Sentiment Score: +15

Sentiment Change: +17

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ING Groep NV Earnings - Analysis & Highlights for Q4 2024

Overview

PositivesNegativesOutlook

Fee income grew by over 11% YoY, driven by the strong increase in the number of clients and initiatives to diversify the income base.
Volume growth would have a positive impact of around €300 million on the lending NII, and the company expects the lending margin to be stable at around 130 bps.
The company has made progress in the diversification and enhancement of its product offering to both existing and new customer segments.
The company has a high level of digitalization and a continued focus on offering superior value for customers, resulting in strong appreciation of its products and services and sustainable growth in the last few years.
The company has increased business growth and strong revenue generation due to investments, and volume growth in both lending and liabilities has supported the increase in net interest income over the last couple of years and has helped to offset the margin pressure from decreasing rates in 2024.

Q4 2024 Earnings Call

Net interest margin decreased by 1 bps due to lower liability NII.
Expense excluding regulatory costs and incidental items was 7.6% higher.
The company expects annual cost growth of around 4.5%, excluding potential incidental expenses, due to inflationary pressure impacting staff expenses.
The company expects a negative impact of around €700 million on its P&L and around 5 basis points on its CET1 ratio due to the transaction.

Q4 2024 Earnings Call

The company expects annual cost growth of around 4.5%, excluding potential incidental expenses, with inflationary pressure being the main driver.
The company expects to generate additional business by hiring additional front office staff in Capital Market Advisory (sic) [Capital Markets & Advisory] and Transaction Services.
The company expects to grow customer balances by 4% on both deposits and lending.
The company expects to move term deposits to different price points as term deposits and partly into normal savings accounts.
The company expects no impact on resilient net profit and dividends from the currency translation adjustments of €700 million of around €300 million.

Q4 2024 Earnings Call

Q&A Highlights from ING Groep NV Earnings Call Q4 2024

Analyst asked about ING Group NV's plans for SRTs in 2025 and how they will deliver protection.
- ING Group NV is planning to grow with 4% to 5% per annum towards 2027 and diversify their services by expanding into new markets, specifically in Business Banking and Private Banking. They are also looking to accelerate their growth by realizing bigger scale in markets or broadening their product base to provide a broader service offering to their customers. The company has excess capital and is considering various options such as share buybacks and M&A to compare from a long-term ROE value creation perspective. SRTs are part of the plan, and the company expects to launch the first SRT in Wholesale Banking (sic) [Banking] in the second half of 2023.
Analyst asked about the impact of SRTs on capital.
- ING Group NV is working on the impact assessment of SRTs on capital, but they will disclose the information when they have completed their analysis.
Analyst asked about an update on the core deposit rate reductions announced earlier this year.
- Tanate Phutrakul provided an update, stating that the rate cut affects approximately €200 billion in core deposits, which will have a positive impact on revenue of €600 million for the full year.

Q4 2024 Earnings Call