Q4 2024 ING Groep NV Earnings Call Transcript
Key Points
- ING Groep NV (ING) achieved outstanding commercial growth in 2024, with a significant increase in mobile primary business customers and a record net core lending growth of EUR26 billion.
- The company reported strong net interest income supported by volume growth in both lending and liabilities, despite margin pressure from decreasing rates.
- Fee income grew by over 11% year-on-year, driven by an increase in the number of clients and diversification of the income base.
- ING Groep NV (ING) maintained a strong capital generation, with a return on equity of 13% and a shareholder yield above 15% for the second consecutive year.
- The company made significant progress in sustainability, mobilizing EUR130 billion in sustainable deals, surpassing its previous target for 2025.
- The sale of the onshore business in Russia is expected to have a negative impact of around EUR700 million on the P&L and around 5 basis points on the CET1 ratio.
- The liability margin decreased due to lower replicating income and additional lower margin volumes attracted in Wholesale Banking.
- Total expenses increased by 4.8% in 2024, driven by inflationary pressures on staff expenses and higher VAT following a ruling in the Netherlands.
- Risk costs amounted to EUR299 million in the fourth quarter, with additions to Stage 3 provisions largely due to new and existing files in Wholesale Banking.
- The company faces challenges in maintaining a strong liability NII in a lower rate environment, with expectations of a liability margin around 100 basis points in 2025.
Good morning. This is Laura welcoming you to ING's 4Q 2024 conference call.
Before handing this conference call over to Steven van Rijswijk, Chief Executive Officer of ING Groep, let me first say that today's comments may include forward-looking statements, such as statements regarding future developments in our business, expectations for our future financial performance and any statement not involving a historical fact. Actual results may differ materially from those projected in any forward-looking statements.
A discussion of factors that may cause actual results to differ from those in any forward-looking statement is contained in our public filings, including our most recent annual report on Form 20-F filed with the United States Securities and Exchange Commission, and our earnings press release as posted on our website today. Furthermore, nothing in today's comments constitutes an offer to sell or a solicitation of an offer to buy any securities.
Good morning, Steven. Over to you.
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