ING Achieves Impressive Q3 Results for 2024
ING has announced a remarkable net result of €1,880 million for the third quarter of 2024. This impressive performance is attributed to significant commercial growth and a strong income stream. The profit before tax for the period stood at €2,668 million, highlighting a four-quarter rolling average return on equity of 13.8%.
Key Drivers of Profitability
The quarter's success was driven by resilient net interest income, bolstered by volume growth in both lending and deposits. ING recorded a notable 11% year-on-year increase in fee income, surpassing the €1 billion mark, particularly within its Retail and Wholesale Banking sectors. Furthermore, the bank has seen an increase of 189,000 mobile primary customers and growth in its mortgage sector.
CEO Highlights Strong Business Momentum
Strategic Growth and Sustainability
According to Steven van Rijswijk, CEO of ING, the third quarter showcased strong results and effective execution of the bank's strategy to accelerate growth, increase impact, and deliver value to all stakeholders. Van Rijswijk emphasized the expansion of the customer base and crucial advancements in climate action approaches during the quarter.
Focus on Customer Value and Market Share
The impressive commercial momentum experienced by ING has resulted in robust income growth, particularly in fee income. The bank achieved significant growth in retail investment products alongside an increase in customer trading activity. Notably, in the Retail Banking sector, strong core lending growth of €6 billion was noted, mainly attributed to residential mortgages across various markets.
Wholesale Banking Performance
Wholesale Banking also demonstrated resilience, propelled by volume growth in lending and deposits complemented by noteworthy results in Payments & Cash Management and Financial Markets. ING's Capital Markets Advisory division continues to thrive as a result of strategic investments aimed at enhancing expertise.
Capital Management and Future Outlook
ING's management has focused on optimizing capital efficiency, significantly reducing risk-weighted assets in Wholesale Banking. Although expenses rose by 2% from the previous quarter as the bank invests in business growth, risk costs remained in line with historical averages at €336 million.
Dividend Distribution Announced
In maintaining a proactive capital strategy, the bank announced a €2.5 billion distribution, aligning its capital to meet target levels. Moreover, the completion of the share buyback program earlier has had a positive impact on the CET1 ratio, which has risen to 14.3% thanks to robust profitability and lower risk-weighted assets.
Advancements in Climate Action
September marked the publication of ING's Climate Progress Update, detailing its updated energy policy and committed approach to client engagements regarding sustainable transitions. The bank is dedicated to assisting clients in reaching net-zero emissions while funding technologies that facilitate a sustainable future.
Conclusion
As ING continues executing its strategic vision, it expresses gratitude towards its loyal customers and appreciates the contributions of its employees toward achieving remarkable performance in the third quarter of 2024.
Frequently Asked Questions
What was ING's net profit for Q3 2024?
ING reported a net profit of €1,880 million for the third quarter of 2024.
How much did ING's profit before tax reach?
The profit before tax for ING in Q3 2024 reached €2,668 million.
What factors contributed to ING's increased fee income?
ING experienced an 11% year-on-year increase in fee income, exceeding €1 billion, driven by growth in Retail and Wholesale Banking.
What is the current CET1 ratio for ING?
ING's CET1 ratio has increased to 14.3% following strong profitability and reduced risk-weighted assets.
What sustainability commitments has ING made?
ING aims to assist clients with sustainable transitions and has published its Climate Progress Update, outlining its strategies and energy policies.
