ING stock gains 5% on earnings beat, posts robust Q1 results

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ING stock gains 5% on earnings beat, posts robust Q1 results
Credit: © Reuters.

AMSTERDAM - ING Group (NYSE: ING ) (AMS:INGA) reported a substantial net result of €1,578 million for the first quarter of 2024, surpassing analyst expectations and signaling a robust commercial performance. The bank's earnings beat drove its shares up by 5.21% as investors responded positively to the news.

The financial institution's profit before tax stood at €2,293 million, with a 4-quarter rolling return on equity of 14.8%. The strong results were underpinned by a significant increase in fee income, which saw an 11% rise compared to the same period last year, and a resilient net interest income from lending and liabilities.

ING's CEO, Steven van Rijswijk, attributed the strong performance to the bank's strategic execution, noting that "Our total income has remained strong and was boosted this quarter by double-digit fee income growth, with contributions from both Retail Banking and Wholesale Banking." He also highlighted the bank's operational efficiency, with operating expenses declining due to lower regulatory costs and well-managed own costs.

The bank also reported a growth in its customer base, adding 99,000 primary customers, and saw net core deposits increase by €13.5 billion and net core lending by €4.2 billion. These figures demonstrate ING's ability to attract and retain customers, offering a vote of confidence in the bank's services.

In line with its capital allocation strategy, ING announced a share buyback program of €2.5 billion. This move reflects the bank's solid capital position and its commitment to delivering value to shareholders.

Looking ahead, ING aims to continue enhancing its sustainability offerings in Retail Banking, aligning with its ambition to provide sustainable alternatives for main Retail products in all markets by 2025. The bank's ongoing efforts in sustainable finance were evident with a 13% increase in the volume of sustainable finance mobilized compared to the first quarter of last year, reaching €24.7 billion.

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