ING Groep misses market expectations - decline in total revenue expected & record profit achieved in Germany

ING Groep misses market expectations - decline in total revenue expected & record profit achieved in Germany

According to a report by www.finanzen.net,

The Dutch financial group ING missed market expectations for revenue and interest income in the fourth quarter of 2023 and expects a decline in total revenue in the current financial year due to interest rate developments. Total revenue rose 11 percent to 5.41 billion euros in the fourth quarter, but less than analysts had expected. Net profit of 1.56 billion euros was 43 percent higher than in the same quarter of the previous year. For the 2023 financial year, ING reported total revenue of 22.575 billion euros, slightly more than analysts had expected. ING's Common Equity Tier 1 ratio at the end of the period was 14.7 percent, compared to the consensus of 14.6 percent.

ING Germany, on the other hand, achieved a record profit last year. Pre-tax profit climbed to 2.47 billion euros from 1.04 billion in the same period last year. An important driver was interest income, which increased by almost two thirds to 3.7 billion euros. Commission income, on the other hand, fell by 17 percent to 414 million euros. The ratio of costs to income improved significantly, and the bank was able to increase the number of customers by a good 250,000 to almost 9.4 million.

The ING share ultimately lost 6.44 percent to 12.34 euros on EURONEXT.

The fact that ING has missed market expectations and is expecting declines in overall revenue could result in investors and investors having less confidence in the company. This could lead to a decline in the share price and a more cautious assessment of the company, which could have a long-term impact on the market performance of ING shares.

In addition, ING Germany's record profit shows that the company is able to successfully strengthen certain business areas and increase sales despite the challenges in the overall market. This could indicate that ING is able to adapt to changing market conditions and grow successfully in certain areas.

Overall, these developments signal a certain volatility in the market for financial services, which is influenced by various factors such as interest rate developments, cost increases and customer growth. Investors should therefore continue to closely monitor ING share performance and the company's strategic moves.