ING Groep (INGA) Q3 2024 (Media) earnings summary

Executive summary

• Net profit for the quarter was nearly €1.9 billion, down 5% year-over-year but up 5.6% sequentially, supported by commercial growth and strong income.

• Fee income surpassed €1 billion for the first time, up 11% year-over-year, driven by both Retail and Wholesale Banking.

• Added 189,000 mobile primary customers, reaching 13.9 million, with 88% banking via mobile; strongest growth in Germany, Türkiye, and Romania.

• Net core lending grew by €8.5 billion and net core deposits by €2.9 billion in 3Q2024.

• Announced €2.5 billion distribution as part of capital alignment to target CET1 ratio.

Financial highlights

• Total income reached €5,909 million, up 1.1% year-over-year and 3.4% sequentially.

• Net interest income was €3,689 million, down 8.4% year-over-year and 3.7% sequentially, mainly due to lower Treasury-related income.

• Lending grew by €8.5 billion, mainly from a €5.7 billion increase in mortgage volumes, especially in the Netherlands.

• Deposits rose by almost €3 billion, driven by wholesale banking and a promotional campaign in Belgium.

• Operating expenses were €2,904 million, up 4% year-over-year, including €88 million in regulatory costs and €24 million in incidental items.

Outlook and guidance

• 2024 total income expected to exceed €22.5 billion, including €4 billion of fee income.

• Cost/income ratio for 2024 projected at ~53%; return on equity expected to be above 13%.

• Net interest income (NII) margin on lending expected to be around 130 basis points, with liability margin contracting to 100–112 basis points over the next three years.

• Overall net interest margin anticipated to remain around 150 basis points through the cycle, despite a lower interest rate environment.

• CET1 ratio expected to converge towards the ~12.5% target by 2025.