ING announces €2 billion buyback despite profit drop

ING Group NV reported a rise in total income for the third quarter on Thursday, as higher fees offset a decline in net interest income. The Dutch financial services firm’s total income grew by 1.2% to €5.91 billion, up from €5.84 billion the previous year. However, net interest income dropped 8.4% to €3.69 billion from €4.03 billion, despite volume growth in lending and deposits.

ING announces €2 billion buyback despite profit drop

Net profit stood at €1.88 billion, marking a 5.1% decline from €1.98 billion a year ago. Fee income saw an 11% year-over-year increase, exceeding €1 billion, with notable growth across both Retail and Wholesale Banking. The bank also reported an additional 189,000 mobile primary customers and strong mortgage growth. "In the third quarter of 2024, we have once again delivered robust results, successfully executing our strategy to drive growth, increase impact, and create value for all stakeholders," said Chief Executive Steven van Rijswijk. Retail investment products continued to boost fee income, driven by increased assets under management and customer trading activity. Wholesale Banking benefited from higher deal volumes in Global Capital Markets. Retail Banking saw strong core lending growth of €6 billion, mainly in residential mortgages across all markets, with a notable increase in the Netherlands’ mortgage production market share. Wholesale Banking income remained stable, bolstered by lending and deposit volume growth, along with solid results in Payments & Cash Management and Financial Markets. Capital Markets Advisory also continues to expand after recent investments.

CET 1 ratio fell

The CET1 capital ratio fell to 14.3% from 15.2% the prior year, staying above ING's target of approximately 12.5%. As a result, ING announced an additional €2.5 billion distribution to shareholders, reducing the CET1 ratio by 76 basis points. The distribution will include a share buyback of up to €2 billion and a €500 million dividend.