ING has announced a shareholder distribution of up to €2.5 billion. This distribution includes a share buyback program with a maximum total amount of €2 billion and a cash dividend payment of €500 million. The aim is to align the company's CET1 ratio closer to the target of approximately 12.5%.
As of the end of the third quarter in 2024, ING Group's CET1 ratio stood at 14.3%, surpassing the required CET1 ratio of 10.71%. The expected pro-forma impact on this ratio due to the additional distribution is about 76 basis points. The share buyback will start on October 31, 2024, and conclude by April 30, 2025, while the cash dividend will be disbursed on January 16, 2025.
The European Central Bank has approved this distribution plan. The share buyback will comply with Market Abuse Regulation and adhere to the authority granted by shareholders on April 22, 2024, allowing acquisition of up to 20% of issued shares. A financial intermediary has been appointed under a non-discretionary arrangement for executing the buyback.
ING plans to issue weekly updates on this program through press releases and its website's investor section.