ING Groep (INGA) Q3 2024 earnings summary

Executive summary

• Achieved record total income in Q3 2024, reaching €5,909 million, with net result at €1,880 million and strong commercial and customer growth across most markets.

• Fee income exceeded €1 billion for the first time, up 11% year-over-year, driven by both Retail and Wholesale Banking, and digitalization efforts continued to drive market share gains.

• Lending book expanded by €8.5 billion, especially in mortgages, and customer balances grew 5.3% in the first nine months.

• Recognized as a top employer in five countries and made significant progress in sustainability, mobilizing €85.3 billion in sustainable volume YTD and supporting 198 sustainability deals in 3Q2024.

• Announced €2.5 billion additional shareholder distribution and new €2.0 billion share buyback, aligning capital to target CET1 ratio.

Financial highlights

• Net interest income for 3Q2024 was €3,689 million, impacted by Treasury-related volatility and accounting asymmetry.

• Fee and commission income grew 11% year-over-year to €1,009 million, driven by Retail Banking and strong deal flow in Wholesale Banking.

• Operating expenses rose 4% year-over-year to €2,904 million, mainly due to inflation and higher VAT in the Netherlands.

• Risk costs were €336 million (20 bps of average customer lending), matching the through-the-cycle average.

• Other income benefited from a one-off profit from an associate and annual dividend from Bank of Beijing.

Outlook and guidance

• Upgraded full-year 2024 total income outlook to above €22.5 billion, with fee income expected to reach €4 billion.

• Cost/income ratio forecasted to be around 53%, and return on equity expected to exceed 13% for the year.

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

• Liability margin expected to remain between 100-110 basis points, with 2025 likely at the lower end.