ING Groep's €500m Special Dividend and Buyback: A Bullish Catalyst?

ING Groep announced a special cash dividend of €0.172 per share and a €1.10 billion share buyback program. The special dividend and buyback look like a reinforcement of ING's existing capital return story. Investors should be aware of the risk of fragmented European banking regulation. ING's narrative projects €24.9 billion revenue and €6.6 billion earnings by 2028, with a fair value of €23.62, a 5% downside to its current price.