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ING Groep NV ADR ING

Morningstar Rating
$13.58 −0.16 (1.16%)
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Company Report

ING Group: Margins Peaked Earlier Than We Thought

We are less bullish than before on narrow-moat ING. But we still believe the share offers value. We now forecast that ING's earnings will decline by 17% in 2024, and we are cutting our fair value estimate by 11% to EUR 17 per share. Despite our lower net interest margin estimates, we expect that ING will continue to generate profitability above its historical average. Even with the structural improvement in profitability and capitalization, ING continues to trade at a discount to its historical price/tangible book value multiple. A step-up in the pace of share buybacks could be a catalyst to drive a rerating of the share. We model for share buybacks and dividends in 2024 to equal 17% of ING's current market value.

Price vs Fair Value

ING is trading at a 35% discount.
Price
$13.74
Fair Value
$43.00
Uncertainty
High
1-Star Price
$49.43
5-Star Price
$15.20
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Dutch banking system is an oligopoly with the three main banks holding more than 90% of Dutch current accounts.

Bears

ING relies on net interest income for the bulk of its revenue making it even more sensitive to lower interest rates than the average European bank.

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News

Trading Information

Previous Close Price
$13.74
Day Range
$13.5713.73
52-Week Range
$11.0015.22
Bid/Ask
$13.56 / $13.82
Market Cap
$44.85 Bil
Volume/Avg
2.0 Mil / 2.7 Mil

Key Statistics

Price/Earnings (Normalized)
4.38
Price/Sales
2.17
Dividend Yield (Trailing)
5.88%
Dividend Yield (Forward)
5.88%
Total Yield
9.42%

Company Profile

The merger of the Dutch postal bank and NN Insurance in 1991 created ING. Through a series of further acquisitions ING build up a global footprint. The 2008 financial crisis forced ING to seek government support—a precondition of which was that ING should separate its banking and insurance activities, which saw ING revert to being solely a bank. ING has market-leading banking operations in the Netherlands and Belgium, and a range of digital banks across Europe and Australia. Its global wholesale banking operation is primarily focused on lending.
Sector
Financial Services
Industry
Banks - Diversified
Stock Style Box
Large Core
Total Number of Employees
59,000

Competitors

Valuation

Metric
ING
CBK
KBC
Price/Earnings (Normalized)
4.386.526.85
Price/Book Value
0.860.451.17
Price/Sales
2.171.082.43
Price/Cash Flow
5.576.45
Price/Earnings
ING
CBK
KBC

Financial Strength

Metric
ING
CBK
KBC
Quick Ratio
Current Ratio
Interest Coverage
Quick Ratio
No chart available

Profitability

Metric
ING
CBK
KBC
Return on Assets (Normalized)
0.59%0.48%0.92%
Return on Equity (Normalized)
11.80%8.87%15.41%
Return on Invested Capital (Normalized)
Return on Assets
ING
CBK
KBC
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Economic Moat
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TD
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