ING Groep (NYSE:ING) Q4 2025 Earnings call January 29, 2026 03:00 AM ET Speaker0Good morning. This is Laura welcoming you to ING's 4Q 2025 conference call. Before handing this conference call over to Steven van Rijswijk, Chief Executive Officer of ING Group, let me first say that today's comments may include forward-looking statements, such as statements regarding future developments in our business, expectations for our future financial performance, and any statement not involving a historical fact. Actual ...

Financial Data and Key Metrics Changes - The company reported revenues of EUR 32 billion for 2025, representing a compound annual revenue growth of 6% since 2021, within the target range of 5.5%-6.5% [2] - Pre-tax profit reached EUR 9.7 billion, a year-on-year increase of 84%, while net profit was EUR 7.1 billion, with a post-tax return on tangible equity of 10.3% [3][6] - The cost-income ratio was 64%, in line with the target of below 65%, and credit loss provisions decreased to EUR 1.7 billion, down year-on-year [2][3] Business Line Data and Key Metrics Changes - The Corporate Bank achieved revenue growth of over 40% since 2021, benefiting from a normalized interest rate environment and increased fee income [6][7] - The Investment Bank saw a 5% year-on-year increase in revenues for the fourth quarter, driven by strength in Fixed Income and Commodities (FIC) [26] - The Private Bank delivered a post-tax return on tangible equity of 10.5% for the full year, with revenues of EUR 2.4 billion, including a 10% year-on-year growth in net interest income [29] Market Data and Key Metrics Changes - The Asset Management arm, DWS, attracted EUR 85 billion of net new assets over the last four years, with assets under management surpassing EUR 1 trillion in 2025 [8] - Sustainable finance volumes reached EUR 98 billion in 2025, the highest annual volume since 2021, contributing to a cumulative total of over EUR 470 billion since 2020 [9] Company Strategy and Development Direction - The company aims to scale its Global Hausbank model, focusing on growth, capital discipline, and a scalable operating model to enhance shareholder value [11][12] - The strategic roadmap includes increasing the post-tax return on tangible equity from 10% in 2025 to greater than 13% by 2028, with plans to improve the cost-income ratio to below 60% [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong start to 2026, with expectations for revenue growth to around EUR 33 billion, supported by banking book net interest income growth [34][36] - The company anticipates a modest increase in provisions for credit losses in 2026, with expectations for asset quality to remain solid [36] Other Important Information - The company proposed a EUR 1 dividend per share and an authorized share buyback of EUR 1 billion, with total distributions for 2025 amounting to EUR 2.9 billion [4][10] - The Common Equity Tier 1 (CET1) ratio was reported at 14.2%, reflecting a strong capital foundation despite some capital headwinds [3][22] Q&A Session Summary Question: What are the expectations for revenue growth in 2026? - The company expects full-year revenues to increase to around EUR 33 billion, aided by growth in net interest income and net commission income [34] Question: How does the company plan to manage costs moving forward? - Non-interest expenses are expected to increase to slightly above EUR 21 billion in 2026, including incremental investments to unlock growth and efficiencies [36]

Financial Data and Key Metrics Changes - The total cloud backlog reached EUR 77 billion, up 30% year-on-year, indicating strong underlying business momentum [7][26] - Cloud revenue grew 26% year-on-year, primarily driven by the strong performance of the Cloud ERP Suite, which increased by 32% [27][29] - Total revenue for the full year approached EUR 37 billion, up 11% [29] Business Line Data and Key Metrics Changes - The Cloud ERP Suite accounted for 86% of total cloud revenue for the year, highlighting its role as a key growth engine [27] - The number of customers using the AI copilot tool grew ninefold over the year, with over 60% of existing cloud customers actively using AI [6][56] Market Data and Key Metrics Changes - Strong performances were noted in Brazil, France, Germany, India, Italy, South Korea, and Spain, while China, Japan, Saudi Arabia, the UK, and the US also showed significant strength [28] - The company outperformed the cloud market by 10 percentage points in 2025 [15] Company Strategy and Development Direction - The ongoing transformation of SAP's operating model, combined with AI integration, is expected to drive future growth and revenue acceleration through 2027 [14][22] - The company is focusing on a Partner-First approach for the mid-market and expanding its sovereign cloud capabilities [12][16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged geopolitical uncertainty and macroeconomic volatility but emphasized the increasing demand for AI solutions among customers [4][24] - The company expects a record free cash flow of approximately EUR 10 billion in 2026, supported by continued efficiency improvements [32] Other Important Information - The non-IFRS cloud gross margin for the full year expanded by 1.6 percentage points to 75%, driving cloud gross profit up by 29% [28] - A new two-year share repurchase program of up to EUR 10 billion is set to start in February, reflecting confidence in the business's sustainable strengths [30] Q&A Session Summary Question: Insights on CCB and pipeline for Q1 - Management noted that the CCB ended at 25%, with larger deals contributing to longer ramp periods and some slippage, but overall bookings performance was ahead of plan [39][41] Question: AI-driven cost savings and R&D focus - The company aims to achieve EUR 2 billion in cost efficiencies through business growth and AI integration, with no current restructuring plans [46][48] Question: AI adoption among existing customers - Approximately 60% of existing cloud customers are actively using AI, with significant revenue uplift observed from early adopters [56][60] Question: Dynamics of TCB growth and BDC momentum - Management acknowledged a deceleration in TCB growth but emphasized a strong pipeline and the expected contribution from the Business Data Cloud in 2026 [72]

SAP (NYSE:SAP) Q4 2025 Earnings call January 29, 2026 01:00 AM ET Company ParticipantsAdam Wood - Managing DirectorAlexandra Steiger - Head of Investor RelationsChristian Klein - CEODominik Asam - CFOFrederic Boulan - Director in Equity ResearcConference Call ParticipantsBen Bernaus - Senior Equity AnalystCharles Brennan - Equity Research AnalystMark Moerdler - Senior AnalystMohammed Essaji Moawalla - Equity Research AnalystToby Ogg - Equity Research AnalystOperatorLadies and gentlemen, thank you for standi ...

Financial Data and Key Metrics Changes - The company reported revenues of EUR 32 billion for 2025, representing a compound annual revenue growth of 6% since 2021, within the target range of 5.5%-6.5% [2] - Pre-tax profit reached EUR 9.7 billion, and net profit was EUR 7.1 billion, with a post-tax return on tangible equity of 10.3%, meeting the full-year target of above 10% [3] - The cost-income ratio was 64%, in line with the target of below 65%, and credit loss provisions decreased to EUR 1.7 billion, down year-on-year [2][3] Business Line Data and Key Metrics Changes - The Corporate Bank delivered revenue growth of over 40% since 2021, benefiting from a normalized interest rate environment and increased fee income [6] - The Investment Bank saw a 5% year-on-year increase in revenues for the fourth quarter, driven by strength in Fixed Income and Commodities (FIC) [26] - The Private Bank achieved a post-tax return on tangible equity of 10.5% for the full year, with revenues of EUR 2.4 billion, including a 10% year-on-year growth in net interest income [29] Market Data and Key Metrics Changes - The company reported a strong CET1 ratio of 14.2% at year-end, despite capital headwinds, and maintained a liquidity coverage ratio of 144% [3][16] - The asset management arm, DWS, attracted EUR 85 billion of net new assets over the last four years, with assets under management surpassing EUR 1 trillion in 2025 [8] Company Strategy and Development Direction - The company aims to scale its global house bank model, focusing on growth, capital discipline, and a scalable operating model [11][12] - The strategic roadmap includes increasing post-tax return on tangible equity from 10% in 2025 to greater than 13% by 2028, and improving the cost-income ratio to below 60% [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong start to 2026 and the ability to deliver on the 2028 agenda, aiming to become the European champion in banking [12][36] - The company expects full-year revenues to increase to around EUR 33 billion in 2026, supported by growth in net interest income and net commission income [34] Other Important Information - The company proposed a EUR 1 dividend per share and a EUR 1 billion share buyback, with total distributions for 2025 reaching EUR 2.9 billion, exceeding the original target of EUR 8 billion for cumulative distributions from 2021 to 2025 [4][10] - The transition to the new CFO, Raja Akram, was noted as seamless, with management expressing gratitude for the outgoing CFO, James von Moltke's contributions [13][14] Q&A Session Summary Question: What are the expectations for revenue growth in 2026? - The company expects full-year revenues to increase to around EUR 33 billion, aided by banking book net interest income growing to EUR 14 billion [34] Question: How is the company addressing cost management? - The company maintained strict cost discipline, with non-interest expenses expected to increase slightly above EUR 21 billion in 2026, including incremental investments to unlock growth [36]

Deutsche Bank (NYSE:DB) Q4 2025 Earnings call January 29, 2026 01:00 AM ET Speaker2Thank you for joining us for our fourth quarter and full year 2025 preliminary results call. As usual, our Chief Executive Officer, Christian Sewing, will speak first, followed by Chief Financial Officer, James von Moltke. The presentation, as always, is available to download in the investor relations section of our website, db.com. Before we get started, let me just remind you that the presentation contains forward-looking s ...

SAP (NYSE:SAP) Q4 2025 Earnings call January 29, 2026 01:00 AM ET Speaker9Ladies and gentlemen, thank you for standing by. Welcome, and thank you for joining the SAP Q4 and full year 2025 earnings conference call. Throughout today's recorded presentation, all participants will be in a listen-only mode. The presentation will be followed by a question and answer session. If you would like to ask a question, you may press star, followed by one on your touchtone telephone. I would now like to turn the conferenc ...

SAP (NYSE:SAP) Q4 2025 Earnings call January 29, 2026 01:00 AM ET Speaker1Today are CEO Christian Klein and CFO Dominik Asam. On this call, we will discuss SAP's fourth quarter and full year results for 2025. You can find the deck supplementing this call, as well as our quarterly statement on our website investor relations website. During this call, we will make forward-looking statements, which are predictions, projections, or other statements about future events. These statements are based on current expe ...

Financial Data and Key Metrics Changes - In Q4 2025, automotive margins, excluding credits, improved sequentially from 15.4% to 17.9% despite a 16% decrease in deliveries [21] - Total gross margin ended the quarter at over 20.1%, a level not achieved in the last two years, despite lower fixed cost absorption and over $500 million in tariffs [24] - Net income was negatively impacted by a 23% depreciation in Bitcoin holdings and unfavorable foreign exchange effects [25] Business Line Data and Key Metrics Changes - Automotive gross profit remained flat sequentially despite lower deliveries, primarily due to a favorable regional mix with more deliveries in APAC and EMEA [21] - Energy segment achieved nearly $12.8 billion in revenue with a year-over-year growth of 26.6%, driven by high deployments of Megapack and Powerwall [22] - Services and others margin declined from 10.5% to 8.8% due to higher employee-related costs in service centers [23] Market Data and Key Metrics Changes - Record deliveries were noted in smaller countries like Malaysia, Norway, Poland, Saudi Arabia, and Taiwan, contributing to a larger backlog than in recent years [20] - The energy team reported strong growth rates and continued demand for energy products, indicating a robust market outlook [12] Company Strategy and Development Direction - The company is transitioning to a subscription-based model for Full Self-Driving (FSD), which is expected to impact automotive margins in the short term [21] - Significant investments are planned for 2026, with CapEx expected to exceed $20 billion, focusing on six factories and expanding production capacity [26][27] - The company aims to replace the Model S and X production lines with a factory for Optimus robots, targeting a production goal of 1 million units per year [7][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, emphasizing a shift towards autonomy and the potential for universal high income driven by advancements in AI and robotics [2][4] - The company is cautious about the rollout of unsupervised FSD, ensuring safety while gradually increasing autonomy capabilities [54][55] - Management acknowledged the challenges posed by increased low-cost competition and policy uncertainties affecting margins in the energy sector [22] Other Important Information - The company is making substantial investments in AI chips and solar cell manufacturing, indicating a long-term strategic focus on these areas [5][13] - The transition to a fully autonomous vehicle market is expected to significantly alter the transportation landscape, with the Cybercab model designed specifically for this purpose [30][34] Q&A Session Summary Question: What is Tesla's view on the future global car sales and its impact on EV strategy? - Tesla believes that autonomy and Cybercab will significantly change the global market size and mix, with a focus on efficiency and manufacturing at scale [28][29] Question: Are there plans to launch new models for different price segments? - Tesla has launched its least expensive models recently and continues to expand globally, aiming to provide a premium ride experience with the Cybercab [34][35] Question: What is the current bottleneck for increasing robotaxi deployment? - The company is learning from the scaled robotaxi service and is focused on solving the unsupervised FSD problem while expanding the fleet size [41][42] Question: What are the constraints on memory procurement? - Tesla's AI is designed to be compute and memory efficient, and the company is confident in its ability to manage memory constraints in the near term [91][92]

Financial Data and Key Metrics Changes - Revenue for the quarter was $81.3 billion, up 17% year-over-year and 15% in constant currency [25] - Gross margin dollars increased by 16% and operating income rose by 21% [25] - Earnings per share was $4.14, reflecting a 24% increase year-over-year [25] - Company gross margin percentage was 68%, slightly down year-over-year due to investments in AI infrastructure [26] - Operating expenses increased by 5%, driven by R&D investments [26] Business Line Data and Key Metrics Changes - Microsoft Cloud revenue reached $51.5 billion, growing 26% year-over-year [31] - Productivity and Business Processes revenue was $34.1 billion, up 16% year-over-year [31] - M365 Commercial Cloud revenue increased by 17%, with paid M365 commercial seats growing 6% to over 450 million [32] - Intelligent Cloud segment revenue was $32.9 billion, growing 29% year-over-year [33] - More Personal Computing revenue declined by 3% to $14.3 billion [36] Market Data and Key Metrics Changes - Commercial bookings increased by 230%, driven by large Azure commitments from OpenAI [30] - Commercial remaining performance obligation (RPO) increased to $625 billion, up 110% year-over-year [30] - Azure revenue grew by 39%, slightly ahead of expectations [34] - LinkedIn revenue increased by 11%, driven by marketing solutions [24] Company Strategy and Development Direction - The company is focusing on AI diffusion and its impact on GDP, with significant investments in AI infrastructure [6] - Microsoft aims to build a comprehensive AI business that integrates across its platforms, enhancing customer experiences [10] - The strategy includes expanding sovereignty solutions to meet local data residency needs [9] - The company is investing in both first-party and third-party AI models to enhance its offerings [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of AI and its integration into various business lines, emphasizing the importance of infrastructure investments [6][9] - The company anticipates continued strong demand across its cloud services, with a focus on balancing supply and demand [34] - Management highlighted the importance of long-term investments in R&D and product innovation to drive future growth [50] Other Important Information - Capital expenditures for the quarter were $37.5 billion, with a significant portion allocated to short-lived assets like GPUs and CPUs [27] - The company returned $12.7 billion to shareholders through dividends and share repurchases, a 32% increase year-over-year [29] - The company is seeing strong momentum in its Copilot offerings, with significant increases in daily active users and paid seats [18] Q&A Session Summary Question: Concerns about CapEx growth and Azure revenue - Management acknowledged the correlation between CapEx and Azure revenue, emphasizing long-term investments in infrastructure to meet demand [48][50] Question: Line of sight from hardware CapEx to revenue and margins - Management clarified that much of the capital spent is already contracted for the useful life of the hardware, reducing risk [60][61] Question: Durability of OpenAI-related backlog - Management expressed confidence in the breadth and diversification of their RPO, highlighting strong growth across various customer segments [68] Question: Capacity additions and their impact - Management confirmed ongoing efforts to add capacity globally, emphasizing the need for efficient operations across multiple locations [75] Question: Performance of Maia 200 accelerator - Management highlighted the significance of silicon innovation and its role in enhancing performance and cost efficiency for AI workloads [80]