On Thursday, ING Groep (NYSE: ING) missed third-quarter earnings forecasts, but shares in the Dutch bank rose as it raised its annual outlook and announced 2.5 billion euro ($2.71 billion) payout plans.
The distribution includes an up to 2 billion euro buy-back program expected to be completed by the end of April 2025, and a cash dividend payment of 500 million to be paid on Jan. 16.
ING also lifted its annual total income outlook for the second quarter in a row to more than 22.5 billion euros from above 22 billion forecasts earlier.
Shares in ING Groep (NYSE: ING), the largest Dutch bank by assets, rose 1.79% in premarket trading.
The lender said earlier its third-quarter net interest income – a measure of earnings on loans minus deposit costs – missed market expectations, due to a decline in liabilities and treasury-related income, standing at 3.69 billion euros.
“We have seen more growth in lending and deposits, but also in fees, we’re doing particularly well. And that has led us to believe that we can increase our revenues further,” CEO Steven van Rijswijk said on a call with journalists.
The distribution to shareholders will help push the bank’s CET1 ratio, a measure of capital strength for European banks that compares core capital against risk-weighted assets, towards its 12.5% target from 14.3% at the end of the third quarter, it said.
The lender also lifted its guidance for the cost-to-income ratio to around 53% from 54% and raised its return on equity target to above 13% from 12%.
When asked about potential M&A targets, Van Rijswijk said the group hadn’t been able to find anything fitting its criteria yet.
($1 = 0.9210 euros)
(Source: Reuters)
