Q3 2024 ING Groep NV Earnings Call Transcript
Key Points
- ING Groep NV (ING) reported a record level of total income for the third quarter, with fee income surpassing EUR1 billion for the first time.
- The company experienced strong commercial performance, with an increase of 189,000 mobile primary customers this quarter and a total of 900,000 over the last 12 months.
- ING Groep NV (ING) achieved significant growth in its lending book, particularly in mortgages, with an increase of EUR9 billion.
- The company announced an additional distribution of EUR2.5 billion, including a EUR2 billion share buyback and a EUR500 million cash dividend, providing an attractive return of 17% a year.
- ING Groep NV (ING) has made substantial progress in sustainability, mobilizing EUR28 billion in sustainable volume in the third quarter and EUR85 billion in the first nine months, a 15% increase from last year.
- Net interest income was impacted by treasury results, with a decrease in lending NII due to lower margins, especially in the wholesale banking segment.
- Total expenses increased by over 3% compared to the same period last year, driven by inflation impacts on staff expenses and higher VAT costs.
- Risk costs amounted to EUR336 million this quarter, reflecting macroeconomic uncertainty and additions to stage three provisions.
- The wholesale banking segment experienced a decrease in lending margins due to growth in low-risk segments and some one-off impacts.
- The company faces challenges in maintaining liability margins in a lower rate environment, with expectations to operate at the lower end of the 100 to 110 basis points range in 2025.
(audio in progress) -- and our earnings press release as posted on our website today.
Furthermore, nothing in today's comments constitutes to offer to sell or a solicitation of an offer to buy any securities.
Good morning, Steven over to you.
Hi, good morning and welcome to our results call for the third quarter of 2024. I hope you're all well. And as usual, I'm joined by our CEO Ljiljana Cortan; and our CFO, Tanate Phutrakul, I will inform you on the progress we have made on the strategic priorities we have set during the Capital Markets Day earlier this year. And this progress has resulted in another strong quarter and enables us to improve the outlook for the remainder of this year.
Today, we'll walk you through the financials of the quarter and provide some insights into our expectations for the margin developments going forward. At the end of the call, we will be happy to take your questions and now let
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