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• Mobile Primary Business Customers Growth: Increased by 1.1 million in 2024, with 430,000 added in Q4.

• Net Core Lending Growth: Retail Banking grew by EUR26 billion in 2024, with EUR7.2 billion in Q4.

• Net Deposit Growth: Total customer balance growth of 6% in 2024.

• Sustainable Deals Volume: EUR130 billion mobilized in 2024, a 13% increase from 2023.

• Branch Network Rationalization: Reduced to just over 600 globally from almost 800 in 2023.

• Net Interest Income: Supported by volume growth in lending and liabilities.

• Fee Income Growth: Increased by over 11% year-on-year.

• Return on Equity: 13% in 2024.

• Shareholder Yield: Above 15% for the second consecutive year.

• Share Buyback: EUR2 billion ongoing, with an additional EUR500 million cash payment in January.

• Final Cash Dividend: EUR0.71 per share for 2024.

• Netherlands Income: Around EUR5 billion with profit before tax close to EUR3 billion.

• Russia Business Sale Impact: Estimated negative impact of EUR700 million on P&L.

• Core Deposit Growth: Increased by over EUR16 billion in Q4.

• Fee Growth: 14% year-on-year increase.

• Total Expenses: Increased by 4.8% in 2024.

• Risk Cost: EUR299 million in Q4, 18 basis points of average customer lending.

• Core Tier 1 Ratio: Decreased slightly due to higher risk-weighted assets.

• 2025 Outlook: Total income expected to remain strong with 5%-10% fee income growth.

• Warning! GuruFocus has detected 3 Warning Sign with ING.

Release Date: February 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• ING Groep NV (NYSE: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 (NYSE: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.

Negative Points

• 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.