ING Groep (INGA) Q2 2024 (Media) earnings summary

Executive summary

• Net profit for Q2 2024 was nearly EUR 1.8 billion, with a four-quarter rolling average return on equity of 14%.

• Fee income increased by 10% year-over-year, driven by growth in investment products, daily banking, mortgage brokerage, and insurance.

• Strong commercial momentum in both Retail and Wholesale Banking, with 248,000 new mobile primary customers added.

• Interim cash dividend of €0.35 per share declared, and a €2.5 billion share buyback program is underway.

• Sustainability focus increased, with a new target of €150 billion in sustainable volume mobilised by 2027.

Financial highlights

• Net interest income for Q2 2024 was €3,830 million, down 5.7% year-over-year but stable sequentially.

• Net profit for the quarter was almost EUR 1.8 billion, with total income at €5,716 million.

• Fee income reached nearly EUR 1 billion, up 10% year-over-year.

• Operating expenses increased due to inflationary pressure and rose 8.5% year-over-year to €2,848 million.

• Net core lending growth was €7.8 billion and net core deposits growth was €14.7 billion in Q2 2024.

Outlook and guidance

• Expectation of healthy net interest income with stabilizing deposit margins.

• Gradual increase in commission growth anticipated, aiming for a balanced mix of NII and fee income.

• CET1 ratio target is around 12.5%, above the regulatory requirement of 10.71%.

• No significant impact expected from gradual interest rate changes by central banks.

• Management expects continued commercial momentum and further investments in digital and sustainability initiatives.