Bank’s fee income expected to rise, but total income falls short

  • ING Groep’s total income for 2024 expected to be lower than 2023
  • Fee income projected to rise by 5% to 10% in the year ahead
  • Cost growth estimated at around 3%
  • Return on equity targeted at 12%
  • Total income for 2023 reported at 22.575 billion euros
  • Total income for 4Q 2024 reported at 5.41 billion euros
  • Net profit for 4Q 2024 at 1.56 billion euros, a 43% YoY increase
  • Common equity Tier 1 ratio at 14.7%, aiming for around 12.5% by 2025
  • Final dividend proposed at EUR0.756 per share

ING Groep has announced that its total income for 2024 is projected to be lower than the previous year due to interest-rate development. The Dutch lender also expects its fee income to increase by 5% to 10% in the coming year, with a cost growth of approximately 3% and a targeted return on equity of 12%. In 2023, ING reported total income of 22.575 billion euros. However, for the fourth quarter of 2024, the bank’s total income was 5.41 billion euros, falling short of consensus estimates. Despite this, ING’s net profit for the quarter reached 1.56 billion euros, representing a 43% year-on-year increase. The bank’s common equity Tier 1 ratio, a measure of balance sheet strength, stood at 14.7% at the end of the period, slightly above consensus expectations. ING aims to achieve a ratio of around 12.5% by 2025. Additionally, the bank proposed a final dividend of EUR0.756 per share, in line with its policy and higher than the previous year’s payout of EUR0.39.

Public Companies: ING Groep (ING)
Private Companies:
Key People: Elena Vardon (Author)

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Factuality Level: 7
Justification: The article provides specific information about ING Groep’s total income for 2024, its fee income, cost growth, return on equity, and net profit for the fourth quarter. It also includes estimates from a company-compiled consensus. However, the article lacks context and does not provide a comprehensive analysis of the factors contributing to the expected decrease in total income for 2024. Additionally, it does not provide any sources or quotes from ING Groep officials to support the information presented.

Noise Level: 6
Justification: The article provides information on ING Groep’s financial performance and future expectations. It includes details on total income, fee income, cost growth, return on equity, net interest income, net profit, common equity Tier 1 ratio, and proposed dividend. However, the article lacks analysis, evidence, or insights into the long-term trends or antifragility of the bank. It also does not explore the consequences of the bank’s decisions on those who bear the risks.

Financial Relevance: Yes
Financial Markets Impacted: The article pertains to ING Groep, a financial company. It provides information on the bank’s total income, fee income, cost growth, return on equity, net interest income, net profit, common equity Tier 1 ratio, and dividend.

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses financial performance and projections of ING Groep, but does not mention any extreme events.

Reported publicly: www.marketwatch.com