ING Groep (ING) AI Stock Analysis

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ING Groep

(NYSE:ING)

75Outperform

ING Groep's overall score reflects a strong financial performance and attractive valuation, supported by positive technical indicators. The company's substantial revenue growth and strategic initiatives, along with a high dividend yield and low P/E ratio, are significant strengths. However, challenges in cash flow management and increased leverage are key risks that require attention. The recent earnings call further bolsters confidence with record-breaking income and customer growth, though caution is advised due to certain financial pressures.

ING Groep (ING) vs. S&P 500 (SPY)

Market Cap

$55.02B

Dividend Yield5.58%

Average Volume (3M)3.91M

Price to Earnings (P/E)8.1

Beta (1Y)0.67

Revenue Growth4.07%

EPS Growth9.97%

CountryUS

Employees60,000

SectorFinancial

Sector Strength86

IndustryBanks - Diversified

Share Statistics

EPS (TTM)2.14

Shares Outstanding3,147,391,000

10 Day Avg. Volume4,139,513

30 Day Avg. Volume3,912,789

Financial Highlights & Ratios

PEG Ratio0.75

Price to Book (P/B)N/A

Price to Sales (P/S)2.94

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

ING Groep Business Overview & Revenue Model

Company DescriptionING Groep N.V. (ING) is a prominent global financial institution headquartered in the Netherlands. It operates primarily in the banking sector, offering a wide range of services including retail and commercial banking, investment banking, asset management, and insurance services. Through its various subsidiaries and branches, ING serves millions of customers across Europe, Asia, and the Americas, providing both individual and corporate clients with financial solutions tailored to their needs.

How the Company Makes MoneyING Groep generates revenue through multiple streams, primarily from interest income, fees, and commissions. Interest income is earned from lending activities to individuals and businesses, including mortgages, personal loans, and corporate loans. Additionally, ING earns money through fees and commissions from various banking services such as asset management, investment banking, and international trade finance. The company also benefits from trading and investment income through its treasury and financial markets operations. ING's revenue model is further supported by strategic partnerships with other financial institutions and technological firms, enhancing its digital banking offerings and expanding its customer base. Additionally, ING's insurance and asset management services contribute to its diversified revenue streams, providing a balanced mix of income sources.

ING Groep Financial Statement Overview

Summary

ING Groep shows promising revenue growth and improved profitability, yet faces challenges with high leverage and negative cash flow. Sustained focus on improving cash flow and managing debt levels will be crucial for maintaining financial stability.

Income Statement

Positive

ING Groep demonstrated strong revenue growth, with a substantial increase from €29 million to €22.4 billion in 2023. The net profit margin improved significantly, reflecting enhanced profitability. However, the absence of EBIT and EBITDA data for 2023 limits a comprehensive analysis of operational efficiency.

Balance Sheet

Positive

The company's debt-to-equity ratio increased, indicating higher leverage, which could pose financial risks. The equity ratio remains stable, reflecting a solid capital structure. Improving return on equity suggests efficient use of shareholder funds, though the rise in total debt warrants caution.

Cash Flow

Neutral

ING Groep faced challenges in free cash flow, which declined in 2023 despite previous improvements. The operating cash flow is negative, indicating potential liquidity issues. The free cash flow to net income ratio remains unfavorable, suggesting difficulty in translating profits into cash.

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
22.55B	22.41B	29.00M	18.29B	17.82B	18.31B
	Gross Profit
22.53B	22.58B	29.00M	18.29B	17.82B	18.31B
	EBIT
6.93B	0.00	4.69B	6.65B	3.73B	6.74B
	EBITDA
-1.65B	0.00	6.12B	7.47B	4.57B	7.57B
	Net Income Common Stockholders
6.90B	7.29B	3.67B	4.78B	2.48B	4.78B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
46.69B	49.68B	118.60B	137.80B	147.07B	85.99B
	Total Assets
1.16T	975.58B	967.82B	951.29B	937.38B	891.74B
	Total Debt
181.44B	150.00B	119.50B	116.01B	78.95B	135.12B
	Net Debt
163.78B	60.11B	32.25B	8.01B	-33.28B	81.91B
	Total Liabilities
1.11T	923.40B	917.41B	116.64B	79.55B	135.82B
	Stockholders Equity
49.51B	51.24B	49.91B	53.92B	47.67B	53.77B
Cash Flow		Free Cash Flow
0.00	-11.59B	-11.34B	-15.13B	102.89B	12.70B
	Operating Cash Flow
0.00	-11.34B	-11.11B	-14.94B	103.18B	13.05B
	Investing Cash Flow
0.00	-8.54B	-5.31B	6.22B	-8.49B	-2.50B
	Financing Cash Flow
0.00	-4.89B	4.65B	5.39B	-36.73B	-4.15B

ING Groep Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price18.22

Price Trends

50DMA

18.39

Negative

100DMA

17.05

Positive

200DMA

17.16

Positive

Market Momentum

MACD

0.46

Positive

RSI

54.75

Neutral

STOCH

21.85

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ING, the sentiment is Neutral. The current price of 18.22 is below the 20-day moving average (MA) of 19.18, below the 50-day MA of 18.39, and above the 200-day MA of 17.16, indicating a neutral trend. The MACD of 0.46 indicates Positive momentum. The RSI at 54.75 is Neutral, neither overbought nor oversold. The STOCH value of 21.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ING.

ING Groep Risk Analysis

ING Groep disclosed 39 risk factors in its most recent earnings report. ING Groep reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

ING Groep Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HSBC	81 Outperform	$169.71B	7.73	13.74%	6.80%	6.79%	8.57%
BBVA	78 Outperform	$74.32B	6.92	18.77%	4.74%	30.24%	28.90%
SAN	76 Outperform	$91.74B	7.56	13.16%	2.41%	6.56%	19.02%
ING	75 Outperform	$55.02B	8.13	12.75%	5.58%	4.07%	9.97%
Sector *	64 Neutral	$13.21B	9.26	9.39%	4.87%	16.14%	-8.87%

* Financial Sector Average

Performance Comparison

ING

ING Groep

18.22

3.47

23.53%

BBVA

Banco Bilbao

13.03

2.93

29.01%

HSBC

HSBC Holdings

49.89

12.71

34.19%

SAN

Banco Santander SA

6.43

1.93

42.89%

ING Groep Earnings Call Summary

Earnings Call Date: Feb 6, 2025 | % Change Since: 9.56% | Next Earnings Date: May 2, 2025

Earnings Call Sentiment Positive

The earnings call reflected a strong financial performance with record-breaking total income, increased sustainable finance efforts, and significant shareholder returns. However, challenges in managing treasury-related income and increased risk costs were noted.

Highlights

Record-Breaking Total Income

Total income reached its highest level ever in the third quarter, with fee income exceeding EUR 1 billion for the first time.

Strong Capital Generation and Shareholder Returns

Four-quarter rolling return on equity at 13.8%, CET1 ratio of 14.3%, and an additional distribution of EUR 2.5 billion announced, including a share buyback of EUR 2 billion and a EUR 500 million cash dividend.

Sustainable Finance Progress

EUR 28 billion of sustainable volume mobilized in Q3 and EUR 85 billion in the first 9 months, a 15% increase from last year.

Increase in Mobile Primary Customers

Mobile primary customers increased by 189,000 in the quarter, with a 9% increase in investment product customers.

Commercial Lending Growth

Net core lending growth of around EUR 8.5 billion, driven by a strong performance in mortgages.

Lowlights

Net Interest Income Impact

Decrease in net interest income driven by volatile items in treasury-related income, with a decrease in lending margins, especially in the Wholesale Banking segment.

Increased Risk Costs

Total risk costs were EUR 336 million, equal to 20 basis points on average customer lending, reflecting a partial release of management overlays.

Stage 3 Provisions

Net additions to Stage 3 provisions amounted to EUR 453 million, mainly due to a few new or existing files in wholesale banking.

Company Guidance

In the Q3 2024 earnings call for INGA.AS, the company provided an optimistic outlook for the remainder of the year, building on strong commercial performance and strategic initiatives. Key metrics highlighted include a record total income level for the quarter, an increase in mobile primary customers by 189,000, with a 12-month addition of around 900,000 customers, and a lending book growth of EUR 9 billion, notably in the mortgage sector. The company also achieved a net inflow from a successful deposit campaign in Belgium, bringing in EUR 5.5 billion. Total customer balance growth, combining lending and deposits, was annualized at 5.3%, surpassing the 4% target set during Capital Markets Day. Furthermore, the company announced a EUR 2.5 billion additional distribution to shareholders, consisting of a EUR 2 billion share buyback and a EUR 500 million cash dividend, bolstered by a strong capital generation that maintained a CET1 ratio of 14.3% and a return on equity of 13.8%. The company also reaffirmed its commitment to sustainability, having mobilized EUR 85 billion in sustainable volume in the first nine months, a 15% increase from the previous year.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.