Group 1 - The article discusses the author's journey into investing, starting in high school in 2011, focusing on REITs, preferred stocks, and high-yield bonds, indicating a long-standing interest in markets and the economy [1] - The author has recently adopted a strategy that combines long stock positions with covered calls and cash secured puts, emphasizing a fundamental long-term investment approach [1] - The author primarily covers REITs and financials on Seeking Alpha, with occasional articles on ETFs and other stocks influenced by macro trade ideas [1]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: ING Groep - ING Groep currently holds a Momentum Style Score of A, indicating strong potential for momentum investing [3] - The company has a Zacks Rank of 1 (Strong Buy), which historically outperforms the market when combined with a Style Score of A or B [4] Price Performance - Over the past week, ING shares increased by 2.84%, while the Zacks Banks - Foreign industry rose by 3.61% [6] - In the last month, ING's price change was 1.53%, compared to the industry's 5.15% [6] - Over the past quarter, ING shares have risen by 17.12%, and by 13.14% over the last year, while the S&P 500 has moved -6.91% and 13.12%, respectively [7] Trading Volume - ING's average 20-day trading volume is 3,177,483 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the past two months, two earnings estimates for ING have increased, raising the consensus estimate from $2.12 to $2.30 [10] - For the next fiscal year, one estimate has moved upwards with no downward revisions [10] Conclusion - Given the strong performance metrics and positive earnings outlook, ING Groep is positioned as a strong momentum pick for investors [12]

Group 1: Market Performance - Dow futures rose by 0.41%, S&P 500 futures increased by 0.35%, and Nasdaq futures gained 0.14% [1] - Popular Chinese stocks mostly saw gains, with XPeng up over 6%, Alibaba rising more than 4%, and NIO, Li Auto, and JD.com all increasing over 3% [1] Group 2: Company Earnings and Forecasts - Apple reported Q2 revenue of $95.4 billion, exceeding analyst expectations of $94.66 billion, but faced a projected $900 million increase in costs due to tariffs, leading to a 2.78% drop in stock price [1] - Amazon's Q1 earnings surpassed expectations, but the company provided a weak outlook for Q2, estimating revenue between $13 billion and $17.5 billion, below the consensus of $17.64 billion, resulting in a 2.25% decline in stock price [1] - Shell's Q1 adjusted profit was $5.58 billion, exceeding the expected $5.09 billion, and announced a $3.5 billion stock buyback, leading to a 3.33% increase in stock price [2] - McDonald's reported a 3.6% decline in U.S. same-store sales, the largest drop since Q2 2020, which was worse than the anticipated 1.7% decline [2] - General Motors updated its financial guidance, citing potential tariff impacts of up to $5 billion, lowering its adjusted EBIT forecast to a range of $8.2 billion to $10 billion, down from $11 billion to $12 billion [2] Group 3: Banking Sector - ING reported a strong Q1 performance with a net profit of €1.46 billion, surpassing the market expectation of €1.4 billion, and announced a €2 billion stock buyback, resulting in a 4.67% increase in stock price [3]

Core Viewpoint - The report indicates that the U.S. dollar has recovered some of its recent losses due to news of potential reductions in auto tariffs by the Trump administration [1] Summary by Relevant Sections - **Impact of Tariff Reductions** - Analysts suggest that the Trump administration plans to ease tariffs on foreign auto parts and prevent additional tariffs on foreign-made cars from compounding existing tariffs [1] - **Economic Implications** - Evidence is emerging that tariffs have already caused damage to the U.S. economy, which may influence the dollar's performance moving forward [1] - **Market Outlook** - Overall, the risk for the dollar this week is tilted towards the downside, reflecting ongoing concerns about tariff impacts [1]

Core Viewpoint - The euro has lost its status as a preferred alternative to the US dollar, with recent trends showing a decline in its appeal among investors [1] Group 1: Currency Performance - Most G10 currencies performed better than the euro during the week [1] - The euro is currently viewed as the most overbought currency in the options market [1] Group 2: Economic Factors - Concerns over potential weakness in the US economy and optimism regarding German fiscal stimulus have shifted market focus away from worries about the eurozone's economic weakness [1] - A large-scale power outage in Spain and Portugal may further impact the euro negatively [1] Group 3: Market Expectations - If the eurozone's first-quarter economic growth data, set to be released on Wednesday, falls short of expectations, speculators may unwind their bullish positions on the euro [1]

Core Insights - The primary focus for income investors is generating consistent cash flow, particularly through dividends, which are a significant component of long-term returns [1][2] Company Overview: ING Groep - ING Groep, based in Amsterdam, has experienced a share price increase of 22.4% this year [3] - The company currently pays a dividend of $0.65 per share, resulting in a dividend yield of 6.81%, which is significantly higher than the Banks - Foreign industry's yield of 3.84% and the S&P 500's yield of 1.65% [3] Dividend Growth - ING Groep's annualized dividend of $1.31 has increased by 28.8% from the previous year [4] - Over the past five years, the company has raised its dividend three times, achieving an average annual increase of 45.79% [4] - The current payout ratio is 30%, indicating that the company distributes 30% of its trailing 12-month earnings per share as dividends [4] Earnings Expectations - For the fiscal year, ING Groep anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 at $2.24 per share, reflecting a year-over-year growth rate of 4.67% [5] Investment Appeal - ING Groep is viewed as a compelling investment opportunity due to its attractive dividend and strong Zacks Rank of 1 (Strong Buy) [7]

Execution of our strategy resulted in outstanding growth and strong value delivery 4Q2024 ING Group 6 February 2025 Delivering outstanding commercial growth across all business lines Note: all figures represent FY2024 figures, unless specifically mentioned 1) Includes private individuals only 2) Excluding RWAs in the Corporate Line 2 Mobile primary customers1) +1.1 mln Net core lending growth €+28 bln Net core deposits growth €+47 bln ▪ Very strong growth in mobile primary customers, all markets contributin ...

Company Overview - Freepoint Eco-Systems LLC has closed a $50 million non-recourse project finance facility for its plastic waste upcycling facility in Hebron, Ohio, marking a significant development in the plastic reclamation sector for hard-to-recycle plastics [1][2] - The Hebron facility has a processing capacity of 180 million pounds per year, making it one of the largest commercial-scale facilities globally for reclaiming waste plastic [2] Industry Insights - The financing transaction is seen as a pivotal step in demonstrating that plastic upcycling facilities utilizing new technology can access project finance loan markets, indicating a growing trend in the circular economy and sustainability sectors [2] - ING Capital's involvement highlights the anticipated increase in demand for debt capital in the plastics recycling market as more waste plastic is recovered and recycled worldwide [2]

Share Buyback Programme - ING announced a €2.0 billion share buyback programme initiated on 31 October 2024[2] - A total of 3,163,956 shares were repurchased during the week of 23 December 2024 to 27 December 2024[2] - Shares were repurchased at an average price of €14.85, totaling €46,987,104.63[3] - To date, 48,430,773 ordinary shares have been repurchased at an average price of €14.97, amounting to €724,796,329.16[4] - Approximately 36.24% of the maximum total value of the share buyback programme has been completed[4] ESG Performance - ING's ESG rating by MSCI was reaffirmed as 'AA' in August 2024 for the fifth consecutive year[7] - As of December 2023, ING's ESG Risk Rating is 17.2, indicating a low risk[7] - The company aims to integrate sustainability into its core operations and finance sustainable activities[7] Company Operations - ING operates in over 40 countries with more than 60,000 employees providing retail and wholesale banking services[5] - ING Group shares are listed on the Amsterdam, Brussels, and New York Stock Exchanges[6]

Customer Base and Digital Transformation - ING serves 40 million customers across 38 countries, with significant revenue derived from the Benelux countries and Germany[45]. - Over 95% of customers now interact with the company via digital channels only, indicating a significant shift towards digital banking[135]. - In 2024, the number of primary customers increased by 0.8 million to 16.2 million[212]. - Over 84 percent of customers used mobile as their preferred channel in 2024, up from 79 percent in 2023[213]. - The mobile primary customer base grew by 1.1 million to 14.4 million in 2024, with 89 percent of primary customers engaging through mobile[214]. - Customers logged in more than eight billion times to digital platforms in 2024, a 6 percent increase from 2023, with mobile interactions representing 96 percent of total interactions[215]. Financial Performance and Economic Risks - ING's revenues and earnings are influenced by economic volatility, with potential adverse effects from inflation, interest rate changes, and geopolitical events[36]. - The company anticipates that economic downturns could lead to increased loan defaults and necessitate higher reserves[48]. - Political instability and fiscal uncertainty globally have adversely affected the company's business and financial condition[61]. - The ongoing volatility in inflation and interest rates may result in mispricing of products, adversely impacting results[58]. - A downgrade in credit ratings could adversely impact the company's ability to raise capital and increase the cost of debt issuance[151]. Regulatory and Compliance Risks - The company faces risks related to non-compliance with laws and regulations, which could lead to fines and impact profitability[40]. - The company is subject to regulatory supervision by the ECB and other bodies, which may affect its operational costs and business activities[40]. - Non-compliance with laws and regulations could result in fines and penalties, materially affecting the company's business and reputation[78]. - The company is subject to extensive regulatory requirements, including capital, liquidity, and leverage restrictions, which may affect its operational flexibility[82]. - The European Central Bank (ECB) has significant supervisory powers, including the ability to impose capital surcharges and restrict business activities if regulatory requirements are not met[87]. Climate Change and ESG Considerations - ING's operations are exposed to climate change risks, which may affect its reputation and financial performance[52]. - The company is under increasing pressure to meet ESG-related targets and expectations, with significant public dialogue surrounding these issues[109]. - ING's operations are subject to new regulations such as the EU Sustainable Finance Disclosure Regulation and the EU Corporate Sustainability Reporting Directive, which impose disclosure obligations on ESG risks[110]. - The transition to a low-carbon economy may require ING to modify its lending portfolio, potentially leading to claims or legal challenges from customers[117]. - ING aims to achieve net zero in its operations and support clients in their sustainability goals[202][226]. Competition and Market Position - The company faces substantial competition in the Netherlands and other markets, impacting its ability to maintain or increase market share[137]. - The competitive landscape includes new entrants, particularly non-bank and financial technology competitors, which may challenge traditional banking models[138]. - ING aims to lead in sustainability and digital service offerings, with a focus on providing tailored financial solutions[224][226]. - The company positions itself as a pioneer in sustainability, actively working with clients to tackle pressing global issues[231]. Operational and IT Risks - The company is exposed to operational and IT risks, including cyber attacks, which could adversely impact its reputation and financial results[125]. - Compliance with increasing regulatory requirements related to cybersecurity, such as GDPR and DORA, is essential for ING to avoid reputational harm and enforcement actions[132]. - The company must adapt to changing market conditions and competitive pressures, particularly in technology and operational management[155]. Customer Relations and Reputation - The company may face claims from customers alleging misleading information or insufficient advice regarding financial products, which could harm its reputation[106]. - ING faces potential material adverse effects on its reputation and financial condition due to negative publicity related to sales practices and regulatory changes[108]. - The NPS score for Wholesale Banking rose to 74 in 2024, compared to 72 in 2023, reflecting high client appreciation for sector expertise and local support[230].