ING Groep Fourth Quarter 2023 Results

By Elena Vardon

ING Groep is set to announce its financial results for the fourth quarter of 2023 on Thursday. Here are the key details you should be aware of:

Net Profit Forecast

According to a consensus compiled by the company based on estimates from 16 analysts, ING Groep is expected to report a net profit of 1.54 billion euros ($1.67 billion) for the fourth quarter. This is an improvement from the net profit of EUR1.09 billion recorded during the same period last year.

Income Forecast

The total income of the bank for the three months ending on December 31 is predicted to be EUR5.59 billion, based on the consensus estimate. This is an increase from the EUR4.87 billion recorded in the same quarter of the previous year.

Net Interest Income

The net interest income is projected to decline on a quarterly basis. The consensus figure for the fourth quarter of 2023 is EUR3.98 billion, compared to EUR4.03 billion in the third quarter and EUR3.86 billion in the fourth quarter of 2022.

What to Watch For

ING Bank: Analysts Expect Solid Performance in Q4

Analysts are anticipating a strong fourth quarter performance for ING Bank, as indicated by the bank's common equity Tier 1 ratio. According to consensus estimates, the ratio is expected to be 14.6%, slightly lower than the 15.2% reported at the end of the third quarter.

Dividend payments are also anticipated to be positive, with a projected EUR0.73 per share for Q4. This would bring ING's full-year payout to EUR1.09. Although no share buyback program is currently expected, an update on capital distribution may be provided in the first-quarter results.

While costs are expected to see a seasonal increase, analysts suggest that cost inflation has remained high overall. Factors such as a one-off allowance in Germany and restructuring provisions in Poland are also likely to contribute to cost headwinds. Consensus figures estimate total operating expenses at EUR3.02 billion.

Looking ahead, analysts are eager to receive guidance for 2024. Key areas of interest include net interest income, which accounts for the majority of projected revenues, as well as costs and asset quality for the year.

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