ING Groep (NYSE:ING) Q4 2025 Earnings call January 29, 2026 05:00 AM ET Company ParticipantsReginald Watson - Head of Investor RelationsSteven van Rijswijk - CEOConference Call ParticipantsMark Schwartzenburg - AnalystNone - AnalystNone - AnalystSteven van RijswijkThank you very much for people on the call as well. I believe you're in listening only, Mark, and we have people here in the room as well from the media here in the Netherlands. I'll say a few words upfront, and then we'll just go into Q&A. So we ...

Deutsche Bank (NYSE:DB) Q4 2025 Earnings call January 29, 2026 05:00 AM ET Speaker3Ladies and gentlemen, welcome to the Q4 2025 analyst conference call and live webcast. I'm Moritz, the call's call operator. I would like to remind you that all participants will be in a listen-only mode, and the conference is being recorded. The presentation will be followed by a question and answer session. You can register for questions at any time by pressing star and one on your telephone. For operator assistance, please ...

ING Groep (NYSE:ING) Q4 2025 Earnings call January 29, 2026 05:00 AM ET Speaker2Thank you very much for people on the call as well. I believe you're in listening only, Mark, and we have people here in the room as well from the media here in the Netherlands. I'll say a few words upfront, and then we'll just go into Q&A. So we had good commercial and financial results in 2025. On the customer side, we grew our primary customers quite a bit, so we had over 1 million primary customers in 2025, with 350,000 in t ...

Financial Data and Key Metrics Changes - The company reported a statutory profit after tax of GBP 4.8 billion, with a return on tangible equity of 12.9% or 14.8% excluding the motor provision [18][20] - Net income for the full year was GBP 18.3 billion, up 7% compared to 2024, driven by growth in net interest income (NII) and other income (OOI), which increased by 6% and 9% respectively [18][20] - The tangible net asset value per share increased to 57 pence, up 4.6 pence in 2025 [35] Business Line Data and Key Metrics Changes - Retail banking saw growth in mortgages, credit cards, and European retail, with mortgages up GBP 10.8 billion or 3% to GBP 323 billion [25][22] - Commercial Banking lending increased by GBP 2.7 billion, with strategic areas like infrastructure and project finance showing encouraging progress [26] - Other operating income was GBP 6.1 billion, up 9% year-on-year, with retail OOI growing by 12% and insurance, pensions, and investments by 11% [29][30] Market Data and Key Metrics Changes - Total deposits increased by GBP 13.8 billion or 3% in 2025, with retail deposits up GBP 5.5 billion and commercial deposits up GBP 8.5 billion [22][27] - The structural hedge notional stood at GBP 244 billion at year-end, with hedge income around GBP 5.5 billion, expected to increase to circa GBP 7 billion in 2026 [28] Company Strategy and Development Direction - The company is entering the final phase of its 5-year strategic plan, focusing on faster-growing sectors such as housing, pensions, investments, and infrastructure [4][5] - The acquisition of Schroders Personal Wealth is aimed at enhancing the company's wealth offering and deepening relationships with mass affluent customers [7][8] - The company is committed to improving operating leverage and reducing the cost-income ratio to below 50% by 2026 [11][31] Management's Comments on Operating Environment and Future Outlook - The management is optimistic about the UK economy, forecasting resilient but slower growth, with interest rates gradually falling in 2026 [4] - The company upgraded its return on tangible equity target for 2026 to greater than 16%, reflecting confidence in future performance [40][39] - Management emphasized the importance of cost discipline and strategic execution in driving shareholder distributions and financial performance [2][39] Other Important Information - The company announced a 15% increase in the ordinary dividend and a share buyback of up to GBP 1.75 billion [2][18] - Cumulative cost savings of approximately GBP 1.9 billion have been realized since 2021, supporting ongoing strategic investments [10][31] Q&A Session Summary Question: Insights on deposit performance and expectations for 2026 - The company noted strong deposit growth in 2025, with expectations for continued healthy performance in 2026, despite some seasonal variations [44][47] Question: Clarification on cost growth and management - The management indicated that cost discipline remains critical, with a projected cost base of less than GBP 9.9 billion for 2026, reflecting limited absolute cost growth [49][50] Question: Guidance on net interest income (NII) and capital distribution - The company expects NII to grow to GBP 14.9 billion in 2026, with steady growth anticipated throughout the year, and plans to review capital distributions on a half-yearly basis [56][62]

Financial Data and Key Metrics Changes - In Q4 2025, net sales increased by 3% to EUR 6.1 billion, with an operating profit of EUR 1 billion and free cash flow of EUR 0.2 billion [4][16] - For the full year 2025, net sales reached EUR 19.9 billion, with an operating profit of EUR 2 billion, slightly above guidance [4][16] - Free cash flow conversion was 72%, consistent with guidance [4][16] - Gross margin improved by 90 basis points to 48.1%, while operating margin was 17.3%, down 90 basis points due to increased investments [16][17] Business Line Data and Key Metrics Changes - Network Infrastructure saw a 7% increase in net sales in Q4, driven by a 17% growth in optical networks [5][17] - Cloud and Network Services experienced a 4% decline in Q4, attributed to revenue recognition timing, but had a 6% growth for the full year [17][18] - Mobile Networks net sales increased by 6%, with growth in the Middle East, Africa, Japan, and Indonesia [18] - Nokia Technologies faced a 17% decline in net sales in Q4, impacted by lower catch-up sales and a EUR 20 million impairment charge [19] Market Data and Key Metrics Changes - AI and cloud customers accounted for 16% of total net sales and 30% of Optical Networks in Q4 [17] - North America showed strong growth in Network Infrastructure, while Cloud and Network Services and Mobile Networks declined [20] - In APAC, growth was noted in Japan and Indonesia, while declines were seen in India and Greater China [20] Company Strategy and Development Direction - The company aims to focus on long-term value creation, emphasizing AI and cloud opportunities, and has simplified its operating model [4][11] - A new Mobile Infrastructure segment was formed to enhance accountability and profitability [8] - The company is investing in defense-grade solutions and has established Nokia Defense as a new incubation unit [10] - The target for operating profit in 2026 is set between EUR 2 billion and EUR 2.5 billion, with a focus on disciplined execution [12][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term potential of optical networking and AI infrastructure, despite a conservative growth forecast for 2026 [30][31] - The company anticipates a somewhat lower than normal seasonal decline in Q1 2026 due to strong Q4 performance [33] - Management highlighted the importance of clarity in regulatory frameworks like the Cybersecurity Act for future business opportunities [54][56] Other Important Information - The company closed the acquisition of Nokia Shanghai Bell, expecting EUR 200 million in cost synergies [11] - A new head of IP networking has been appointed to enhance focus on this area [47] - The company plans to invest EUR 900 million to EUR 1 billion in CapEx, primarily for optical networks [35][36] Q&A Session Summary Question: Growth expectations for optical networks - Management acknowledged the strong growth in Q4 but guided for a more conservative 10%-12% growth in 2026 due to transitioning from a telco-centric base [30][31] Question: Seasonal trends in Q1 - Management indicated that a slower start to the year is typical following a strong Q4, particularly in mobile networks [33] Question: CapEx visibility and order book - Management emphasized long-term trends and confidence in the market, noting that CapEx investments are aimed at supporting future growth [36] Question: Impact of restructuring costs - Management confirmed ongoing restructuring costs but expects significant savings in the long term [38] Question: North America market dynamics - Management acknowledged headwinds from customer losses but noted positive trends in AI and cloud segments [66][67] Question: Supply constraints in optical networks - Management confirmed supply constraints exist but emphasized ongoing investments to support capacity and capability in the ecosystem [60][62]

Nokia (NYSE:NOK) Q4 2025 Earnings call January 29, 2026 04:30 AM ET Company ParticipantsAlexander Duval - Head of Europe Technology Hardware and Semiconductors Equity ResearchDavid Mulholland - Head of Investor RelationsJustin Hotard - President and CEOMarco Wirén - CFOSami Sarkamies - Head of TMTSimon Leopold - Managing DirectorSébastien Sztabowicz - Head of IT Hardware and Semis Sector ResearchTerence Tsui - VPConference Call ParticipantsArtem Beletski - Equity AnalystDaniel Djurberg - Senior Equity Analy ...

Lloyds Banking Group (NYSE:LYG) Q4 2025 Earnings call January 29, 2026 04:30 AM ET Company ParticipantsBen Roberts - VPBen Toms - Director EquitiesCharlie Nunn - CEODouglas Radcliffe - Head of Investor RelationsGuy Stebbings - Executive Director of European Banks ResearchJason Napier - Head of European Banks ResearchShail Shah - VPWilliam Chalmers - CFOConference Call ParticipantsJonathan Pierce - Equity AnalystPerlie Mong - UK Banks AnalystNone - AnalystCharlie NunnGood morning, everyone, and thank you for ...

Financial Data and Key Metrics Changes - In Q4 2025, net sales increased by 3% to EUR 6.1 billion, with an operating profit of EUR 1 billion and free cash flow of EUR 0.2 billion [3][14] - For the full year, net sales reached EUR 19.9 billion, with an operating profit of EUR 2 billion, slightly above the midpoint of guidance [3][14] - Free cash flow conversion was 72%, consistent with guidance [3][14] - Gross margin improved by 90 basis points to 48.1%, while operating margin was 17.3%, down 90 basis points due to increased investments [14][15] Business Line Data and Key Metrics Changes - Network Infrastructure saw a 7% increase in net sales in Q4, driven by a 17% growth in optical networks [4][15] - AI and cloud customers accounted for 16% of net sales and 30% of Optical Networks in Q4 [15] - Cloud and Network Services experienced a 4% decline in Q4, but delivered 6% growth for the full year [15][16] - Mobile Networks net sales increased by 6%, driven by growth in the Middle East, Africa, Japan, and Indonesia [16] - Nokia Technologies faced a 17% decline in net sales in Q4, impacted by lower catch-up sales [17] Market Data and Key Metrics Changes - North America showed strong growth in Network Infrastructure, while Cloud and Network Services and Mobile Networks declined [18] - In APAC, Japan and Indonesia grew, but there were declines in India and Greater China [18] - Europe grew by 4%, with strength in network infrastructure, while the Middle East and Africa saw growth in both mobile networks and network infrastructure [18] Company Strategy and Development Direction - The company is focused on disciplined execution to capture growth in AI and cloud, with a simplified operating model and clearer priorities [10][11] - The acquisition of Infinera is part of the strategy to strengthen the portfolio and focus on areas with opportunities for differentiation and sustainable market leadership [3][10] - The creation of Nokia Defense aims to deliver defense-grade solutions based on Nokia's mobile and network infrastructure technologies [9] - The company is investing in optical and IP networks as primary growth engines, with a target of 6%-8% compound annual growth in network infrastructure from 2025 to 2028 [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term opportunities in optical networking and AI infrastructure, despite a conservative guidance for growth [28][29] - The company anticipates a somewhat subseasonal trend in Q1 2026 due to normalization after a strong Q4 [31] - Management highlighted the importance of clarity on replacement schedules and support for network operators in light of new regulations [50][51] Other Important Information - The company closed the transaction to take full ownership of Nokia Shanghai Bell, expecting approximately EUR 200 million in run rate cost synergies [10] - The company is targeting an operating profit of EUR 2 billion to EUR 2.5 billion for 2026, with a focus on new product launches and investments in AI and cloud [11][70] Q&A Session Summary Question: On optical growth guidance - The company acknowledged the strong growth in optical networking but provided conservative guidance for 2026 due to transitioning from a telco-centric base and the need for disciplined execution [28][29] Question: CapEx visibility and order book - Management indicated that CapEx investments are aligned with long-term market trends and near-term demand, emphasizing the importance of these investments for future growth [34][35] Question: Supply-related constraints - The company recognized supply constraints in the broader ecosystem but remains focused on securing supply and managing commitments [57] Question: North America market dynamics - Management noted headwinds from customer losses in North America but highlighted positive trends in AI and cloud segments [63][64] Question: Operating guidance for 2026 - The company provided insights into the EUR 2 billion to EUR 2.5 billion guidance, emphasizing the impact of new product launches and investments in AI and cloud [72][74]

Financial Data and Key Metrics Changes - Statutory profit after tax for 2025 was GBP 4.8 billion, with a return on tangible equity of 12.9% or 14.8% excluding the motor provision [18] - Net income for the full year was GBP 18.3 billion, up 7% compared to 2024, driven by growth in net interest income (NII) and other income, which increased by 6% and 9% respectively [18][19] - Operating costs for 2025 were GBP 9.76 billion, reflecting a 3% year-on-year increase, while the cost-income ratio was 58.6% [19][32] Business Line Data and Key Metrics Changes - Retail banking saw growth in mortgages, credit cards, and European retail, with total lending balances closing at GBP 481 billion, up GBP 22 billion or 5% [20][21] - Commercial banking gross net lending increased by 15% in 2025, with significant growth in targeted sectors [8][26] - Other operating income (OOI) was GBP 6.1 billion, up 9% year-on-year, with retail OOI growing by 12% [30] Market Data and Key Metrics Changes - Total deposits increased by GBP 13.8 billion or 3% in 2025, with retail deposits up GBP 5.5 billion and commercial deposits up GBP 8.5 billion [22][27] - The structural hedge notional stood at GBP 244 billion at year-end, contributing to a significant increase in hedge income to around GBP 5.5 billion [28] Company Strategy and Development Direction - The company is entering the final phase of its 5-year strategic plan, focusing on high-potential sectors such as housing, pensions, investments, and infrastructure [4][5] - The acquisition of Schroders Personal Wealth is aimed at enhancing the company's wealth offering and deepening relationships with mass affluent customers [7][8] - The company is committed to improving operating leverage and reducing the cost-income ratio to below 50% by 2026 [11][32] Management's Comments on Operating Environment and Future Outlook - The management is optimistic about the UK economy, forecasting resilient but slower growth, with interest rates expected to gradually fall in 2026 [4] - The company upgraded its return on tangible equity target for 2026 to greater than 16%, reflecting confidence in future performance [17][41] - Management highlighted the importance of cost discipline and strategic initiatives in driving future growth and shareholder returns [49][53] Other Important Information - The company announced a 15% increase in the ordinary dividend and a share buyback of up to GBP 1.75 billion, representing a total capital return of up to GBP 3.9 billion [2][39] - The tangible net asset value per share increased to 57 pence, up 4.6 pence in 2025 [36] Q&A Session Summary Question: Deposit performance and expectations for 2026 - The company noted strong deposit growth in 2025, with expectations for continued healthy performance in 2026, despite some seasonal variations [45][48] Question: Cost growth and management - The management emphasized cost discipline, projecting limited absolute cost growth in 2026, aided by strategic initiatives and declining inflation [49][50][52] Question: NII guidance and structural hedge - The company expects net interest income to grow in 2026, with margin expansion anticipated throughout the year, although some quarterly variations may occur [56][60]

Financial Data and Key Metrics Changes - The total revenue for the full year approached EUR 37 billion, up 11% year-on-year [33] - Cloud revenue grew 26% year-on-year, primarily driven by the strong performance of the Cloud ERP Suite, which increased by 32% [32][33] - The current cloud backlog reached EUR 21 billion, up 25%, while the total cloud backlog grew 30% to a record EUR 77 billion [31][32] Business Line Data and Key Metrics Changes - The Cloud ERP Suite accounted for 86% of total cloud revenue for the year, highlighting its significance as a growth engine [33] - Software licenses revenue decreased by 27%, indicating a shift in focus towards cloud offerings [33] Market Data and Key Metrics Changes - The U.S. public sector was one of the best-performing businesses in Q4, showing resilience despite geopolitical tensions [41] - The company noted that customers are increasingly exploring sovereign software-as-a-service solutions due to geopolitical factors [31] Company Strategy and Development Direction - The company emphasized its transformation strategy, "RISE and GROW with SAP," as core pillars for large-scale enterprises and mid-sized companies [30] - AI and the Business Data Cloud are becoming significant contributors to customer decisions and deal activity, with large cloud transactions contributing a record 71% to cloud order entry in Q4 [30] - The company plans to further develop its SAP Sovereign Cloud Infrastructure to meet growing demand for sovereignty and resilience in software solutions [39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's outlook for 2026, despite challenges faced in 2025 due to geopolitical tensions [28][30] - The company anticipates total revenue growth to accelerate, supported by the foundation built in previous years [37] - Management highlighted the importance of reskilling employees to adapt to the changing landscape influenced by AI [24] Other Important Information - The company announced a new two-year share repurchase program of up to EUR 10 billion, reflecting confidence in sustainable business strengths [36] - Free cash flow for the full year was EUR 8.2 billion, at the high end of the revised outlook range, indicating strong cash management [35] Q&A Session Summary Question: Are there hurdles in the U.S. due to geopolitical tensions? - Management noted that the U.S. public sector performed well in Q4, and customers are less concerned about the origin of the software as long as it meets regulatory standards [41] Question: Are solutions intended to replace non-European providers? - Management clarified that the focus is on competitiveness and delivering stronger AI solutions rather than replacing specific providers [43] Question: How do U.S. tariffs affect the business? - Management stated there are no direct tariffs on software or services, and the company hopes this remains the case [58] Question: Why is the company starting a share buyback program instead of investing in future revenue? - Management explained that share buybacks are part of a strategy to return capital to shareholders while maintaining flexibility for future investments in technology [59][60]