3 and €85 billion in the first nine months, a 15% increase compared to the previous year [13] Strategic Direction and Industry Competition - The company is focusing on digitalization, with the rollout of a one-app solution for business banking clients in Germany [11] - ING is committed to sustainability, with €250 million provided to the National Heat Fund in the Netherlands to make buildings more sustainable [13] - The company is expanding its Terra approach to include aluminum and dairy sectors, and has updated its oil and gas policy to stop new financing for pure-play upstream oil and gas companies developing new fields [20][22] Management Commentary on Operating Environment and Future Outlook - Management expects total income to exceed €22.5 billion for the year, with a cost/income ratio of around 53% and a return on equity forecasted to be more than 13% [25] - The company is confident in maintaining a liability margin between 100 to 110 basis points, with expectations for 2025 to be at the lower end of this range [34][95] Other Important Information - ING announced an additional distribution of €2.5 billion, including a €2 billion share buyback and a €500 million cash dividend in January 2025 [15][16] - The company has been recognized as a top employer in five European countries and continues to invest in improving the employee experience [12] Q&A Session Summary Question: Replicating income and deposit repricing confidence [44] - The company is confident in maintaining the margin due to volume growth, lower deposit costs, and strong replication tailwinds [47][48] Question: M&A strategy and cross-border consolidation [51] - ING is focused on organic growth but is open to domestic consolidation in retail and acquiring new skill sets or product capabilities [52][53] Question: Volume growth drivers and cost optimization [55] - Growth is expected mainly in retail, particularly in mortgages, with cost optimization ongoing through digitization and operational efficiencies [56][62] Question: Belgium deposit inflow and treasury income [65] - The Belgian deposit campaign aims to convert customers into primary clients for cross-selling, while treasury income is volatile but expected to range between €200 million to €300 million [66][68] Question: Wholesale Banking RWA efficiencies and Germany Mittelstand sector [71] - RWA efficiencies are expected to materialize in 2025, with a focus on digital offerings in the Mittelstand sector [73][74] Question: Belgian deposits and replicating portfolio [77] - The €5.5 billion deposit inflow in Belgium was partially offset by outflows from business banking, and the replicating portfolio distribution remains unchanged [79][80] Question: Asset quality and deposit margin balance [81] - Risk costs are managed through the cycle, with vigilance in sectors like commercial real estate and automotive, while deposit margins are maintained through competitive pricing and promotional campaigns [84][89] Question: Lending NII and liability margin outlook [92] - Lending NII is expected to hover around 130 basis points, with liability margins guided to be between 100 to 110 basis points in 2025 [94][95] Question: Retail lending margin and treasury income trends [98][102] - Retail lending margins were stable in Q3, and treasury income has declined due to ECB reserve requirements but is expected to stabilize [100][104] Closing Remarks [106] - Management thanked participants and expressed confidence in the company's strategic execution and future performance [106]

Despite being roughly flat since my last update in May, Dutch bank ING Groep N.V. (NYSE: ING ) has nonetheless had an okay year so far, returning around 20% (with dividends).I like to take a long term, buy-and-hold approach to investing, with a bias toward stocks that can sustainably post high quality earnings. Mostly found in the dividend and income section. Blog about various US/Canadian stocks at 'The Compound Investor', and predominantly UK names on 'The UK Income Investor'.Analyst’s Disclosure: I/we ha ...

Group 1 - The article does not provide any specific insights or data related to companies or industries, focusing instead on the author's background and experience [2][3]

Launched in June 2024, the sustainability-linked revolving credit facility was designed to support working-class communities. MIAMI and NEW YORK, Oct. 1, 2024 /PRNewswire/ -- Lafayette Square USA, Inc. ("Lafayette Square"), a business development company, announced today that ING Capital LLC ("ING") has increased commitments to the hybrid credit facility that closed earlier this year. EverBank, N.A. ("EverBank") and First Citizens Bank ("First Citizens") will provide additional commitments which will increa ...

Core Insights - The report provides a comprehensive overview of ING Group N.V.'s technology-related activities, focusing on its digital transformation strategies and innovation programs [2][4] - It highlights various technology initiatives undertaken by ING, including partnerships, product launches, investments, and acquisitions that are driving the bank's technological advancements [2][4] Company Overview - ING Group NV is a provider of retail and commercial banking products and related financial solutions, including accounts, loans, investment products, card products, asset management, and financial planning solutions [3] Technology Initiatives - The report details specific technology themes involved in ING's initiatives, the objectives behind these programs, and the anticipated benefits for the organization [4] - It also provides insights into ING's estimated ICT budgets, illustrating the bank's financial commitment to technology and major ICT contracts established [4] Reasons to Buy - Insights into ING's tech operations and strategies, including innovation initiatives and technology themes under focus [5] - Information on various product launches, partnerships, investments, and acquisitions that ING is involved in [5] Key Topics Covered - The report covers key topics such as digital transformation strategy, accelerators, incubators, technology initiatives, investments, acquisitions, and the ICT budget [6]

WATE II I LIF II/ IAN II 7 107 U III Ernest Hoffman Ernest Hoffman is a Crypto and Market Reporter for Kitco News. He has over 15 years of experience as a writer, editor, broadcaster and producer for media, educational and cultural organizations. Ernest began working in market news in 2007, establishing the broadcast division of CEP News in Montreal, Canada, where he developed the fastest web-based audio news service in the world and produced economic news videos in partnership with MSN and the TMX. He has ...