ING Groep N.V. (ING) Q2 2024 Earnings Call Transcript

ING Group, a leading global financial institution, recently held its 2Q 2024 earnings call, highlighting its impressive performance and strategic initiatives. The call, led by CEO Steven van Rijswijk, CFO Tanate Phutrakul, and CRO Ljiljana Cortan, provided valuable insights into the company's financial health, market position, and future prospects.

Accelerating Growth and Increasing Impacts

ING reported a strong commercial performance in the second quarter, with notable increases in the number of customers in lending and deposits. The company's mobile primary customers increased by almost 250,000, showcasing its digital innovation and customer-centric approach. This growth has put ING on track to reach its target of one million mobile primary customers per annum. The growth in mortgages, particularly in all markets, is a testament to the company's strategic focus on expanding its footprint in attractive markets. The increase in lending volumes, coupled with a successful marketing effort in retail banking and a stronger focus on deposit gathering in wholesale banking, resulted in a significant increase in deposits. This growth strategy is expected to continue, with a focus on market share gains and optimization of capital usage.

Delivering Value to Stakeholders

ING's strategic priorities, outlined in the recent Capital Markets Day, are paying off. The company's DNA of entrepreneurship, customer focus, and collaborative culture have enabled it to capture opportunities and deliver value to all stakeholders. ING's digital transformation is a key driver of its success, with mobile primary customers now the most loved bank in many markets. The company's products and services are appreciated by customers, with a net promoter score of 6 out of 10 retail markets. ING's strong financial performance is evident in its net interest income, which remained resilient despite the negative impact of higher accounting asymmetry. Fee income was almost at EUR1 billion, with retail banking driving most of the growth. The company's focus on risk management is also commendable, with total risk costs remaining below the through-the-cycle average. This proactive risk management, combined with a return on equity of 14%, demonstrates ING's strong financial health and ability to deliver value to its stakeholders.

Looking Ahead

ING's strong performance in the second quarter is a testament to its strategic focus and operational excellence. The company's growth trajectory, driven by its innovative digital strategy, customer-centric approach, and strategic expansion in attractive markets, positions it well for future success. The company's financial health and ability to manage risks effectively further underscore its resilience and competitiveness in the banking sector. As ING continues to navigate the challenges and opportunities of the evolving market landscape, its commitment to delivering value to its stakeholders remains unwavering.

In conclusion, ING's 2Q 2024 earnings call provided a comprehensive overview of the company's financial performance, strategic initiatives, and future prospects. The call underscored the company's strong commercial performance, strategic focus, and ability to deliver value to its stakeholders. With its entrepreneurial spirit, customer-centric approach, and strategic expansion, ING is well-positioned to accelerate growth, increase its impact, and continue delivering value in the dynamic banking sector.