23 May 2017Reading time: 3 minutes

Not so long ago ING found itself in heavy weather. The financial crisis started and the bank was eventually saved by the Dutch government. By now it seems that ING has recovered, something that is also shown in the development of the stock price.   

ING was hit hard by the financial crisis in 2008. At the end of that year they received EUR 10 billion from the Dutch government as support. Soon after that, this proved to be insufficient and the Dutch government took over a majority off the risk on a package of American mortgages.


However the European Commission put hard demands on this government support. ING was asked to split up the bank and insurance division, what took place three years ago and marked the end of an era. ING split up their insurance company Nationale-Nederlanden, which was directly renamed to NN Group and made an IPO on the stock market of Amsterdam.    

By now it looks like ING is in a financial better position, which is shown by the first quarter results presented in early May. The underlying income before tax of the bank increased on an annually basis with 39.9% to EUR 1.65 billion, mainly due to higher revenue from services to large business clients. Also the credit portfolio increased with EUR 5,7 billion annually, while the savings rose with EUR 6,7 billion.

However, ING saw the net profit decline with 9.1% to EUR 1,14 billion. According to the bank this was mainly caused by a tough comparison base. During the first quarter of 2016, ING reported a one-off book profit of EUR 506 million on the trade of NN Group shares.

Analysts were especially positively surprised by the realized cost reductions. The bank managed to keep its costs stable on a yearly basis, while on a quarterly basis there was even a decrease of 1.1%.

The past few years ING has suffered from the imposed liquidity requirements. In March 2011 the bank pointed at the new Basel III-rules, which would be too harsh and cause pressure on the margins of ING. For example the core-tier 1 ratio of ING would fall 130 basis points to 8,3%.

During October 2015 analysts even pre-calculated that Basel IV, which is the successor of Basel III, would cost ING EUR 2,5 billion. For now the new rules were postponed multiple times already, because Europe and the United States still can’t agree about the space that banks should be given to estimate their own risks. 


The Basel Committee on Banking Supervision (BCBS) seems to has given a compensation, which should lower the financial impact for banks.

In the run-up to the presentation of the first quarter results the stock price of ING rose towards an all-time high, but showed a decline afterwards. In comparison with a year ago the stock price is still more than 50% higher.

However it remains to be seen how the worldwide economy will develop itself and how the new Basel-rules will look eventually.

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05/12/2020 16:28:00