ING Groep (INGA) Q2 2024 earnings summary

Executive summary

• Achieved strong commercial and financial performance in Q2 2024, with robust growth in lending and deposits across all key markets, especially in Retail Banking in core European countries.

• Net result for 2Q2024 was €1,780 million, down 17% year-over-year, with a four-quarter rolling ROE of 14.0%.

• Mobile primary customers increased by 430,000 in H1, reaching 13.7 million, with a target of 1 million annual net adds on track.

• Focus on digital leadership, sustainability, and delivering value to all stakeholders, supported by a strong capital base.

• Announced an interim dividend of €0.35 per share, with a €2.5 billion share buyback program underway.

Financial highlights

• Net result for 2Q2024 was €1,780 million, with total income at €5,716 million and net interest income at €3,830 million.

• Net core lending grew by €7.8 billion and net core deposits by €14.7 billion compared to 1Q2024.

• Fee income reached €999 million in Q2, on track for €4 billion annual target.

• Return on equity was 14.0% (four-quarter rolling), with a cost/income ratio of 52.1%.

• CET1 ratio decreased to 14.0% due to share buybacks, but remains above regulatory requirements.

Outlook and guidance

• Upgraded total income guidance for 2024 to above €22 billion, reflecting strong NII and fee income momentum.

• NII guidance now excludes accounting asymmetry, with structural drivers expected to keep NII at the upper end of the €15–15.5 billion range.

• Cost base for 2024 expected around €12 billion, with cost-income ratio projected to rise to 54% in 2025 and normalize to 52–54% by 2027.

• CET1 ratio target set at ~12.5% by end of 2025, with return on equity expected to remain above 12%.

• Updated sustainable volume mobilised target to €150 billion by 2027, with €56.9 billion achieved in 1H2024.