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ING Groep (ING)
NYSE:ING

ING Groep (ING) AI Stock Analysis

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ING Groep

(NYSE:ING)

Rating:76Outperform
Price Target:
$24.00
â–²(7.33%Upside)
ING's stock score is primarily supported by its strong earnings call results and attractive valuation. While financial performance indicates some challenges, particularly in cash flow and leverage, the technical analysis is positive, and the company shows resilience in its strategic growth areas.

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

ING Groep Business Overview & Revenue Model

Company DescriptionING Groep N.V., a financial institution, provides various banking products and services in the Netherlands, Belgium, Germany, Poland, Rest of Europe, North America, Latin America, Asia, and Australia. It operates in six segments: Retail Netherlands, Retail Belgium, Retail Germany, Retail Other, Wholesale Banking, and Corporate Line Banking. The company accepts various deposits, such as current and savings accounts; and offers business lending products, as well as consumer lending products, such as residential mortgage loans, term loans, and revolver and personal loans. It also provides debt capital market, working capital, export finance, daily banking, treasury and risk, and corporate finance solutions; and specialized lending, equity market, finance, payments and cash management, and trade services and solutions, as well as savings, investment, insurance, mortgage, and digital banking services. The company serves customers, corporate clients, and financial institutions, including small and medium-sized, and mid-corporates. ING Groep N.V. was founded in 1762 and is headquartered in Amsterdam, the Netherlands.
How the Company Makes MoneyING makes money primarily through interest income from its lending activities, including personal loans, mortgages, and business loans. The company also generates revenue through fees and commissions from various banking services, such as asset management, brokerage, and insurance products. Additionally, ING earns income from trading and investment activities, leveraging its expertise in financial markets to provide solutions for institutional and corporate clients. Significant partnerships and joint ventures, as well as its focus on digital banking innovations, contribute to its earnings by attracting new customers and enhancing service delivery efficiency.

ING Groep Earnings Call Summary

Earnings Call Date:May 02, 2025
(Q1-2025)
|
% Change Since: 15.91%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
The earnings call revealed strong performance in deposit and mortgage growth, fee income, and sustainable finance. Despite challenges in Wholesale Banking and uncertainties in the geopolitical and macroeconomic landscape, ING demonstrated resilience and confidence in achieving its targets for 2025 and 2027.
Q1-2025 Updates
Positive Updates
Exceptional Deposit and Mortgage Growth
ING reported significant growth in deposits and mortgage volumes, with net core lending and retail banking growing by €8.6 billion, primarily driven by mortgages.
Increase in Fee Income
Fee income increased by 10% compared to the first quarter of last year, driven by structural revenue growth in investment products, insurance, and daily banking fees.
Strong Capital Position
ING's CET1 ratio stood at 13.6%, and they announced a €2 billion share buyback, reflecting strong capital allocation towards retail banking.
Sustainable Finance Achievement
The volume of sustainable finance mobilized rose 23% to €30 billion, marking ING as the first global systematically important bank with climate targets validated by the Science-based Targets Initiative.
Positive Outlook for Mortgages
ING expects continued growth in the mortgage market, with a current market share of 17% in new production in the Netherlands, up from 10% a few years ago.
Negative Updates
Challenges in Wholesale Banking
Wholesale Banking experienced a modest decline in lending due to seasonal volatility and consistent capital optimization.
Geopolitical and Macroeconomic Uncertainty
Current geopolitical and macroeconomic uncertainties, including tariffs, have led to lower growth forecasts worldwide.
Stage 1 and Stage 2 Risk Costs
Stage 1 and Stage 2 risk costs amounted to €98 million, reflecting updates in macroeconomic forecasts and some risk migration.
Company Guidance
In the first quarter of 2025, ING Group reported robust commercial growth, with net core lending in retail banking increasing by €8.6 billion, primarily driven by mortgages. The bank saw a significant rise in fee income, up 10% compared to the same period last year, and mobilized €30 billion in sustainable finance, a 23% increase from the previous year. The total number of private individual customers grew to over 40 million, with an increase in primary bank customers. ING maintained a strong CET1 ratio of 13.6%, announcing a €2 billion share buyback and reinforcing its commitment to shareholder returns. The bank's strategy and prudent risk management allowed it to navigate geopolitical and macroeconomic uncertainties, while its diversified presence across Europe positioned it well for future growth opportunities.

ING Groep Financial Statement Overview

Summary
ING Groep's financials show strong revenue growth but face profitability margin challenges and high leverage. Cash flow issues are evident with negative free cash flows, indicating liquidity concerns. The balance sheet is strong but highly leveraged, suggesting a need for better management of financial stability.
Income Statement
72
Positive
ING Groep has shown a mixed performance in terms of revenue and profit growth. The recent annual report indicates a significant jump in total revenue to 66.4 billion, which implies strong revenue growth. However, the net profit margin stands at approximately 9.6%, which is moderate for the industry. The gross profit margin has decreased to approximately 34.1% from previous years, indicating potential cost management issues. Despite this, the company maintains a healthy EBIT margin of around 14%.
Balance Sheet
67
Positive
The balance sheet reveals a robust equity base with a stockholders' equity of 50.3 billion and a total assets base exceeding 1 trillion. However, the debt-to-equity ratio is relatively high at approximately 3.4, indicating significant leverage. The equity ratio is moderate at around 4.9%, reflecting a stable but not overly strong equity position relative to total assets. Return on equity is around 12.7%, which is healthy but leaves room for improvement.
Cash Flow
60
Neutral
Cash flow analysis shows significant negative free cash flow, primarily due to substantial negative operating cash flow. The operating cash flow to net income ratio is negative, indicating cash flow challenges. The free cash flow to net income ratio is also negative, suggesting that the company might be struggling to generate cash relative to its net income.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue22.55B66.41B22.41B33.61B18.29B17.82B
Gross Profit22.28B22.62B22.58B29.00M18.29B17.82B
EBITDA-1.65B9.97B11.17B6.12B7.47B4.57B
Net Income6.90B6.39B4.14B3.67B4.78B2.48B
Balance Sheet
Total Assets1.04T1.02T975.58B967.82B951.29B937.38B
Cash, Cash Equivalents and Short-Term Investments110.48B115.13B49.68B118.60B137.80B147.07B
Total Debt157.11B171.33B150.00B119.50B116.01B78.95B
Total Liabilities990.41B969.24B923.40B917.41B116.64B79.55B
Stockholders Equity50.15B50.31B51.24B49.91B53.92B47.67B
Cash Flow
Free Cash Flow0.00-22.88B-11.59B-11.34B-15.13B102.89B
Operating Cash Flow0.00-22.54B-11.34B-11.11B-14.94B103.18B
Investing Cash Flow0.00-6.03B-8.54B-5.31B6.22B-8.49B
Financing Cash Flow0.005.37B-4.89B4.65B5.39B-36.73B

ING Groep Technical Analysis

Technical Analysis Sentiment
Positive
Last Price22.36
Price Trends
50DMA
20.78
Positive
100DMA
19.38
Positive
200DMA
17.62
Positive
Market Momentum
MACD
0.34
Negative
RSI
68.44
Neutral
STOCH
94.66
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ING, the sentiment is Positive. The current price of 22.36 is above the 20-day moving average (MA) of 21.22, above the 50-day MA of 20.78, and above the 200-day MA of 17.62, indicating a bullish trend. The MACD of 0.34 indicates Negative momentum. The RSI at 68.44 is Neutral, neither overbought nor oversold. The STOCH value of 94.66 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
82
Outperform
$87.20B7.8819.22%5.95%19.48%26.26%
80
Outperform
$207.66B11.1310.83%3.26%-1.91%-6.79%
SASAN
78
Outperform
$124.39B9.1113.25%2.93%0.26%19.35%
BCBCS
77
Outperform
$62.93B9.069.36%3.06%11.33%47.74%
NWNWG
77
Outperform
$52.30B8.7013.70%4.12%18.85%14.85%
INING
76
Outperform
$69.21B10.5411.92%12.19%-0.63%-6.01%
64
Neutral
$6.55B10.896.59%5.08%24.65%0.99%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ING
ING Groep
22.36
5.56
33.10%
BBVA
Banco Bilbao
15.40
5.54
56.19%
BCS
Barclays
17.88
6.84
61.96%
HSBC
HSBC Holdings
60.65
19.83
48.58%
NWG
NatWest Group
13.01
4.91
60.62%
SAN
Banco Santander SA
8.46
3.81
81.94%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jun 09, 2025