When we leave out the unstable Other income category, ING Groep gets 79% of its revenue from net interest income, which is a major worry as the ECB adjusts its monetary policy. Due to a decrease in net interest income and a return to normal risk costs, ING's return on equity dropped to 13% in 2024, down from an impressive 14.8% in 2023. It is expected that the bank's return on equity will be over 12% in 2025, affected by rising costs and the continuing impact of ECB rate cuts on net interest income.
Since my last update, ING Groep N.V. shares have not performed well compared to other European financial companies. The bank's net income for the fourth quarter fell short of analysts' predictions, mainly due to lower interest rates in the Eurozone affecting its deposit margin. However, the outlook for core capital returns is still positive, with 2025 expected to bring strong dividends and share buybacks.
On Thursday, ING Groep, the biggest bank in the Netherlands by assets, announced that its profit for the fourth quarter was lower than anticipated. This was mainly due to increased operating costs and provisions for loan losses.
The CEO of Dutch bank ING Groep mentioned to Reuters that the company is thinking about acquiring competing banks in key European nations to increase its size. This move could align with a trend of mergers and acquisitions happening in the financial industry across the region.
On Tuesday, Dutch bank ING Groep announced that it has agreed to sell its operations in Russia to Global Development JSC, which means it will stop all activities in the Russian market.
Ernest Hoffman works as a Crypto and Market Reporter for Kitco News. He has more than 15 years of experience in writing, editing, broadcasting, and producing for various media, educational, and cultural organizations.
ING Group has received information about the European Central Bank's (ECB) choice regarding the 2024 Supervisory Review and Evaluation Process (SREP). This decision has led to the determination of ING's prudential needs, which includes capital requirements for 2025.
ING Groep N.V. (NYSE:ING) will hold its Q3 2024 Earnings Conference Call on October 31, 2024, at 4:00 AM ET. The call will feature key company executives, including CEO Steven van Rijswijk and CFO Tanate Phutrakul. Various participants from major financial institutions will also join the discussion.
Ernest Hoffman works as a Crypto and Market Reporter for Kitco News. He has more than 15 years of experience in writing, editing, broadcasting, and producing for various media, educational, and cultural organizations.
Ernest Hoffman works as a Crypto and Market Reporter for Kitco News. He has more than 15 years of experience in writing, editing, broadcasting, and producing for various media, educational, and cultural organizations.