Ing Bank Treats Its Shareholders After Better-Than-Expected Start!

In the first three months of the year, ING reported a net profit of 1,46 billion euros. Although this is almost 8 percent less than in the same period last year, it is better than what analysts had predicted.

Interest income

ING's interest income, which still accounts for more than 60 percent of total income, fell by just over 5 percent. Nevertheless, the sofa compensate for this by, among other things, generating more income from the sale of investment products.

In order to increase this source of income, the banking group surprisingly acquired a 20 percent stake in the Dutch private bank Van Lanschot Kempen earlier this year. Furthermore, the bank does not rule out acquisitions abroad.

Market return

ING suggests its trading rooms have benefited significantly from the turbulence in the financial markets in recent weeks. According to CEO Steven van Rijswijk, ING is well positioned to weather the growing economic uncertainty.

The bank remains on course to achieve its long-term objectives for 2027 and there will be no changes to this year's forecasts. The bank aims to grow its revenues by at least 2027 to 4 percent annually between now and the end of 5.

Share buyback

In a sign of its confidence, ING announces that it will buy back 2 billion euros worth of its own shares in the coming months. Such buyback programs are popular with investors, as future profits need to be spread over fewer shares, resulting in more profit per shareholder. In October, ING also announced a 2 billion euro buyback program, which has now been completed.

ING Belgium

In Belgium too, ING is concentrating on the sale of investment products to be less dependent on interest rates. The income from this sale increased in the first quarter, but was not yet sufficient to compensate for the decrease in interest income.

At the same time, the bank saw its operating costs rise slightly again, while ING Belgium also had to reserve more money to cover loans that were not repaid or were repaid too late. The Belgian branch of ING, including its activities in Luxembourg, reported a pre-tax profit of 89 million euros in the first three months of the year. This is down from 189 million euros in the same period last year.

Questions & Answers

What is ING's recent profit?
In the first three months of the year, ING recorded a net profit of 1,46 billion euros.

What is ING's strategy to compensate for the decline in interest income?
ING focuses on increasing revenue from the sale of investment products and is considering acquisitions abroad.

What is ING's plan regarding share buybacks?
ING has announced that it will buy back 2 billion euros worth of its own shares in the coming months.