Latest news with #INGGroepNV
Time of India
19-05-2025
- Business
- Time of India
Charting the global economy: US, China forecasts improve on tariff truce
Economists marked up their forecasts for growth in the US and China after the world's two-largest economies reached a temporary agreement to reduce tariffs on each other. China's economy is now seen expanding at least 4.6 per cent this year from as low as 4 per cent previously, according to new estimates from Goldman Sachs Group Inc., JPMorgan Chase & Co., ING Groep NV and Bloomberg Economics. Projections for the US still point to a slowdown, but several economists dropped their recession calls. While tariffs are widely expected to boost inflation, that hasn't yet shown up in the data. US consumer prices rose by less than forecast, while a report on producer prices indicated businesses absorbed much of the costs from the new levies as they took effect last month. Here are some of the charts that appeared on Bloomberg this week on the latest developments in the global economy , markets and geopolitics: US The latest CPI report highlighted two underlying dynamics in the economy. Goods categories exposed to higher tariffs, including new cars and apparel, didn't see the kind of price increases that economists had expected by now. That suggests importers and retailers are absorbing some of the extra costs and imported products sold now had arrived before the brunt of the tariffs — namely on China — were in effect. Separately, some weakness in services categories like travel and recreation suggest consumers are cutting on leisure and other discretionary spending. For all the worry about tariffs causing pain for American consumers, shoppers have so far been mostly shielded from — or shrugged off — higher prices at the checkout aisle. Profit margins at retailers and wholesalers shrank in April by the most in almost a year. Manufacturers signaled they are paying higher prices. Yet consumer inflation remained tame, and Walmart Inc. reported solid sales as it kept prices low. GOP Tax Bill estimated to add over $3 trillion to deficit | Change to deficit over 10 years by provision The cost of Republican lawmakers' draft plan for sweeping tax cuts weighed in at $3.8 trillion over the next 10 years in one official estimate. The reality is likely much higher, thanks to the use of budget and political tools designed to minimize the appearance of the fiscal hit, according to independent analysts including former Republican staff members. Asia Goldman Sachs Group Inc. and other major banks boosted their forecasts for China's 2025 economic growth, citing a better outlook for exports following the tariff truce with the US. Australia's wage growth was stronger than expected in the first three months of the year, highlighting the nation's tight labor market that has been underpinned by a wave of public-sector hiring. The data did little to change market expectations for an interest-rate cut next week. The recent conflict between India and Pakistan is prompting a reassessment of Chinese weapons, challenging long-held perceptions of their inferiority to Western arms and sparking concern in places wary of Beijing. Pakistan hailed the use of its Chinese J-10Cs to shoot down five Indian fighters, including French-made Rafale aircraft, last week in response to Indian military strikes. Europe British businesses cut jobs for a third straight month in April as a £26 billion ($34 billion) tax hike took effect and US tariffs darkened the global economic outlook. The number of workers on payrolls dropped 32,532 to 30.3 million. Job vacancies fell the most in over a year in a sign of weakening demand for workers. Negotiators in the military alliance are making progress on a path to achieve 5 per cent of gross domestic product on defense and defense-related spending by 2032 ahead of a North Atlantic Treaty Organization summit in The Hague in June, according to diplomats familiar with the matter. Since his first term, Trump has hectored allies for failing to meet a long-standing 2 per cent threshold for spending. Eight of 32 allies hadn't reached 2 per cent spending as of NATO's annual report in April. Emerging Markets US President Donald Trump's hopes of securing as much as $1 trillion in investment commitments from Saudi Arabia might clash with another costly ambition - transforming the kingdom's own economy. Saudi Crown Prince Mohammed bin Salman's plans to diversify the oil-dependent country are likely to cost close to $2 trillion, according to estimates compiled by Bloomberg News. Mexico's central bank cut borrowing costs by half a percentage point Thursday after the economy narrowly avoided falling into recession and inflation remained within the target range. World Donald Trump's tariffs on China will likely remain at a level expected to severely curtail Chinese exports to the US after the 90-day truce, analysts and investors say, suggesting Beijing may have to endure further economic pain despite active talks.
Yahoo
03-05-2025
- Business
- Yahoo
ING Groep NV (ING) Q1 2025 Earnings Call Highlights: Strong Growth in Deposits and Sustainable ...
Net Core Lending Growth: EUR8.6 billion, primarily driven by mortgages. Fee Income Growth: Increased by 10% compared to the first quarter of last year. Sustainable Finance Mobilized: EUR30 billion, a 23% increase from the first quarter of last year. CET1 Ratio: 13.6% at the end of the first quarter. Share Buyback Program: Announced EUR2 billion share buyback. Total Income Increase: Significant increase compared to the previous quarter. Net Core Lending Growth in 1Q 2025: EUR6.8 billion, mostly driven by residential mortgages. Core Deposits Increase: Almost EUR23 billion in the first quarter. Operating Expenses Increase: Just over 6% in the first three months of the year. Risk Costs: EUR313 million, or 18 basis points of average customer lending. Stage 3 Provisions: EUR215 million, mainly related to collective provisioning in consumer and business lending. Warning! GuruFocus has detected 6 Warning Signs with ING. Release Date: May 02, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. ING Groep NV (NYSE:ING) reported exceptional growth in deposits and higher mortgage volumes, indicating strong commercial growth in the first quarter of 2025. The company recorded a significant increase in fee income, which was 10% higher than the first quarter of the previous year. ING Groep NV (NYSE:ING) continues to support clients in their sustainability transitions, with sustainable finance mobilized rising 23% from the first quarter of last year to EUR30 billion. The company announced a share buyback of EUR2 billion, reflecting strong capital generation and commitment to shareholder returns. ING Groep NV (NYSE:ING) maintained a robust capital position with a CET1 ratio of 13.6%, allowing for consistent cash distribution to shareholders. There was a modest decline in lending within Wholesale Banking, attributed to seasonal volatility and capital optimization efforts. The introduction of tariffs and macroeconomic uncertainty have led to a lower growth outlook worldwide, impacting the company's strategic planning. Operational expenses increased by over 6% in the first quarter due to inflationary pressures and continued investment in business growth. The lending margin is expected to come down slightly in the second quarter, driven by a change in lending mix and funding of the mortgage book. Stage 1 and Stage 2 risk costs increased, reflecting updates in macroeconomic forecasts and some risk migration. Q: What is your view on the liability margin for the rest of the year, and do you expect it to drop below 100 bps? A: (Tanate Phutrakul, CFO) We expect the net interest margin on liabilities to remain at similar levels in Q2. The volume growth has been strong, and we have seen no reduction in balances despite significant rate cuts. We are confident in the resilience of our liability franchise. Q: Can you provide an update on your CET1 target and the rationale behind the 12.8% to 13% range? A: (Steven Van Rijswijk, CEO) Our target remains 12.5%, but due to current macroeconomic uncertainties, we are targeting a CET1 ratio between 12.8% and 13% for 2025. This decision is independent of any ECB requests. Q: Are you considering any M&A activities, particularly in Spain and Italy? A: (Steven Van Rijswijk, CEO) We are focused on our autonomous strategy and diversifying within existing segments. However, we are open to acquisitions that can accelerate growth, enhance our product capabilities, or increase our domestic market position, provided they meet our strict M&A and ROE criteria. Q: Can you elaborate on the growth strategy for your deposit campaigns in Germany? A: (Steven Van Rijswijk, CEO) Our deposit campaigns are data-driven and targeted, focusing on fresh money and new-to-bank customers with a positive NPV. The goal is to convert these customers into primary customers, enhancing ROE. Q: How are you managing the duration of your replicating portfolio, and what is the current average duration? A: (Tanate Phutrakul, CFO) We have gradually shifted the duration from 50-50 to 55-45 over the last six months, using a barbell strategy with swaps and investment portfolios. The average duration remains around 2.4 years. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Bloomberg
03-03-2025
- Business
- Bloomberg
ING Buys €350 Million Stake in Wealth Firm Van Lanschot Kempen
ING Groep NV has agreed to acquire a minority stake in Dutch private bank Van Lanschot Kempen N.V. in a bid to expand its position in wealth management. The Netherlands' largest bank will acquire a 17.6% stake in the 's-Hertogenbosch, Netherlands-based firm, it said in a statement on Monday. The deal is valued at €346.9 million ($361 million), according to Bloomberg calculations based on Friday's closing price. Together with an existing 2.7% stake, ING's holding is set to rise to 20.3%.
Bloomberg
19-02-2025
- Business
- Bloomberg
ING Struggles to Compete With Tech Firms for Talent, CTO Says
ING Groep NV is facing an uphill battle to hire IT staff as tech companies out-pay the Dutch lender, according to one of its top executives. The compensation levels at tech firms are 'significantly higher' than at ING, Chief Technology Officer Daniele Tonella said in an interview in Amsterdam. The long-term incentives including share plans that some of those companies offer also place 'golden handcuffs' on their staff, making it effectively impossible for ING to poach, he said.
Yahoo
07-02-2025
- Business
- Yahoo
ING Groep NV (ING) (Q4 2024) Earnings Call Highlights: Strong Growth in Lending and ...
Mobile Primary Business Customers Growth: Increased by 1.1 million in 2024, with 430,000 added in Q4. Net Core Lending Growth: Retail Banking grew by EUR26 billion in 2024, with EUR7.2 billion in Q4. Net Deposit Growth: Total customer balance growth of 6% in 2024. Sustainable Deals Volume: EUR130 billion mobilized in 2024, a 13% increase from 2023. Branch Network Rationalization: Reduced to just over 600 globally from almost 800 in 2023. Net Interest Income: Supported by volume growth in lending and liabilities. Fee Income Growth: Increased by over 11% year-on-year. Return on Equity: 13% in 2024. Shareholder Yield: Above 15% for the second consecutive year. Share Buyback: EUR2 billion ongoing, with an additional EUR500 million cash payment in January. Final Cash Dividend: EUR0.71 per share for 2024. Netherlands Income: Around EUR5 billion with profit before tax close to EUR3 billion. Russia Business Sale Impact: Estimated negative impact of EUR700 million on P&L. Core Deposit Growth: Increased by over EUR16 billion in Q4. Fee Growth: 14% year-on-year increase. Total Expenses: Increased by 4.8% in 2024. Risk Cost: EUR299 million in Q4, 18 basis points of average customer lending. Core Tier 1 Ratio: Decreased slightly due to higher risk-weighted assets. 2025 Outlook: Total income expected to remain strong with 5%-10% fee income growth. Warning! GuruFocus has detected 3 Warning Sign with ING. Release Date: February 06, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. ING Groep NV (NYSE:ING) achieved outstanding commercial growth in 2024, with a significant increase in mobile primary business customers and a record net core lending growth of EUR26 billion. The company reported strong net interest income supported by volume growth in both lending and liabilities, despite margin pressure from decreasing rates. Fee income grew by over 11% year-on-year, driven by an increase in the number of clients and diversification of the income base. ING Groep NV (NYSE:ING) maintained a strong capital generation, with a return on equity of 13% and a shareholder yield above 15% for the second consecutive year. The company made significant progress in sustainability, mobilizing EUR130 billion in sustainable deals, surpassing its previous target for 2025. The sale of the onshore business in Russia is expected to have a negative impact of around EUR700 million on the P&L and around 5 basis points on the CET1 ratio. The liability margin decreased due to lower replicating income and additional lower margin volumes attracted in Wholesale Banking. Total expenses increased by 4.8% in 2024, driven by inflationary pressures on staff expenses and higher VAT following a ruling in the Netherlands. Risk costs amounted to EUR299 million in the fourth quarter, with additions to Stage 3 provisions largely due to new and existing files in Wholesale Banking. The company faces challenges in maintaining a strong liability NII in a lower rate environment, with expectations of a liability margin around 100 basis points in 2025. Q: Are you prioritizing share buybacks over M&A opportunities in 2025, and what are your plans for SRTs? A: We are growing at 4% to 5% annually and diversifying our services. We consider both share buybacks and M&A based on long-term ROE value creation. For SRTs, we are taking actions like primary syndication and securitization to optimize capital usage in Wholesale Banking. We expect the first SRT in the second half of this year. Q: Can you update us on the announced core deposit rate reductions and the situation in the Netherlands? A: Approximately EUR200 billion in core deposits are subject to reductions, with a positive revenue impact of EUR600 million annually. In the Netherlands, 70% of our deposit book has seen pricing actions. We are comfortable with our position and will make further announcements as needed. Q: What has changed in your cost guidance for 2025 compared to the Capital Markets Day? A: Inflation and collective labor agreements remain sticky in 2025. We are investing in client acquisition and achieving savings, but our guidance for 2027 remains the same, with costs expected to grow between 3% to 4% from 2024 to 2027. Q: Can you explain the impact of the onshore business exit in Russia and your deposit campaign plans for 2025? A: The onshore business in Russia was mainly operational, with local accounts and payments. We continue to reduce offshore exposure. For deposit campaigns, we seize opportunities to grow our customer base and primary customers, adjusting strategies based on market conditions. Q: How do you plan to achieve the RWA mix shift and what is your outlook for Belgium's term deposits? A: We are on track to shift the RWA mix to 45% Wholesale and 55% Retail by 2027, using tools like syndication and SRTs. In Belgium, we expect term deposits maturing later this year to move to different price points or normal savings accounts, supported by cross-selling efforts. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
