ING Groep NV Announces €1 Billion Share Buyback Program
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 31 2024
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Should l Buy ING?
ING Groep NV's stock rose 5.03% and reached a 5-day high amid a positive market reaction to its new share buyback program.
The company announced a €1.0 billion share buyback program aimed at returning capital to shareholders, reflecting confidence in future profitability. Despite total income of €5.82 billion being up 3.2% year-over-year, it fell short of expectations by €40 million, indicating challenges in the market environment. The outlook for 2026 remains optimistic, with expectations of total income reaching around €24 billion, supported by volume growth and an anticipated increase in fee income.
This buyback program is expected to enhance shareholder value and strengthen the company's capital position, demonstrating ING's commitment to returning excess capital to its investors.
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Analyst Views on ING
About ING
ING Groep N.V. (ING) is a financial institution. The Company offers banking services. The Company's segments include Retail Netherlands, which offers current and savings accounts, business lending, mortgages and other consumer lending in the Netherlands; Retail Belgium, which offers products that are similar to those in the Netherlands; Retail Germany, which offers current and savings accounts, mortgages and other customer lending; Retail Other, which offers products that are similar to those in the Netherlands, and Wholesale Banking, which offers wholesale banking activities (a full range of products from cash management to corporate finance), real estate and lease. The Company's Retail Banking business lines provide products and services to individuals, small and medium-sized enterprises (SMEs) and mid-corporates. ING's banking activities in Australia are undertaken by ING Bank (Australia) Limited (trading as ING Direct) and ING Bank NV Sydney Branch.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Price Surge: Reports indicate that Group III base oil prices in Northern Europe have soared nearly 100% since the onset of the Iran war, which will directly increase the cost of finished lubricants, ultimately passed on to consumers and exacerbating market pressures.
- Supply Chain Risks: Due to shipping disruptions in the Strait of Hormuz and export restrictions imposed by South Korea, the U.S. base oil market is expected to remain under sustained pressure, with ILMA forecasting high costs and supply tightness until at least 2027, affecting multiple sectors.
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- Significant Loan Growth: Retail Banking saw a 9.4% increase in loans, while Wholesale Banking added €5.6 billion in loans, with an annualized loan growth rate exceeding 8%, indicating robust performance in the credit market that will contribute to overall revenue.
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See More
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- 2026 Outlook Confirmation: ING expects total income to reach around €24 billion in 2026, supported by volume growth and an anticipated 5-10% increase in fee income, demonstrating optimism about future market conditions.
- Expense and Tax Rate Forecast: Projected operating expenses for 2026 are between €12.6 billion and €12.8 billion, with an effective tax rate of 29-31%, while an ROTE exceeding 14% is anticipated, highlighting the company's efforts in cost control and profitability enhancement.
See More
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- Buyback Program Completion: ING has completed its previously announced buyback program from October 30, 2025, repurchasing 47.04 million ordinary shares at an average price of €23.46, totaling €1.10 billion, demonstrating strong capital management capabilities.
- New Buyback Program Launch: The company has introduced a new share buyback program of up to €1 billion, set to commence on April 30, 2026, and conclude by October 26, aimed at maintaining its CET1 ratio close to the 13% target.
- Capital Adequacy Performance: As of the end of Q1 2026, ING reported a CET1 ratio of 13.0%, exceeding the regulatory requirement of 11.06%, with the buyback expected to impact the CET1 ratio by 29 basis points, further solidifying the company's capital base.
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See More
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See More
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- U.S. Pressure on Iran: President Trump threatened to intensify pressure on Iran's economy and oil exports by extending the blockade of Iranian ports, further exacerbating supply disruption risks through the strategically vital Strait of Hormuz.
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