ING has reported a net result of €1,880 million for the third quarter of 2024. The financial institution attributes this to commercial growth and robust income levels. Profit before tax stood at €2,668 million, with a four-quarter rolling average return on equity reaching 13.8%.
Steven van Rijswijk, CEO of ING, stated: “In the third quarter of 2024, we have again delivered strong results and are executing well on our strategy to accelerate growth, increase impact and deliver value for all stakeholders.” He emphasized the growth in the customer base and advancements in climate action strategies.
Fee income exceeded €1 billion for the first time. This increase was driven by retail investment products as assets under management grew alongside customer trading activity. Wholesale Banking benefited from heightened deal flow in Global Capital Markets.
The Retail Banking segment saw core lending grow by €6 billion, predominantly in residential mortgages across various markets. In the Netherlands, ING's market share in new mortgage production rose significantly due to efficient digital application processing.
Van Rijswijk noted that "Wholesale Banking income was resilient," bolstered by volume increases in lending and deposits as well as strong performance in Payments & Cash Management and Financial Markets. The bank has also reduced its risk-weighted assets (RWA) significantly during this period.
Operating expenses increased by 2% compared to the previous quarter due to business expansion investments. Risk costs amounted to €336 million, aligning with long-term averages. The CET1 ratio improved to 14.3%, supported by profitability and reduced RWA.
Regarding capital strategy, van Rijswijk said: “We continue to take steps to converge our CET1 capital ratio to our target level of around 12.5%." Following a completed share buyback program announced earlier this year, ING plans an additional distribution of €2.5 billion.
In September, ING released its Climate Progress Update 2024 outlining their updated energy policy and client engagement approach aimed at transitioning clients towards net zero emissions.
Van Rijswijk concluded: “We are well positioned to continue to execute our strategy and grow our business."