ING GROEP (INGA) AI Stock Analysis

• Market Cap: €70.26B
• Dividend Yield: 5.1%
• Average Volume (3M): 7.88M
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.82
• Revenue Growth: 0.12%
• EPS Growth: -2.71%
• Country: NL
• Employees: 60,000
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Diversified
• EPS (TTM): 0.60
• Shares Outstanding: 3,021,543,000
• 10 Day Avg. Volume: 7,561,458
• 30 Day Avg. Volume: 7,883,815
• PEG Ratio: -2.24
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 0.74
• P/FCF Ratio: -0.87
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €24.73
• Price Target Upside: 3.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: €24.00 ▲(0.29% Upside)

The overall stock score for ING Groep is primarily influenced by its financial performance, which shows strong revenue growth and profitability but is offset by operational and cash flow challenges. The technical analysis indicates a positive trend, though overbought conditions suggest caution. Valuation metrics are favorable, with a reasonable P/E ratio and attractive dividend yield.

Positive Factors

Revenue Growth

Strong revenue growth reflects ING's ability to expand its market presence and enhance its product offerings, supporting long-term business sustainability.

Digital Banking Expansion

Growth in digital banking customers indicates successful execution of ING's strategy to enhance digital offerings, which is crucial for future competitiveness.

Capital Adequacy

A strong CET1 capital ratio ensures financial stability and regulatory compliance, enabling ING to withstand economic uncertainties and invest in growth opportunities.

Negative Factors

Operational Challenges

Negative EBIT margins indicate inefficiencies that could erode profitability if not addressed, impacting long-term operational effectiveness.

Cash Flow Deterioration

Deteriorating cash flow poses liquidity risks and limits ING's ability to fund operations and strategic initiatives, affecting long-term financial health.

Declining ROE

A declining ROE suggests that ING is less effective in using shareholders' equity to generate profits, which could impact investor confidence and capital raising.

ING GROEP Business Overview & Revenue Model

Company Description

ING 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 Money

ING Groep generates revenue through multiple key streams. The primary source of income comes from net interest income, which is derived from the difference between the interest earned on loans and the interest paid on deposits. Additionally, ING earns fees and commissions from various banking services, including transaction fees, asset management, and advisory services. The company also generates income through trading and investment activities in financial markets. Significant partnerships with fintech companies and strategic alliances enhance ING's service offerings and customer reach, contributing positively to its earnings. Moreover, the bank’s focus on digital banking initiatives increases efficiency and customer engagement, further bolstering its revenue potential.

ING GROEP Financial Statement Overview

Summary

ING Groep shows resilience in revenue growth and net profitability but faces significant operational and cash flow challenges. The balance sheet remains stable with moderate leverage, yet declining ROE and negative cash flow metrics are concerns that need addressing.

Income Statement

ING Groep's revenue growth from 2023 to 2024 was 13.7%, indicating a positive trajectory. However, the EBIT margin has turned negative, signaling potential operational challenges. The net profit margin remains healthy at 31.9%, showcasing profitability despite operational issues.

Balance Sheet

The debt-to-equity ratio is moderate at 3.18, indicating a balanced leverage position for a bank. The equity ratio stands at 4.93%, suggesting a typical banking structure. However, ROE has decreased to 12.7%, reflecting reduced efficiency in generating returns on equity.

Cash Flow

Free cash flow has significantly deteriorated, with a growth rate of -384.5% from 2023 to 2024, posing a liquidity risk. The operating cash flow to net income ratio is negative, indicating cash flow challenges despite reported profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	41.21B	66.41B	17.63B	33.61B	25.78B	17.82B
Gross Profit	40.30B	21.41B	17.63B	17.06B	19.51B	14.61B
EBITDA	8.93B	9.97B	11.17B	6.21B	7.84B	4.57B
Net Income	6.17B	6.39B	7.29B	3.67B	4.78B	2.48B
Balance Sheet
Total Assets	1.09T	1.02T	975.58B	967.82B	951.29B	937.38B
Cash, Cash Equivalents and Short-Term Investments	123.94B	115.13B	130.06B	118.60B	137.80B	147.07B
Total Debt	167.58B	227.63B	173.26B	119.50B	116.01B	183.84B
Total Liabilities	1.04T	969.24B	923.40B	917.41B	896.63B	881.62B
Stockholders Equity	52.29B	50.31B	51.24B	49.91B	53.92B	54.64B
Cash Flow
Free Cash Flow	0.00	-56.15B	4.83B	-11.34B	-15.13B	12.14B
Operating Cash Flow	0.00	-55.82B	5.07B	-11.11B	-14.94B	12.42B
Investing Cash Flow	0.00	-6.03B	-1.67B	-5.31B	6.22B	-2.45B
Financing Cash Flow	0.00	38.65B	-4.89B	4.65B	5.39B	47.99B

ING GROEP Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.93
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:INGA, the sentiment is Positive. The current price of 23.93 is above the 20-day moving average (MA) of 22.89, above the 50-day MA of 22.08, and above the 200-day MA of 19.73, indicating a bullish trend. The MACD of 0.46 indicates Negative momentum. The RSI at 70.61 is Negative, neither overbought nor oversold. The STOCH value of 89.74 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NL:INGA.

ING GROEP Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HAL	81 Outperform	€12.48B	7.24	11.85%	2.10%	2.01%	79.48%
ABN	74 Outperform	€24.39B	11.23	9.85%	4.35%	-12.70%	-12.34%
NN	68 Neutral	€16.80B	13.89	6.47%	5.43%	-15.54%	10.53%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ASRNL	66 Neutral	€12.49B	11.56	12.65%	5.36%	16.35%	67.44%
INGA	61 Neutral	€70.26B	11.95	12.05%	5.10%	0.12%	-2.71%
AGN	61 Neutral	€9.69B	7.77	14.93%	5.87%	-6.64%	―